Filing Chapter 13- Past Purchase History

[Smokinjbc]

Hi all,

I am going to my document review meeting with my lawyer this Thursday. I'm sure he can answer these questions but I'd like to have a little head start on things.

Long story short- I had a major gambling problem over the last three years and have always been pretty irresponsible with my money. No excuses, I know I have screwed up my financial life. I quit gambling cold turkey over two months ago. I have about $10000 in credit card debt and owe the IRS 6,000 or so. One of the first things I did, when I finally stopped gambling and had a little extra cash which maybe I should have paid towards my debt instead, but a few weeks ago, I took a long weekend and flew to see my grandmother- who is very ill. I paid for my ticket and my sisters ticket (she paid me back for hers) on my debit card- over $400.

Does the trustee look at things like that and will it affect my bankruptcy plan? Because of the federal taxes, my lawyer says that I will have to file a chapter 13 and not a 7 but he thinks they will discharge the cc debt and only include the taxes as part of my repayment plan. I am well below the median income, the only reason I have to file 13 (according to the lawyer) is because of the tax debt.

Also- I have sheep and four dogs. How do vet bills/hay bills figure in? I know I can't count those as expenses, but I have spent alot of $$ on vet and feed bills (I've cut back my sheep flock to just a few now). Will they take offense that I've spent that money on what I know is a luxury vs. paying my debt and will that also affect me? Will they make me pay so much to the repayment plan that I can't afford to keep the animals I have left?

I am going to counseling for my problems and plan on toeing the line. I just am so overwhelmed by the mess I am in and my credit is already horrible and I don't want the IRS coming after me!!! I hope you all can help.

[rrockinggramma]

A chapter 13 is a way to pay back your taxes without incurring additional penalties and fees.

No the trustee won't look at your debit card purchases although you have to turn over bank statements but usually that is so they can verify your income

And no, you won't be scolded because you own a farmette and I believe those expenses to run it are legitimate so be sure to include them

[Smokinjbc]

Ok thanks- my "farmette" is really just a dog hobby (I have trial level sheepdogs- one of which I sold to help pay for my bankruptcy). I don't want to give it up but I realize I will have to cut that back to pay my debt, I just didn't know how strict the trustee would get with that kind of thing

[kornellred]

There is no time to examine why you are in debt or what you did or did not do to get that way. With the exception of catastrophic circumstances beyond anyone's control, most debtors know good and well that they are getting into a deep hole that they will never climb out of without the protection of law - bankruptcy law, that is.
You will be investigated to a degree that will reveal if you were obviously planning a bankruptcy (extremely difficult to prove) or if you are transferring or hiding assets. But whether you are in debt as a result of bad habits or a bad attitude has no bearing whatsoever upon your right to file for bankruptcy.
I filed for Chapter 13 because I just plain did not feel like paying my creditors any more, and I did not want to go through lawsuits and garnishments and bank account seizures for the rest of my life.

[Smokinjbc]

Thanks to both of you for your helpful responses- I just think I partly expect to get a major dressing down at my court dates.