Need a suggestion in helping a friend

[steve718]

I have a problem finding a solution to a problem of a co-worker/friend of mine, she is facing this problem. We both work for a contracting company, she works in the office and she is paid off the books, but she has wracked up around 42k in CC debt. Now mostly it's hers but she had a ex who basically had her take out store cards and go on spending sprees with him being the auth user. Now she's had these cards for many years, and never missed 1 payment on each, can she file for Chapter 7? or she cant? Because she told me, when she filed out the online credit card app, she listed her income as other, monthly and didnt lie about it.

Also where we work is going to be sold, and we all been put on notice to find new jobs, so i dont think she'll be able to get a letter or some form from our current owners.

thanks all in advance.

[miss puff]

Are you asking if she can declare bankruptcy with no proof of income? If so, and this is only what I would do, I am no expert here.

Have her wait about 3-4 months out of the job and then have her do the bankruptcy. If she has a new job that she gets paid for through normal circumstances then she can provide those paystubs. When you go back and do the numbers for the means test, she can use her cash income to cover her butt about the income on the credit apps and it won't matter much since she is not working there anymore.

There are more people who know this answer way better than I, hopefully someone else will chime in here. Good luck to your friend

[ekelly4200]

I have a problem finding a solution to a problem of a co-worker/friend of mine, she is facing this problem. We both work for a contracting company, she works in the office and she is paid off the books, but she has wracked up around 42k in CC debt. Now mostly it's hers but she had a ex who basically had her take out store cards and go on spending sprees with him being the auth user. Now she's had these cards for many years, and never missed 1 payment on each, can she file for Chapter 7? or she cant? Because she told me, when she filed out the online credit card app, she listed her income as other, monthly and didnt lie about it.

Also where we work is going to be sold, and we all been put on notice to find new jobs, so i dont think she'll be able to get a letter or some form from our current owners.

thanks all in advance.

No expert here but I haven't worked in 8 years yet still had debt in my name using household income (dh). I have same amount in my name as him and not as a joint user either..it was mine alone. Still paid the bills all these years. BUT I am having to sign an affidavit that I dont work and have no paystubs. She should speak to a lawyer as to what her options are.

[CindyLou]

her bank accounts and deposit history would be used as her proof of income for the past and her current check stubs for new job and her present and future.

[steve718]

thank you all for the suggestions. Right now a lawyer told her to get a job ASAP gain some paystubs and then file for Bankruptcy. 2 different lawyers told her this in NYC. I wonder if this is correct, i told her to go for a 3rd.

[HHM]

Legally, she could file BK...however, if she has been paid off the books, she may have a serious IRS problem. Does she get a 1040 or is she really paid under the table. If she is paid strictly under the table, filing BK will bring to light her tax liability and cause all sorts of problems.

If she gets a 1040, then she will be fine, she can use that as proof of income along with bank statements etc.

The NYC attorneys are probably right, she would need to get a legitamate job, but she may still have tax issues to resolve.

[CindyLou]

I was told when doing a consultation with an attorney that BK courts do not typically "report" you to the IRS. But who knows, I guess.

[HHM]

I was told when doing a consultation with an attorney that BK courts do not typically "report" you to the IRS. But who knows, I guess.

That's not really the issue...first, you have to provide tax returns to the trustee (I believe it is for two years now). also, the IRS liability is conceivably a debt that must be reported on the BK. If she has been paid under the table, how is she going to do this...and if she doesn't, she risks committing perjury.

[CindyLou]

Very true!! Didn't think of a possible liability and I ASSUMED that she had file some type of tax return!! But maybe not.