Chapter 7

[SumBeach]

Hello...I retained an attorney today and plan to file Chapter 7 in a few weeks. All of my debt is in 3 unsecured credit cards (approx $20,000 total) with high interest rates, one as high as 25.49% and rising. I also have an unsecured signature loan from a Credit Union (approx $2,900 owed). My only car, that that I plan to keep, is financed at that same Credit Union. It is valued at about $3,600 (but I owe $,5000 on it). I realize that $23,000 is not that much debt to some people, but on my salary, my income is less than my fairly conservative exspenses, which led to the credit card debt in the first place.

My Attorney says that I qualify for Chapter 7, based mainly on my income vs expenses, and the fact that I have no real assets, savings, or property. However, after filing Chapter 7, can anyone come back later and tell me that I don't qualify for a Chapter 7, or try and push me into Chapter 13 for any reason? Could the fact that I am only $23,000 in unsecure debt be a factor? At this point, barely making minimum payments, I may as well be a million dollars in debt.

If I NEVER get another credit card, it will be too soon! ...Arrrrgh!

[klux]

What is your disposable income each month if you weren't paying the credit cards? By this I mean how much would you have left over after paying all your expenese that wouldn't be wiped out in the bankruptcy, insurance, utilities, groceries, daycare, entertainment, all those things?

[SumBeach]

Basically, after daily living expenses are paid, rent, gas, groceries, utilities, etc., the amount left is close to the amount I would normally pay to meet the minimum payments on the credit cards and signature loan....about $550. I was always running short in other areas in order to make those minmum payments. I track my monthly expenses down to the exact penny via Excel. I know where my money goes, and I spend only what I have to....there is no eating out, or going to movies, and even with that, I am in the red at the end of each month. Does this sound like a Ch7 situation? Thanks for your comments.

[klux]

I am not an expert, but I would say $550.00 is too much excess. Are you sure you're not underestimating any of your expenses? Do you have transportation, entertainment, charitable contributuions, drycleaning, clothing? With these added it'd probably reduce your amount of disposable income. My disposable income was about $100.00 and they haven't questioned it so far. 314 meeting was Tuesday.

Worse come to worse they'd probably put you a Chapter 13 for 36 months. But look at it this way, if you keep paying the minimum payments you probably wouldn't owe much less than you do now in 3 years, and if you do a 13 in 3 years the balance would be discharged.

[SumBeach]

Hey Klux....Yes, when I set down and figure what I actaully end up spending per month on everything...things that I don't normally think about such as, drycleaning, and household items (other than groceries) I am actually in the red......that's how I got into this debt in the first place. We'll see how it goes. I'll be interested in hearing how your 341 meeting goes.