Lots of questions....Help

[outofwork11]

I have an appointment with an attorney next week, but am totally befuddled. I am thinking I will file Chapter 7 and took the online means test. My income was only under by $4.00 a month using the state average. I took the 2nd part of the test and it shows that I have $1600 a month in disposable income for Chapter 13. Both my husband and I have lost our job and the 6 month average in no way reflects our current (unemployment only) income. Will I need to file Chapter 13? If so I think I am better off skipping bk as my interest rates on my cards are between 3.99- 7.99 fixed. I cannot keep my house so maybe I am better off just going into foreclosure. Also If I am able to file Chapter 7 and am including my house, how long do I have until I have to vacate? Does anyone know if the trustee looks at current income at all when determining what the debtor can pay. I have no problem with Chp 13 if I can afford it, but I cannot afford more than $100 a month.... Anyone have suggestions or answers?

[StartingOver08]

How long have you been on unemployment income? Just based on the little bit you have posted, it sounds like you need to average in a few more months of unemployment income rather than the six months of full employement income that you currently show.

The trustee looks at the immediate six months income prior to filing.

When you stop paying ANYTHING (your house or your cards or both) the interest rates skyrocket on EVERYTHING unsecured. So those low rates you currently have will escalate to 30% or so. The fixed rate is a marketing gimmick. If you read your T&C you will see what will trigger the default interest rate (look for universal default clause). Natually if you stop paying the house, then that rate goes to the default rate too.

BK is not for everyone. If you only have a problem with the house, then maybe you just want to consider having the foreclosure and keeping the cc's up to date.

If you post some details, including your state, maybe we can give you some input in your specific situation.

[outofwork11]

Ok here is the details. I have been unemployed for about 2 months, My husband 1 month. We do fall just under the income requirements for Chapter 7. I have been interviewing for jobs and everyone of the interviews are for jobs that pay at least $26k a year less. We currently have about $22k in credit card debt. The problem is with the house. Our house payment is 70% of our current unemployment and if I actually get one of these new jobs it will be the same as I will be taking home about the same as I do on unemployment. Once the CC debt is included we are at 90% of our income. We could afford an apartment and our current credit card debt (if the payment stays the same) and probably an additional $100 a month to pay on other debt. But if the credit card rates increase we could not make the bills. I am more than happy to pay the cc's as they are my debt and I owe it, I would be even willing to work with the mortgage company to pay them a $100 a month for the next 20 years to get out of the house....But if my credit card rates go up and the mortgage company hits me with a deficiency judgement ( I refi'd of an arm, rate term refi, NO cash out). I currently owe about $150k on the house and my realtor (the house is up for short sale) said best case scenario is maybe $85k, which I do not believe the bank will take. I do not know what to do... Of course the BK attorney thinks I should file BK, the realtor thinks I should short sale, but they both have an interest in it..I am not sure what we should do that would be best for us... Our state is Michigan... Any suggestions would be great.

[outofwork11]

Forgot to add that our cars are paid for they are worth about $3500 and $2500. Only debt we have is the credit cards and the house... No assets to speak of as prior to letting us go, my employer cut us to 4 days a week, then 3 days a week and we lived off savings during this time.

[StartingOver08]

Ok. I am a little confused with the details.
What state are you in? How long have you been in that state?

Please list the cc name (eg BOA) the balance, the payment and the interest rate.

Please list the house debt and payment and also list the rental payment for a similar property. Then list how much rent you would pay for a home if you left your home and went on the open market to find a place to move to.

List your average income for the last 6 months.
List your income assuming you have one of the new jobs you have a chance at getting.

I am trying to see what is best for YOU - not the realtor and not the BK attorney. But I need a few details to see what is possible - then others can chime in too with their ideas.

[outofwork11]

Ok, the credit cards are, Juniper $6500 7.99 fixed payment of $125.00, Juniper $7600 7.99 fixed payment of $135.00, HSBC $4600 3.99 fixed payment of $60, Providian $2000 15.99 payment of $60 a month, Providian $1800 payment of $55 current mortgage payment of $1345. Unemployment income for husband and I each $620 bi weekly total a month of $2480. If I get the new position our income will increase by $200 a month. We should be able to rent an apartment for about $700 a month. I just reduced our insurance coverage and now only pay about $200 a month. Our income using the 6 month average is $6120 a month. We are in MI, the unemployment capital. We do have children so child care is an issue once we both find employment especially if the jobs we have to take pay significantly less. Let me know if there is any other info you need. I am not trying to be vague, I am just not sure what to include. Thanks.