I am concerned about whether I'd be 'approved' for a chapter 13 bankruptcy. I did consult a bankruptcy attorney and left there feeling relieved. But after doing some digging on my own, now I'm concerned again. And even thinking of typing this out so it makes sense to you is kind of daunting.
I don't want to pay an attorney to file the bankruptcy only to be denied. Originally after consulting the atty, I thought I understood them to say that if the Chapter 13 wasn't approved, I wouldn't be charged their fees. I guess I misunderstood that. I would be charged their fees regardless.
The paralegal and attornies asked some questions about my home mortgage, utilities etc. They asked about AGI and unsecured debt also. They said they felt comfortable that I'd be ok with the bankruptcy.
What they didn't ask about was my business expenses. They said that if I was put into a bankruptcy repayment plan, my mortgage holder would be kind of forced to rewrite my mortgage. That sounds positive. In case you don't remember, I'm current but facing a big balloon I can't pay.
I own a retail store (doing dismally recently).
So, I own a home worth probably 500K and owe a total of 300K. I have a 401K of 100K after the early disbursements I have taken. I have about 80K in unsecured debt and no other secured bills.
I have a couple of kids living with me and they'll say they pay me whatever a month I ask them to say. Obviously it'd have to look reasonably in line with their income.
The business is a skate retail store (shoes/clothing etc) so the expenses vary. The fixed costs like rent, utilities and payroll are easy. The monthly outlay varies for purchases but I'm currently pretty much breaking even of losing a tad each month. (i just moved the store so I expect that to improve, but can't prove it)
Is there some way I can gain any certainty in whether it makes sense to move forward with paying an attorney? How can I know how much monthly income I'll need to be able to prove? And is it even provable with most of the income source being the retail store?