what to expect

[bailey2226]

We are way in due devt due to some questionable financial advising, my husbands gambling, spending to make ends meet using credit card, job changes, and keeping up with the jones'. We are seriously considering filing chapter 13 so we can keep our house and car. What do they take into account when they make your budget? My husband has to spend 600 on gas a month for work, will that be allowed? What about any nest egg money saved for emergencies? Will that be taken away? Not that we have much but we try to put 500 in a money market account each month (granted we have to empty the account every 3 months, but at least it is there if in the case of my trans needing to be rebuilt) we owe 105+ in unsecured debt and are in an upside down first mortgage with a second mortgage on top of that, which I have read will be hopefully removed due to negative equity in the home. I need to know what would payments look like? Will we be able to get by and maybe even by christmas gifts for my children (4 and 1)? Will we ever eat out again? I know I sound like I am whining, but I want real world answers. Will we get tax returns? Could we put some money aside to live off of now? I recently used my credit card, will I have to wait to file?

HELP!

[bailey2226]

oops

I forgot to mention that as of now we are current on everything (god only knows how!)

[rrockinggramma]

you should talk to a couple of BK attorney's to see if you qualify for a chapter 7 or a chapter 13. You can keep your house and car in a chapter 7 if your exemptions cover any equity that you may have in them.

[bailey2226]

What are the exemptions? Is that like you owe more than something is worth?

[justplaintired]

you can find that easily by a search on the net, it might even be on this site. Look for by your state then bankruptcy exemptions. Make sure you are looking at post 2005 and not pre 2005. You can also find your state's median income. That also is very important. If you are over median or above, you will still need to do the means test. You can find all this info on this forum. Keeping your home is doable in a 7 or 13, but that amount of equity will determine if it's doable in a 7.

You can find the means test by going to this site http://www.legalconsumer.com/bankrup...test/index.php

[Lajazz947]

You know, I used this link and have done the means test a bunch of times and I still seem to qualify for a chapter 7 in spite of pretty good income.

I keep on wondering if I am missing something.

I have about $220,000 in unsecured and about $763,000 in secured so i fall into the 7 category.

I have yet to have my attorney confirm the result as he just got my paperwork and I am not jumping for joy just yet I was just surprised at the result.

I still have the $40,000 insider payment question lingering but I would gladly deal with that if i could get relief in a 7.

[keepmine]

There is just noway anyone can tell you what your payments may be. In theory, after secured debts are paid and your living expeses accounted for, all disposable income goes to unsecured debt.
The determing factor in your situation will be the ability to strip the 2nd mortgage. If, your says the 2nd mortgage can be stripped and you're still upside down, I'd suggest abandoning the house and see if you qualify for a Chapter 7.

[Lajazz947]

I don't think that I will be upside down, just not allot of equity but we live in a stable, old neighborhood with good home values so I want to keep the home.

I took the test and after my mortgage payment I have no disposable income.

I will make more money as time goes on and I can definitely afford the house payment.

Lets see.