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Ch 7 above median?

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    Ch 7 above median?

    I went to the attorney today for the first ready to get going on a chapter 13. Going through the numbers approximately, he said he was 70% certain we could actually file a 7! But we are over the median...is this really a possibility?

    #2
    Look up the "means test' And fill it out yourself. Please don't take this as being cold as it is not my intention to be cold about it. Information is power and helps you decide if an attorney is being forthright.
    11/23/'10-filed ch 13. 1/6/'11-341, confirmed. Below median. Plan completed 11/30/2015. DISSCHARGED 4/4/2016.JP

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      #3
      Very possible. I was very very very much over the median income (by over $80K) and I filed. Although my case was a non-consumer case, I still had a DMI of -$400/month when I first filed. I would say that an above median income filer must own a home and that home must eat up a lot of the income. It still must be realistic. Having a family and 2 cars helps as well. Combined with a home and 2 cars and hungry children to feed, it's possible to make a Chapter 7 being just a little over the median income.
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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        #4
        Not only possible, but it happens all the time.

        Here's an explanation of how the means test works, including a link to an online means test calculator. http://www.nolo.com/legal-encycloped...ity-29907.html

        Even if you don't pass the means test, you can still file a Chap 7. Not passing the means test means that there is a "presumption of abuse." That presumption can be overcome because of special circumstances. A decrease in income in the 6 months before filing BK is on example of a special circumstance that can be used to overcome the presumption. If you have an attorney willing to file a Chap 7 with a presumption of abuse, you have an attorney willing to work to get you a Chap 7 discharge. It sounds to me like he is being forthright.

        Because the attorney only 70% sure he can get you a Chap 7 discharge, ask whether he will require you to pay a further retainer to convert to a Chap 13 if you don't get a Chap 7 discharge. Hopefully, the additional attorney fees would be included in your Chap 13 plan and reduce what would go to unsecured creditors instead of coming out of your pocket.
        LadyInTheRed is in the black!
        Filed Chap 13 April 2010. Discharged May 2015.
        $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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          #5
          I was over the median by a good amount. I still made a chapter 7 due to high mortgage and because I bought a new car.

          If your allowable expenses are high enough, you can file a chapter 7 over median.
          Chapter 7, above median, no asset. Discharged with no UST involvement.

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            #6
            Yes, any fees paid for the 7 would get applied to a 13 in need be.

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              #7
              Originally posted by tic1975 View Post
              Yes, any fees paid for the 7 would get applied to a 13 in need be.
              That isn't what I meant. The Chap 13 and conversion from Chap 7 to Chap 13 would cost more than a Chap 7. You should make sure your attorney will allow you to include the additional fee in your Chap 13 plan instead of requiring you to come up with cash if you have to convert.
              LadyInTheRed is in the black!
              Filed Chap 13 April 2010. Discharged May 2015.
              $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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                #8
                I will be sure to ask him...thank you so much!

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