Q: I am disabled and retired, I receive only SSDI income monthy. My wife is a working RN earning approximately $90,000.
We have accumulated approximately $80K in unsecured debt, our only secured debt is our home which we want to reaffirm. We have paired our expenses down yet still live paycheck to paycheck due to the high balances and interest on the unsecured debt. We only have a VA first mortgage, no subordinate loans. What are the chances that we could qualify under the new rules for Ch 7 in Northern District OH?
A:
You are somewhat on the fence with regards to the "means test" for qualifying to file a Chapter 7. If you have extraordinary and justifiable expenses, like high out of pocket medical debts for example, you may qualify. A good way to self evaluate, but you have to be honest with yourself, is to consider your monthly budget if you were not making any payments on the unsecured debt. If you take those payments out of your budget, would you be able to save $200 or more per month. If the answer is yes, then you probably won't be able to file a Chapter 7 because the US Trustee would consider that you should be in a Chapter 13 because you can make a meaningful plan payment.
You should contact a bankruptcy attorney in your area to evaluate your specific situation. Everyone's situation is different.
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