20/20 Hindsight and Misrepresented Income

[debee]

Hi again, Peeps. I've been doing some more reading on the topic of social security income and whether it could derail a chapter 7 filing and I just found a link to a really special place with great info: bkforum! Too funny. Wish I had thought of searching the forum earlier. This is a good thread with some great advice from resident expert, justbroke.

http://www.bkforum.com/showthread.php?47283-ss-income-not-counted

[Peeps]

Sorry to bump an old thread, but I just wanted to leave an update for those who might encounter the same issues somewhere down the line.

The aftermath:

NO problems with creditors wanting to file an AP. I was awfully worried about this at first. Well, actually I was worried about it until the final discharge finally came through. Nothing. Zilch. Zip. Nada. I thought maybe my creditors might pursue misrepresented income, or periods of hyper-spending, or possibly some of the big donations I made to charities a few months before filing. No. If this is you, take a deep breath (I didn't, and I wish I did) and know that sometimes the things that freak us out are not things that credit card companies will pursue.

NO problems with SSDI backpay. It sat in the bank with a perfect paper-trail and was never comingled. The full amount was exempted and no one ever said a word about it. I know this can vary by state, so if this is of interest to you, just know your mileage may vary.

[IamOld]

Peeps MUCH congratulations!!!!! Just read the whole thread - so glad all turned out well!!!! and thank you sharing!!!!!

BEST WISHES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!

Sorry to bump an old thread, but I just wanted to leave an update for those who might encounter the same issues somewhere down the line.

The aftermath:

NO problems with creditors wanting to file an AP. I was awfully worried about this at first. Well, actually I was worried about it until the final discharge finally came through. Nothing. Zilch. Zip. Nada. I thought maybe my creditors might pursue misrepresented income, or periods of hyper-spending, or possibly some of the big donations I made to charities a few months before filing. No. If this is you, take a deep breath (I didn't, and I wish I did) and know that sometimes the things that freak us out are not things that credit card companies will pursue.

NO problems with SSDI backpay. It sat in the bank with a perfect paper-trail and was never comingled. The full amount was exempted and no one ever said a word about it. I know this can vary by state, so if this is of interest to you, just know your mileage may vary.

[debee]

I'm glad this worked out for you too, Peeps.

[GoingDown]

Sorry to bump an old thread, but I just wanted to leave an update for those who might encounter the same issues somewhere down the line.

The aftermath:

NO problems with creditors wanting to file an AP. I was awfully worried about this at first. Well, actually I was worried about it until the final discharge finally came through. Nothing. Zilch. Zip. Nada. I thought maybe my creditors might pursue misrepresented income, or periods of hyper-spending, or possibly some of the big donations I made to charities a few months before filing. No. If this is you, take a deep breath (I didn't, and I wish I did) and know that sometimes the things that freak us out are not things that credit card companies will pursue.

NO problems with SSDI backpay. It sat in the bank with a perfect paper-trail and was never comingled. The full amount was exempted and no one ever said a word about it. I know this can vary by state, so if this is of interest to you, just know your mileage may vary.

I love this quote!

I think that so many people on here worry too much and are afraid of things which in the end turn out just fine.

I know one of my original creditors, Wells Fargo, used to call me and threw around the credit card fraud charge numerous times. I'll admit that at the time, I was very scared about it. It was one of the reasons I put off filing BK-- I wanted to put more time in between my last credit card charges and my BK filing date. I put it off so long that I ended up never filing BK at all.

But back to my point-- I worried about something that never happened. Oh God, if I had those moments back! But you can't get them back. So, don't waste a minute of your precious time worrying about this sort of thing.

They love to throw around threats, but in the end, they really just do a lot of bluffing, and hope that people will knuckle under and do what they want them to do.

Keep that in mind for future reference.

[DYLAN150]

I found this statement listed below interesting: Stated by an Las Vegas bankruptcy attorney:

In nearly 30 years of handling bankruptcy cases, I have yet to see one case where an adversary action was filed due to overstating income. I don't even think the creditors retain this information for more than a year either.

[keepsmiling]

Occasionally an old thread is worth a bump.

[chrisdfw]

...
Also have about $15k in govt student loans that I wouldn't even DREAM of trying to walk away from. Those are gonna stick.

Yes, they can stick through bankruptcy... however, there is loan cancellation for government loans when a person who took out the loans becomes disabled.

The requirements are less than discharging loans in bankruptcy, and if you are recieving disability payments are will "indefinitely" then you might qualify, it is not
based on any kind of adversarial procedure, its paperwork, probably similar to the process for applying for disability.

Be aware that they have a three year waiting period after approving the application, so if you get better (lets hope!) within three years they reinstate the loan, but I don't
believe they charge interest on the period in which it was conditionally discharged.