CH 13 but no disposable income?

[hu5ker555]

I went through the calculations and found that I have no disposable income. In fact, I'm in the hole about $300 each month. My expenses are actuals, it's just that my 1st and 2nd mortgages are high, my wife has major monthly medical expenses due to illness, and I have three dependent children.

Can I still file for CH 13? I was told by an attorney that I wouldn't qualify for CH 7 because I make too much money.

[HHM]

If you have no disposable income and you expenses are otherwise reasonable, there is no reason you couldn't qualify for a chapter 7. (there is not set income cap, not yet anyway).

The attorney's opinion might be based on the fact that some of your expenses are unreasonable.

[hu5ker555]

Can I keep my house if I go CH 7? There's no equity and I pay 2330 on the first mortgage, and 640 on the second.

[hhou812hh]

Whatever descision you come to it seems like the chapter 13 in it's present form is a lot better for debtor's then the new chapter 13 (after Oct17,2005). 36 months of your disposable income is probably much better then 60 months and if needed you can "cram down" any car liability to it's face value. It seems uncomfortable to have the court place a leash on you for 3 years but since almost no one can dispute a ch13 and it still maybe cheaper (in the long run) then paying all of your debts it's better then nothing.

Personally I think the means test is one thing, but Congress should have left ch13 bk's alone as opposed to killing the debtor with the new form.