Deciding between Chapter 7 or 13

[brokemomma]

My husband and I live in MI. We make an income way over the median. (About 100,000 between the two of us) Anyway we got in way over our heads in debt to income. We can no longer pay all our creditors.
My question though is this, when you put together your household budget to give to the lawyer, is there a limit to how much you can claim that is accepted by a trustee? For example, I have to dress for work so I use about $60.00 per month in drycleaning. Would the trustee deny this? We both have cell phones for work would this also be deemed unnecessary and not allowed into the budget. I am so upset and scared right now that I might not be making much sense but if you understand my question and could reply I would greatly appreciate it. Thanks.

[rrockinggramma]

a lot will depend on your attorney. I filed under the old law but I had drycleaning listed. However if your attorney says no can do, then see about padding expenses elsewhere to allow for that room. I listed cell phone under utilities and it was never questioned. However if the bill is huge each month, then the trustee might object. I don't think you are looking at a chapter 7 with that income.

[Tbornetun]

The dry cleaning will be accepted. If you have $60 in dry cleaning a month, you probably have receipts to back that up. I don't think it will be questioned either way. There is even a line item for laundry and dry cleaning.

[klandsb]

Have u completed the means test online ?? It is in no way 100% accurate but it will give you a base line to go by. On the means test some of the portions are IRS standards for housing ,food ect..... I imagine with your income you will not qualify for a Chapter 7 but some have done it with the correct lawyer and expenses vs income.
Yes, my lawyer put in for cell phone, dry cleaning, pets, ect... I did not (so far) have a problem with that part.
The I & J part of the bankruptcy forms gives you a better idea of what your expenses truly are and not IRS standards. So you go from there. Your best bet is to visit a FEW lawyers and see what u come up. Most give a free consultation... gather as much info as you can and educate yourself and listen to others stories...

[maddog2112]

On the ch7 portion of this forum, you`ll find many people who have managed to file a 7 when way over the median. One gal from california just filed pro se and makes 120k per year. If your expenses warrant your whole net income you may squeak by. This forum is the place to find out! I started as a 13 and 30 months later am converting to a 7, due to severe decrease in ot. I started out at a 75% payback, 2k per month when my income was at 115k per year. I could have saved a boatload of money and worked alot less if I had planned my 13 better. I hadn`t found this forum back then. Count your blessings and plan your bk well. Good luck!