Question still getting advice

[molly2073]

Hi. I want to know what your advice would be. We have a income of about 70,000 a year. We owe about 83k in credit cards, 26k on our car, of which about 8k is upside down and payments are 600 a month and 25k on a 2nd mortgage. Bring home is about avg 4300.00 a month. Although my husband is mostly commission. So income varies. Budget is about 3400.00 a month, which includes house payment. 600.00 to car and 275.00 on 2nd mortgage. The attorney is recommending chapter 13. Keeping budget at 3400 and rolling in car and credit cards for 967.00 a month. For a total right at 4300.00 I really want to do chapter 7 but we are over means for our annual income. I would appreciate any advice.
Thanks

[newbie2]

Hi. I want to know what your advice would be. We have a income of about 70,000 a year. We owe about 83k in credit cards, 26k on our car, of which about 8k is upside down and payments are 600 a month and 25k on a 2nd mortgage. Bring home is about avg 4300.00 a month. Although my husband is mostly commission. So income varies. Budget is about 3400.00 a month, which includes house payment. 600.00 to car and 275.00 on 2nd mortgage. The attorney is recommending chapter 13. Keeping budget at 3400 and rolling in car and credit cards for 967.00 a month. For a total right at 4300.00 I really want to do chapter 7 but we are over means for our annual income. I would appreciate any advice.
Thanks

Molly, if you want to file Chapter 7 then you have to meet the guidelines. As I said in your earlier post please get a 2nd (and/or third opinion). You are over the median income and have disposable income. You really need to crunch your numbers as far as expenses go, then see a couple of attorneys.

If you don't want to file for a Chapter 13 you don't have to. It's voluntary.

[SMinGA]

As Newbie points out, if you truly have disposable income after all bills/expenses - then you're not a ch. 7 candidate.

Some things to consider though: is your home worth more or less than you owe? If its under water, is it worth more or less than your 1st mortgage?

Have you gone thru your budget, to account for actual & realistic expenses? In the $3400/mo do you include average monthly utilities, groceries, vehicle maintenance expenses, clothing, medicine/medical out of pocket, household maintenance, personal care needs, any insurances that are not deducted from your paychecks, etc.?

You indicate you owe $26k on your car, have $600mo payment and you're upside down by $8,000. Getting something more reasonable - less payment and better value - may be a good idea.