Hi everyone! I've been lurking here for a few days - GREAT forum.
We filed Chapter 7 in 2002 (filed in April, discharged in August), so SADLY I am not new to this whole bankruptcy thing. We got back up on our feet, and even bought a house since. Then my husband was laid off last year and was unemployed for several months, exhausting his unemployment benefits. He started working again in October. We managed for awhile on savings, but eventually we tapped out. We fell behind on our mortgage, and are now in pre-foreclosure. We were served in December and our court date is Feb 8th, so we need to get this filed very soon. We don't have an exact amount yet, but we figure that the arrears plus foreclosure and attorney fees will total somewhere between $8,000 - $10,000.
We also have a situation with a car. We bought it in 2003 used (2001 model), and of course since it was after the Chapter 7 we were nailed with a really bad interest rate. We planned to refinance after a couple of years, but then we had the year from hell and just couldn't. Now, were grossly upside down on the loan. We're also behind on the payments, and are in serious danger of it being repossessed at any time. I know we can cram down the loan (books for $6,000, owe over 12k), but I'm also considering surrendering the vehicle and dealing with the deficiency in the bankruptcy. From what I understand, that would be considered an unsecured debt. If we surrender the car, we'll need another one, however. My mother has offered to sell us a car, but it would remain in her name and we would just take over the payments (which are only $220/mo for about 2 more years). I'm really unsure if this type of situation is kosher, however. At the same time, I hesitate not telling them about it because I'm concerned that money earmarked for the car payment would be considered disposable income.
We also have late credit cards, but fortunately it's not much - under 5k total credit card debt. Obviously that's not why we want to file - we have to file to save our home.
I've been reading up on the new laws, but I do have a few questions for the experts around here:
Is there a formula used to determine discretionary income? I have looked at the new Means Test, but that seems to apply more to a Chapter 7. What concerns me is that the payment will be too large for us to comfortably handle (seems that most people in a Chapter 13 are barely scraping by), or, alternately, that they will determine that our income is too low to be able to make the payments.
Also, thanks to the year from hell, we are expecting a large tax refund check this year - nearly 5k. Up until recently, we were hoping to use that to get us out of foreclosure, but it doesn't appear that it will be enough which is why we decided to file. So, what now? I figure that we will get our refund after we file, but before the 341. I don't think it's feasible to delay filing until after we get it, because we need the stay to keep our car from being repossessed and to stop the foreclosure ASAP. I assume the trustee will want the entire check, ugh.
We have a meeting with an attorney tomorrow afternoon. He did tell us about the new credit counseling requirement, and that it costs $50 and we could do it online. What does that entail, exactly?
Thanks in advance. I am so ashamed that we are once again in a bankruptcy situation.
We filed Chapter 7 in 2002 (filed in April, discharged in August), so SADLY I am not new to this whole bankruptcy thing. We got back up on our feet, and even bought a house since. Then my husband was laid off last year and was unemployed for several months, exhausting his unemployment benefits. He started working again in October. We managed for awhile on savings, but eventually we tapped out. We fell behind on our mortgage, and are now in pre-foreclosure. We were served in December and our court date is Feb 8th, so we need to get this filed very soon. We don't have an exact amount yet, but we figure that the arrears plus foreclosure and attorney fees will total somewhere between $8,000 - $10,000.
We also have a situation with a car. We bought it in 2003 used (2001 model), and of course since it was after the Chapter 7 we were nailed with a really bad interest rate. We planned to refinance after a couple of years, but then we had the year from hell and just couldn't. Now, were grossly upside down on the loan. We're also behind on the payments, and are in serious danger of it being repossessed at any time. I know we can cram down the loan (books for $6,000, owe over 12k), but I'm also considering surrendering the vehicle and dealing with the deficiency in the bankruptcy. From what I understand, that would be considered an unsecured debt. If we surrender the car, we'll need another one, however. My mother has offered to sell us a car, but it would remain in her name and we would just take over the payments (which are only $220/mo for about 2 more years). I'm really unsure if this type of situation is kosher, however. At the same time, I hesitate not telling them about it because I'm concerned that money earmarked for the car payment would be considered disposable income.
We also have late credit cards, but fortunately it's not much - under 5k total credit card debt. Obviously that's not why we want to file - we have to file to save our home.
I've been reading up on the new laws, but I do have a few questions for the experts around here:
Is there a formula used to determine discretionary income? I have looked at the new Means Test, but that seems to apply more to a Chapter 7. What concerns me is that the payment will be too large for us to comfortably handle (seems that most people in a Chapter 13 are barely scraping by), or, alternately, that they will determine that our income is too low to be able to make the payments.
Also, thanks to the year from hell, we are expecting a large tax refund check this year - nearly 5k. Up until recently, we were hoping to use that to get us out of foreclosure, but it doesn't appear that it will be enough which is why we decided to file. So, what now? I figure that we will get our refund after we file, but before the 341. I don't think it's feasible to delay filing until after we get it, because we need the stay to keep our car from being repossessed and to stop the foreclosure ASAP. I assume the trustee will want the entire check, ugh.
We have a meeting with an attorney tomorrow afternoon. He did tell us about the new credit counseling requirement, and that it costs $50 and we could do it online. What does that entail, exactly?
Thanks in advance. I am so ashamed that we are once again in a bankruptcy situation.
