Lawyer says I can't file chpt 7, I think he's wrong...

[johnnyp26]

You have to bring them current to file a Chapter 7 anyway.

Your petition is a picture of your situation at exactly one moment in time. You may plan to keep the house and car at that time and change your mind after discharge.

Ok, I am going to look into doing that. It's going to take a lot of money to do, but maybe the finance company will work with me.

[OhioFiler]

Couldn't they toss out my bankruptcy since I stopped paying on them almost 3 months ago if I all of the sudden brought them current then bailed at the end by not signing the reaffirmation agreement? I thought I had read someone who ran into that, and ended up getting their case tossed out. It certainly sounds like a good option, I'd love to do it if I can.

You have to bring them current to file a Chapter 7 anyway.

Your petition is a picture of your situation at exactly one moment in time. You may plan to keep the house and car at that time and change your mind after discharge.

[justbroke]

I would recommend bringing the house and 2nd car current so you can deduct those expenses on your Schedule J. You can always do a ride-through on both and stop paying them after discharge. Once current you're a perfect candidate for a Chapter 7.

Exactly.

[johnnyp26]

You don't need to care if they allow it or not. You can INTEND TO REAFFIRM the debt on your petition, which is allowed. You just don't sign any reaffirmation agreements prior to discharge.

Couldn't they toss out my bankruptcy since I stopped paying on them almost 3 months ago if I all of the sudden brought them current then bailed at the end by not signing the reaffirmation agreement? I thought I had read someone who ran into that, and ended up getting their case tossed out. It certainly sounds like a good option, I'd love to do it if I can.

[OhioFiler]

I asked my attorney about the ride through, because we were thinking of doing it with one of our cars, but he said that the trustees do not allow it.

I'll look into the income piece, as of Oct 1st my income decreased 30% so maybe that will help.

You don't need to care if they allow it or not. You can INTEND TO REAFFIRM the debt on your petition, which is allowed. You just don't sign any reaffirmation agreements prior to discharge.

[johnnyp26]

What you indicate on your Schedule I as income is your CURRENT income, not your recent 6 month average. As long as you are not receiving the inflated pay package when you file you can claim your lower income on Schedule I.

I would recommend bringing the house and 2nd car current so you can deduct those expenses on your Schedule J. You can always do a ride-through on both and stop paying them after discharge. Once current you're a perfect candidate for a Chapter 7.

I asked my attorney about the ride through, because we were thinking of doing it with one of our cars, but he said that the trustees do not allow it.

I'll look into the income piece, as of Oct 1st my income decreased 30% so maybe that will help.

[OhioFiler]

And also at the advice of our attorney I stopped paying on all debt except the car we intended to keep, so everything is now 2-3 months past due.

What you indicate on your Schedule I as income is your CURRENT income, not your recent 6 month average. As long as you are not receiving the inflated pay package when you file you can claim your lower income on Schedule I.

I would recommend bringing the house and 2nd car current so you can deduct those expenses on your Schedule J. You can always do a ride-through on both and stop paying them after discharge. Once current you're a perfect candidate for a Chapter 7.

[johnnyp26]

Yes.

Unsecured debt gets discharged and is not paid in the Bankruptcy.

Sorry, that was poorly worded on my part. I was trying to ask if the unsecured debts counted in the means test when they figure your dmi?

the jacksonville area...

That's where I am too floridian, if you wouldn't mind pm me the name of your attorney. I'd like to get another opinion assuming they have done right by you.

[floridian]

the jacksonville area...

[startingovr]

Where in FL are you?

[startingovr]

Where in Florida are you?

[floridian]

my florida lawyer, says its very simple... i can pass the means test because all my income is disability, but over the median... i cant pass the DMI test and therefore will be converted to a 13..

[justbroke]

Should I have included the house and other card payments?

Yes.

And what about the unsecured debt, does that go on there too? It didn't seem like I could put any of that in there since we wouldn't be responsible for the debts anymore.

Unsecured debt gets discharged and is not paid in the Bankruptcy.

[johnnyp26]

And also at the advice of our attorney I stopped paying on all debt except the car we intended to keep, so everything is now 2-3 months past due.

[johnnyp26]

This is true. It has been found time and time again that what's on the Means Test (Form B22A) is everything that you have contractually due, regardless of whether you are surrendering it.

However, the Trustee can pull the old "totality of circumstances" (11 USC 707(b)(3)) motion to dismiss out of their bag of tricks. In any case, if you do note a reaffirmation of those secured items (car and home) and are actually current at the time of filing... you could do as described.

I think the issue with johnnyp26 is that when they surrender the car and home, they show an actual positive DMI!

See when I just did the means test I excluded any debt that would be included in the bk. So I only put the car that we are keeping on there for debts. Should I have included the house and other card payments? And what about the unsecured debt, does that go on there too? It didn't seem like I could put any of that in there since we wouldn't be responsible for the debts anymore.

I wouldn't be as concerned about going chapter 13 if I thought there was a chance my income would remain the same, but I know that's not going to happen. I was actually looking forward to finding a new job away from the mortgage business since I could finally afford to take a pay cut.