Chapter 7 or 13

[Horse of Course]

My husband and I would like to file a chapter 7 instead of 13, but we're not sure if we can. My husband makes over the median for our state. We owe about $72,000 in CC's and $18,000 in an auto loan. Our house is $125,000 in negative equity due to the housing slump. We would like to surrender our car that we have financed and our home. Does surrendering our house and car help us to be able to file a chapter 7 instead of 13?
We have an appointment to see a lawyer on the 6th of August.
Thank You.

[woeisme]

Surrendering house and cars with negative equity does not help you get into a CH 7. If you had a lot of positive equity and could prove creditors would get more by liquidating your assets if you filed for a CH 7 than they would in a CH 13, that would be a different story, but not the case here.

Whether you can file a CH 7 will depend on how much over the median you are, what your expenses are, and what your disposable income is. If you give up the house and the car, my guess is you will actually have more disposable income, and are more likely to be forced into a CH 13 than if you didn't surrender them.

[momof5]

Wow... I am still stuck on your horse boarding fees! You never mentioned being over the median in that thread. Sounds like a good attorney is going to be your best bet.