Having trouble keeping our heads above water.

[OhioFiler]

backtoschool, I think disposable income alone doesn't determines 7/13. If 150 a month for 5 yrs doesn't pay off the debt then doesn't that make a CH7 eligible? But I do agree with you and others, I can't see the trustee ignoring the equity of the home, the high mortgage payment.

Not true. You can be in a plan that pays off less than 100% of the debt. The cut off for it is $6,575 over 5 years which is about $110 per month.

[Dannmcg357]

In any case, it only takes around $150 or so a month in disposable income to push you into a chapter 13.

backtoschool, I think disposable income alone doesn't determines 7/13. If 150 a month for 5 yrs doesn't pay off the debt then doesn't that make a CH7 eligible? But I do agree with you and others, I can't see the trustee ignoring the equity of the home, the high mortgage payment.

[LSUTiger32]

Life must be boring post-Super Bowl victory! I see you're trying to keep busy beating a dead horse!

Just trying to help a dude out, but yeah Mardi Gras is over and the Saints parties are starting to wind down (slightly anyway). I hadn't read the whole thread to see that he's rejected every idea. I was the first to mention the house though!

[LSUTiger32]

Shaq has been a swell addition to the Cavs!

Shaq is the man. I hope the Cavs win it this year since the Hornets are struggling without CP3 and don't look to be contenders. I heard on the radio the other day how this is Shaq's 17th season in the NBA. I can't believe it has been that long since the best team in college basketball history to not win the championship finished.

[OhioFiler]

So totally wrong on so many levels. The house IS the problem. You may have to move out of your neighborhood or to a place that is nice but further away from the city, but you can find something for a lot less than $4,500 a freaking month. You can sell the house and come out with money to pay the credit cards in half as well as lowering your mortgage expenses. You go from $4,500 plus to even as you said $3,500 a month (which I think you can do better than if you look) and you have well over a $1,000 a month savings on the house issue and $600 or so savings on the credit cards. That's $1,600 a month to attack $23,000 left in CC debt. You can do this if you want to, very easily. If you want to file BK, that's one thing but filing BK and keeping the house will not help your situation. You will find yourself right back in the same situation if you keep a house payment of 60% of your income.

Life must be boring post-Super Bowl victory! I see you're trying to keep busy beating a dead horse!

[LSUTiger32]

Lets see I sell my house for 575,000. I have 525000 in mortgages, after paying the real estate broker a 5% fee for selling it, thats 28,000 that would leave me with 22000 to pay off half of what I owe on my cards. Now I still have 23000 in charge card debts and no house. I also don't have 100,000 in equity because most companies won't finance 100% of the value.To rent a house in my area is about 3500 a month, that dosen't solve the problem.The house isn't the problem.

The problem is my real estate tax went up $5000 since I bought the house, the fuel oil has tripled and so has the electric bill. The charge card rates going up to 29% also didn't help.

So totally wrong on so many levels. The house IS the problem. You may have to move out of your neighborhood or to a place that is nice but further away from the city, but you can find something for a lot less than $4,500 a freaking month. You can sell the house and come out with money to pay the credit cards in half as well as lowering your mortgage expenses. You go from $4,500 plus to even as you said $3,500 a month (which I think you can do better than if you look) and you have well over a $1,000 a month savings on the house issue and $600 or so savings on the credit cards. That's $1,600 a month to attack $23,000 left in CC debt. You can do this if you want to, very easily. If you want to file BK, that's one thing but filing BK and keeping the house will not help your situation. You will find yourself right back in the same situation if you keep a house payment of 60% of your income.

[OhioFiler]

Bingo. Therein lies your problem. You cannot make it with almost 60% of your income going to the house, even with no credit card payments.

Shaq has been a swell addition to the Cavs!

[LSUTiger32]

You are paying $4900 a month for mortgage which is 58% of your income, that is insane.

Bingo. Therein lies your problem. You cannot make it with almost 60% of your income going to the house, even with no credit card payments.

[OhioFiler]

I had no problem paying my mortgage and still don't have a problem with it. The problem started when I ran my charge cards up and got into trouble because of that.

Okay, you've identified the problem.

The question I have for you is this: Once you can no longer run your credit cards up how will you pay for the things you need? There was a reason you ran the balances up on those cards. Usually, it's a case of living a lifestyle above one's means. Are you prepared to change your lifestyle post-bankruptcy?

Your claim it is legal to claim false exemptions is not completely true. If you owe the IRS too much come April 15 because of this, you will be penalized. While it may not be illegal you are still fined for it.

And one last point of advice, do as you please with it. Relax, read what others here offer you with an open mind and please stop writing in a style that conveys anger when responding to those who try to help you.

[OhioFiler]

Selling the house is out of the question. The school system where I live is one of the best in the state. My daughters education is very important to me. I paid more for the house because of it. I paid 489,000 for the house and it is probably worth about 575,000 to 600,000. At the peak houses similiar to mine where going for 700,000. If I didn't have the charge card bills I would have plenty of cash.

This statement is your problem. You can't file Chapter 7 if you will have plenty of cash once you stop paying your unsecured bills. If you have plenty of cash you are put into a Chapter 13 and that cash is used to pay those debts.

It also doesn't read like you will actually have plenty of cash monthly if you stop paying your credit card bills. You are borrowing from the IRS, your property taxes are increasing and you use credit to pay normal living expenses from time to time.

I think you need to look hard at your budget and find out where your income is really going. Your budgeted expenses must come very close to your income each month or you will be a C13 candidate.

I read where you must stay in a certain house because you must have your daughter educated in a certain school. These absolutes are purely based on emotion. Your daughter could be home schooled or enrolled in a private school and receive a better education. If you moved to a much less expensive home you would have the money to send your daughter to any school in the country (almost).

I'm not judging you. I'm simply asking you to think a little differently. I hope all goes well for you and your family.

[newbie2]

I did read it correctly, thank you. Rusty, perhaps you may want to Google 401K loans and bankruptcy.

Good luck to you.

[rusty95]

Rusty, whatever you decide to do, please take at least this advice: Don't take any more out of your wifes retirement account.

That money is protected. Don't touch another dime of it.

If you read it correctly it was a loan and will be paid back. I did not withdraw the money.

[newbie2]

Rusty, whatever you decide to do, please take at least this advice: Don't take any more out of your wifes retirement account.

That money is protected. Don't touch another dime of it.

[backtoschool]

Nobody is going to claim 11 dependants because they don't exist.
Do you know why people claim more dependants? They do it to bring home more money weekly. You can only do it if you have enough deductions on your tax returns to cover them.
Who is claiming them as an expense. You don't understand the whole concept of doing that.

I have done alot of reading and did the means test. And I am not being defensive.

Good luck with your bankruptcy.

[rusty95]

If it was me I would stop paying the mortgages, find a cheaper place to live and file just to get out from under those mortgage payments. Your house is the problem and until you realize that, you won't get much relief.

I had no problem paying my mortgage and still don't have a problem with it. The problem started when I ran my charge cards up and got into trouble because of that.