Bankruptcy Means Test? Chapter 7 vs Chapter 13

[AllAboutTheDebt]

Hi, 

I posted a year ago but never went forward with bankruptcy, hoping my promotions and raises would help offset things. I've updated my information below as I have been laid off. 

I am a RI Resident deep in debt. All in my wife and I have $95K in CC, $81K in unsecured personal loans, and $28K in Car debt for $205K in total, with payments of $6,582 monthly just on our debt, We are current on all bills. While we try to naviagate Bankruptcy my wife has suggested we stop paying all unsecured debts, i'm thinking she is right. 

In terms of income I was recently laid off (2+ months and hundreds of applications have got me no where) and receive unemployment of $1040 weekly and she makes $1650 bi-weekly. We have two children, 6 and under. 

My wife is on board with bankruptcy as this has been taking a mental toll on us but I realize that since I got a severance and PTO payout (in August)  that impacts the 6 months means test, possibly disqualifying us from Chapter 7 ( I was making nearly $90K) and force us into Chapter 13. Would I be better off trying to make it to the 6 month mark so the means test better reflects our circumstances?

I should add:

I want to go back to school for accounting (i'd need 2 semesters for $8-10K) should I hold off or start immediatly if I can pay for it with student loan funds? I believe this might be my oppurtunity to get higher paying roles in the future. 

I just got approved for Doordash to have some additional income coming in (maxed out at $330 weekly due to unemployment rules). 

Other expenses monthly ~$6,361

• Mortgage is $2730 (Owe $394K, valued at $500K, need to keep it)
• Day Care is $900
• Groceries $900
• Car Payment $450 (we have 2 but own one w/o a loan)
• Fuel Costs $200 
• Car Insurance $220
• House utilities: $350 (Gas, oil, water, sewage, electricity)
• Cell Phones $171 (looking to switch)
• Student Loans $200
• Cloths and Diapers $125
• Cable Internet: $75
• Web Services: $40 (Netflix, Hulu, Nytimes)   

Any help/knowledge is appreciated or links to past discussions I missed in my searches. 

[FireMedic1]

Welcome. For a Chap 7 in RI with household of 4 is $130,123. You have assests so it wont go no assest. Its best to consult a lawyer and weigh your options. They all give free consultations. Go from there. Each state has different standards.

[MyAZLawyers]

It sounds like you're in a tough spot, and I understand the pressure. The six-month rule for the means test is key, but it looks at your income over the past six months, not just the recent month. Your severance and PTO payout may push you closer to the threshold, but there are exemptions and deductions that might help. It’s worth consulting with a bankruptcy attorney to review your situation and determine if Chapter 7 or Chapter 13 is best. As for your education, student loans are excluded from bankruptcy, so pursuing school could be a good long-term investment if the timing works with your financial recovery.