Question Should I file Chapter 13 or Chapter 7?

[ben1381]

I seem to have the difficult question of Chapter 13 vs. Chapter 7. A few days ago I saw a bankruptcy attorney's office and right away they went on the Chapter 13 soapbox. That attorney does not participate in my legal services plan. Today I spoke to a different attorney and he went on right away with the Chapter 7 soapbox. One of the problems is that my income is very close to the means test median so with some manipulation I could probably go either way. Based on the additional information below I am wondering if anyone has any ideas out of my dilemma. I am located in Rockland County in the Southern District of NY.
Assets: Homestead worth anywhere from 230k to 330k ( A home across the street that went through foreclosure is being listed at 233.9K).
2 mortgages:first 159k remaining 5.125 fixed 30 years
second HELOC one year forbearance at 3% regular rate 89k at 7.29
29K at 8.29 balance at prime + .15 Total balance 124 20 year loan
timeshare with 8k mortgage costing 148.19 monthly and 40 monthly for maintenance
"secret synagogue" artwork worth up to 8K
engagement ring worth up to 5K
auto loan 5k paying 166 per month
approx. 100k in unsecured debt.
3 lawsuits outstanding 1 settled for 10 k original amount asked for 29K
2 others 33k plus 20% attorney fees bank unwilling to settle on terms acceptable to me.
gross income approx. 7k per month
Median income for Rockland County 11/1/09 is approx. 82K annually per US trustees site.

seeking child support from children's mother seeing county child support unit next week. There is joint legal and physical custody
Paying approx. 10K in yeshiva(private school tuition)


Any ideas for my situation would be appreciated.

[aaj67]

I think in Chapter 13 you get to keep most of your assets..you really need to determine the exemptions allowed in your state, that will help you weigh your options. Then you need to prepare Schedule I and J to determine the net disposable income. Evaluate if it is more worth it to file chapter 7 losing some of your assets or if it is more worth it to pay for 3 to 5 years a monthly payment equal to the disposable income.

You'll find the forms "schedule I and J" here:

http://www.uscourts.gov/bkforms/index.html

You can also prepare form B22C (means test): (enter your zip code)

http://www.legalconsumer.com/bankruptcy/nolo/br_home.php?ZIP=

[klandsb]

Being new to all this and taking a quick glance at your thread I would suggest going to a few more attorney's and spend some time on this site going thru the stickies to gather as much information as possible before making any decisions.
The one thing that stuck out is your private school tuition.. From all I read probally not going to look very good to the trustee.. They dont care were you child goes to school. Thats a personal decision you have made.
Your about even on the amount you owe on your house to what its worth.. Its up to you whether you want to keep it or not ??
Also, any assets you have should be valued at yard sale prices... Dont overprice them.
In the end it will bite you in the a**.....You will be sorry if you price them at retail value..
Again research, research and reasearch...