3 or 5 yr plan?

[toomuch]

How is this determined? One of the three lawyers we have consulted looked at my husbands paycheck stubbs, looked at our credit reports....asked a few questions then gave us an amount for 3 and 5 year plan.

Of course it's more per month for the 3 year plan but do we really have a choice?

Thanks,

Toomuch

[bige1030]

If your husband's and your income (let's say "family income" here on out) is below the median for your state and family size, your applicable commitment period is 3 years. That means you don't have to pay for more than 3 years (except if you have secured collateral you want to keep but can't pay off in 3 years). You can do a 5-year plan if you want to, if it would make a 13 plan to save your house/car/whatever more feasible.

If your family income is at or above the median, your applicable commitment period is 5 years. In that case, you would have to do a 5-year plan unless you could pay 100% of your debts in less time.

[HHM]

If your husband's and your income (let's say "family income" here on out) is below the median for your state and family size, your applicable commitment period is 3 years. That means you don't have to pay for more than 3 years (except if you have secured collateral you want to keep but can't pay off in 3 years). You can do a 5-year plan if you want to, if it would make a 13 plan to save your house/car/whatever more feasible.

If your family income is at or above the median, your applicable commitment period is 5 years. In that case, you would have to do a 5-year plan unless you could pay 100% of your debts in less time.

That pretty much sums it up.

On a side note, as you may know, most people below the median typically file for chapter 7. The reason people do a 13 when they are below the median is when they are in arrears on secured debt, like a house, and want to keep the house and make up the arrears.

[SinkingFast]

If you're not in arrears on your house or a car that you want to keep, then that attny gave you a huge answer about whether to hire him or not.

If you're below the Median, and that attny is proposing a Ch 13, then that's not the attny for you. Unless you're behind on payments and you want to keep the property. Like your house or a car.

[toomuch]

If you're not in arrears on your house or a car that you want to keep, then that attny gave you a huge answer about whether to hire him or not.

If you're below the Median, and that attny is proposing a Ch 13, then that's not the attny for you. Unless you're behind on payments and you want to keep the property. Like your house or a car.

We are above the median income. We are not in arrears on our house. Our house and utilities is about 900 more a month than our area allows. We have major medical expenses (meds, procedures, dr visits). We decided last night to surrender both vehicles as we are upside down on them and they are 500 and 550 a month. I'm done with the new cars. I will buy a used one. The only things we want to keep are the house and my husbands motorcycle. It's cheaper transportation and he can use my car in inclement weather.

We have 120K in cc debt. Yep. Just 3 years ago, we were making great money. Now I have no income due to health reasons. I would much rather be healthy and working that having to file BK.

Another lawyer says there is a chance we can both do 7 because of the mortgage being over the allowed amount and the monthly medical bills. She told me at the initial consultation that I can definitely do a 7 and hubby a 13.

After reading this board, I'm thinking if I do a 7, and hubby has to do a 13, then he will have half the amount of cc debt (it's 50-50 and in single names only.) That means, if I'm understanding this right, that he would have to pay back more of the unsecured debt.

Some days I have a good idea of what to expect and the next day, after more reading, I am confused.

I have offered to pay the lawyer to do a means test. I know they don't do that for free. I want to PLAN my BK.

Sorry so long. I am sweating the thought of Chapter 13.

Toomuch

[SinkingFast]

Have you tried the quick and dirty BK Calculator to see how you might come out filing seperate and together??

http://www.legalconsumer.com/means-t...ator/index.php

Enter your zip code, answer a few questions, and see what result the calculator gives you.

[toomuch]

Have you tried the quick and dirty BK Calculator to see how you might come out filing seperate and together??

http://www.legalconsumer.com/means-t...ator/index.php

Enter your zip code, answer a few questions, and see what result the calculator gives you.

Sinking, that is one of the best links I've gotten so far. I did the test.....and I'm sure it wasn't accurate, but close enough and we are borderline for the 7 and 13. I doubt I listed all of the expenses I could have.

The thing is, if we keep my husband's truck @ 550 for 5 years, our budget will be as tight as if we gave it up and filed a 13, which would probably be worse, emotionally. The truck payment made a difference in the means test. I think I'd rather keep the truck and do a 7 rather than give it up and end up filing a 13. I could be missing something here but this is the conclusion I have come to so far.

Thanks again for the link.

Toomuch

[SinkingFast]

Here's another link for you to help with gathering up your expenses:

http://www.ca-bankruptcy-attorneys.c...alculator.html

And here's a link to a thread of Links that may be very helpful at some point in time:

http://www.bankruptcyforum.com/showthread.php?t=11356

Pace your self. Don't rush thru anything. If you're current on your house and cars, and your regular living expenses, like utilities and such, then it may be a while before you have to worry about your other Creditors.

CC's generally go thru a process. 2-3 months of regular Customer Service "reminding" you you're late and trying to get you to pay. Maybe longer. Then to internal collections for another 2-3 months. That's when the phone calls start. Maybe longer. Then to an outside Collections Agency. So you're looking at about 4-6 months of missed payments before anything really exciting will start to happen.

Some CC's are more aggressive than others, so that's just a general guideline for you. If you aren't being sued, wages garnished, and such, then you're not in any real danger at this point. You should have time to find THE attny you want to work with, get your docs gathered, and get your fees paid.