chapter 7 means test

[Anonymous]

I spoke with an attorney yesterday about filing.  She told me that based on the numbers I gave her, we would have to file chapter 13 with payments between $600-700 a month.  She said that based on the means test, there is an extra $300/month left over.  My question is how accurate are the online means tests?  I filled one out and it said that we qualified for chapter 7.  Just trying to decide if I should call another attorney or not. Thanks!

[ezdriver]

I'd go with the attorney's conclusion. Also, sometimes people file Ch 7 and the judge will convert it to Ch 13 once they examine income and liabilities. Ch 13 is simply a court-facilitated payment arrangement that creditors are obligated to accept. Ch 7 relieves you of all liability for payment of any of the debt. In both cases, creditors will be afforded and oppurtunity to chime in ... but they often don't.

[StartingOver10]

I would interview another BK attorney. Find one that only does BK. Stay away from the large mill type firms because IME you don't get a good attorney, you get the brand new graduate and the attorney just "reviews" your file one time (maybe). Make sure your do your homework too. Provide all of your debts and an accurate estimate of monthly expenses. JMO.

[chasmith]

You need an attorney willing to look careful at your situation.  try to understand why the online estimator shows you can meet the Means Test and the attorney feels differently.  When I met with my attorney his initial take was that I wouldn't pass but with some discussion he concluded I could.  I filed and was discharged with no questions from the Court or US Trustee.

What is important is to work with a BK specialist who practices extensively in your BK court.  There are variations between districts and what will work in one won't in another.

What is your BK court?

[Anonymous]

I did decide to interview another attorney who does 90% of his practice in bankruptcy.  He said that eventhough our income is a little above the average, we would qualify for chapter 7 because we have a mortgage and 2 car payments.  He seems much more knowledgeable and was very straight forward.  We have decided to go with him and plan to file soon.  We are in the process of filing out all the paperwork and its going to take a few payments to him before we can officially file.  I am just hoping to get everything done before the end of the year. 

So, I have a couple more questions. 

1.  The attorney mentioned reaffirming the cars and house because we do NOT want to lose those.  I have read a lot of info on the boards here and just want a few more opinions on it.  So, what will happen if we do not reaffirm?

2.  If we file in the middle of November or early December, do we need to worry about our income tax returns for next year?  Will that be affected or taken from us?

Thanks so much for everything!!!

[starry1]

They will definitely take your taxes. I filed in November, was nearly being evicted and literally had no assets other than my next paycheck, as a single mom with two kids, and they still took my measly $1500 in refunds. So it was even harder for me to get it together after filing. On the plus side, I had nothing I had to pay for except housing, and food fora a short time.

[chasmith]

Don't assume they will take your tax refund next year.  Your attorney is the best source of information based on your actual circumstances.

I filed in August 2009, discharged November 2009.  Unusaed but available exemptiosn exceeded my tax refund and it wasn't taken.