Considering Chapter 7

[securingourfuture]

Hi Everyone. I am scheduled to see a bankruptcy attorney tomorrow morning. Here’s my situation:

I make $66,056 per year plus I receive $19,056 in child support. This makes my income $85,112 per year. The state median for a family of 4 is about $78,870. I’m recently divorced, so my family of 4 is myself and 3 children. The lawyer thinks I can pass the means test mainly because child care is $1,591 per month.
My reason for considering BK7 is the fact that I have high debt and because my ex is trying to increase his custody (and lower his child support). I don’t believe he will be successful, but I don’t want to be blindsided either.
My assets and liabilities include:
House (9/2017) $1,520/month (199k bal)
Car $650/month (38k bal)
Credit cards $3,100/month (116k bal)
Student loans $98/month IBR (146k bal)
Medical bill $125/month (1,641 bal)
Child care $1,591/month (ages 2, 4, & 10)
Life insurance $11/month
Health insurance $301/month

I plan to keep the house and I have confirmed that my mortgage company does reaffirmation agreements. However, my auto lender considers a loan in default once a buyer begins bankruptcy proceedings.

My goal is to take the money I’ve been using on credit cards to buy a Honda or Toyota with decent mileage for $8k in cash. I need something dependable with 3 kids.

So do you think chapter 7 is possible? Also, do you know how soon the car will be repoed? I’m with DCU.

Thanks in advance.

[Anonymous]

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@securingourfuture wrote:
Hi Everyone. I am scheduled to see a bankruptcy attorney tomorrow morning. Here’s my situation:

I make $66,056 per year plus I receive $19,056 in child support. This makes my income $85,112 per year. The state median for a family of 4 is about $78,870. I’m recently divorced, so my family of 4 is myself and 3 children. The lawyer thinks I can pass the means test mainly because child care is $1,591 per month.
My reason for considering BK7 is the fact that I have high debt and because my ex is trying to increase his custody (and lower his child support). I don’t believe he will be successful, but I don’t want to be blindsided either.
My assets and liabilities include:
House (9/2017) $1,520/month (199k bal)
Car $650/month (38k bal)
Credit cards $3,100/month (116k bal)
Student loans $98/month IBR (146k bal)
Medical bill $125/month (1,641 bal)
Child care $1,591/month (ages 2, 4, & 10)
Life insurance $11/month
Health insurance $301/month

I plan to keep the house and I have confirmed that my mortgage company does reaffirmation agreements. However, my auto lender considers a loan in default once a buyer begins bankruptcy proceedings.

My goal is to take the money I’ve been using on credit cards to buy a Honda or Toyota with decent mileage for $8k in cash. I need something dependable with 3 kids.

So do you think chapter 7 is possible? Also, do you know how soon the car will be repoed? I’m with DCU.

Thanks in advance.

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Is the 8k you want to spend on a car from cash advances on credit cards? I ask because you said the money you have been using on credit cards to buy a car.

Your credit card balances add up to 116k?

[securingourfuture]

No the $8k would be from not having to pay out so much each month on credit cards.

Yes $116k. I needed major repairs on my home - roof and plumbing among others. Add to that a 9-day stay in the hospital and a divorce and it was a matter of time. I haven’t missed payments and I was never late. It’s just too much debt.