Can I avoid Chapter 13?

[Neofree]

This month my car is most likely going to be repossessed ($11000 owed, car valued $5000, not enough credit to get refi or another loan) because I got divorced.

Even not paying it I have $50/month spare money. Yes, I've eliminated every expense I can, sold everything I can, and I have no one to borrow any money from.

I just got a new job and after a 90-day probational period I will make 36400/year. (And as nice as it sounds, it isnt much more then I make now) The problem is that in order to buy a cheap car ($700) and be able to hire a lawyer for bankruptcy ($800), I will need to get a 2nd part time job at a fast food place for a few months or more.

As far as I can tell the first part of the Chapter 7/13 test thing is 36000/year in colorado. So in 90 days I will already be over by 400/year. And with the second job I'm sure it will be higher.

My intent is to work a 2nd job long enough to get through everything and file bankruptcy and then quit the 2nd job. Will I still make too much money and risk chapter 13?

[Flamingo]

This month my car is most likely going to be repossessed ($11000 owed, car valued $5000, not enough credit to get refi or another loan) because I got divorced.

Even not paying it I have $50/month spare money. Yes, I've eliminated every expense I can, sold everything I can, and I have no one to borrow any money from.

I just got a new job and after a 90-day probational period I will make 36400/year. (And as nice as it sounds, it isnt much more then I make now) The problem is that in order to buy a cheap car ($700) and be able to hire a lawyer for bankruptcy ($800), I will need to get a 2nd part time job at a fast food place for a few months or more.

As far as I can tell the first part of the Chapter 7/13 test thing is 36000/year in colorado. So in 90 days I will already be over by 400/year. And with the second job I'm sure it will be higher.

My intent is to work a 2nd job long enough to get through everything and file bankruptcy and then quit the 2nd job. Will I still make too much money and risk chapter 13?

You don't mention much at all about your entire financial picture; just mentioning what you owe on an automobile. What are your other bills/expenses? Do you live with somone? Rent on your own? Have the house after the divorce? Without some of that information, it would be difficult for someone to tell you whether or not you can avoid filing bankruptcy. It seems you have a plan in mind to avoid filing and are looking for guidance as to what to do; If you feel you will be able to work your way out of the hole you are in without filing then by all means continue with your plan. Lots of people take second jobs to supplement a main job. While it is hard it help keeps the wolf away from the door and may provide an opportunity to save money. Everyone who is in financial difficulty knows when the time comes to consider filing bankruptcy and there is really no way to avoid it. Bankruptcy should be the last resort in any event. While it provides many with a fresh start, it can take many years to reestablish credit and to obtain credit and/or a mortgage. Make sure you investigate all your options and get some legal advice as to filing in your state. Most BK attorneys give free consultations so it might be a good time to make an appointment and find out your options.

[Neofree]

I rent a small one bedroom apartment I cant move out of for 8 more months. I live a lone. Dont think anyone would want to be a roomate in this situation. My question was about avoiding Chapter 13. Not about avoiding bankrupcy. A second job (20 hours/week at $5/hour take home (minimum wage or slightly higher after taxes..aprox..) I only get $100/week. The 400/month would be Entirely spent by the car ($328/car payment, $60-70 in additional insurance since I would have to get full coverage). As it is I have $50 extra dollars a month without paying for the car. That is assuming I found a cheap car for $700, and pay roughly the same gas I do now. I have cut out everything I can.

[genseeker]

My understanding of the income is that it is just to provide a cutoff for people who will be able to do a BK7 but that you can go over that amount, you just have to fill in the complete means test. We filed Pro Se and his income is way under the standard so I'm not positive about the means test.

[keepmine]

Ya do what ya gotta do.
First thing, fill out the schedules I and J and see where you stand with disposable income. It really may not be much of an issue.
Second, take the fast food gig and earmark the money for the car and the lawyer. If your lawyer advises you to wait until your 6 month ave drops to near the median then, you just wait it out.
BTW, I'm confused about the $300 car payment. If you're buying a $700 car, you won't have a large payment at all.

[Flamingo]

I rent a small one bedroom apartment I cant move out of for 8 more months. I live a lone. Dont think anyone would want to be a roomate in this situation. My question was about avoiding Chapter 13. Not about avoiding bankrupcy. A second job (20 hours/week at $5/hour take home (minimum wage or slightly higher after taxes..aprox..) I only get $100/week. The 400/month would be Entirely spent by the car ($328/car payment, $60-70 in additional insurance since I would have to get full coverage). As it is I have $50 extra dollars a month without paying for the car. That is assuming I found a cheap car for $700, and pay roughly the same gas I do now. I have cut out everything I can.

See the portion of your posting I highlighted above. Chapter 13 IS bankruptcy. Depending upon which state you live in as to its median income and the amount of all your income and the amount of all your debts, that is what determines whether or not you can file bankruptcy (Chapter 7 or 13). I am assuming what you are stating is that you are trying to avoid having to file Chapter 13 and hope to file a Chapter 7. Have you spoken with an attorney yet? If not, that is the best bet to find out exactly where you stand financially and what you should or should not do.

[Neofree]

keepmine: the newer car I have (and that is about to be repo'd) is 328/month, getting an older used car for $700 is what I was talking about, but I'm not having any luck finding one (well I did, but I wasnt fast enough and now I dont even have enough money to get it)

Flamingo: I would think anyone filing bankruptcy would want to avoid Chap. 13 and go with Chap 7. So I thought that made sense to me. I cant afford a lawyer, I will probably fill out the forms the best I can myself.

[Flamingo]

keepmine: the newer car I have (and that is about to be repo'd) is 328/month, getting an older used car for $700 is what I was talking about, but I'm not having any luck finding one (well I did, but I wasnt fast enough and now I dont even have enough money to get it)

Flamingo: I would think anyone filing bankruptcy would want to avoid Chap. 13 and go with Chap 7. So I thought that made sense to me. I cant afford a lawyer, I will probably fill out the forms the best I can myself.

Hi Neofree! It was the way you worded your posting previous to this one that was confusing, that is why I highlighted the sentence in it. But I know what you are/were saying and have confirmed above. Depending upon one's circumstances, it is always better to go with a Chapter 7 if you can than with a Chapter 13. There are pros and cons and reasons to both so it's always best to review things with a lawyer to see where you actually stand. While you may want to file a Chapter 7, you may not be able to. While filing pro se can be done and can be very detailed and time consuming, not too many people recommend doing it because mistakes can be costly and time consuming especially after the laws changed in 2005. Things got a lot more complicated.

We did not have the funds to file our Chapter 13 so I understand where you are coming from on that but after going through it and looking back on it, there was no way we could have handled all that ourselves. It was $1,200 to file and our attorney put $600 of his fees into our Plan. The $1,200 included the filing fees for the Court. We borrowed the funds from good friends and have long paid them back. Believe me, it was worth it. If you have good friends/family who can help you out, it may be something for you to consider as to getting an attorney and having him/her file. It's just a suggestion...it worked for us! Best of luck!