They won't let my husband file a 7

[sheenasmom1]

We met with the lawyer last night. She asked him all kinds of financial questions then turned to me. I said, I'm not filing. She said, no, but they will use your income to decide whether or not he can file a 7 or 13. Well, with MY income included, he can't file a 7, only a 13. I couldn't believe it. We were so down when we came out of there. Granted I guess a 13 is better than nothing, but we still don't know what "%" he will have to pay back yet. We have to get her a few more papers that they didn't originally ask for, (my pay information and tax forms), and then go from there. I am on pins and needles now waiting to see what that percentage is going to be. She said they will base the percentage of what is left of "our" income after all the bills are paid.

We live in Central Illinois. Can anyone tell me a little more specifically how they determine the percentage. We figured up all of our expenses and our income last night and all we have left at the end of the month, if we are careful, is 849.00 between the two of us, not including his car payment, house payment, (we are surrendering his house), and his credit card payments. She said that would all be figured in the repayment % so we didn't include it. Problem is, we want to try to have a figure of some kind to work with. I am so worried right now. I couldn't even sleep well last night.

I also have 4 kids living at home, but because the 2 older ones are 18 and 19 they wouldn't include them as "dependents" even though the one doesn't have a job to speak of, we are basically supporting him and have been for some time. I didn't think that was fair either. He is a huge eater and that is partly why our grocery bill is higher than it probably should be.

Please help, if anyone can, in finding out how they come up with the percentage. Thanks.

[FilingOnMyOwn]

Its not an exact science. Go see some more attorneys and see what they say.

[SinkingFast]

Its not an exact science. Go see some more attorneys and see what they say.

I second that!

If you are not filing,............ Just Hubby filing alone,.......... Your income will be shown and counted at the start, on the Means Test. Then you'll get the Marital Adjustment, where your income is backed out.

We're seeing many posters write that attnys are doing the same thing. "S/He could file a Ch 7, but when we add your income in, s/he'll HAVE to file a Ch 13."

Hubby will have adjust expenses because you are contributing something to the Household. But many people have successfully filed seperate from their SO or their spouse.

One of 2 things is going on here. Either the attnys completing the Means Test really are inept. (( Me thinks not. )) OR,......... This is a new twist on the old BK attny "Bait and Switch". The filer qualifies for Ch 7 but I'll put them in a Ch 13 knowing full well they will not be able to maintain the payments. A couple years down the road, the Filer comes back begging to Convert. Poof! Another fee.

There are always gonna be people looking to take advantage of others. Go to more Consults. Get more opinions. I firmly believe what you were told is not how the system is supposed to work.

[nitramtsr]

My advice is talk with a few more attorneys. The first 2 we met with were rude and had me in tears by the time we left, I felt worse leaving than I did when I arrived. Both advised that 13 was the only way and would not consider doing the means test. Finally,I was blessed with meeting our current attorney who was awesome and made me & my husband feel at ease. We were over the income level ($23K) for a Chp. 7, but he worked our figures got us below the income and our chp. 7 was discharged this month. No problems at all during the process. Find a lawyer that makes you feel comfortable and who is honest with you. Our attorney told us from the beginning that our case would be difficult for a chp. 7 but he was willing to take a chance if we were. We had receipts for almost everything which was helpful. Good LUck

Filed Chp 7 10/9/06
341 11/2/06
Last Day Objections 1/1/06
Discharged 1/12/06

[sheenasmom1]

Thanks

Thanks so much everyone for all your polite and quick responses. If my husband didn't go and drop off the "1st" instalment today, then I am definately going to call another attorney or two on Monday. The lady we talked to, was very, "quick talking", like she was in a hurry, looked at her watch a couple of times. When we tried to ask questions that maybe lead in a different direction from what she was asking she would very quickly say, "now back to the....." and on we would go. WE didn't fill out ANY paperwork at all and yet on this board, I hear about paperwork that we need to fill out. We didn't fill out not one little thing, other than my husband signing his name to the "it's ok to run my credit paper". It's costing us almost 3,000 too. I about fell out of my chair. How are people who can barely make the payments, if they can make them at all, that they have to make be able to afford this. No wonder it takes so long to get the retainer fee paid. She told my husband that "she" would figure out the percentage but that the courts may raise it. She also said that she would decide whether or not she was going to include my overtime on my checks as part of my "regular" pay or not when she looks at my pay stubs. I told her I don't work it all the time, just when I can, but she told my husband she would make that decision and to just drop off what she needed and she would get things together for us.

She still hasn't answered whether or not if he files a 13, if he can relinquish his interest as cosigner on his exgirlfriends, and her daughters cars that he helped them get. The ex girlfriends daughters car was purchased last year and the attorney said that under the new law, she would have to see how this would work. She said we may not be able to relinquish his responsiblity to the cars at all because it is only a 13.

She also said that the house my husband is surrendering, she would have to come up with a figure that the house may be in the hole on that my husband would have to pay a percentage of back. She said that if the difference that the house sold for and what he owed was higher than what she figures in now, that they would come back and adjust his payment fee then.

This all just sounds so fishy to me but we don't know anything about this stuff so that's why I want to get a second, or even a 3rd opinion.

Thanks again.

[sheenasmom1]

By the way

Is the "marital adjustment" something that the courts give or is it something that the lawyer has to figure in at the end.

Thanks again.

[Walnut]

I don't know - but it sounds like you guys are getting boned here. Go get a free consult with a few more attorneys! Don't make such a quick decision based on what seems to be incompetant advice!

[FilingOnMyOwn]

Don't hesitate to sacrifice your petty first installment to finding a better attorney. Its a small price to pay, one installment, vs 36-60 more installments over 3-5 years.

[sheenasmom1]

Thatnks. You are all right. He did drop off the first installment to them but I am still going to call a few others on Monday. Thanks again.

[poorme]

Sometimes, the bk process brings us face-to-face with a reality check.
I'm referring to the 18 & 19 year olds - How would your budget look if they were NOT living with you? Just how much do they cost you each month? Truth is, and trustees see this all the time - is that bad judgements on our part about our kids/family often help put us where we are. I'm not being judgmental here, I have my own slacker kid too. But, they need to contibute to their lifestyle, and quick. You can't defend spending $$ on a live-at-home, unemployed, non-dependant. Now, if they're full time students, and you can still claim them on insurance, etc. that might be different. So, if their expenses were mitigated, would you still need to file bk? This is where the new laws really suck - but then again, having your debts legally erased really is a major event. It affects everybody.