? about keeping my home in a Chapter 7

[azviolet]

I'm in Arizona (Phx)
I saw an attorney today who gave me some "off the record" advice to help me qualify for chapter 7.

I am JUST about to squeak by the qualifications. I am one of those who recently had a change in pay due to medical condition (missing work unpaid), but my stubs for the last six months do not reflect the lower pay- just the last 2 months.

So to help me, the lawyer said that in the means test, I would get credit for arrearages on my house. I am current at this time.
So he basically is saying to be late so that when we do the means test that will help me to qualify for a 7 much easier.

He then said that once filed, I would bring the house current. Once the BK is filed, I guess he'd have to sign something so that my mortgage company could speak with me directly about paying the arrearages.
Now, I would not go late for more than 2 months, as I will not risk a foreclosure proceeding.
But has anyone out there gone late, filed a 7, and then brought your house current right after the filing so you could keep it?

Thanks for reading!

[justbroke]

Interesting strategy from the attorney and I'm sure he meant it to be hush hush. By having arrears, you get to divide the total arrears by 60 to calculate a monthly "cost" or the curing the arrears. Unfortunately, unless your mortgage is REAL high or you've gone without paying for a long time, you only get 1/60th of the arrears as credit.

For example: if your mortgage is $2,000/month and you are 3 months in arrears, the total arrears is $6,000 and you get a $100/month "expense allowance" to cure the arrears.

If you're SQUEAKING by for a Chapter 7... I personally would never trust luck to this. You need to either wait some more time for your income to average lower, or find some legitimate expenses. (I won't repeat my new Mantra, but the Means Test is not the "only" test you must pass. You must pass the income less expense test as well. So manipulating the means test is not a good strategy.)

Interesting advice, but too on the borderline of dishonest. For Chapter 13s, this strategy is okay, because it's only so that you have money to file or to get some things accomplished before filing. For a Chapter 7... I find it a bad strategy. But that's me. I don't know your entire plan, what your disposable income is like... or anything about your questionable ability to qualify for a discharge.

Since you indicate that you need to complete the lower part of the mans test to calculate your disposable income, that means that you are over the median. Expect the UST to be sniffing around and examining your expenses and financial activity closely.