Chapter 7 a No Go?

[Referee06]

I have spoken with a BK attorney and have paid approximately $300 thus far (total $1240). She has received p/w re: all of the creditors that I owe. Today I spoke with a gentleman re: the IRS bills that I owe, and he indicated that the income/expense differential is such that I wouldn't be able to do much re: the IRS. He did say that oftentimes people who file Ch. 7 are not successful due to the same thing (income vs expenses) and that in the end BK attorneys say something like, "We tried our best but we couldn't make it fly," and the person filing BK is back at square #1 owing the creditors and not out the cost of the BK attorneys. This is my first posting on this forum. What do the members think about this? Thanks.

[NASCAR20FAN]

I have spoken with a BK attorney and have paid approximately $300 thus far (total $1240). She has received p/w re: all of the creditors that I owe. Today I spoke with a gentleman re: the IRS bills that I owe, and he indicated that the income/expense differential is such that I wouldn't be able to do much re: the IRS. He did say that oftentimes people who file Ch. 7 are not successful due to the same thing (income vs expenses) and that in the end BK attorneys say something like, "We tried our best but we couldn't make it fly," and the person filing BK is back at square #1 owing the creditors and not out the cost of the BK attorneys. This is my first posting on this forum. What do the members think about this? Thanks.

What is the difference between the amount you make and the amount you owe/ expenses. Something doesn't sound right. I know that once my lawyer looked over all my information it was a no brainer.

[annikasaunt]

Mine explained it to me as such: because I owed my creditors as much as my yearly salary is...chapter 7 would work for me! I would never be able to pay it back...that was very simple for me to understand!!

[aa06a47]

Mine explained it to me as such: because I owed my creditors as much as my yearly salary is...chapter 7 would work for me! I would never be able to pay it back...that was very simple for me to understand!!

Depends on your income and not what you owe. If your income is such that after your expenses, you can pay with your monthly disposable income, either 10,000 or 25% (whichever is less) you "qualify" for a chapter 13. I don't think your attorney is accurate in what he told you.

(I beleive the 10k is accurate, it might be 6K....they want a min of 100/month for 5 years)

[Minnymouth]

You need to quickly contact another attorney in your area and see what he says regarding your income vs expenses.... free consultation.... and how he looks at your case.

Just because you "want to qualify' for a chapter 7 doesn't mean the court is going to let you..... there's certain criteria you have to meet.

Get back with us .....

Minny

[annikasaunt]

No, I do qualify. He just put it that way at our first consult when I showed him everything I owed and what I made. Once we got into it it all fell into place. We filed last week and got our 341 scheduled for the 21st. It's a no asset case, we filed under federal exemptions so we get to keep everything, not like we had so much anyways! I love my atty...very attentive and on the ball...he's been doing this for 24 years and was a high school english teacher before this. I trust him completely. I just can't wait for the hearing to get here so I can get that part over with. It's the part that I am dreading the most!! I get so nervous talking in front of people so I hope he doesn't ask me too many difficult questions!! I plan on going early so I can sit in before my turn.

[SinkingFast]

Go here:

http://www.usdoj.gov/ust/

And check the Median Income for your state. You can find that by clicking the link for the Means Test in the BK box.

The Median income determines if you can qualify to file Ch 7 or not. It's just the first test. Then you have to compare income to expenses.

Wanted to add:

Your previous, non dischargeable IRS tax debt will be added into your expenses as Priority Debt. As long as you can annualize it out over 60 months. So that will help you on the $/month left over to pay towards debt.