Having trouble keeping our heads above water.

[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?

[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?

[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.

[bigsapper]

What board would that be?

Coincidental internet meme reference I guess.

Nothing to see here, move along.

[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.

[rusty95]

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

Kinda like bankruptcy.

[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.

[OhioFiler]

What board would that be?

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

[LSUTiger32]

He said it himself: without the unsecured debts, he has plenty of money left over. This right there puts him out of CH7 territory. If you have money left after base expenses, you are most likely going 13, like it or not.

Can't be possible, he doesn't want to hear that so it can't be true.

[rusty95]

Do I know you from another board?

What board would that be?

[flyinbroke]

He said it himself: without the unsecured debts, he has plenty of money left over. This right there puts him out of CH7 territory. If you have money left after base expenses, you are most likely going 13, like it or not.

[backtoschool]

I think I understand what the OP is saying w/r/t the dependents. He has used a high number for the purposes of the W-4, which only affects the amount of tax deducted from his pay. It is really an irrelevant number so long as he has enough tax deducted for his total tax liability. The important number of dependents is what is on the 1040 form. This is what the bankruptcy court uses.

Yes I agree JackBondLove. But I wasn't sure how many of those he was claiming on his 1040 and wanted the OP to be aware that the 1040 dependents are what the bankruptcy court uses.

Even with the lowered take home pay after he adds the dependents back in, the OP makes too much money and has too much disposable income (by bankruptcy schedule standards) to be a viable candidate for a chapter 7 in my opinion.

[bigsapper]

... 87 posts ...

Do I know you from another board?

[rusty95]

I reside in PA and know several surrounding areas that have bus service to NYC daily so people can commute. The Pocono area in particular used to be this lazy country area with skiing and resorts and now its become ghetto land in some areas. Makes for quite a culture shock for the people who have lived there their whole lives. The schools have had big problems as well. You have a mix of backward poor farm kids with street smart city kids and the drug situation is out of control. This is all irrelevant to this topic but someone mentioned commuting. You can get a banging house here though compared to what you will pay in NY/NYC. It personally would drive me nuts having to ride a bus 3-4 hours every day. That isn't a life in my opinion but its not a choice for many.

Yes it has become increasing bad in some areas. And the commute is a killer.
Plus I work around the clock 12 hour shifts, so the train wouldn't work for me.

[rusty95]

I think I understand what the OP is saying w/r/t the dependents. He has used a high number for the purposes of the W-4, which only affects the amount of tax deducted from his pay. It is really an irrelevant number so long as he has enough tax deducted for his total tax liability. The important number of dependents is what is on the 1040 form. This is what the bankruptcy court uses.

Bingo. And that is where my problem will lie. This year I owed fed tax. So I am going to lower the weekly dependants which will take away from my take home pay. Plus if they don't do something with the AMT tax I will owe a ton next year and that will be a big problem.