Considering my options

[pa308]

I am finding myself tighter and tighter on funds. I have approx 28000 cc debt, 40000 school loans and mortgage about 850/month and second mtg of 10k. I am beginning to consider Chapter 7 but want to keep my house. I have never been late on the house but have been late on ccs. I live in pa and my annual income is just under 50k. Of course I have alot of questions so maybe i will need to do multiple posts. Many of these will sound stupid but bear with me.

I realize i will list my assets, will someone come to my house and inventory or do they take your word for it. I am not trying to short them, i just have a nightmare of a truck with BANKRUPTCY posted on the side showing up. How do they determine asset/no asset filing?

What kind of questions do they ask at the hearing i.e why are you in such debt??

Anyone from PA have a good lawyer to recomend in pittsburgh area?

Man this is the hardest decision, but i think i must do this or never get out from under.

Thaks in advance.

[nc73]

I would just guesstimate on your inventory. That debt level isn't too bad. You can't discharge the student loan though unfortunately. Credit cards over 40k total. School loans, etc. I am broke as hell. I make 55 and have 2 mortgages over 3k grand, one is a rental but they are always late. I'm about to evict them. I feel bad since she's a single mom but I gotta do what I gotta do.
I also have 1 kid with one on the way. Your troubles are nothing my friend. Since you are in PA file away!

[pa308]

What do you mean since i'm from pa file any way??

[nc73]

My bad PA is around 41k median income for single income. So you probably won't qualify for a 7 but probably a 13. You will be paying back some of the debt.

[pa308]

I actually have a family of four including myself so i thought the median would be around 70k

[lrprn]

I actually have a family of four including myself so i thought the median would be around 70k

Here's a link to the brand new median income tables - http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

The median income in PA for a family of four is $74,072.

[nc73]

I actually have a family of four including myself so i thought the median would be around 70k

There ya go, you're set. chpt 7 it is.

[pa308]

My mother passed away in April 07 and I received an inheritance of approximately 13000 of which i used for improvements around the home. Do you think i need to wait a year to file? I am afraid i will not have a good enough answer if in the 341 the trustee asks why didnt you pay creditors with it

[nc73]

My mother passed away in April 07 and I received an inheritance of approximately 13000 of which i used for improvements around the home. Do you think i need to wait a year to file? I am afraid i will not have a good enough answer if in the 341 the trustee asks why didnt you pay creditors with it

I'd wait 6 months..do talk to a lawyer though.

[lrprn]

My mother passed away in April 07 and I received an inheritance of approximately 13000 of which i used for improvements around the home. Do you think i need to wait a year to file? I am afraid i will not have a good enough answer if in the 341 the trustee asks why didnt you pay creditors with it

The important questions are how much of the $13K do you still have in your accounts and how much will exemptions protect if you file now?

The stingy PA exemptions allow you to protect $300 (the wild card exemption). However PA also allows you to choose between PA exemptions or use the federal exemptions instead. The federal exemptions are here - http://www.bankruptcyinformation.com/exemp-fed.htm . Federal exemptions protects more depending on how much of the homestead equity protection you need to use.

Time to make appointments for free initial consultations with 3-4 bankruptcy lawyers in your area. Ask all your questions during each one of those interviews - you'll get a good idea of where you stand on all the issues you've shared with us so far plus get a sense of who you can work best with to file.

[pa308]

None. Looking back now I guess I know this was a stupid thing. Wasnt really thinking about Chapter 7 at the time (although I guess I should have been). I know i need to talk to a bk attorney, I'm just so anal I'm thinking through the whole process step by step. My concern is that if the trustee asks if i had any inheritance and I tell him, which i would, that i would be kicked out. If I wait a year (a year of collection calls) If the question is have you had an inheritance in the year my answer could be honestly no. But can I last a year?? By then will the creditors begin to sue me, who knows. Adding the 13k to my salary still puts me under the median would that matter??

Hindsight is always 2020

[SinkingFast]

Hindsight is always 2020

You made the best decisions you could at the time with the information you had available.

Take it one step at a time.

Chat with several attnys. At least 3-4. Be open and honest about your situation. They cannot provide you with their best advice if they don't know what you're dealing with.

DO NOT pay anyone a penny for retainer until you've had time to research, learn, and mull over what each one said. If you've got questions about advice you get in Consults,......... Post them here. Many of us Consulted with more than one attny. We may be able to help you with insights from the attny's perspective.

[pa308]

Spoke to two attorneys today over the phone. The home improvements were an above ground pool and a deck which came to around 10k. One attorney advised me to call him back in about a years as this is a red flag to him. The other thinks we might be ok, wants me to come in next week and talk to him. Says we might be ok under a wild card?? I dont know maybe i try to hold the wolves at bay for a year with minimums, borrow from peter to pay paul......

[nc73]

i say wait a year too..

[zwiepak]

Uh, question: What does it mean to have a family of 4? Are you the only wage earner? I'm not quite sure I understand how that works. Do they combine the incomes of all wage earners that share the same address, and if your's is below you're a-ok with a 7? Sorry, trying to get a better understanding of this concept!