Sick feeling in the tummy......

[InLimbo]

will it ever go away? My hubby was laid off for 4 months several years ago..we have tried sooooo hard to pay our debts since then, but we lost over 10,000 dollars in those 4 months and we have finally come to realize we will never catch up. so, we are planning on filing bk. We have alot of unsecured debt (cc's) and only our mortgage and car payment are secured.
We have seen a lawyer, but with our luck, we are about 20k over on the means test for filing a chapter 7. However, our expenses are more than our income and we have no way to pay back to a chapter 13 plan and he wants to try to get us into a chaper 7. My question, has anyone been able to do this since the new law has come in efect? He can't promise they will go for it, but if they don't, then we will be forced into a chapter 13 and no way to pay. I wish we had filed before last Oct. but we just couldn't bring ourselves to do it (i guess just plain old pride) until just recently. I had no idea it would be this hard to file now.
I have such a sick feeling in my tummy about all of this and not knowing what to expect. One other question, on our schedule J...we added the tution expenses for our 19 year old daughter that graduated from HS last year
($200.00 mthly -she's a full-time student at the community college) and our lawyer seems to think the trustee will question the fact that we pay tution. She is totally dependent on us and we have to pay that regardless. All of our other expenses are pretty normal (we have deprived ourselves of alot of things these last couple of years). If you have any comments that would ease my pain, it would be greatly appreciated.
Thanks so much! Stuck InLimbo

[SinkingFast]

Your attny is probably right about the tuition allowance. We too have a 19 year old at home, and we can't claim any assistance for him

One attny bluntly said, "You can help your son go to college if you choose. But you are not legally required to do so."

This is probably because the New Law specifically set a cut off age of 18 for dependent children. With that verbage, Trustees and Judges are free to disallow expenses for college aged dependents by Debtor/Filers.

But don't let that discourage you from trying. Sounds like your attny is willing to take in the expense. So let him/her try it. Worst the Court can say is NO.

Our attny is gonna try to get what we spend on his car. It's in our name. But even other attnys weren't gonna go for that. They all cut our auto insurance expenses, repair costs, and gasoline to take out son's car. At least ours is gonna try it anyway.

Also, Consult with other attnys and see what they have to say. Different attnys have different perspectives. Maybe you'll find another attny you're much more comfortable working with.

[JeepMom]

Actually if your child is living at home to file a FAFSA they take your income into play. You are required to help pay for your childs education if they are living at home.

My mom got married when I was 18. I had to declare my step-dad's income even though he did not raise me and we did not feel that he was responsible for my education.

So, if I had to claim my parents income, they can claim in on their taxes as an education expense, I don't see why they won't let you claim it as an expense in the BK. If the IRS gives you a deduction for it ya know, it would only make sense right?

[SinkingFast]

JM,...........

You're right about the FAFSA. And getting other types of aid. And claiming them as exemptions on our income taxes, and whatnot.

But going into BK is a whole different ballgame. The Law specifically set a cut off age of 18 for "school" expenses for dependent children.

I tried a quick search to provide a link for you. Nada. I'll try it again later when I have more time.

[anonymuse]

I don't know about other states, but in the State of New York, you are LEGALLY obligated to PAY for your kid's college education if they choose to go, up to the age of 25!!!!!!!!!!!!!!!!!!!!!!!!!!!!

??? You've got to be kidding? Is this part of a divorce decree or some kind of state law? How can some student choose to go to RPI where tuition is more than a lot of people's salaries if their parents don't even make that much money a year?

[lrprn]

I tried a quick search to provide a link for you. Nada. I'll try it again later when I have more time.

Here's a Texas case from 2000 where a debtor had her Ch 7 case dismissed because the trustee felt if she "eliminated or reduced her repayment of a loan from her retirement plan and " she could repay a good portion of her unsecured debt. The court agreed and dismissed her case - http://www.txnb.uscourts.gov/opinion...95-7_Rubio.pdf

[InLimbo]

Im in NC...don't know the laws here referring to the tution, but our lawyer mention that the tution amount would not be for the full 5 years (if we had to opt for chapter 13) and this may be why the trustee challenges us on it. I explained to him that we have another child that will be attending community college as soon as our 1st daughter graduates (they are 2 years apart). Let's face it....its ONLY community college which is a little over 1200.00 a year and not some 23,000 college! If the expense is not allowed the sad part is, we STILL have to pay it cause I refuse to deprive my daughters of an education they deserve. I have no idea how this is gonna go, if they pick down our expense list, we will end up having to file 13 and how the heck are we gonna pay that (with still all the expenses we have to pay that they kick out). Has anyone had a success in getting to file chapter 7 since the new law even if your over the means test allowance income?? Our lawyer seems to be brave enough to try it for us (this was his suggestion, not ours) but oh what a sick feeling I have
Bless you all for your responses!

[InLimbo]

Oh by the way...our attorney included our daughters gas expenses, auto and repairs in the schedule J.....her car is also in her fathers name.