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Qualifying for Chapter 7

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mcnewton

Junior Member
FONT=Arial]undefined[/FONT]What is the name of your state? Texas
My husband and I make about $91521.00 annually, but we have credit cards that are about $60,000 and secured debt of $37,500. After we pay the rent and cars and monthly expenses we have a disposable income of about $200.00 and the credit card minimum payments are around $1900.00 a month. Do you think that we qualify for Chapter 7. Our debt to income ratio is 51%. :( We do not have any assets to liquidate. We are a family of three.
 
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mcnewton said:
FONT=Arial]undefined[/FONT]What is the name of your state? Texas
My husband and I make about $91521.00 annually, but we have credit cards that are about $60,000 and secured debt of $37,500. After we pay the rent and cars and monthly expenses we have a disposable income of about $200.00 and the credit card minimum payments are around $1900.00 a month. Do you think that we qualify for Chapter 7. Our debt to income ratio is 51%. :( We do not have any assets to liquidate. We are a family of three.
If what you are saying is that your disposable income is $200/month after paying your credit cards, then no ch. 7 is not an option. The way the courts view this is that your diposable income is really $2100/month, hardly a bankruptcy case because debts that you are trying to discharge are not included as your expenses.
 

mcnewton

Junior Member
I have $200 disposable income left over before I even pay any of my credit cards.
 
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mcnewton said:
I have $200 disposable income left over before I even pay any of my credit cards.
Then you might have a chance to qualify. I would talk to a lawyer about this, as you might be underestimating your expenses. Even so, $200 might still be too much, but you may not really even have this if you really do estimate your expenses correctly.
 

mcnewton

Junior Member
Thank you for your advice. My husband and I reviewed our monthly expenses and we had forgotten many. We are left with $29.81 before credit card payments.

Thanks :eek:
 

Who's Liable?

Senior Member
mcnewton said:
FONT=Arial]undefined[/FONT]What is the name of your state? Texas
My husband and I make about $91521.00 annually, but we have credit cards that are about $60,000 and secured debt of $37,500. After we pay the rent and cars and monthly expenses we have a disposable income of about $200.00 and the credit card minimum payments are around $1900.00 a month. Do you think that we qualify for Chapter 7. Our debt to income ratio is 51%. :( We do not have any assets to liquidate. We are a family of three.

Wait a minute... your pulling in $91,500, that's more than $7,000 a month... How much are you paying for everything? Car, house, etc...

From the looks of things(not being able to see all your finances) you will be forced into a BK13, and not a 7...
 

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