Hey I am new and getting ready to file...

[car67]

Hello everyone. I been lurking and searching for answers.
I am ball of wax nightmare I am sure of it.
I am filing bankruptcy on a business and on personal debt.
I have hired an attorney to help but hate to ask a bunch of dumb questions..
Man where do I start.... I am married, wife is not working have 9 year old daughter who goes to private school and dances. I am a homeowner and payments are current on my home, truck, and car....... I have a huge medical bill of $167,000 thats in the early states of collections and also have about 40k in credit card debt that has been current. My business has about 30,000 k in unsecured debt and as a result of running the biz as a self employed entity I have another $27,000 in tax bills due.........

Met with attorney initial review. Will have to file Chapt 13 not a surprise there for personal debt...... As for business he advised it best to close the corparation and start a new company and basically start the business from scratch... Which was easy for me to do... I just basically register a new corp, get a new ein and new bank account and I am in business. My loyal clients will follow me not a problem there.

My question initially is this.... As for my daughter will I be allowed to keep her in private school at $450 a month and dance lessons at $200 a month...
My wife is not filing on my bankruptcy and has a car payment I will inherit and her card payments and student loans are now on my plate as well... Where do I start CAR67

[aa06a47]

CAR67, my initial advise is to get the thought out of your head that you don't want to ask your attorney a dumb question. He is the source of legal advice, this forum should be used as support and not legal advice.

My opinion is that you probably won't be able to keep the private school or dance lessons. It however will depend on your own local trustee / judge. I have read where some judges approve it, other judges don't.

I would consult with 2-3 more attorney's. Not sure your income, but with that much business debt and unpaid tax debt you earnings / income may be low enough to allow you to file a chapter 7.

[SinkingFast]

I don't think you'll get the Private School tuition deduction unless your child has a particular need not fulfilled by the public schools in your area.

From Means Test, Form B22A:

Other Necessary Expenses: education for employment or for a physically or mentally challenged child. Enter the total monthly amount that you actually expend for education that is a condition of employment and for education that is required for a physically or mentally challenged dependent child for whom no public education providing similar services is available.

Dance lessons will probably be a No on the Means Test. BK is about things necessary for the support of the Debtor/Filer and the Debtor's Dependents. Dance Lessons are not a necessity, generally speaking. Unless, maybe you have a medical reason. I knew a child when I was younger who took ballet lessons due to some sort of medical condition with her feet and/or ankles.

You will be able to list the private school tuition and the dance lessons costs on your Schedule J. But don't be surprised if your attny "modifies" the amounts somewhat. Generally, attnys know what will and will not be acceptable to the Trustees in your Court.

As for your business,........... You might want to time your filing so you can let your business die a natural death. File your last quarterly taxes for the business and then "close the doors" so to speak. You should be able to discharge the unsecured debt. But the taxes might be a totally different story. Depends on how old the taxes are.

[car67]

What I mean by not bugging the law office with tons of weird thoughts I would talk to the pros here on ideas so I am better prepared when in the legal chair..

Since I am filing the debt solo under my name and not dragging my spouse into things would it be smart to give her a job at my company to allow her to have a paycheck to pay her student loans car payment and daughters dance and school? Or in Chapt 13 will the trustee look at her income when calculating any formulas for monthly payments?

I read the mention of Chapter 7 but I under the impression if my income is above the means test I would be forced to Chapt 13 also I plan on reaffirming my house and vehicle... I just need some coverage on the medical bills, credit card, and business debt and taxes and have no objection to a structered 5 year plan.. I am not waiting till its life or death to file to fend the creditors off. I just know the debt shuffle is about to collapse and I am preparing to get lean and mean. Any advice? Only thing I have done is hired an attorney.. Nothing legal has been filed.

[arkienurse]

Well, Cars67, I can't really speak to the private school tuition. Do know that I was told a modification couldn't be made to my payment to allow for college tuition for DS this past fall.
As to the dance lessons- no I was not allowed to budget for DD's dance classes, but------ The attorney budgeted $100 a month for leisure activities. That is where I take her dance tuition from, we just never go to the movies. Perhaps you could have her choose just her 2 most favorite classes for the time you are in bk. Mine would love to take every class offered at her studio, but until the bk is finished, she is limited to 2 classes.

[Grace]

Is the 9-year-old the only child? If so, your wife could get a job while she's in school. If there are other children at home under school-age, you have to weigh whether or not her earnings offset childcare.