Can we file?

[grdups]

Any advice greatly appreciated! Terrified! $300K in unsecured debt, 2 mortgages totaling $800K (waiting on a house to sell), 40K student loans. Husband 100% commission sales in auto industry with dealership reporting worst year since 1982. Serious health diagnosis this year for me; currently undergoing treatments and no longer able to return to my commission-only job as well. Husband met with a rather unpleasant BK atty 2 wks ago who scoffed at him and stated he made too much money to file ch 7 and even ch 13! $120K per yr income. Any thoughts or ideas are greatly appreciated.

[forgotten]

Any advice greatly appreciated! Terrified! $300K in unsecured debt, 2 mortgages totaling $800K (waiting on a house to sell), 40K student loans. Husband 100% commission sales in auto industry with dealership reporting worst year since 1982. Serious health diagnosis this year for me; currently undergoing treatments and no longer able to return to my commission-only job as well. Husband met with a rather unpleasant BK atty 2 wks ago who scoffed at him and stated he made too much money to file ch 7 and even ch 13! $120K per yr income. Any thoughts or ideas are greatly appreciated.

The chapter 13 debt limit is $336,900 unsecured and $1,010,650.00 secured. If you are under these numbers you can files a chapter 13, saying you make too much money for a ch13 is the dumbest thing I have ever heard! But yes, you would not qualify for a 7 with that kind of income.

Schedule several more apointments with other attorneys, find one that will work with and for you!

[azlatin5]

with analyzing the previous six months salary maybe you simply need to wait it out... if your salaries both have slipped it will change your numbers drastically... do a time line with potential earnings and see where you are with six months of reduced income

[klandsb]

Yes, go to see other attorney's... I went to 3 and now wish I had gone to more..
I am a divorced women with a decent income. Not high / not low . 2 attorney's kinda gave me the "well you make this much money statement"...It turned me off right away. I have only been in this job for 2 yrs and before that I was making 1/2 of what I make now and thats when my credit card debt was mostly incurred. After loosing my child support (son turned 18) I found myself robbing peter to pay paul and getting nowhere with my credit card debt. Signed up with a debt settlement company which made matters 10 times worse. Late pmt charges, higher & higher interest rates and wow could not hold on any longer.. Got letter with intent to sue from one credit card and that was it. I knew I had to do something... I wanted to scream at them yes, I got myself into this mess, and yes I am willing & able to make some kind of pmt for the next 5 yrs I just cant pay it all..... So I am filed, had my 341, made 3 pmts so far and waiting for the confirmation in March..... I just want this financial nightmare to be done with !!!!

The previous post is correct about the 6 mth look back period. You want it to reflect you not working . It doesnt mean you cant retain an attorney if you find one you like . It just means you will not file the paperwork until then.... Good Luck...

[grdups]

Thanks everyone for taking time to share advice; it is very helpful! We will definitely taking your advice to meet with other attorneys and see if we get other results.

Last night I completed an online session with Consumer Credit Counseling and await contact from them (not that truly expect it will be beneficial at this point, since we are averaging $5K a month shortage of income).

With this huge income deficit per month, will we even be able to gain trustee's approval for a ch 13 repayment? I'm scared they'll just say too bad and we're going to end up homeless and hungry

[StartingOver08]

You sound like a Ch 7 case with negative $5k/mth! Keep interviewing BK attorney's until you find the right one. The income measure is only one part (above/below median income) - it is not even the most important part of determining your ability to file a Ch 7 or Ch 13.

The most important part is your disposable monthly income (DMI) from your sch I and J. Find an attorney that will represent you and be your advocate. Its not so easy. Some posters here had to interview 6 or more attorney's (I think Liz in CA is one) before they found one that was the right one.

[forgotten]

Are you -$5000 with out your unsecured debt? If so, something has to give. What is pushing you so far over? You will need to surrender things that you can no longer afford.

[indebt00]

Thanks everyone for taking time to share advice; it is very helpful! We will definitely taking your advice to meet with other attorneys and see if we get other results.

Last night I completed an online session with Consumer Credit Counseling and await contact from them (not that truly expect it will be beneficial at this point, since we are averaging $5K a month shortage of income).

With this huge income deficit per month, will we even be able to gain trustee's approval for a ch 13 repayment? I'm scared they'll just say too bad and we're going to end up homeless and hungry

If its unsecured debt that is pushing you $5k in the hole then all that would be in the bk. We had a very high unsecured debt...close to yours and about your income too...but I lost 1/2 my income and this made a huge difference in our payment. You want to wait to file so that your 6 month lookback income is lower....it will help you. There are people on here who make a lot more than us who have been able to do ch 13 too. Oh and you can't discharge the student loans....darn..us neither.

Here is a link to the Means Test Calculator...thsi will show you if you can do ch 13 and how much your payment would be approx....its a great tool for helping you get info.

http://www.legalconsumer.com/bankruptcy/nolo/

[grdups]

Many thanks for the helpful insight, all. Our negative 5K is due to high unsecured debt. Making calls to schedule appts with a couple other attys to see what can be done....but their business is booming here and no one can see us for 3 wks How should we handle collection calls in mean time?

Also, just curious -- since I am no longer physically able to earn income, is it possible I can separately file ch 7 and hubby can file ch 13? Much of the unsecured debt is in my name. Any thoughts?

[eddiep]

The best way to handle collection calls is to not answer them. The only answer they want is that you are making payments in full, otherwise they will keep calling until you have a hired an attorney. Once you do give them the attorney's name and number that will stop them. Good luck!

[indebt00]

Many thanks for the helpful insight, all. Our negative 5K is due to high unsecured debt. Making calls to schedule appts with a couple other attys to see what can be done....but their business is booming here and no one can see us for 3 wks How should we handle collection calls in mean time?

Also, just curious -- since I am no longer physically able to earn income, is it possible I can separately file ch 7 and hubby can file ch 13? Much of the unsecured debt is in my name. Any thoughts?

both your incomes are counted in both instances...don't know if that would help you or not...some of the experts will have to chime in

just don't answer the phone if you can manage