Can reaffirming a debt help Expense/Income when looking at quaifications for Ch7?

[dbleblanc]

My lawyer tells me that my income vs expenses are so close that the trustee may or may not allow me to file chpt 7. He said that it will be looked at closely due to the fact that our income is on the high side from the normal of what is usually lower than mine. He says that he feels really good about the numbers but it is just really close. We fall just under the limit that would allow us to file chpt 7. Our reports reflects that we have $108 left after all bills/expenses are paid. I have not car notes. The only reason we are filing is due to a lawsuit.

So here is my questions:
IF I would reaffirm a debt(personal loan) that resides with our credit union would this help balance things and allow me to stay as a chpt 7 filing? I don't want to do it if it will not make a difference.

We have all ready filed just two days ago. When does the reaffirm happen? Is it too late to address this if we dicide to do it? At what point can this be done?

And if it would make a difference, now that my bk papers have been filed how/when would this be added as an added expense? When would it be determined that this would balance things to were a chpt 7 filing is OK?

We have a great history with our credit union and would really like to keep them happy if at all possible. I hope when everything is over that they would take us back. One of the members on the board does know about the lawsuit that started 3 years ago. My husband had at one point told him that it is very possible in a few years that I will be forced to file BK. So based on all this I really hope that they will have some pitty on us. Wishfull thinking I am sure but I really hope so!

[keepmine]

Well, if you reaffirm a debt, you are accepting responsibility for the account on the same terms before the bk filing. Since, you would have a contrctual obligation to pay, it just may fly. Time to call your lawyer about that one.
Old law, you had up until discharge date to file a reaffirmation agreement. Not sure if bk reform changed that or not.

[FoolAndHisMoney]

I don't think you can deduct it on the means test just because it's a personal loan. I'm almost positive that it has to be a secured loan such as a car or house.

Since you are so close are there any deductions you can take at work like disability insurance or better health coverage? Sounds like you need to file as soon as possible, but maybe you can find some more deductions and wait a little longer. These are reasonable expenses that you will need anyway.

I read your past thread and saw you filed already so forget about the deductions. I don't understand why you would be subject to the means test anyway since your debts are not all consumer debts and it's a civil suit. It sounds like if you waited for the judgement and it added up to be your primary debt the means test would not apply no matter how much income is left over. More things attorneys don't mention just to get ones business sooner rather then later.

[aa06a47]

You won't be able to single out a certain unsecured debt and reafirm that in order to get you to pass the means test. Since you have already filed, it will be impossible to change things now, but you might have been able to turn some of your debt into home equity through a home equity loan / second mortgage / car note.

[dbleblanc]

Thanks for the replies... I guess I will just ride this one out and see what happens. It really does not matter chpt 7 or 13. At this point I just would have perfered chpt 7.