Which to file 7 or 13?

[t160out]

All,

I've been doing the numbers on the means test using our current pay stubs and taking the default deductions plus the 1st and 2nd mortgages. Combined income puts us in ch13 - 5yr at about 70%payback to creditors.

If I go on just my income (gross, taxes, health ins, etc) and pull my wife's out of the calculation, we fail the means test (about $150/mo disposable), but I pass the means test because the total payout over 5yrs would be less than 25% of the total unsecured debt we owe.

Here's the big question: Should my wife quit her job, we stay current on our mortgages and file at the 6mo point and file chapter7? the cars are paid off and over 5yrs old. I think we would be able to get them covered under the exemptions possibly.

isn't just quitting you're job and doing nothing considered fraud?

Either way I'm screwed, but trying to figure out which screws us less.

thoughts?

[magyar123]

People lose their jobs everyday. Doubt that the trustee will ask you/her why you/she is not working anymore. Just don't admit that you/she quit to be able to file a Chapter 7.

[merlotwaytogo]

As long as you don't have to worry about losing assets in chapter 7, I would have your wife either quit or take a leave of absence. I would much rather be in a 7 than 13. Do you have too much equity in your house or all you in a state that excludes your homestead completely?

[merlotwaytogo]

oops I meant to say ARE you in a state........

[t160out]

to take or not to take a paid-for trip: HELP!!

All,

we have a cruise that was paid back in sept. It looks like we're heading for bankruptcy, but if I dont go I cant get any money back. Should I go on the trip sort of as a last hurrah, or is it better to bail on this now? I believe that the trip will cost us about 1200 this month, but I don't want to cause issues during the ch13 proceedings. My gut tells me not to go, but how far back do they look at the credit card transactions?

I'm hoping the trip can save my marriage, from all the stress this has caused, but I don't want to screw us for the next 5yrs.

HELP!

[StartingOver08]

You have to provide cc statements to the attorney. I had to provide 3 yrs of statements. It seems that different districts have different requirements. This is a tough call as you have already paid for the trip....If it were me I would not go - but have others jump in and tell you what might work

[rrockinggramma]

as noted in his other post, this trip is already charged on the card so the trustee would see it anyway if he/she asks for statements. However, going on that trip is another issue. CASH ONLY if you do.