Just Got A Call From Lawyer

[InOverMyHead]

She was figuring up our income, our expenses, etc...We are 3000 dollars over the median income!!!!! AHHHHHH!!!! How can that be??? We have no money (well it seems to us) at the end of the month. We did pass the means test, but I am afraid that the 3000 dollars is going to push us into a 13!

[Minnymouth]

Evidently you both make decent incomes, its just your debts that have kept you bogged down so much.
Remember the debts will be eliminated, so anything that you would pay out on them now becomes available income to you aafter you file...
If her $3,000 figure is correct, then yes you will be put into a Chapter 13 and forced to pay the creditors part of what you owe them...
A chapter 13 is better than drowning in continous debt, never being able to get out of it, and the high interest rates just keep adding more debt to the bill.
Let us know what your attorney says and what direction she/he thinks you need to take

Minny

[InOverMyHead]

So if we make over 3000 than we will automatically be forced into a 13??? Is that correct???

[FilingOnMyOwn]

If you have more than $100 in disposable income every month, you may be put into a 13. $3000 extra every month, you will definately be put into a 13.

[Minnymouth]

It is not based on IF YOU MAKE OVER $3,000.....
it is based on IF YOU HAVE OVER $100 left over each month AFTER YOUR EXPENSES ARE PAID.............

Now if you have $3,000 left over every month after your expenses for the month have been paid - THEN YES - you will be in a Chapter 13.....

The Court is not going to let you walk away debt free with $3,000 in your pocket each month to spend as you please.... if you have cash to pay some of your creditors.

[InOverMyHead]

No I understand that. The means test shows we have negative income at the end of the month. But we make 3000 over the average YEARLY income in our state. Thanks for helping me and being so understanding I am just SOOOOOO confused and stressed!

[InOverMyHead]

The average is 50,000.00 we make 53,000.00

[notme]

So if we make over 3000 than we will automatically be forced into a 13??? Is that correct???

We have filed and are over the state median but we pass the means test, we dont have any dis. income. My lawyer has never said anything yet about chapter 13. 341 Meeting in a few weeks so we shall see!!!

[aa06a47]

I don't think inovermyhead meant 3K per month over the medium, but 3k per year over the med.

[cr2285]

The only reason for the means test is if you are over the state median. If you pass the means test and have no other red flags, you should be fine.

[InOverMyHead]

YES YES YES "AA06A47" that is what I meant...thank you...I don't think that I phrased that well to begin with. I should have made it a little more clear that I meant yearly not monthly. If that was the case and we had 3000 left monthly I wouldn't even be here, in fact I would be jumping up and down for joy right now!!!!

[Minnymouth]

I'm not sure how that will affect your status. Only an attorney can answer that for you...
What does he say, is he suggesting a Chapter 13? How much does he think you have to pay into it each month.....?

[Minnymouth]

I would think you would qualify for a Chapter 7 based on your means test....... don't know why your attorney would think otherwise....
Let us know what he says his reasoning for it is.
According to my calculations: you would have approx $150a month to pay creditors after your expenses. I guess maybe this is what he is looking at and figures the Trustee will too.
Let us know what they decide in your case.

[SinkingFast]

There's a range of flexibility on the Means Test and the Median Income where you can go Ch 7 even tho you're over the Median.

If you have Priority Debts or excess Secured debt that will be deducted out. If you have Child Support, alimony, IRS tax debt, medical bills. Or where your mortgage is more than the Schedules allowable for Rent, and you can amortize forward 60 months on the mortgage, you can also deduct the excess mortgage expense. It's secured debt.

So I can see where you can be a Ch 7 and earn a few thou more than the Median. It's gonna depend on the individual and their specific situation.