Red flag and running scared!

[Scared to Death]

I have read on this forum that filing unsecured debt over 100K+ is a red flag. Well I have over 465K and not sure what to do! I have about 70K in cc debt that is well over a year old now. I have another 25K from deficiencies left from a repossed car I once had and the remainder is from 2 foreclosed homes.

My remaining assets are under my federal exemptions so no problem there. But my income is 70k per year so I pass the means test too for filing chapter 13. However I read on nolo.com that you cannot file chapter 13 with over 336K in unsecured debt. So what can I do? Can I still file chapter 7bk?

scared to death!

[CATCHMEIFYOUCAN]

Maybe you'll be allowed to wipe out some of your debt and have to pay back the amount that is not eligible to wipe out??? THAT IS JUST A GUESS. Hopefully others will chime in here to give you their knowledge! SHREWWW, good luck!

Catchmeifyoucan

[emoney]

Your choice is Chapter 7 or 11 of the code. Because your debt exceeds the limits of 13 and you want a payment plan then 11 is the answer.
regards,
emoney

[genseeker]

Our total debt was over 100K and we had no problems from the trustee. Over half of our debt was student loans and a vehicle we surrendered, plus a former repo. How much of the debt is from the repo and 2 foreclosures? If you have under 100K without those, then I woud try to do the BK7. When I spoke with local bk attys here, I asked about the 100K in debt and was told that our trustees look at what makes up the debt first. I told the atty that over half of our debt was student loans and vehicle repo and he said we would not have probs with the local trustees.

I'd try to speak w/ local attys and explain your debt and what part of it is from the repo and 2 foreclosures. If a local atty says you should not have a prob because of how much of your debt is from repo/forclosure, then file a BK7.

This is one time I recommend talking to several local attys.

[Ugh07]

remember a red flag does not mean that you can't file....it just means that your case may be looked at more closely, if you are truthful you should be fine

[Scared to Death]

Our total debt was over 100K and we had no problems from the trustee. Over half of our debt was student loans and a vehicle we surrendered, plus a former repo. How much of the debt is from the repo and 2 foreclosures? If you have under 100K without those, then I woud try to do the BK7. When I spoke with local bk attys here, I asked about the 100K in debt and was told that our trustees look at what makes up the debt first. I told the atty that over half of our debt was student loans and vehicle repo and he said we would not have probs with the local trustees.

I'd try to speak w/ local attys and explain your debt and what part of it is from the repo and 2 foreclosures. If a local atty says you should not have a prob because of how much of your debt is from repo/forclosure, then file a BK7.

This is one time I recommend talking to several local attys.

Hi again. The question about the unsecured debt situation is really a sad story. I tried everyway I could think of to sell the houses before foreclosure, but the bank would not work with me at all. No short sale, no deed in leu, nothing. And the realestate market here in South Florida is unbelievable (bad)! So I kept up on the payments as long as I could on the houses but I just couldnt find any buyers and the bank finally foreclosed. Then they sold the homes at auction really really cheap and they are suing me for the balance which is about 370K. That plus the 25K from the reposed car and 70K in cc debt puts me over the limit for filing chapter 13 I think. And I think my income is too high to file chapter 7.
Anyways, Ive talked to about 3 attorneys so far, well I think really they are just paralegals and they say they only file the easy cases under 100K unsecured. But thats another story. I'll keep looking until I find a good attorney to help me.
Thank You all for helping.

[Ugh07]

im surprised a lawyer would turn you down based upon being over 100k....lazy. though thats not the lawyer you would want anyway

[kiddles]

If you do pass the means test (and check again - the allowed expemtions are changing 1-1-08) you could file a chap 7, but be prepared for close scrutiny by the trustee.

If you prefer a payment plan, or if the trustee forces you into one, you'll be in a chap 11. It's usually used by businesses, but can be used by individuals with high debt. It's kinda like a 13, but more of a hassle (for example, the trustee must approve before any money can be spent).

[FreshLikeADaisy]

I agree with Ugh (what a name ) I would not settle for what those paralegals said. Many attorneys do straight uncomplicated bk's, and that's their bread and butter; taking a "harder" case doesn't pay as well because they have to put more time and effort into it. Sometimes they try to "encourage" a debtor into a chapter that's not the best for the debtor, but will provide a fee and be easy work for the attorney. Sorry, but it does happen.

That doesn't mean there aren't good ones out there, though! You may very well qualify for the Ch7 and just need an attorney who can take you through it. I would not settle for what you heard, especially if you already know you pass the means test. One thing I would do is ask any attorneys I knew which attorney THEY would hire to handle their own bk. I would also look around the net at the various bankruptcy blogs and see which bk attorneys in your area are actually posting, going to court with test cases (the cases that set the standard for how the law is interpreted), etc. Good luck!