Will I go Chapter 7 or Chapter 13

[antonyeo]

What is the name of your state? California

Ok here is my situation:

Married, income approximately 63k-year. Net income a month approximately 4100.00, expenses and credit card debt are approximately 4400.00, of that approximate $750/month is credit card debt and another $300/month is auto loan payments. Yes I’m drowning. I need to keep the auto and I am willing to make the loan payments. Will the trustee convert me to a Chapter 13 automatically? Will this be considered too much disposable income ($400.00) after a discharge and convert me to a chapter 13???? We do not own a home. Please give me some insight? Much is appreciated.

 

[spoiler]

okay...I am horrible at math and may just be retarded...so correct me if I'm wrong but if you have income of $4100 a month and your expenses and debt are $4400 a month...then you are $-300 dollars a month in the hole. Did you leave something out? If you are $-300 in the hole every month then you will not be forced into a 13.

 

[antonyeo]

I should explain more...

Apparently some attorneys attempt to convince filers into Chapter 13, which equals a 2400.00 fee for them. I had one attorney basically tell me that IF I had money left over after a discharge then consideration will be given towards a chapter 13 so that creditors can get some of their money back. Based on all the numbers if all of my $700.00 credit card dept was discharge, and I’m $300.00 in the whole now I would have excess of about $400.00 each month. That’s actually what I was trying to say. Other attorneys I spoke with have said we’re definitely chapter 7 and that some attorneys try to collect that chapter 13 fee out of greed! Just need to cover all the bases, you know?

As a side note I do however think most attorneys are honest people.

 

[dosumi]

Maybe my math is wrong but it looks like you will have $350.00 a month to pay off your debts. When you remove the CC payments. That would put you in a BK 13.
At present I am looking at having to pay $300.00 month

Don't count your unsecured debts when you calculate expenses.

 

[spoiler]

Here are the facts...If you have more than $100 of disposable income at the end of the month after the bankruptcy is discharged than you may be forced into a chapter 13...however...so many people UNDERESTIMATE there true living expenses. When I filed I filed with the living expenses that I had before I filed. I have a family of four and was only paying $70 a week for grocries. I was never able to buy clothing, we had to do what we could to avoid money for a doctor...ect. You have a right to put your expenses at what you would normaly spend. My lawyer advised me to put at least $160.00 a week for grocries, a $75 clothing allowance, money for doctors, dentists, ect. There is a living expenses calculator here http://www.ca-bankruptcy-attorneys.com/calculators/expense_calculator.html

 

[cyana24]

Spoiler is correct and the link s/he provided is frequently recommended.