@cracksmeup wrote:I'm trying to figure out if Chapter 7 will work for me/us. I've looked at the online calculators for the Means Test but can't seem to find the answers/questions I'm looking for when trying to determine if we will be eligible so, here goes:
-When figuring out expenses, do/can you include your payments for your credit cards/unsecured loans/debts?
No. Basic living expenses only. Mortgage (some states), rent, food, car for work, gas, insurance...no frills.
-Am I allowed to keep specific things out? My wife and I have an insane amount of credit card debt (about $90,000) but I'd like to not burn Amex. Can I do that?
No. All debt must be included even if it is not dischargable.
-Are we able to keep our cars and mortgage out of the bankruptcy? They are all up to date and we have no plans on getting rid of them. If we are able to, does that mean we can't use that monthly expense when figuring out our Means Test scores?
Each state has limits to how much equity you can keep. If you can keep them, they are included in your expenses.
-I am currently up to date on everything, albeit, I'm paying the minimums on all of our credit cards, but our payment histories are perfect. Do I have to stop paying once I file or can I continue to make the minimum payments until discharge? I'm asking this because, obviously, I'd like to keep my credit score as high as possible knowing the bankruptcy will do damage. I believe I'll still be able to make my payments for a few more months. After that, there will be more going out than in.
You really need to show that you can not keep up with your expenses. Otherwise, there is no reason for BK.
-On paper, we're above the median income level for PA by about $50,000 (we make about $130,000/year). Our monthly expenses though, including all of our unsecured debt payments, exceed $9000/month. Leaving us in the red and using credit cards for basics: gas, groceries, etc...) Are these the numbers they use to determine eligibility?
No. Basic living expenses. Ch7 is much harder than it used to be for those making good money.
I apologize for all of the questions. I'm planning on contacting a lawyer and making an appointment, I just don't want to waste their/my time if it doesn't look like Chapter 7 is an option. Also, it's much easier to ask Internet strangers then to stand in front of someone and admit that we've been horribly irresponsible with money...........
You will probably not qualify for a Chapter 7.
Chapter 13 is made for people that make good money but got over their head.
Chapter 13 also lets you keep everything you own.
You basically come up with a monthly living expense and the trustee takes all of your disposable income each month and pays your creditors. At the end of 3-5 years, you are done even if your creditors did not get all that was owed.
Real numbers would help with getting real advice.
I am not an attorney.
GL!
