need help

[dtpatt21]

What is the name of your state? Colorado

Hi, A brief overview of my situation:

Am moving out of town in 45 days for job relo. No way to sell the house, am under at leat $20k on it. Couldn't rent it for my monthly payment and pay the rest of my bills plus try and rent a house to the town we're moving to.

We have a lot of debt, we're late of a few bills, not enough $. When I do a job relo(have to) I will be making $500 less a month.

My question(s) are:

Will I have a problem filing bankruptcy?

I make around $60k a year, I have 5 cc bills total $20k, three personal loans around $30k, car loan $10k, Home loan $240k, Utilities $300 mo, ATV loan $6k,

I worry that the judge won't wipe it all clean, but make me go into a ch.13 instead? Because I still make decent money? I really want to wipe the slate clean for when we move and start over. I REALLY hope that will happen. I hate the fact that I have to go bankrupt, but can't make it otherwise.

Think I'll be ok with a ch7? Think they'll discharge it?

Thanks,

Doug

[dtpatt21]

Also,

my debt-to-income ratio is not good, I couldnt get another loan if I tried.
Basically, I worry that they will not discharge my debt for me because I have barely been making payments, but have been making them? Should I not have a problem?

Thanks

Doug

[Ladynred]

Whether or not you end up with a Ch 7 has nothing to do with your income level or your payment history. What matters is your DISPOSABLE income. If you have little or nothing left over after paying all your NORMAL LIVING EXPENSES to pay your debts, then you may not have any problem getting a Ch 7. So, start calculating your normal expenses and see what you have left.

Here's an expense calculator to give you an idea what you can list - but that list isn't complete. A BK lawyer will know what's allowed at what level in your area.

[url]http://www.ca-bankruptcy-attorneys.com/calculators/expense_calculator.html[/url]

[dtpatt21]

thanks,

so after my calculations, my monthly living expenses estimate is: $2500

so my debt is around $1700 a month. for a grand total of around: $4100

I make after taxes around $3800/month.

Should this work for a ch. 7?

Thanks.

[Ladynred]

Income = $3800/mo
Expenses = $2500/mo

That leaves 1300/mo as disposable income to pay your debts and that number would put you into a Ch 13 !

Did you add the car loan into your expenses ?? If not, and you intend to keep the car, add it in, it is a secured debt. If you do NOT intend to keep the house, then that payment would be freed up .. but would be offset by whatever housing you do choose.

[azgrandpa]

This is a serious step in your life, you are contemplating; so, do the math carefully!

So many people grossly under estimate their monthly budgets. Two of the most under estimated budget items are food and car expenses.

You do have to replace the tires on your car, don't you? That happens approx. every three years. So, pretend you are going to put enough into savings each month to cover that expense. For example. a set of tires may cost you $260. Divide that by 36 and you need to put $7.22 a month away.

Probably 3 oil changes a year @ $50 per. ($150/12=$12.50 per month).
Shocks & brake jobs every 3 yrs. @ $400, $11.11,
Other misc. repairs, $150 per yr., $12.50 per month.
Gasoline $20 per wk., $86.67 per month.
So, right there you have $130 per month!
Now also, you have plates to buy every year. Divide that cost by 12.

So, you can see that the car adds to your monthly expenses, in addition to the car payment.

Food...lot of opinions about this expense, but we eat a lot of hamburger helper and it still runs us $700 per month! (2 adults and 2 young grandkids) Look closely at your food expenses. Bet they are actually higher than you think!
Now, what about life insurance, homeowners insurance, medical insurance, prescriptions, Dr.'s copay?

Clothes, personal care items, laundry items, entertainment, all utilities, PROPERTY TAX!

Think hard and include every expense that comes out of your take-home income, even if it only happens once a yr. It still has to come out of your income!!

With $3800 take home pay, I'll bet that your monthly expenses, (not including your other debts), are alot higher than $2500!

Got to get the math right before doing the BK!!

[dtpatt21]

Well, I redid the calc. and I got $3600. I tried to average everything it stated into play.

My lawyer swears 7 is the way to go... I hope so.

[dtpatt21]

Also,

I can't afford to go to Ch. 13 since I can't pay that mortgage AND a place to rent in where we're moving to. Will they take this into consideration?

[djohnson]

According to your calculations you do have disposable income. They will probably tell you it is just mismanagement. Even in a 13 you can give the house back or the car or anything else. Chances are you would have to give the ATV back as it would be considered recreational and if you can't afford bills, you shouldn't be able to afford recreation. See what you lawyer tells you once he has all the figures.