Finally spoke to an attorney!!

[Foofy610]

Well, we finally had our consultation. Seems like a nice lady. And as everyone told me I would... I now have a little clarity on the matter. So thank you for that!

The attorney said she'll do what she can to file CH 7. It will be close because of our salaries. It's weird. We passed our means test, but she said schedules I & J might challenge the test. We may have to file CH 13.

Opinion:
We were told that if we filed a 13, worst case scenario would be $1,000 a month for 60 months. That's assuming all of the creditors filed claims for repayment.

Do you agree with this?

[lichteda]

Foffy,

Based on my experiance... don't do the 13 if you can avoid it. If you are borderline on the 7; figure out what it takes to make the 7 work. This may include waiting a period to file.

The 13 can be painful, especially if you have an agressive Trustee; Creditor Friendly Judge and Creditors who are never satified.

Additionaly, any tax returns and additional incomes over your schedules are paid to the Trustee...

If you get bonus, tax returns, inheratance... etc.

Again, if you pass the means test, find a lawyer who will take the case. My law office convinced us to do the 13 when we qualified for a 7. After 2 1/2 years in the 13, we converted and hope to get a discharge in 59 days!

Just my thoughts.

[Foofy610]

Thanks for that input. I'll keep that in mind going forward.

[jeep75]

If you pass the means test, you should be able to get the Schedule J worked out so it doesn't show much left over at the end of the month to challenge. Search the forums for schedule J information there are a lot of hints to help in this situation.

For example, on your means test your allowance for clothing may say $240 depending on your state, put close to that $240 on your schedule J even if you aren't spending that much right now, you could be later. Same thing for the out of pocket medical expenses, food, etc.

[keepmine]

Look at your insurance. Do you both have adequate life insurance? Do you and your husband have both long and shortterm disability insurance?

[Foofy610]

Look at your insurance. Do you both have adequate life insurance? Do you and your husband have both long and shortterm disability insurance?

Yes... I have included our insurance coverages.

[IamOld]

And foofy, don't forget to average per month what you spend not only on dr and rx copays, but over the counter meds, dentist, glasses/contacts, etc!!!!

[Foofy610]

And foofy, don't forget to average per month what you spend not only on dr and rx copays, but over the counter meds, dentist, glasses/contacts, etc!!!!

Is there an allowance for any kind of entertainment or dining out?

[ValleYum]

Most people budget about $50/month for Line 9 (Recreation, Clubs and Entertainment, Newspapers, Magazines, etc.) on Schedule J.

Don't forget to budget a little higher premiums on your insurance if you live in a credit profiling state as your premiums may well increase.

Decrease your deductibles on your home and auto policies (raises your premiums) as you don't have credit to fall back on to pay a high deductible.

Do you have term life insurance? If not, now would be a great time to get some.

Hope that helps! Lots of folks list their schedules I (income & deductions) and schedule J (expenses) for the forum members to critique/give advice & opinions - feel free to list yours if you want.

Good luck! We were over median - way over. We filed Chapter 7 with no problem here.

[IamOld]

Definately second what ValleYum said - also just to underline - most people could always use more term life ins - you can't/shouldn't just rely on what is provided for free by your employer.

Also...I wonder (all) if it at all matters if you live in a state where the metro area in which you live is WAY above the "median" for the state???

Most people budget about $50/month for Line 9 (Recreation, Clubs and Entertainment, Newspapers, Magazines, etc.) on Schedule J.

Don't forget to budget a little higher premiums on your insurance if you live in a credit profiling state as your premiums may well increase.

Decrease your deductibles on your home and auto policies (raises your premiums) as you don't have credit to fall back on to pay a high deductible.

Do you have term life insurance? If not, now would be a great time to get some.

Hope that helps! Lots of folks list their schedules I (income & deductions) and schedule J (expenses) for the forum members to critique/give advice & opinions - feel free to list yours if you want.

Good luck! We were over median - way over. We filed Chapter 7 with no problem here.

[sunshinepa]

Glad to hear you had your consult.

I know most folks won't agree with me on this but really, my attorney put down 125.00 a month entertainment, I was shocked but it flew without a glance. According to my guy, that is nothing but I still did not believe it. Stated before mine put my expenses so high in places, I was appalled because I really did not need one extra penny to get my CH 7.

Hopefully, you are confident with your attorney and she can get that 7. As far as a 13, if that is where you have to go, make sure she fights to get the lowest payment possible. Also, if you think you will need a new car, get one with a small payment, could make the difference in a 7 or 13.

So glad you have more clarity and hope it calmed you a bit.

[Freddy03]

Do you have a car payment? If not you might want to look into getting a new car now.

Also make sure you are adding things like - pet care (if any), home maintenance, car maintenance, car registration, gas, tolls (if any) things like that.

[Freddy03]

My entertainment was put at $75 for a family of 4.

[IamOld]

My entertainment was put at $75 for a family of 4.

Maybe that depends on locality...expensive area more "entertainment" cost.

[Foofy610]

After I gave the attorney our gross income and credit card debt numbers, she said we looked like a C13. When I told her we passed the means test, she said it really depended on our schedules... which she'll do what she can to bump up the numbers. She went on to say she'll do her best to file a C7 because she'll actually lose money working on a C13. BTW... her fees are $2,000 for a C7, and $3,000 for a C13.

Is this normal?