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BK 7 or will it be converted to 13?


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Posted by CJ (24.207.228.129) on January 29, 2003 at 20:11:57:

I came across this board and gained a lot of useful information. Thanks for the board. I wanted to run my situation by you and have lots of questions and would appreciate any input you might have. Thanks in advance.


Situation:

State: Missouri
Assets: nothing of value besides car w/ $3,600 trade in value and 401K (see below)
CC Bills = 37,000
Student Loan = 5,600
Other non-secured debt = 9,800
House loan = 165,000 with about $3,000 equity in house

I am a divorced (a few years now) man and have large credit card debt mainly from the previous marriage. I have been living with a woman (whom I will be marrying this year) along with her 3 children. I had tried to keep up the credit card payments as I do make quite a bit of money per year ($83,000 gross, $50,400 net), but since my family has increased so much, it is impossible. She received $214.00/month child support (that is a total for all 3 children) and is a stay at home mom. I will not receive the income tax deduction for the children per court order, even though I actually pay for 90-95% of the children's support. I stopped paying the credit cards about 3-4 months ago. I have between $0 and $350 left over at the end of the month before paying non-secured debt, depending on the answers to the following questions regarding "acceptable expenses"


1-Is it typical for a BK court/trustee to use the IRS Collection Financial Standards for the food/housekeeping/apparel, etc category as well as the housing category?

2-Are charitable contributions considered an acceptable expense?

3-Is my 401K plan susceptible to being liquidated (I unfortunately also have a loan against that as well)? If so, how does that actually work since cashing out a 401K has income tax and penalty effects?

4-Since student loans are generally not dischargeable, is my monthly payment included as an expense? (is it the minimum monthly payment or the actual payment that I may be paying?)

5-What type of expenses for the children are considered acceptable? (ie. tuition for preschool, extracurricular activities, etc)

6-How are annual or semi-annual items taken into account (in my case, homeowners dues and personal property taxes)

7-Finally, based on what I make, is it likely I will be converted into a ch.13?

Sorry for all the question.
Thanks again!


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