Can someone give me some advice on

[gustavom]

Im confused, I dont know which is the best for me, the ch 7 or the ch 13, I dont want to go to foreclosure, I want to save my house but I cant make the payments anymore because I had a salary reduction and lots of credit cards, can someone let me know please?

[HHM]

Well, you really don't get to choose between chapter 7 or chapter 13, your circumstances make that choice for you. If you earn more than you state's median income, you have no choice but to file a chapter 13, if your income exceeds your allowed expenses by $100 per month, you will have no choice but to file a chapter 13. If you are behind on your house payments, and want to keep the house, you have to file a chapter 13 (if you otherwise qualify for a chapter 13).

I am sure someone will come by and posts the links to the median income and means test (I don't have the links handy) that will give you a starting point for figuring out which chapter you will qualify for.

[CATCHMEIFYOUCAN]

Means Test

Here is a copy of an old post I had a couple months ago:

Means Test Calculator

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This will give you a good idea where you fall in the Means Test Category, but don't rely on it, see a lawyer! I'm just a consumer to let you all know

I'm filling out a means test calculator at legalconsumer.com (really cool) to help me pre-determine if i should be eligible for a chapter 7 or chapter 13. I know my lawyer will do one anyways, but I want to see for myself.

Oh yeah, KEEP IN MIND, the new MEANS TEST, is not whether you past or fail, its just a test to see where you stand as far as if you have any disposable income to pay back something to the creditors (at least $100 or more), even if the MEANS TEST shows you have no disposable income, schedules I and J may prove different (like it did with me!). So think of everything (right down to your undy's) to list as disposable income! REALLY! New filers don't think about it, until it may come up too late! Haircuts, Future car repairs, new tires for you car, auto insurance, underwear, shoes, socks (CLOTHING EXPENSES), eat up as much disposable income as your state allows you too! LESS TO THE CREDITORS in the end!

GOOD LUCK TO YA ! ! !

Catchmeifyoucan

[lrprn]

I am sure someone will come by and posts the links to the median income and means test (I don't have the links handy) that will give you a starting point for figuring out which chapter you will qualify for.

Here you go....

Means Test Calculator:

http://www.legalconsumer.com/means-test-calculator/index.php

Explains what the Means Test is:

http://www.moranlaw.net/means_test.htm

http://ezinearticles.com/?The-New-Bankruptcy-Law-Means-Test-Explained-in-Plain-English&id=74968

Median Income by State:

http://www.usdoj.gov/ust/eo/bapcpa/20061001/bci_data/median_income_table.htm

Hope this helps! Let us know if you have questions as you go through these.

[Debtsarenogood]

If you earn more than your state's median you can still file a Chapter 7 if you can rebut the presumption of abuse with the IRS standards.



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