New Pro Se Chapter 13 Filer with questions

[LadyInTheRed]

Seriously, don't do anything else without consulting with an attorney. Most BK attorneys give free consultations. There is also the option of pro-se clinics as JB points out. But, sometimes those are only available one day a month. You may not have time to wait. Make an appointment for a consultation now!

Keep in mind that if you get a Chap 7 discharge, you won't be able to get another discharge for 8 years. You may want to save the Chap 7 option for later when it might do you more good.

As far as the judge dismissing all of the cases, a status conference is not something that happens in every case. The status conference must have been in response to a motion to dismiss, either by the trustee or the court itself. The same was probably true for the other cases. It's not that the judge likes to dismiss cases. It's that the docket was probably all for motions to dismiss because there were problems with the cases.

[Dopey]

$5,000 a month is my gross income. After current taxes, current support, arrears, health insurance for me and my wife and kids; I wind up taking home $2,000 net. $1,100 goes to rent leaving us $900 for groceries, utilities, car costs, cell phones, etc.

There is no way I can pay an attorney $400 an hour out of our current budget.

I haven't taken a vacation since 93. The vacation issue is I don't have any vacation time available and I can't afford to take any more time off from work. Plus it's our busy season since I work in air conditioning. When the weather is in the triple digits they tend to need me at work.

A TIN gives my wife the ability to pay taxes. It does not give her the legal right to work in this country. Anything she does would have to be under the table. She has a degree in finance as well. She is just worried about getting deported working illegally. Plus she would be at risk driving to work without a driver's license. The child support enforcement case is what's preventing us from filing her petition for a green card. The $700 a month I'm paying in arrears is going 100% to interest and my balance just keeps going up due to the compound interest.

I've been paying child support for over 19 years and the only time I fell behind was during the recession when the economy stopped dead in it's tracks. I'm not looking for pity. After loosing my home in 2010, I lived on the streets for 2 years while working for the university. I showered at the gym and slept in my jeep. We just got the apartment a year and half ago. We lived in a motel room when we first got married. It was almost impossible finding someone to rent to us due to the child support case on my credit report. Even though it shows current and paying as agreed.

What I need is advice because I have no other choice but to deal with this myself. Either that or find an attorney that needs air conditioning work that is willing to barter.

I never complain about my situation and I've never lost my sense of humor. I always put family first and money second. I just wish there was a way I could reduce the interest on the arrears because it's making it impossible to pay off the principle.

[justbroke]

What I need is advice because I have no other choice but to deal with this myself. Either that or find an attorney that needs air conditioning work that is willing to barter.

Some actually do barter!

Please understand that we are the last people that would blame you for your circumstances are make light of the situation. However, we beseech you to find competent legal advice, if even from a free consultation, so that you proceed forward and protect yourself and your spouse. Also, please understand that over the years that BKForum has been around, we have had many people all with different issues. We try our best to direct the member to a good solution.

I think now, your DSO arrears are your most significant issue. I don't understand how they could allow it to just grow and grow in perpetuity. It seems that those arrears are worse than a loan from the mob; at least the mob, the balance doesn't grow as you pay the interest each week. (That was my poor attempt at humor. If you didn't laugh, don't worry about it.) It may be worth throwing $250 for a one hour consult with a family attorney that may give you some advice on getting the penalty reduced. I just don't know as I have no experience in that area.

I certainly wish you the best.

[justbroke]

If you have to take a day off and book 2 or 3 appointments then do it (oh well on the "vacation" this year, seriously???).

Drazil, I believe this situation is not too different than many others. The only difference I see is how it manifests itself. In many bankruptcy cases, the debtor uses credit to stay afloat. In other bankruptcy cases, the debtor borrows (or takes early distributinos) from a 401(k).

In all these cases, including Dopey's, it is an instinctive (natural almost native) response to drowning in debt.

Perhaps you have not experienced it, but this is what goes through a pre-bankruptcy debtor's mind;

• If only I can get a second job...
• If only I can obtain more credit to pay down the past due amounts...
• If only I can borrow from my 401(k) which I'll pay back quickly...
• If only I can get this title loan for a few weeks, I can get past this...
• If only I can hold this creditor off for a month, I will have enough money...
• If only I can get this payday loan and I'll pay it right back...
• If only I can get more overtime...
• If...

I hope you see the pattern. This is survival instinct at its core.

[LadyInTheRed]

Dopey, your inability to pay attorney fees should not keep you from going for a free consultation. Going for a consultation does not obligate you to retain the attorney. What county are you in? I may be able to steer you towards some help.

[Dopey]

I'm in San Bernardino County. Case is in Indio, Riverside County. My Bankruptcy is in Riverside Court since it covers both counties.

[Dopey]

BTW, I do appreciate the humor. The family support division does use the same loan sharking method as the mob. Get you on the interest and never let you off.

I filed the Chapter 13 hoping to work out a payment plan and also to get my passport released so at some point I can meet my in laws. Chapter 7 doesn't resolve these or any of my other issues

[LadyInTheRed]

Have you tried the county bar association legal referral service? http://www.sbcba.org/publicservices.html You can get a half hour consultation with a family law attorney and bankruptcy attorney for $40 each. http://www.sbcba.org/publicservices.html Paying $40 might get you more substantive results than a free consultation. Just go in as organized as possible to make the most out of that 1/2 hour.

Also try Inland Counties Legal Service: http://inlandlegal.org/ There is a list of free legal aid clinics you can go to. Or, you can call one of their branch offices, tell them your situation and ask if they can help.

On the bright side, you are in a great area to be in air conditioning!

[LadyInTheRed]

I filed the Chapter 13 hoping to work out a payment plan and also to get my passport released so at some point I can meet my in laws. Chapter 7 doesn't resolve these or any of my other issues

Unfortunately, if you can't present a feasible plan, either will Chap 13.

[Drazil65]

JB...I totally see and understand the pattern(s) and know it well as do most others that have gone through the bankruptcy process. I believe that once you get to the point where you are actually filing you no longer blame every other issue (yes, we all blamed the economy, the lay offs, the losing our homes, the whatever but we have all been there) but you stop at some point. You have to stop, its counterproductive to the entire process. It just seems like op has a reason why he cannot do anything that anyone here suggests.

You realize that no matter how or why you got there, you are there. The excuses are gone, you know you need to consult an attorney when things are this deep and you do it. Grasping at straws will not fix the issues going on here, legal consults are the starting point. Maybe the wife could research attorneys in the area and perhaps find those that consult in the evenings or Saturdays, that is a good starting point.

[justbroke]

Exactly Drazil. LITR, you and I are trying to encourage Dopey to cut his losses and find a way. I don't believe that anyone should suffer any payback scheme that binds the person in perpetuity (payments forever). That is just so counterproductive. However, I do realize that there are many people that play the "if" game longer than than reasonable; it's only that what's reasonable for one is unreasonable for another.

For me, it wasn't the threat of foreclosure... it was the sale date that was 5 days away. I suppose everyone has his/her threshold.

[Dopey]

Yes, the child support system is extremely counter productive. I'll take another unpaid day off next week and attend a clinic. I don't see the point in a consultation. It always comes down to would you like to write me a large check and retain my services or not. If I can't pay for something, I don't buy it.

I'm just disappointed the bankruptcy system can't help me. I'll go forward with the Chapter 7 and discharge the non priority debts. As far as my wife being able to work or get a green card, no dice. I'm thinking at this point it would be better to divorce her and let her try to find someone else that isn't caught up in the family support system that can successfully petition her immigration case.

As supportive as she is, I can't expect her to suffer financially with me till I die. In the meantime, I'll keep buying lottery tickets and maybe someday I'll be free too.

I really just hope to get the IRS case closed. The family support case there's no hope at all. Bankruptcy was my final option. I'll post again if I have any other questions. Hopefully the trustee won't file anymore dismissal motions on my Chapter 7.

[Dopey]

So I went to the clinic at the BK court in Riverside. The attorney that I saw looked over my case and said my paperwork was flawless including my Chapter 13 plan and concluded the reason for dismissal was a bad judge. After reviewing the case history, it turns out the judge filed a motion to dismiss my case the same day I filed it which is what caused the status conference. His reason for the motion was the fact that I had filed it bare bones even though I filed every single form well before the deadline. When I brought that to the judges attention he just tuned me out and called the next case. The attorney said if I file again, I'll get the same judge again. They don't let you shop for judges. She actually advised me to move to or at least use an address in a different county so I can get another judge.

So fast forward 9 months, here's where I now stand. My wife's immigration petition has been filed and approved despite owing arrears. Apparently every case now involves arrears so immigration overlooks it as the new norm. She now she has a Social Security Card, Driver's License, and a work permit. She's actively looking for a job and hopefully will find one soon.

I straightened everything out with the Franchise Tax board to where they owed me money which they sent to my ex wife. I also was able to reduce my IRS debt to a workable number by filing the returns instead of using their substitute for returns. So my main problem is still the child support interest. However a new problem has arisen. I've been sued by a lawyer representing Ford for a couple of vans I voluntarily gave back to the the dealer 14 years ago from a failed business. I received the wage garnishment in November and they've been taking 25% of my checks since. I thought there was a statute of limitations but apparently not.

Also my son left his mom's house in November and moved in with me. However, I'm still paying her child support through wage garnishments. She said she was going to close the case but then changed her mind and decided it's more fun receiving a tax free income from me.

So needless to say my financial situation has gotten way worse with the new garnishment and another mouth to feed. So now I'm considering re filing a chapter 7 this time to at least stop the garnishment. The thing is, I'm so broke, I can't even come up with the money to file or pay for the credit counseling again. I went in to file with the waiver forms for filing fees and credit counseling and they wouldn't accept either and told me to come back with cash.

So now I'm feeding my family out of dumpsters and donations from the church since I can no longer afford to buy groceries. I'm also racking up late fees on my rent for the first time since the garnishment and also dealing with overdrafts on my checking account which I've never had before. I'm ready to take my wife off our account because she doesn't seem to realize how broke we are and spends money anyways that we don't have. The overdrafts have only happened once and I called my bank and got them refunded because I've never had a single overdraft ever on my account. The thing is it's likely to happen again being this broke. The landlord however is drawing the line in the sand on the $75 a month late fees on the rent even though I've only been 9 days late at the most and paid on time for over three years.

My other issue will be getting the child support stopped which will also cost money I don't have. I'm looking for legal ways to make some extra money to try to pull out of this mess but so far I'm batting zero. I thought about driving for Uber but my 92 Jeep is too old to meet their standards.

So what does one do when they get this far in the hole???

[justbroke]

I've been sued by a lawyer representing Ford for a couple of vans I voluntarily gave back to the the dealer 14 years ago from a failed business. I received the wage garnishment in November and they've been taking 25% of my checks since. I thought there was a statute of limitations but apparently not.

The Statute of Limitations is a defense to the judgment. If you did not assert an SOL defense, then you allowed them to proceed. I would have answered the summons and responded with an SOL defense. If you were not served, then the service is defective and that may make the judgment ineffective. However you must assert these things and attack it, rather than let them garnish your wages or levy against other property.

So what does one do when they get this far in the hole???

I think that this is what happens when you feel helpless and you allow these things to happen to you. As I wrote above, in this response, a statue of limitations defense on the garnishment is still viable if the service was defective. If you didn't assert such a defense, you may be... SOL.

You need to formulate a plan, such as filing bankruptcy, and following through with it. Had you filed bankruptcy last year, before the lawsuit, then there would be no garnishment.

[Dopey]

I was never served. They say they served me at my old address from 5 years ago which is in Riverside county. The case was heard in Los Angeles county. I live in San Bernardino county. The lawyers in Orange county. The garnishment is being collected by Los Angeles county sheriff. I found out about it at work when my employer received the garnishment.

I did file BK last year but the motion to dismiss was filed the same day I filed. I've been reluctant to file again based on what the attorney said at the clinic. If the judge was fair and just, he would have let me convert my case to a chapter 7 rather than dismissing it.

I really don't think I allowed these things to happen to me. Had I been served, I would have gone to the hearing. I didn't choose the bad judge, he was assigned. Filing BK is going to cost around $400 because the prices have gone up and also I have to re do the counseling as well. The thing is, it costs money to fight. Every filing has a fee attached. Every attorney has a rate. I even tried filing with a waiver with no luck. When your paycheck is vaporized before you receive it and you have a 17 year old boy and wife at home that like to eat and you have no money for groceries, my spare time is spent dumpster diving and looking for handouts.

My plan is to file. I have all the paperwork filled out and ready to be filed. What I don't have is the money to file it. My only option is to skip paying my rent and using that to cover the filing fee. I guess they wouldn't be able to evict me with the automatic stay. However, I fear the judge will dismiss my case again, then I'll be facing an eviction as well. Feeling helpless is an understatement....