Please offer some adivce on filing bk

[flhx1550]

Hello,
I am new to the site, and thank you for reading.

Where I am at:

34yr.old divorced (5 years) male, and I live in rural Minnesota.

After my divorce I was carrying allot of debt, but had a job that could pay for it, so I decided to put my head down, make a 5yr plan to pay off my debt, and get thru it. Basically, I made my own "Chapter 13" plan, where I was making $70k/yr, but living like I made $20k.

Well, 3 years into my "plan", I got laid off (7/14/2009).

My house location has me hampered into finding a new job. Currently I have a job offer I can take, that pays me a good salary (about $64k a year) that I could be happy with (got the job 2 days after I got laid off). The downfall is that it is 2 hours away from my house.

Now I can move in with my g/f into an apartment, sign a lease, and go to work. Problem is, my current debts.

House is worth about $45k, I owe $72k. I have a 2006 Vehicle in good shape, but bad interest rate on the loan and high payments, with 2 years to go. Between the house, the car, the credit cards, etc... unsecured debt would probably be in the $50k range (guess of course).

As of today, all bills are current, but not allot of cash in the bank after living with pay-cuts the last 6 months.

My options are:

Scenario A: Take the job, move in with the g/f and sign a 1 yr lease, and stop making payments on the house, then file bankrputcy (13)

Scenario B: Stay on unemployment, move in with g/f and sign 1 yr lease, stop making payments on the house, then file chapter 7, after my "mean income" drops under the mean for MN ($47k)

Scenario C: Take the job, move in with g/f and sign 1 year lease, stop making ALL payments and file chapter 13

Problem is I have to get the living situation solved. I am just trying to be able to "live" after the bankruptcy and not be buried with chapter 13 payments.

ANY help is appreciated

[JRScott]

Well it is commendable that you were at least trying to get out of debt before this unfortunate hurdle.

It seems you've pretty much made up the mind to move in with the girlfriend. In this economy it is almost certain that you should take a job that is available, so many are looking and not finding anything.

So moving in with the girlfriend should help you establish new living expenses I'd think.

You do realize that just because your above the median doesn't mean you couldn't do a Chapter 7, it depends on the entire picture. However probably Scenario A is the better one, unless you can squeeze a Chapter 7 out of it still.

[flhx1550]

well I think I read somewhere on the web that u can do a chapter 7 if u are abouve the "mean" income, as long as u had less than $6k/month dissposable income.

has anyone heard of that?

[keepmine]

well I think I read somewhere on the web that u can do a chapter 7 if u are abouve the "mean" income, as long as u had less than $6k/month dissposable income.

has anyone heard of that?

First of all, take that job. If you don't qualify for a Chapter 7, so be it. $64K jobs 2 days after a layoff are not common.
Your above post is wrong. Basically, if you have $187/moth disposable income, you are in a Chapter 13. Even if you pass the means test, you still have to fill out schedules I and J to get a monthly disposable income.
Here's a good start. Fill this out and see where you stand.

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

[flhx1550]

Well met with a lawyer today,
Says that I am "right there" as far as if I can do chapter 7, says I need to make sure my Monthy Bills would cover my monthly gross, considering the cost of living in the Twin Cities, MN shouldn't be an issue.

Does this sound like the norm?

[flhx1550]

Well doing a honest assesment of the Means test that was listed and I come up with a -813 means test score

[JRScott]

Then I'd think you'd qualify, maybe fill out a mock schedule I and schedule J and see what it comes to. If it still looks good you might have a case.

[flhx1550]

question:
last fall I had hail damage on my house. Total cost to fix the roof (estimate) is 3600. so my homeowners cut me a check to cover half the repair (1800). how it was supposed to work is they pay the first half, I pay the second half, then when completed, they would cut me a check to cover wha ever I spent minus my deductable (500)

now, I have had 6mos to get it fixed, so I havn't fixed the roof because of my financial situation ( multiple pay cuts and layoff), but I still have the check.

I have no intensions on fixing the roof on a house that I plan on including in a bankruptcy, so what do I do with the 1800?