AAAGGGHHHH...I cant find answers!!!

[mickeysfriend]

I've been poking around here for a couple of days now. We have an appointment with an attorney on Monday. We have to file 13 because of our income. BUT, my husband is the only wage earner and is paid SOLEY on commission. Right now he is not bringing in what he was when the housing market was good ;). AND what he is bringing in now is NOT what he will be bringing in through the winter...things are going to get worse for us. SOOO...how do they determine your monthly payment when we dont even know how small his checks will be in a few months? Right now we need about $9000 a month to pay everything and live. Back in February he only made $2000. See the problem? I dont understand how this will work. Also, when things get better and he is bringing in more will they adjust our payment? I'm assuming that is what will happen. OR if I get a job will they take all of what I make or just part of it?
Also, if we have a first and second mortgage on our house. I've read a few cases on here where the second mortgage got put into the bk? someone said it 'disappeared'.
We have $80,000 in unsecured debt (credit cards) and 2 car loans, etc. ugh...

also, I read that in a Chapter 7 you are only allowed to keep $6000 worth of personal items or something like that...how does Chapter 13 work? I dont want to loose my wedding ring.

I know I have more questions but cant remember what they were....

[AngelinaCatHub]

Unless it is a boulder, your wedding ring is safe. What you may 'attempt' is to take the last two or three years income, make it into a chart that is declining due to the economy going south, and attempt 7. You may wish to think of selling your house for a smaller 'quaint' little thing of your choice. We feel your pain, really, as I am seeing premonitions of bad things on our horizon. Be the first not the last to get a legal discharge. Only my opinion. 'Hub

[mickeysfriend]

oh...I know another question...
I keep reading about 'discharge date'......what is that? is that the date you're done with your payment plan after 5 years?

also, how long is the bk process? will our attorney file ON Monday? or do we have a bunch of paperwork to fill out first? When do we start making payments?

[mickeysfriend]

Unless it is a boulder, your wedding ring is safe. What you may 'attempt' is to take the last two or three years income, make it into a chart that is declining due to the economy going south, and attempt 7. You may wish to think of selling your house for a smaller 'quaint' little thing of your choice. We feel your pain, really, as I am seeing premonitions of bad things on our horizon. Be the first not the last to get a legal discharge. Only my opinion. 'Hub

well, I guess it is a boulder in comparison to others. oh god, I hope they do not take it. my husband might be more devastated than me.

We actually have another house lined up and have had this house on the market since December. We'll be leasing the new one.

what is a legal discharge?

[liz417]

Hi and welcome to this forum!
If hubby's income is continuing to decrease, maybe you should wait to file to reflect an accurate income to qualify for a ch 7. Do you want to save the property and/or cars? If so, ch 13 might be for you. You don't want to run out and "get a job" because that will increase your "disposable income" and it may all go to fund your ch 13 repayment plan. What State are you in? Go to LegalConsumer.com and take the means test, also find out your exemptions in your State and go from there.
Make sure to interview a few attorneys before you retain one, as you will probably get 3 different opinions...
Good Luck!

[liz417]

Is there any equity in your home? You have another home lined up, are you walking away from the 1st home?

"Discharge" is when your debt is discharged and you are free and clear rather it's a ch 7 (usually 60 days from filing if your lucky) or ch 13 repayment plan (3-5 years).

[mickeysfriend]

we have VERY little equity in the house. We are currently listed $30,000 under what it appraised at 3 years ago. I just dont think we could afford to stay in this house all winter.

I did the means test, I think I did it right, and even with our income it said we qualify for a chapter 7 or 13. ugh. The attorney said we only qualify for a 13 soley based on income. i dont get it.

also, when I look at allowable expenses in a Chapter 13, we wouldnt have anything left to use to pay the trustee with. what then?

[liz417]

we have VERY little equity in the house. We are currently listed $30,000 under what it appraised at 3 years ago. I just dont think we could afford to stay in this house all winter.

I did the means test, I think I did it right, and even with our income it said we qualify for a chapter 7 or 13. ugh. The attorney said we only qualify for a 13 soley based on income. i dont get it.

also, when I look at allowable expenses in a Chapter 13, we wouldnt have anything left to use to pay the trustee with. what then?

What is your "disposable income" on the means test? If it's a negative number, you'll qualify for a ch 7. Since you are leaving the house, why don't you go for a ch 7 and have a fresh start? Most people do a ch 13 to save a house and/or vehicles. Did you interview several attorneys? It's amazing how many different opinions you'll get...you need a good attorney to fight for you in a ch 7. There are a few posters that were above the means and still qualified and discharged in a ch 7....
What state are you in?

[AngelinaCat]

Hi mickeysfriend: I think you need to schedule two or three more consults with other attorneys. Also, go online to nolopress.com and buy their C7 book. The print and online versions are 1/2 the price in the local retail book stores. It is written in plain English and that can give you a good idea of what you are facing. If nolopress.com offers a 'freebie', take that too.

Good luck to you.

[mickeysfriend]

on the means test it was a BIG 'ole negative number

We had hoped to at least retain my daughters car. If we cant that leaves me without a car because she needs it to get to school.

We are in Oregon...any attorney recommendations?

[mickeysfriend]

OH...the means test gave a number for rent/mortgage. even our lease/rent on the new house is over that number. what does that mean?

[Flamingo]

I've been poking around here for a couple of days now. We have an appointment with an attorney on Monday. We have to file 13 because of our income. BUT, my husband is the only wage earner and is paid SOLEY on commission. Right now he is not bringing in what he was when the housing market was good ;). AND what he is bringing in now is NOT what he will be bringing in through the winter...things are going to get worse for us. SOOO...how do they determine your monthly payment when we dont even know how small his checks will be in a few months? Right now we need about $9000 a month to pay everything and live. Back in February he only made $2000. See the problem? I dont understand how this will work. Also, when things get better and he is bringing in more will they adjust our payment? I'm assuming that is what will happen. OR if I get a job will they take all of what I make or just part of it?
Also, if we have a first and second mortgage on our house. I've read a few cases on here where the second mortgage got put into the bk? someone said it 'disappeared'.
We have $80,000 in unsecured debt (credit cards) and 2 car loans, etc. ugh...

also, I read that in a Chapter 7 you are only allowed to keep $6000 worth of personal items or something like that...how does Chapter 13 work? I dont want to loose my wedding ring.

I know I have more questions but cant remember what they were....

Is there a reason why you cannot work to supplement his lost income? Construction workers, seasonal workers and folks working on commission have good and bad times during the year. My husband works in retail and the commissions are great around the holidays but he basically brings in a lower hourly wage the rest of the year and we depend on my income. I am viewing the large amount of your debt and you will need to figure out what you want to do here. Whether or not you want to keep the house or get out of things totally. It appears you just cannot depend on your husband's income and have some major decisions and lifestyle changes to consider. You will get a lot of things answered on Monday when you have your appointment and will have a much better perspective on the entire situation as to what you can or cannot do. Wishing you the best of luck!

[liz417]

on the means test it was a BIG 'ole negative number

We had hoped to at least retain my daughters car. If we cant that leaves me without a car because she needs it to get to school.

We are in Oregon...any attorney recommendations?

That's good because you'll qualify for a ch 7! If you are only looking to save your daughter's car, check your State's exemptions laws, maybe it falls under that...are you financing that vehicle? If so, maybe you can do a "ride-through", basically, continue to make the payments. I'll go look for the exemptions and post later.

Sorry, no recommendations on attorneys...I'm in SoCal. A good suggestion I've read on this forum is to call your local BK court and talk to the clerks (they see all the attorney's and would know who's good and who's not!), ask for a recommendation, they would know.

Good Luck!

[mickeysfriend]

Thanks liz417! I call there tomorrow!

I've been trying to find employment for a few months. Because of my children and their school schedules it would be VERY hard for me to work fulltime. I have 2 in high school and one in elementary. the high schoolers go out of district for school. things are a bit of a mess honestly.

I'm not opposed to working, but at this point we are in such a mess that even if I went to work fulltime it wouldnt make up for the loss.