Filing for Chapter 7 - Schedule J

Typically you could claim your mortgage payments without a challenge from your chapter 7 trustee. If the trustee challenged your claim for the full mortgage amount, you could instead use a number that fairly represents what you would expect to pay for replacement housing. If this the only reason you are concerned about being required to file chapter 13, my guess is you will be able to file chapter 7 without incident.

The answer Mr. Ravosa provided gave you some good advise. If you converted your case to a chapter 13 and paid only the $15,000.00 arrears, a 60 month plan payment would be $25,000.00 plus the amount that is needed pay trustee's compensation, which could make the payment go up to $2,778.00 if your trustee is calculating his/her compensation at the maximum of 10%. In addition to payment of the arrears, you would pay you ongoing house note and possibly other costs. As a result, your only chance of keeping your home would involve a loan modification whether you are in the chapter 7 or the chapter 13. Thus, you really need to take the time to meet with an experienced bankruptcy attorney that handles chapter 7 and chapter 13 cases to determine if you can stay in a chapter 7 or if you have a shot at a loan modification. Most attorneys will meet with you at no charge for the initial appointment. You can use the "Find a Lawyer" link at the top of this page to search for an attorney

Typically if a debtor wants to retain their home and pay past arrearages, they need to file a chapter 13 bankruptcy. If you aren't working with an attorney right now, you should definitely consult with an attorney in your area who can advise you as tot he proper manner in which to file bankruptcy to save your home.

If you intend on working with the lender to keep your house then you should have what you reasonably expect to pay listed on Schedule J. If you will be moving out, you should put what your expected expenses will be, Schedule J looks towards the near future. If you have money left over then the Chapter 7 Trustee can refer it to the U.S. Trustee's office or the U.S. Trustee's office will file a motion to dismiss. You should seriously consider hiring an experienced bankruptcy attorney because he/she is able to review the numbers with you to make sure they are reasonable and you did not forget any expense, many clients forget expenses and that could mean the difference between paying a plan payment for 5 years or paying nothing and having your case over in about three months from filing. Also, Attorneys who practice Bankruptcy Law are familiar with what is acceptable in their district relative to various expenses. The last thing you want is an audit by the U.S. Trustee's office which may be avoidable by having a professional prepare your petition.