Is this the answer?

[pkmj]

Hello! Great forum!!!! Been reading for hours!

I am thinking about contacting a BK Attorney Monday... Any thoughts or insight from the information below?

Unsecured Creditors - $47,544.29 (Monthly: $7,464.70)
Home, car, unsec loan - $131,186.00 (Monthly: $2,447.00)
We have a leased car on top of our bank owned car, I added the lease payment in the monthly above. Mortgage payment includes escrow.
Total debt = $178,730.29
Additional monthly bills - $852.00 (not including quarterly water/sewer)
Total monthly bills less credit cards - $3,299.00

Avg Income: $6,613.26 /mo - does not include 2 extra paychecks a year worth $2,400. (One of us has 24 and the other 26 paycheck a year).

Left over spending: $3,314.26 - Family of 5

House, unsec loan, car and leased car is current and good standing

Four credit cards just charged off. Cannot keep up on all the payments but have current history with 7 out of 20 unsec creditors.

Got ripped off with a Settlement service, looked into a negotiation service but with all the charge offs we think it's just too late for that to work out, plus the amount they want a month from us isn't do able this month and it seems unrealistic to us, nor is it guaranteed.

Any help is appreciated! Thanks!

[justplaintired]

Hi and welcome!

First what state are you in? You need to find median income for your state, this is easily done by searching your state's bankruptcy median income. This will be gross, not net. Also count atleast 1 of the bonuses assuming that you receive those every 6 months, guessing here. Also, are you keeping the house and if so how much equity and are you current. When you figured monthly expenses I doubt you added in groceries and gas, did you add in your car insurance, all living expenses. I doubt a family of four can live on $852 a month, I am assuming by your figures you are planning on staying in the house.

Sounds like you're on the right track but you will need to stick around and learn on this forum, there is just so much that goes into a BK. Seeing where your income falls is a start on what Chapter you will file. Also getting your expenses figured out is the next step. Your attorney on Monday will tell you which chapter you can file.

Good luck and again welcome aboard.

Also you can do a pretty accurate means test at LegalConsumer.com, it will give you an idea on the chapter you will qualify for. Ofcourse your attorney will do the same.

[AngelinaCat]

Hi, welcome to this wonderful forum. Since you are new, and say that you are a family of five, I suggest searching Momof5's posts, and see what she has to say. She is in NY State and is the mother of 5 children. I am sure she will be glad to help you.

Good luck. I'm being called away; I'll post later tomorrow.

Our best~~~

[AngelinaCatHub]

Hello! Great forum!!!! Been reading for hours!

I am thinking about contacting a BK Attorney Monday... Any thoughts or insight from the information below?

Unsecured Creditors - $47,544.29 (Monthly: $7,464.70)
Home, car, unsec loan - $131,186.00 (Monthly: $2,447.00)
We have a leased car on top of our bank owned car, I added the lease payment in the monthly above. Mortgage payment includes escrow.
Total debt = $178,730.29
Additional monthly bills - $852.00 (not including quarterly water/sewer)
Total monthly bills less credit cards - $3,299.00

Avg Income: $6,613.26 /mo - does not include 2 extra paychecks a year worth $2,400. (One of us has 24 and the other 26 paycheck a year).

Left over spending: $3,314.26 - Family of 5

House, unsec loan, car and leased car is current and good standing

Four credit cards just charged off. Cannot keep up on all the payments but have current history with 7 out of 20 unsec creditors.

Got ripped off with a Settlement service, looked into a negotiation service but with all the charge offs we think it's just too late for that to work out, plus the amount they want a month from us isn't do able this month and it seems unrealistic to us, nor is it guaranteed.

Any help is appreciated! Thanks!

[pkmj]

Thanks everyone! The 852 is utilities not living expenses like groceries, gas, clothing, I didn't post any of that, although most of it was determined during our visit to the negotiator.

AngelinaCatHub, Believe me I know what your saying, I think it's ridicules that we can make just over 100k and be in this position. But it should be noted this income is new as of this year, actually, this month. It was about 25+ a couple months ago. We have made a lot of mistakes, learned from them, want to pay back our debts but can't find a solid way to do it. Chap 13 seems to be the answer for us and will lock us our of attaining credit for a short period of time at least. Hopefully long enough to never need it again.

I want to retire when I get older, not work until I am dead, that is my new focus, retirement in 35 years ;)

I also think it's all relative, someone can get into this mess no matter how much or how little they make.

BTW I am in Michigan.

[liz417]

I think you are correct, I don't think this economy is anywhere near the bottom yet...I have neighbors that just refinanced their house, pulling out big $$$ (they've lived in the house for some time and have/HAD lots of equity) and boy are they on a spending spree! With the housing market (in Calif) losing value daily, you would think they'd be a little smarter...I guess it's just jealously on my part as I look at their new expensive camper (they had very nice one before that was only 1 year old!) and the new Harley in the driveway...............
I think we are in for a scary ride and this is just the begining!

[liz417]

Thanks everyone! The 852 is utilities not living expenses like groceries, gas, clothing, I didn't post any of that, although most of it was determined during our visit to the negotiator.

AngelinaCatHub, Believe me I know what your saying, I think it's ridicules that we can make just over 100k and be in this position. But it should be noted this income is new as of this year, actually, this month. It was about 25+ a couple months ago. We have made a lot of mistakes, learned from them, want to pay back our debts but can't find a solid way to do it. Chap 13 seems to be the answer for us and will lock us our of attaining credit for a short period of time at least. Hopefully long enough to never need it again.

I want to retire when I get older, not work until I am dead, that is my new focus, retirement in 35 years ;)

I also think it's all relative, someone can get into this mess no matter how much or how little they make.

BTW I am in Michigan.

Hi and Welcome to this forum!
You will find a wealth of info here. You state that you tired to go with "debt settlement", if you would, please post your experience here (on a new thread). We've had several posters wondering if they should go BK or go with a debt settlement company. I looked into this first, but really didn't like the terms etc.

Thanks and Good Luck!

[pkmj]

Hi and Welcome to this forum!
You will find a wealth of info here. You state that you tired to go with "debt settlement", if you would, please post your experience here (on a new thread). We've had several posters wondering if they should go BK or go with a debt settlement company. I looked into this first, but really didn't like the terms etc.

Thanks and Good Luck!

Where should I post that information?

[liz417]

Where should I post that information?

I would make a new thread on the "General BK" site.

[pkmj]

Ok, I posted it. I hope it helps?

[BKParalegal]

pkmj,

Based on your income and depending on when you get the extra 2400, you kiss and I mean literally kiss the Means Test Median Income for a family of five (83,082.00) and with the your secured debt as well as any additional expenses (i.e. childrens education, charity, telecommunications etc.) you should pass part 2 easily in the Means test and therefore you can qualify for a Chapter 7, need a hard look at your Schedule I and J(Income and Expenses) or if needed to catch up on mortgage arrears you can file a Chapter 13 and go the minimum 36 months. Again on the surface you are ripe to file a Chapter 7, if you can get the numbers to work.

Good Luck