Back in August my wife and I spoke to a lawyer regarding filing for bankruptcy. We had barely maintained our heads above water regarding our debt. The majority of our debt is unsecured (approx $40k) in credit cards.
Our lawyer told us to file chapter 7 even though our income was above the initial means test. When we received the paperwork, given all steps of the Means test, we did fail within the limits.
We had our creditors meeting and all went well until we received a letter from the Trustee of “Abuse” on our chapter 7.
Our lawyer explained is as we had too much disposable income because we were surrendering 1 vehicle in the chapter 7.
Our lawyer then spoke to the trustee to see if we were to keep the vehicle if we would qualify for the chapter 7.
The response was the same, our case is going to be dismissed.
We have a meeting with our lawyer in the morning so discuss converting to chapter 13. Our lawyer isnt optomistic about this working for us, so now since we havent been paying on most of the debt (outside of the mortgage) and when the case is dismissed, all the late payments, skyrocketing interest rates all come back and there isnt any way for us to ever catch up.
I dont think we could use a debt settlement company even if thats the route we wanted to take. We just don’t see any options at this point and need a direction desperately.