what is the likelihood of my BK filing being rejected?

[RLOPE]

Bascially, I have about 90K in credit debt. I earn approximately 130k annually. I do not own a home, but do own 2 cars that will be paid off in 2013. I'm wondering .... might my BK filing be rejected because of my salary? Does this happen?

[free2breathe]

RLOPE, it would likely just be the difference between Chapter 7 and Chapter 13. Basically, you first check to see if your salary falls under the state median income for your state. If you are above median, you then take the means test. Here is a link to the Means Test

[kornellred]

Chapter 13 is the default personal bankruptcy filing. You must qualify for Chapter 7, and with your high income, that would be difficult, barring extraordinary circumstances. Your unsecured debt is not that high.
Bankruptcy rejection is extremely unlikely - I have never heard of it. But you can look forward to five years of surrendering all of your disposable income to a Chapter 13 trustee. Good luck.

[momofthree]

Without a mortgage, extraordinarily high medical expenses, 8 kids, or some other valid "out of the norm" expense that will eat up that high income, you won't qualify for ch. 7. You'll have to file ch.13. We do have a ch.13 forum on the site if you're looking for more info about it.

If you take the means test posted above by free2breathe, then you'll get a general idea of your monthly payment...

[RLOPE]

hey there.. thanks for responding to my question. Question: is money spent for a woman to come and help clean the house twice a month considered disposable income? Is money on clothing purchased every so often considered disposible income? Or how about money to go on a vacation ? I'm just trying to get a solid handle on what it will mean to "surrender" all disposable income... - no vacation, new clothes, or help w/ maintaining the house? Appreciate your response well in advance.

[newbie2]

hey there.. thanks for responding to my question. Question: is money spent for a woman to come and help clean the house twice a month considered disposable income? Is money on clothing purchased every so often considered disposible income? Or how about money to go on a vacation ? I'm just trying to get a solid handle on what it will mean to "surrender" all disposable income... - no vacation, new clothes, or help w/ maintaining the house? Appreciate your response well in advance.

In a Chapter 13 reasonable expenses are allowed. You would have a clothing allowance, don't know what it is in your district. Vacations and housekeeping? Unless you can't clean the house yourself for some reason, that wouldn't be allowed. Vacations aren't a budget item either, you have to save the money from other areas of your budget.

[momofthree]

hey there.. thanks for responding to my question. Question: is money spent for a woman to come and help clean the house twice a month considered disposable income? Is money on clothing purchased every so often considered disposible income? Or how about money to go on a vacation ? I'm just trying to get a solid handle on what it will mean to "surrender" all disposable income... - no vacation, new clothes, or help w/ maintaining the house? Appreciate your response well in advance.

Housekeeping services and vacations are considered luxury items in the bankruptcy context. You are allowed a clothing allowance. For a single person, it is $86/mo for apparel and services (dry-cleaning and such). You can view the national IRS standards here: http://www.justice.gov/ust/eo/bapcpa..._standards.htm. As a single person, you are allowed a total of $534/mo. for all food, clothing, personal care, and household supplies. A family of 4 is allowed $1377/mo for those expenses...

[BKAttyMI]

Sit down with an attorney that actually does Chapter 13s, they can give you an idea of what kind of payment you'll be looking at. If they can't estimate a payment on the spot, you need to see someone that knows Chapter 13s specifically (many attorneys don't).

[RLOPE]

hey there, momofthree. how's your chapter 13 going? (if you mind me asking.) My wife and I have no choice but to file bankruptcy, but she's recovering from a touch c-section, so we need her to get better before filing.

[momofthree]

hey there, momofthree. how's your chapter 13 going? (if you mind me asking.) My wife and I have no choice but to file bankruptcy, but she's recovering from a touch c-section, so we need her to get better before filing.

Our ch.13 is going quite well. We have a larger emergency savings fund than we EVER did pre-filing. We live on a budget, but quite comfortably. We still take vacations (scaled down and paid for in cash) and live life. And our schedule J is much more "bare bones" than most filers because we just didn't have the income to actually claim all the full IRS standards (way under median but filed 13 to strip 2nd), so most ch.13 debtors have it much better than we do! Ch.13 is not the hell that many ch.7 filers make it out to be.

I've had 3 c-sections (2 that also included allergic reactions that resulted in full-body hives and swelling), so I feel for your wife. Hope she has a swift recovery and plenty of time to enjoy your new little one!


Keep us posted on your bk journey

[oicu812]

on the "surrendering all of your disposable income" when you submit a ch13 plan and your monthly payment and budget is set,and you making payemts ectect. what happens if you get a raise or make more money or get a 2nd job.does one have to adjust for a higher disposable monthly income to the trustee or can that DMI go to a emergency fund? (or anything really)

[momofthree]

on the "surrendering all of your disposable income" when you submit a ch13 plan and your monthly payment and budget is set,and you making payemts ectect. what happens if you get a raise or make more money or get a 2nd job.does one have to adjust for a higher disposable monthly income to the trustee or can that DMI go to a emergency fund? (or anything really)

I wish I had a set answer for you, but the reality is: it depends on your trustee. Some TT take every extra penny you earn, others only care about raises or bonuses that increase your income by 10%, and others leave you alone as long as you make your payment on time each month. An experienced 13 attorney in your district will be your best resource as to what your local trustee will require of you.