Met with Attorneys this Week for 1st Time

[dovette7]

Ok. We have talked with Credit Counceling.... no other option but bankruptcy. I've looked at every option and we just don't have one. My last post I was frantic and had lost weight etc. I've been in a lot of prayer and feel better. Mainly because I realized this financial position is our own doing and I just have to accept that bankruptcy is the only thing we can do to eventually start over.

I have talked with 3 attorneys. Like 2 but even though they both pretty much had the same answers, there were a few differences and thought I'd ask what you guys thought.

To save money I had lowered my monthly health insurance ($660 per month with a $2K deductable) to a $10K deductable plan which lowered it to $300 per month. I still get $40 dr visits 6 times a year.
1st attorney said: Go back to the $660 b/c you don't need a $10K deductable
2nd atorney said: Keep it at $300 b/c you have to lower your expense.
I think I am almost at the point of not having enough money for a chapter 13...he's saying cut expenses

I was going to surrender our Tahoe b/c the payment is $590 per month
1st attorney said that could work.
2nd attorney said not to get the other car b/c he's trying to do my payment at 1% unsecured??? If we got the other car instead, that wouldn't work.

1.A ll this is so confusing. Here's where I am.
2. Taking a deep breath.
3. Getting all the documents the attorney needs ready which for whatever reason I so dread to do. I cry everytime I start writing down all the personal information.
4. Both attorneys told me it would be better to surrender our house if I didn't want to be in this house after the bankrutpcy. I do not so we're surrendering the house. So find a home....move.... stop paying mortgage payments.
5. I think I will owe 2006 taxes so I am waiting to file until Janurary and I file those taxes so getting all that ready.

Does this sound correct? I appreciate all of your suggestions and interest.

[ram180]

i'm pretty new here and dont know that much to give you the best answers to your questions. however i just went thru all this myself and finally have my hearing later this month plus first payment is due this month also. its been really hard on me also and prayers really got me thru this thus far. no one knows had bad i been struggling trying to keep my head above water and finally i just couldnt take it anymore. i really didnt want to do this but it just was no other way out. but everything happens for a reason and much of it was my own doing. they say what dont kill ya will make you stronger and i look at it as just another storm of life. this too shall pass so dont beat yourself up too bad and remember that bad things happen to good people and just look forward because you cant change the past. look forward to when this is all behind you. best of luck and hope everything works out for you.

[CindyLou]

is there a chance you could qualify for a 7??????

[SinkingFast]

Some of the wrangling around on your expenses is the different attnys views on what the Court will allow or won't allow. One guy takes in $300/mo for health insurance payments and that's fine. The other guy may slide by the $600/mo payments and the Trustee won't even bat an eyelash.

BK attnys is a small click, fraternity. They all know each other and the Trustees. One goofy guy may be a qualified attny but the joke of the Court. He always goes in on the safe side. Another guy may be suave and confident and golf on Saturdays with the Trustees. Well liked, articulate, and his cases go thru smooth as silk. A lot falls to interpersonal dynamics.

I'd suggest you chat with a few more attnys to try and get a consensus feel for your case. Also, throw in a Trustee or a former Trustee and have them size up what they think you can and cannot pass thru the Court.

[dovette7]

I know I can't qualify for a Ch 7. I have disposable income left over.
Here is a big issue that I am very confused on. The first attorney I went to asked me if I wanted to keep my house. My house payment is $2900 per month. My electric bill for 4 months in a row was $700.
So when he asked me that question, I said that I'm not in love with my house b/c it's so high and the utilities and maintenance are huge. He suggested that I surrender my house/sell it quick and get into a house that is more in line with what I would be comfortable with in 5 years when this is all over.

Our best friends are buying a house and lease purchasing it to us. Payment/utilities etc will be lower. However, the last attorney told me that she would not let the house go b/c that would only free up more money for the payment plan and I would not have the tax benefit interest deductions or the continued equity in the house for 5 years.

I'm concerned that with all the other expenses we have, that huge mortgage and all that comes with it will be difficult to pay in the bankruptcy plan but at the same time, I understand trying to keep the house for all the benefits.

I've read on here of people who lose thier house after filing b/c they couldn't keep the payments up.

Wish there was a clear answer to all this. I am concerned about making a wrong decision that will affect us more negatively long term.

[jane taylor]

I would recommend speaking with other attorneys, too. SinkingFast, as usual, is absolutely correct that interpersonal dynamics is SO important in all of this! One of the reasons we chose our attorney is that he was recommended by one my best friends who is an attorney and because our BK attorney has a great rapport with the Trustees.

Do be careful when it comes to insurance. If you do a Chapter 13, there will be very little left over and medical emergencies do arise! My husband had to have surgery and thank God that his surgeon was good enough to accept what the insurance paid.

Take care of yourself and don't beat yourself up too much. There is NO human that has NEVER made a financial error. Prayer does help, too. Know that others are lifting you up.

Hang in there, friend, and do keep us posted.

jane

[Jman30]

Dovette, my little two cents would say that the second lawyer you spoke with is more on the money with his suggestions than the first guy.

Although $2900 for a mortgage payment is pretty huge...is it a huge house worth alot or do you just live in a high price property area of the country?

And Jane Taylor is absolutely correct about the insurance. This also includes car insurance, etc. They will leave with nothing in a Chapter 13 and you will be forced to be creative with whatever income you have. Throw in a medical problem or a car problem and you are in deep trouble.