Ch 7 in NC

[sjp444]

Ok, I am in the process of filling out the paperwork for Ch 7. It sounds like a great plan and after meeting with the attorney, they say I qualify for ch 7. I am still very hesitant to take this step. They told me to stop paying all but rent/car and household bills, the fee is 1900 to them. I am wondering what will happen if it gets to the court stage and they say I don't qualify for 7 or 13 and then I have stopped paying creditors and will be more behind than I already am?? Of course, everyone is telling me that doing this will be the worst thing I can do? The lawyers of course say that it is not as bad as everyone makes it seem? I've been reading the boards and it is encouraging but is still such a big decision. Thanks!

[Help!]

It is a big decision. If your income is not above the median for your state, there is no reason to expect that your Ch. 7 case would be converted to Ch. 13. Once you've filed, there's no "qualifying". Ch. 7 cases are sometimes dismissed for abuse under 707(b) when it appears to a case trustee/US Trustee that the debtor has the means to fund a Ch. 13 repayment plan. Cases are occasionally dismissed under 707(a) for fraud when it appears the debtor filed in bad faith, misrepresented their income, committed perjury by material misstatements, etc. In the absence of either of these, Ch. 7 cases generally move along through the system smoothly as you can see from the majority of posts in this forum.

If you're unfortunate (as I was) and have a case that gets complicated, there are others in this forum who have been through it all and can give sound advice. If you feel fear entering the process, write down all of the things you're worried about and ask your lawyer as many "What if...?" questions as you need to. Good luck!

[JRScott]

The advice given is typical.

The thought process is that there is no need to throw away money. Since unsecured debt will be discharged you stop paying on it. If your like many you've been living on credit and paying minimums never having cash, now you'll move to a cash and carry policy. It will help you adjust to the new budget.

Without knowing your income level it is as Help says that if your below median income you will easily qualify for the Chapter 7, if above you still have a good chance and if not would qualify most likely for the Chapter 13.