what is this 20 cents on the dollar stuff???

[shygal]

I recently spoke with my attorney, and he said I might have to pay back 20 cents on the dollar over a long period of time??? what the hell is that! At the end of each and every month there is absolutely nothing left....to pay out anymore. Now I am really lossing sleep and more nervous about filing.. please help with any advice.. thanks so much!

[HHM]

Without more back ground, what do you want us to say. Are you trying to save your house from foreclosure, what kind of debts do you have?

[shygal]

sorry I wasn't more specific... well my house is always been current every month , I have only lived in it 2 years so there is hardly NO equity involved.. my car is leased and I have never been late on payment... I have 45,000 in cc debt and 5,000 in medical bills due to having no insurance and being rushed into the hospital for chest pains! I was planning on reaffirming my house, car and 1 cc that is almost paid off ( furniture was purchased on it 2 years ago when I bought my first house) I am married but my husband is not going to file because all the cc are in my name. I have a little girl as well..... when our lawyer told us I may have to pay back 20 cents on the dollar I couldn't believe it..granted this was over the phone just giving him a short heads up on what we were thinking of doing. Why would that be possible?? I thought filing ch.7 would wipe out our debts???? help???

[HHM]

Well, assuming your income is equal to or less than your necessary living expenses (expenses not including minimum payments to credit cards), you shouldn't have to pay anything back (except your tax refund if you get one).

Do a budget, i.e. list your monthly income and all your monthly expenses. Do this a few times because most people tend to UNDERestimate how much they spend. See where your stand, then schedule an appointment to meet with a lawyer.

[Chris]

how to repay tax return

HHM, Sorry I am having a hard time getting what is in my head out in a coherent way. But what shygal is asking is exactly what I was wondering...I haven't even filed bk7 yet, and I've already submitted my 2004 tax returns and received a refund that I used to pay the mortgage and car, so it's gone. So, if I have less income at the end of the month for living expenses, and I have already used my 2004 refund to pay my mortgage and car payment, Then how do I pay back the income tax refund to the trustee when I do go and file when I don't have any money left? Plus, where are these people even getting the money to settle anything on the dollar at all? If I had my tax refund or any thousands left to even offer on a settlement, I wouldn't be bankrupt. So I'm just confused if I'm looking at this wrong. Thanks for your help. Good luck shygal.

[MOQuestions]

Probably talking about pushing to a 13.

Your income levels and bills may be out of whack. If you have more income than bills after a C7 is filed, you can be forced into a C13. In a C13 your debtors are paid a small amount for 3-5 years, if there is anything still owed after the time frame, that amount is forgiven by the court.
I'm not sure why your lawyer would advise to only have one of you file, most states consider any debt incurred in marriage as debt to both persons and if you file the debtors will probably go after the income of the spouse.
If you haven't already seen a lawyer, in person, make an appointment and talk about your case. Many lawyers will not charge for an initial consulation.
Also, do a budget, I'm including a link to a bankruptcy application from another online site, but it is handy to complete before going to see a lawyer, it'll help to determine whether you can file C7 or not.

http://www.bankruptcyaction.com/application.htm

[NotTheOnlyBrian]

You may want to check the exemptions for your state because you may benefit from filing together with your husband if the state offers doubling of any exemptions for married couples.