I am above the median income for the Chapter 7 means test but my expenses > my income

[uwinsc]

I am at my wit's end. New to the board. I know its my fault but I just cannot sustain anymore. After paying all my bills I am left with $406 a month in "disposable" income. This means I have to make $406 work for a whole month for gas, groceries, and anything else outside of bills. And god forbid something disastrous happens, I am screwed.

I even stopped contributing to my 401k just so I can have that whopping $406. What is someone supposed to do when they make above the median income for the means test to file Chapter 7? At this point it would be best if I had a fatal car accident so my life insurance could provide the kids with some future funds for college and pay off my current bills.

I have no assets thanks to a divorce, have to pay child support even though we have 50-50 custody with no one designated primary. And this doesn't even include back taxes owed so I really am in the red as soon as they come knocking....

I am so stressed and worried.... I don't even have the money for an attorney. It really seems death is the only way out sometimes. Has anyone hit this low before and come out of it successfully?

[lookingforward]

Please, please don't think that way. Your kids would much rather have you than a life insurance policy. Everything will be okay......you will look back at this time and think about how hard and stressful it was and be glad that you have made it through. Focus on that. Your life is much more important than anything. This too shall pass. I know it is a cliche, but it is so very true.

[shipo]

uwinsc, your numbers do not align with reality; whomever you used to help you with the means test did you a disservice; I strongly suggest you get a different attorney.

[Carmella]

I agree to and talk to an attorney that specializes in Bankruptcy and has experience in the area when you would file. I think you might find a free consultation. See more than one attorney and if you need to file pick the one that seems the best. If you get an ugly gut feeling avoid that attorney!

Find out what your options are and if you qualify. You said disposable income and then mention food/gas. I am no expert but I think food and gas would be considered as needs and not disposable. Disposable is what you have left over after all necessary expenses.

See an attorney to help you figure out what you need to do.

[uwinsc]

Thanks, I will do that. I imagine I will be posting a lot more in the coming weeks.

[flashoflight]

Above median can qualify for a 7 if the budget allows for it. A giant child support obligation could go a long way towards helping you qualify for a 7. You should talk to a lawyer who doesn't automatically assume above median won't get into a 7, especially if the potential client has large domestic support obligations. You will have to budget super tight with the child support siphoning extra funds and not spend a dime on expenses that don't count in the bankruptcy budget. This is unlike court ordered child support calculations where your actual expenses don't matter.

If you end up in a 13 anyway, the budgeting will help make it survivable.

[Carmella]

flashoflight I think this is when getting an experienced attorney who knows the area and has done many BK pays off. Our first meeting the attorney said we wouldn't qualify for Chapter 13, but I think his big thing was debt consolidation which he would spend time calling our creditors for us and charging us up the you know what!

I also say if one has any friends they can trust and that you know had a BK in their past ask who they used. That was really my Godsend having a friend who told me the firm's name and I would recommend this group to anyone because they know their stuff and they don't play around with you. And they will put you in your place if you are slacking LOL in a way I felt like a naughty child when the woman who is in charge of the group laid into me, but I deserved and needed it to set a fire under me / my procrastination.