Having trouble keeping our heads above water.

[backtoschool]

Although I don't agree with the OP, I can empathize with his plight. I was shocked into reality when I went to meet with a bankruptcy lawyer in nyc when I lived there. It had never occured to me that my insolvency wasn't easily fixable by bankruptcy laws. When the lawyer put together a chapter 13 budget for me and I realized that I would be far far worse off than not filing at all, ($3,000 a month payments NOT including my rent or my student loans....and a 100% payoff...) it made me feel really trapped at the time.

The OP's debt is low enough that settlement might make sense.

[rusty95]

I'm guessing the Magic Wand Makes All Problems Go Away board!

Kinda like bankruptcy.

[OhioFiler]

Kinda like bankruptcy.

Sort of except there are very specific rules codified to make bankruptcy less like a waving of a magic wand. Some of those rules limit the amount of disposable income a petitioner may claim on the Means Test and Schedules I and J without either triggering the presumption of abuse or forcing a petitioner into a Chapter 13.

[bigsapper]

What board would that be?

Coincidental internet meme reference I guess.

Nothing to see here, move along.

[jennilynn]

One thing that many people with "high incomes" do is fill out Nolo's Means test or any other online Means Test and they take deductions that are not allowed deductions, i.e. in a Chapter 7 - you can't take a deduction for 401k/retirement contributions OR loan repayments. AND if you have higher than the IRS Standards on Mortgage, etc. you can possibly use the overage amount, but that is sure to flag the case for the US Trustee to really scrutinize the whole case. OR they take their "current" tax deductions, not the average over the last six months; so if they were underpaying their taxes; and getting more in the checks monthly, that can have an impact on the means test...

For the OP - I would highly recommend that you speak with a BK attorney.

[Midiman]

Has the OP seen a lawyer yet? In regard to your home, our attorney used the BofA site to determine its value. Long story short... here in SoCal, paid 474k in 05, went to 700k in 07 , dropped to 325k this month . This is a 1700sf 3bdrm home in a good area where just two miles from us (and where we used to live), not-so-good areas exist. Thankfully we still have 30k left in equity.

This amount has actually helped us secure our soon-to-be-filled CH7. I can understand wanting to hold onto the home... especially if its location provides peace of mind, a sense of American dream accomplishment and good schools for your kids. Has the value dropped sufficiently to underscore any attempt by creditors to go after it.. if you can indeed file?

[lovebirds]

Rusty, It seems as if NY will rarely do Chapter 7's to even poor people. You are high-income so will have little chance. Meet with a lawyer to be sure anyway.

If Chapter 13 is out of the question, start researching debt consolidation/settlements. If you were sacked for 60% of your debt in the form of income, would the taxes be killer?