Advice wanted for potential Ch 13

[AreSoonParted]

Hi All,
Thanks for all the advice I've got from this list. Here's my situation: I am current on all debts, but looking at my cashflow I will run out of money in about 6-10 months. I qualify for a Ch 7, but would rather do a Ch 13. I work for an airline, so if another terrorist event, war, or other calamity hits, I may be unemployed, and I don't want to use a Ch 7 unless I get REAL desperate, since you can only do a Ch 7 once in 8 years.

I've read the BK-13 forms, and if you qualify for a Ch 7, it looks like the repayment period is set at 3 years and the only means test is that the creditors get more than they would in a Ch 7. I've gone over my budget several times and it looks like I can repay about 8-10% of the amount owed during the 3 years in Ch 13.

I talked with 1 attorney and once they found I qualified for a Ch 7, I don't think he listened to my arguments about doing a Ch 13.

Some way or another something is going to give, since I have a little time I want to prepare for the eventual filing but preparing for a Ch 13 is way different than preparing for a Ch 7.

I have about 110k in unsecured debt now, and virtually no equity in my current home. Much of my debt is for a promissory note I had to sign to complete a short sale on a house I sold in Indiana for 127k after buying it for 195k a year earlier ....so much for mortgage insurance!!! I guess it's good that I avoided the foreclosure.

Anyhow, if anyone could point out major flaws in my logic or something I might be missing I'd be thankful.

Thanks.

[SinkingFast]

The only Ch 13 I've seen here, where the people were below the Median, was to keep their house and a car. They had arrears on their mortgage, car payments, and owed back taxes on their house.

Could be, the attny you spoke with was more interested in what was easiest and not what you feel your best interest are. Could be you don't have the income necessary to support a Ch 13 payment plan. In order for a Trustee to confirm a Ch 13, the Trustee has to believe the Debtor/Filer has the resources necessary to make the payments.

Call at least a couple more attnys and schedule a couple more Consults.

FYI,.......... If you find your Court's Homepage, you can find out who the Trustees in your area are. Trustees are generally BK attnys. Call their offices and see which ones are Ch 7 and which are Ch 13.

Maybe going with a Trustee for your attny might help you. Don't Consult with them all tho. If you taint the Trustee pool in your area, the Court will have to bring in a Trustee from another District to handle your case.

[aa06a47]

Hi All,
Thanks for all the advice I've got from this list. Here's my situation: I am current on all debts, but looking at my cashflow I will run out of money in about 6-10 months. I qualify for a Ch 7, but would rather do a Ch 13. I work for an airline, so if another terrorist event, war, or other calamity hits, I may be unemployed, and I don't want to use a Ch 7 unless I get REAL desperate, since you can only do a Ch 7 once in 8 years.

I've read the BK-13 forms, and if you qualify for a Ch 7, it looks like the repayment period is set at 3 years and the only means test is that the creditors get more than they would in a Ch 7. I've gone over my budget several times and it looks like I can repay about 8-10% of the amount owed during the 3 years in Ch 13.

I talked with 1 attorney and once they found I qualified for a Ch 7, I don't think he listened to my arguments about doing a Ch 13.

Some way or another something is going to give, since I have a little time I want to prepare for the eventual filing but preparing for a Ch 13 is way different than preparing for a Ch 7.

I have about 110k in unsecured debt now, and virtually no equity in my current home. Much of my debt is for a promissory note I had to sign to complete a short sale on a house I sold in Indiana for 127k after buying it for 195k a year earlier ....so much for mortgage insurance!!! I guess it's good that I avoided the foreclosure.

Anyhow, if anyone could point out major flaws in my logic or something I might be missing I'd be thankful.

Thanks.

I admire you wishing to save the silver bullet for another time. Remember though, you can file a 13 I believe in 2 years if you need to. If you quality for a chapter 7 now, especially with that much unsecured debt, take the chapter 7 route.

I have to ask though, with that much unsecured debt and you able to maintain it for another 6 months, where is the money coming from? If your income can support that much unsecured debt, chances are you won't quality for a chapter 7 unless your burning some savings / inheritance. I would talk to a few more attorneys. It sounds like you have either a good income now or some savings stashed away.

[SinkingFast]

I admire you wishing to save the silver bullet for another time. Remember though, you can file a 13 I believe in 2 years if you need to. If you quality for a chapter 7 now, especially with that much unsecured debt, take the chapter 7 route.

I have to ask though, with that much unsecured debt and you able to maintain it for another 6 months, where is the money coming from? If your income can support that much unsecured debt, chances are you won't quality for a chapter 7 unless your burning some savings / inheritance. I would talk to a few more attorneys. It sounds like you have either a good income now or some savings stashed away.

The OP could be in the same situation we were in a year ago.

We were paying the CC bills with every month with the remainder of Hubby's severence benefit. And it was running out fast.

Our $2K/mo CC minimums jumped to $2900/mo in December of '05 thanks to the "recommendation"/trade off Congress gave the CC industry.

You scratch my back, I'll scratch yours. "We'll give you updated BK legislation in return for increased minimum payments." The old Consumer Double Whammy!

[AreSoonParted]

answers to question on income

Actually, I do have some cash on hand because I got a large 1 time chunk of money in june... It was about 18k gross that was due in 2003 but my employer was in chapter 11 (United airlines). I was going to try and see if I can avoid bk and tough it out... but it's not enough to do more than give me time to get the financial house ready for bk.....I also have to wait 6 mos from june so it won't impact the means test.

[SinkingFast]

Actually, I do have some cash on hand because I got a large 1 time chunk of money in june... It was about 18k gross that was due in 2003 but my employer was in chapter 11 (United airlines). I was going to try and see if I can avoid bk and tough it out... but it's not enough to do more than give me time to get the financial house ready for bk.....I also have to wait 6 mos from june so it won't impact the means test.

Smart cookie!! ASP!!

Best to get thru your Consults. Get your attny picked and paid.

When you're ready, stop paying the CC's. Be sure you don't pay anyone of them in excess of $600 total within 90 days of filing.

Use the money to go to the doctor, dentist, etc. Get life insurance set. Take care of necessities. Make sure you have good transportation.

[anonymuse]

Parted,

See several attorneys for free consultations--even better to find one that is or has been a trustee or at least has one in the office. If you go Ch 13, you will need to deal with this person for the next 3-5 years so no need to make any rash decisions.

I can't remember if we've talked via PM about your location in Colorado. Feel free to PM me privately if you have any questions on attorneys.

Just to clarify from your post to make sure we're all on the same page. If you are under the median income, you qualify for a 3 year plan. During that 3-year period, all of your disposable income must go to the plan. (I think you understand that, but just wanted to make sure.)