New Here Going to file Chapter 7 few questions

[KENSHIN]

Hi, just wanted to say been geting info off this site for at least a few months (Great site, very nice people, full of great info).

State fileing :Arizona
Should be a no asset case (No home,negative equity in my car,own nothing of great value that exceeds Arizona Exemptions)

Ok here is what i wanted to ask i over analyze everything and obsess about everything so i have been going crazy (not sure if im going to be able to file for a Chapter 7). Here is some of my info, please let me know if you think I would have a problem filing a Chapter 7 or not?

First of all the reason i am filing is we have been with ameridebt for 3 years (credit counseling agency for those that dont know) we are getting nowhere. In a nut shell we have paid them 285 a month for 36 months =$10,260 and the debt we gave to them 3 years ago was 5 accounts close to $12,000 adding up the same 5 accounts total balances today we still owe $7,230. Why do we still owe $7230 you say? Well you have to make a "Donation" to ameridebt for each account they handle. Also they seem to get the payment to some of the CC late hence late charges, over the limit fees,interest, ect.
Moral of that story is dont trust all credit counseling agencies you will pay forever with or with out them(just my opinion). We have also taken out more CC to help with food and liveing expenses,computer for work and school, since we started ameridebt for a total of $13,000 CC debt to date that is not with student loans or car loan just CC!
Also my pay at work has dropped a good amount each week.

Here is what my current income vs. expense looks like, this is an important part for me. I want to know if this looks ok for a Chapter 7 and with my monthly income am i overshooting the expenses! This info is using the schedule J paper work

These expenses are for me and my wife and 1 child.

Rent $604
Electricity $160
Water $60
Telephone $100 /$30 to home phone $70 to cell phone
Cable $90
Home Maintenance $60 <-- I rent an apartment is this too much? i was counting cleaning supplies and anything for my home upkeep every month)?
Food $550
Clothing $60
Laundry $20
Medical $40
Transportation $100
Entertainment, Ect. $70
Auto Ins. $101
Child care $60
Car payment $214 <--- just one car not part of the Bankruptcy
Student Loan $50
Cigarettes $50
Total Monthly living expenses :$2389

Income
Me :$1600 per month
Wife:$900 per month
Total gross income (after taxes) per month :$2500 - $2389 Expenses =$111 disposable income

Also i have not paid any payments or spent any money on any of my CC since november 2004. We are planning to use a lawyer and file for the 7 in May can anyone let me know what they think that have been to the 341 meetings do you see any problems the trustee might have ?

Thank you all very much and all who reply

P.S. sorry for the long post

[worriedbk7]

I think that you would qualify for chapter 7. Go talk to a lawyer. It is usually (and should be) a free consultation. Sometimes lawyers find other expenses that you don't think of. I can't believe that you only pay $60 for childcare. I pay $950 (for 2 kids). Maybe you could increase that amount so that you have no leftover $. Trust me...I obsess about every detail when it comes to this. It is a life-changing decision. Good luck to you!

[klux]

You stated it was your gross income, they go by your net income. I would assume this would make your expenses more than your income, leaving you a negative disposable income. If that's the case, you probably won't have any problems.

[EdytaHome]

Other monthly expenses:
Car maintenance - oil changes...
Life insurance - ?
Vet bills - Dogs ?
Dental - ?
School supplies and books - ?

Definitively increase the child care. I dought anyone will question that since your wife does bring home some money every month.

Good luck, sounds like a CHP7 to me...

[shygal]

Hey KENSHIN, Just wanted to say.. the credit counseling DID NOT work for us either ! What a waste of time and alot of $$$. I would think you should up the child care amount too! And think of other living expenses as well... internet? newspaper ? pets?clothing for everyone?
good luck

[mothersvox]

Hey KENSHIN, Just wanted to say.. the credit counseling DID NOT work for us either ! What a waste of time and alot of $$$.

Shygal is so right.

Almost all of the credit counseling agencies--even the so-called "good ones, the state-approved, etc."-- are funded through grants from the credit industry.

Although helping individuals and their families is the stated objective, the real objective is helping your creditors. MBNA, Citi, Bank of America, Capital One, et al are their real clients. Their prime objective is to recover more money for creditors.