Help What a Mess

[missy42]

So I hired a BK lawyer in Oct 2016.  I had recently resigned from my job due to health reasons and was told I would have to wait to file a Chap 7 but that I did qualify.  I'm in FL and I'm a disabled veteran with a monthly income of $4660.  In the meantime I had decided to give up the home in Chap 7 therefore in Jan 2017 I stopped making payments.  Fast forward to this week when my lawyers wife who acts as the paralegal and I never worked with called and said basically I do not quailfy for the Chap 7 and if I wasn't happy I could pick up my money for full refund.  I am so pissed because now I called my mortgage company on 22 August based on the other lawyer saying it should hold them off before we file and asked for a modification.  Now the situation is I have to do a 13 which I could have done months ago.

I have a 2013 SRX that I do not want to keep owe $32K more bought it used but at 7.99% interest rate in April 2016.  I have no idea what to do or how to get rid of the car and get another one before the Chap 13 plan is approved.  My credit is shot to hell with missed mortgage payments and everything else.

If I keep the current vehicle payments go from $583  to $485.  The vehicle have lots of maintenance issues that I can see in the future will cost lots of money and the console (digital) already freeze all the time.  I would like to get into a 2017 Honda Accord or Civic because the plan will be for 5 years and I will need reliable transportation.

I am current on the vehicle as I was following the plan of pay to wait as my lawyer stated.  Now I'm keeping the home and staying so it's just a cluster.

I have no idea how to go about giving a car back to the lender the last time I did anything like that was in 2007 and I just didn't reaffirm in Chap 7 and they picked it up 4 months after.

Please help, I would love to get another lawyer however I'm late in the game and I need to ensure I get this filed.  I'm disappointed and feel as if I've been strung along until the last possible minute and now I have no choice but to do a 13 and make payments of $2300 a month for 5 years. 

It's disappointing to know there are lawyers out here that really don't take the time to review things but take your case:  By the way I paid $300 retainer fee, $1200 BK 7 and $1500 for foreclosure that now will not happen. 

Filing a Chap 13 will be an additional $3000 listed on their estimated plan.  Is there any way to get $1500 back since no foreclsure or are they slow boating me for that purpose?  I'm so disheartened as found out my dog has Lyphoma the same day.

Any adivce on how to proceed would be greatly appreciated as I meet with them on Monday and need to have my own game plan to put forward.

[sccredit]

Find another attorney

[medicgrrl]

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@sccredit wrote:

Find another attorney

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+1 I would definitely talk with at least 1 more attorney, if not more.  

[Anonymous]

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@sccredit wrote:

Find another attorney

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^^^^^this  Talk to a few. Make SURE you don't qualify for a 7.

Additionally, I'd recommend that obtaining a brand new car be the last thing on your mind. Car payments are part of what got you (and many many folks) in our debacles. Buy something you can pay cash for while you straighten everything out.

[missy42]

Thanks for the responses I have several things lined up before my appointment on Monday.  I will just wait on the vehicle just need to get filed and get things started.  Hope I can find someone willing to take my case it's so late in the game now.  If not hoping to get filed soon as I have waited long enough. 

[Anonymous]

I just want to say I'm sorry. The straw that broke the camel's back and made me start missing payments was when my cat developed cancer and then later died on me. I work f/t with a disability, which contributed to my bk. Also, I had to go from one lawyer to another (through no fault of the lawyer's, medical incident). So you have my sympathy from multiple angles.

I would advise you to do everything you can to consult with other reputable attorneys. Do you work? If so, do you have an EAP? They may be able to refer you, potentially more than once (I did three consultations through my EAP, felt like an --- calling back again and again, but I needed to be sure I was picking the right place). Are you part of a union? They may be able to refer you also. (I also did a consultation through my union's referral service. Yeah... I got around) And then there are the usual internet searches, review sites, etc. Word of mouth - friends - and so forth.

Most of the time the consultation is free. You get at least a 1/2 hour, usually they state a 1/2 hour but they'll take as much time as you need. (At least in my region.) 

Don't lose hope and don't start flailing and doing things on your own. Take a deep breath. Make some phone calls. Consult with at least 2 more atty's and get a good one on your side. Make a huge list of questions, and ask them all when you meet - don't feel like you have to skip any.

Then start moving forward. You absolutely can.

[missy42]

Not woking retired diabled vet I have several appointments libed up on Monday but again at this point I just need to file and get on with my Chap 13 payments. FL got around my veteran benefits by requiring means test unless debts were aquired during active duty or protection of homeland so its not exempt. Only Social Security benefits are exempt. Thanks for well wishes for my dog, just have to keep him as comfortable as possible with meds not doing chemo. Wjat I know for sure is "this too shall pass" even if it takes 5 yrs!

[despritfreya]

A little late to the party but. . .

Median income for a single filer in your neck of the woods is approximately $44,500.   Assuming your only source of income for the past 6 months was your VA disability, you are at approximately $55,900.

Being over median does not mean you don’t qualify. It means you have to complete the means test. Did someone sit down with you to complete the means test?

As to your status as a veteran (thank you for your service), Florida did not “get around” your benefits. No State can do that. You simply did not meet the test for a disabled veteran under the Bankruptcy Code, specifically, 11 USC 707(b)(2)(D). Bankruptcy is a Federal law and this provision applies no matter where you live. If the attny initially told you that your VA benefits would not count for means testing purposes he must have thought that your debt was primarily incurred while you were on active duty or performing homeland defense. If such was not the case then he failed to read the Bankruptcy Code and once he read 707(b)(2)(D) he realized his mistake.

If the attny did not work out the means test you need to find another attny. It appears that you are approximately $11,400 over median. I have “qualified” clients with larger spreads than yours. It simply turns on what expenses can be deducted including secured debt.

Please consult with one or two other attorneys.

Des

[missy42]

Thanks Des for the response you're right he didnt bother to read and now of course after their office finally did the means test my income is over by $350 is what they're telling me.  Its very late in this waiting game so in order to save my house which initially I was going to include in Ch 7 but changed my mind.  Nothing to do now but get the 13 filed and start the 5 yr plan its just disheartening and I don't want to  find another atty I'm over it but I will call a few more but at this point its just best to file as I have a family member in hospice and a dog with lymphoma so I just need to file and get started.  I asked several times were they sure because I was reading something different.  Turns out my gut was right all the time!  5 yrs is a long time but what I'm pissed about is I was current when I hired him I could be 1 yr down by now verses just starting! Just got to suck it up now and move forward no looking back now.  If I can do 22yrs in military I can get through the next 5 yrs.  Thank you again!

[Anonymous]

🙋 Waving good vibes your way

I can't stand LAZY lawyers because they put lay people in a real pickle when their sloppiness causes a bigger mess than the one a person started with...

And that paralegal/wife flippantly offering to allow you to come PICK up a refund, as if it's be thrown on the floor for a client to pick like the mess they caused makes me really happy I don't know the firm of which you speak, cause if you said they were in So Cal vs somewhere in FL I'd be begging you to tell WHO they were, so I could visit the office in support of a fellow vet just to share my appreciation for how they handle customer service 😒