Why did they make us file 13?

[tylerann]

The means test shows in MO for a family of 4 $65,909. We are at probably $38,000. Why did they make us file 13 instead of 7? Could it be because we didn't include the house in the bk?

[SinkingFast]

Any number of reasons/possibilities immediately pop into mind.

Ch 7 BK is commonly known as Liquidation BK. You're allowed to Exempt a small amount of personal property and a set $$$ amount in Homestead if you own a home. All property you can keep to begin your fresh start.

If you own more Assets than you can protect with Exemptions, the Court can "Liquidate" your non Exempt property on behalf of your Creditors.

In order to file a Ch 7 and keep your home, you must be current on payments. Were you current on your mortgage payments at the time of filing??

Same for cars and any other Secured Assets. Must be current on your payments.

Then,......... How much equity did you have in your home?? MO has a Homestead Exemption of $15K, single filing, or $30K, joint filing. If you had excess Equity you could not protect with an Exemption you'd have to file a Ch 13 to pay your Creditors the difference or the house would be sold.

Did you have a large amount of money in the bank or cash on hand that was not protected with an Exemption??

Do you typically get a large income tax refund that was not protected with an Exemption??

There's any number of possibilities.

Including you might have fallen prey to an unscrupulous attny. That's a common ploy of BK attnys. Put the unwitting client into a Ch 13 knowing full well the client cannot maintain the Plan Payments. The client will return in a year or so begging to convert to a Ch 7. Poof! Double fee for the attny.

You'll have to tell us a bit more info about your case in order for us to help you.

[lrprn]

The means test shows in MO for a family of 4 $65,909. We are at probably $38,000.

Tylerann, the MO family of 4 median income is for a year. Is your income of $38K for a year too, or just for six months?

[tylerann]

Yes, we were current on our house payments although they posted a pymt wrong at the time we filed. Which they corrected and then later said that when you file bk you auto owe an extra pymt. I am in the process of getting that cleared up with the lawyer.

We would have had about zero equity in our home since we had refied a couple years earlier.

No large amounts in the bank. Maybe $300 bal

We would get maybe $2000 back from taxes. I don't know anything about the exemptions.

Now we are thinking about going 7, if we can, and giving them the house since it is ARM, and we aren't having any luck refinancing. Is that possible to include it now?

Thanks for your help.

[tylerann]

Tylerann, the MO family of 4 median income is for a year. Is your income of $38K for a year too, or just for six months?

Yes, that's it for the year.

[SinkingFast]

Back to Lrprn's income question.

I thought from your initial post you meant your total earnings is $38K/year. Did you mean $38K on the 6 month CMI?? If so, that means your annual income is $76K, which is over the Median for your family size.

[SinkingFast]

We posted at the same time.

Have you already filed?? Or just thinking of filing and haven't done it yet??

[SinkingFast]

I went back and looked at your previous posts, TylerAnn.

You and Hubby have filed BK previously, but you filed Ch 7 in 2002.

New Law requires 8 years between Ch 7 BK filings. If you filed BK Joint with Hubby, that's why you had to go Ch 13.

You'll have to remain in Ch 13 until 2010 before you can Convert.

If you didn't sign and file a Reaffirmation Agreement on your house, you can Surrender the house. JMHO, but I think that would be a wise move. Most especially since you have an ARM. Chances are, the payments are only gonna go up, making life in Ch 13 all that much harder.

[tylerann]

My husband filed 13 in 2004

[tylerann]

You and Hubby have filed BK previously, but you filed Ch 7 in 2002.

New Law requires 8 years between Ch 7 BK filings. If you filed BK Joint with Hubby, that's why you had to go Ch 13.

You'll have to remain in Ch 13 until 2010 before you can Convert.

If you didn't sign and file a Reaffirmation Agreement on your house, you can Surrender the house. JMHO, but I think that would be a wise move. Most especially since you have an ARM. Chances are, the payments are only gonna go up, making life in Ch 13 all that much harder.

I was the only one who filed 7 in 2002. It was not joint. He is the only one that filed 13. ?? Does that make a difference?

what does file a reaffirmation agreement mean?

[tylerann]

I looked it up. I'm not sure if he did that or not but if the house was not included in the bk he would have had to of signed one, wouldn't he?

If that is the case then what are the options? Since we didn't do joint 7 bk can he convert and include the house or not if you reaffirm?

[SinkingFast]

Both of your previous BK's are why you Jointly could not file a Ch 7.

Part of New Law was to discourage repeat filings and prevent BK abuse. Old Law allowed for repeat filings every 6 years. New Law extended the time out to 8 years from Discharge of a Ch 7 and 6 years from completion of a Ch 13.

Even tho you filed separate before, you have both filed BK. You a Ch 7 in 2002. Hubby a Ch 13 in 2004. The soonest you, TylerAnn, could refile a Ch 7 would be 2010. Hubby would be 6 years from when his Ch 13 was completed.

A Reaffirmation Agreement is where you say to the Bank that you will continue to pay your Mortgage in spite of your BK. If you signed a Reaffirmation Agreement, and the Bank signed the Reaffirmation Agreement, and the Reaffirmation Agreement was filed with the Court,......... You're stuck with the house.

[CityGirl]

wow, I hope I never file more then once , EVER! I'll never abuse credit again. This is it for me!!!!