In a chapter 13, thinking about going to 7

[nkamoo]

I currently own a house & the payments are getting to be close to the mid- 4,000's. I have made a very tough decision to give it all up because i don't and can't do it anymore. Can anyone tell me what i need to do to file a chapter 7? My attorney said i had to "qualify" and i feel like he's trying to keep me in the 13 (of course) to make as much money off me as possible.

Thanks ~ Ned

[marzipan13]

means test

try taking this means test - it might reveal if you can file for chapter 7

http://www.legalconsumer.com/means-test-calculator/index.php

[lrprn]

Ned, looking back the last six full calendar months, how much gross income from all sources did you earn, receive as gifts, bonuses, etc? Are you married or single? If you are married, do you have children or other dependents living with you? And last - what state are you living in and have you lived there at least the last two years?

By sharing a little more information we will do the best we can to help you sort out what's possible for you to file in your situation.

[nkamoo]

I am self employed so my montly income is way higher than what i report. Which one determines my income? For 13 they look at both.
I am married but my husband is in school and doesn't graduate for a bit yet. I have 2 children from my 1st marriage that i share joint custody with.
I live in Mi & have been here all my life.

[lrprn]

I am self employed so my montly income is way higher than what i report.

The fact that you make more income than you actually report to the IRS could be tricky if you file. Do you deposit all of the money you make (even what you don't declare) into a checking or savings account?

Copies of your tax return for the last two years are required to file, and some trustees require copies of your last account statements before filing as well. Filing could create a problem for you with the IRS if the trustee cross-compares your tax returns with your bank accounts and sees a discrepancy. Have you made appointments for free consultations yet with 3-4 bankruptcy lawyers in your area?

Which one determines my income? For 13 they look at both

If you are asking if you should declare your real income or your reported income on your bankruptcy forms, I don't know. That's a question you need expert legal advice to answer.

I am married but my husband is in school and doesn't graduate for a bit yet. I have 2 children from my 1st marriage that i share joint custody with. I live in Mi & have been here all my life.

Is your husband not working at all because of school? And who counts your two children as dependents on their tax returns - you or your ex? And do you and current husband have any children?

[nkamoo]

My income won't be too tricky because of all the deductions. My income tax returns are only showing about 22,000 or so, i'd have to double check.

My husband is working and going to school but in the fall hes going to make about 1/2 what he usually makes.

Me and my ex have joint custody, so i claim one each year on my taxes.

[freshstart06]

From what I am learing is that you don't have to take the means test if you convert from chapter 13, think a few folks on the chapter 13 board can help you with that. There have been cases where people in chapter 13 had disposable income and still was able to convert, some even did it pro se. Do more research but try not to look to deeply, you adjusted income is what they go by now what you bring in, when you have a business, you true gross income is based on profit against expenses. As a Broker that is how my income is determined. Even on the means test they ask for profit then expenses then they calculate your real income. I know exactly what you mean by making more then what the taxes show because after expense you really did not make much.

[nkamoo]

Thanks freshstart, i'm slowing learning as much as i can about both 13 & 7. I should have done all this before i filed but then again it might not have mattered. I'm sure i'll have more questions soon, appreciate all the advice i can get.

[sandhall]

Freshstart we are in 13 and we want to convert since we let the house go but our attorney says we still have to pass means test and that trustee might just lower payment for a few months.. my hubby went from making 4400 a month to a retirement check of 1600 and our expenses have went up . hopefully my hubby will find a job soon making more then the job he took today $7.50 a hour. not counting the fact that I am out on medical and only recieve 65% of my pay every two weeks.

[freshstart06]

I don't know the answer but there are a lot of post about converting. Some people actually file chapter 13 then convert to chapter 7 just to avoid the means test.