Advice, Please

[PoGirl]

Quick backround:

I'm in Texas and am planning to file for 13. Last charges were in July, 2008 on only two cards. The rest were stopped long before that.

We were all set to file last month when I got a raise - a fairly significant one. (I had been told previously that I would not get one until April, 2009 and that it would be 2%, so you can imagine my surprise). After crunching the numbers with the new raise, we still don't have enough to pay creditors and to live, so that's why we decided to move forward with the 13.

Due to the size of the raise, I was advised to increase my 401K contribution, which I have done (from 5% to 8% - atty felt any more would look suspicious).

The attorney is now advising me to wait until December to file so that I have 4 paychecks showing the 8% 401k contribution.

I can understand why he is recommending this and I think I'm good with that plan. Do any of you disagree? Perhaps I'm missing someting?

Also, what can I expect from the creditors? I'm now 60 days past due (last payments made in July). I would assume that this would be the month that things get turned over to collections. Should I try to make a payment or two to keep us in the 60 day window?

Guess I'm just looking for confirmation that this is the right way to go and that I'm not getting into a deeper mess.

Thanks in advance!

[BKParalegal]

In Texas, 401k contributions are an allowed expense in a Chapter 13, the attorney wants a little history to reduce or avoid scrutiny. In regards to your creditors, Texas is a non-garnishment state, so there is nothing your creditors can do to you until they get a judgment and then do discovery to find out where you bank and then send a levy. This would be 6 to 8 months from today, if they sued you tomorrow. Outside of the annoying phone calls, you should be fine......but why are you filing a 13, is the important question.

Good Luck

[Tbornetun]

I am wondering the same thing. We don't automatically pursue a Chapter 13 until we have exhausted all attempts to make someone qualify for a Chapter 7. BK is right, don't pay them a dime, there is nothing they can do at this point. By the time they took action, you will have already filed and they would have to stop all collections anyway.

[PoGirl]

I fail the means test from the standpoint my income is too high. That's why we're doing 13.

Thanks for the quick replys!

[BKParalegal]

The means test is an art and science to get someone to pass it. I just hope your attorney is aggressive. I know many attorneys that just don't understand how to get people to pass. I especially hate to file a 13 just due to income. If you PM me I can tell you some of the areas where you can push the expenses.

Good Luck