Another newbie with questions...

[alana]

Hello All, I've been lurking for a couple weeks and boy have I learned a lot! Thank you for sharing all your knowledge.

I think I qualify for a Chapter 13. I'm a couple thousand over Calif median income. I have CC $28000 and a 2nd mortgage $80000. I only owe $779 on my car. I have no secured debt.

As I've been gathering all my paperwork together I have realized that I have charged about $20000 in the past year. It has not been for luxury items. Its been dentists, car repairs, tires, moving expenses...etc. Will this be an issue since its all kinda new debt?

Thanks

[killinstinct]

Your mortgage and your car are both secured debt....

Even if you're over a bit you may squeeze into a Ch.7 depending on your expenses:

http://www.legalconsumer.com/

As long as your charges are not 'luxury' items and you're just trying to survive you should be fine. We're talking about cruises, adding a deck to your house, getting a third, fourth car, RV...you get the picture.

[alana]

I lost my house so the 2nd is unsecured now. I figured by the time I save enough for an attorney the car will be paid off. It will be paid off in Dec. I have thought about re-financing it to pay the attorney. Can I do that?

I did the means test. I did it without including the car since it will be paid off and it shows a 13. If I do it with the car payment its a 7. So if I filed this year will they let me use the car payment even though I won't have one in a few months?

[killinstinct]

Wow, sounds like you're close. Are you above median with your income? Any chance of it going down or your expenses increasing in the next 6 months? It's a numbers game.

From what I understand typicaly the trustee's won't question attorney expenses. It's recognized that you need to find a way to have good representation.

[BigJohn]

I would go for the 7.

[alana]

I have a good job with small yearly raises so my income will go up not down and I don't see my expenses changing much either.

So if I can refinance my car to pull out the money for an attorney I think I'll be a 7. Or if I can count it as an expense even though I only have a few months left till its paid off. That would be great.

Should I wait to do anything till I see an attorney? I have a couple of appointments this week and then another one a week from tomorrow. The last one is the one I'm really interested in. She's an attorney and also a trustee. I think that would be a real plus. Hopefully I will like her.

[killinstinct]

Sounds like you have a good game plan. As you're well aware I'm sure, most consults are free. I would meet with several different attorneys and take some time to evaulate and weigh your options.

It's always less painless to be under median if at all possible. Are you close? Can you do it? Maybe you need some time off....

[alana]

killinstinct, thanks for the suggestion about time off. I am going to see if I can get some time off without pay. Even if its just a week that will help. Since I am not going to pay my credit cards anymore I can afford some time without pay.

Does anyone know if I file soon will they let me use the car payment as an expense even though it will be paid off in Dec?

Thanks again for everyones suggestions.

[killinstinct]

Ask your atty's about these concerns when you meet with them. They'll know what the trustees in your area will be looking at. As far as the car goes, even when it's paid off you have maintenance costs, gas, insurance, etc. How much is your car payment?

Even if you don't include your car payment, it sounds like your close. You mentioned using credit a lot in the last year for things that would be deemed necessities (medical expenses, maintenance, clothing). Maybe you have a dental appointment you've been putting off or some medication you should stock up on...