Sheryl A asked:


I make $67,000/year and have $48,000 in debt (credit cards, loans). According to the ch. 7 means test, I have $725/mo. of disposable income to pay to my creditors (my current payments are $1,450/mo.). I’m not behind on any payments, but I have been struggling for months now to stay afloat and often have to rob Peter to pay Paul, using the credit cards that I have been trying to pay down to pay other bills or groceries. I’m hesitant to file a ch. 13 right now because I’m 5 months pregnant and my financial situation will change drastically in 4 months. I clearly pass the means test when I add in a dependent, showing a -$800 of disposable income/mo. Before I found out I was pregnant (which was unplanned), I was planning to take on a second job and freelance assignments (I’m an Editor) to help me get ahead. But that’s not going to happen now, obviously. Should I file a ch.13 now and convert to a 7 after my baby is born, or should I just wait until my baby is born and file a 7?
Additionally, I’m not married, but I will have some financial support from the baby’s father. And please, no one answer with judgmental advice–I’m a responsible person who fell on some hard times a few years ago when I was working solely as a freelancer, was disabled for a couple of months due to an injury, and had a death in the family. This is a LAST resort, but after stressing and being depressed about this for months now, I have to do what I can to make sure I can provide for my child. I would rather work 2 full-time jobs (I have done this in the past) than file for bankruptcy, but this isn’t realistic when I’m going to be the primary caregiver for my child. Thank you.
Thanks for your response. I have had credit counseling and a phone consultation with an attorney who figured that I currently qualified for a 13, but he did not take into consideration me having an additional dependent in 4 months and having to then pay $1,000/month for childcare soon after my child’s birth. From what I have read on the U.S. Trustee‘s site, a person can convert from a 13 to a 7 if circumstances change that makes it impossible for them to stick with the agreed upon payment plan. My issue is it doesn’t seem to make sense to begin a 13 now, maybe get into one or two payments, then have to back out of it so soon because my financial situation changes. And then I would have to pay even more money to convert the filing. I hope this makes sense. Thanks.