Please help w/ question about bankruptcy

[Iluvres]

Hi,
I am new here. I have been visiting though for about a week...when I decided I may file ch 7.
I am just unsure if I should really file or not. Here is a lil of my story.

Divorced in Dec 06.
Live in apartment and pay 1k/month for rent plus xtra for utlilities.
Pay $430 for car pay.
Par $250 for car ins.
Pay for son in private school. about $4100/yr (he is a senior now thank goodness)
Took out many payday loans in last 6 months.
Bounced a few checks (groceries, etc.)
Have about 5 credit cards. Largest balance is/was $2500 rest are like $500, $300.
Have numerous lil bills from over time. I can't afford to pay any of this stuff after I pay rent and child support and electric and main bills. Heck my car is even behind by 2 mos and car ins might be cancelled.
I pay $1200 a month in child support. I also carry our health ins thru my job. About $240/month.
My total debt not including school loans is 49k.
Also owe IRS $3200 from last yrs taxes.
On top of all this I have $82k in student loans.
3 yrs ago I had $50k in student loans and ex-husband had 10k in loans. I consolidated them and now since 3yrs ago they have grown to $82k. I defer payment every year.
DO those of you who know think that I should file based on what I have told you. I would greatly appreciate any feedback.
I am 37yrs old. A nurse. I want to get out of this apartment so that I can have joint custody of my children w/ ex so that they can be with me and to ease up the child support payment.
My credit is so messed up.

Thanks in advance for listening.

Lost in CT

[Iluvres]

Sorry small typo.

that should say $4100/yr for my son's school bill.

[JRScott]

You've covered your expense side very well.

How much have you made in the last 6 months?

You mention you don't have joint custody and are paying child support. If that's the case shouldn't the private school expense be the responsibility of the custodian parent?

In bankruptcy you cannot absolve child support, back taxes that are newer than 3 years or student loans. You've probably discovered that here but thought I'd mention it just in case.

Really need to know about your income though before we could really give much advice.

[Iluvres]

OK..
I looked at my most current pay stub which pay ending week was 8/30 and I was at the 40k mark. I also have another job which I am sure so far this year I have not made more that 4k with. I have 4 kids with my now ex husband and i had 2 prior to him. The son I pay for private school lives with me.

I also get $338 a month for child support for him.

Thanks for responding.

[biotechsolution]

It sounds likes the only dischargeable debt you have is the credit cards and they may be less than 5K.

I doubt that they will discharge the school loans.

What you need is a good attorney to re-work your child support payments. $1200 seems high. How much does your ex make?

But a chapter 7 filing will do you no good unless you can somehow dischage the school loans but that is going to be nearly impossible.

[emoney]

I have had good sucess with my finances by following Dave Ramsey who has a radio show on how to manage your personal finances.
regards,
emoney

[Iluvres]

the 48k debt i have includes cc and small loans and payday loans and old bills (like old cell bills) will that stuff be dischargable? like the old bills?

[keepmine]

the 48k debt i have includes cc and small loans and payday loans and old bills (like old cell bills) will that stuff be dischargable? like the old bills?

Those are unsecured debt and may be discharged in a Chapter 7. Also, if you break the lease on your apt any deficiency balance may be included as well.

[PaKettle]

Sounds like your expenses way outweigh your income. BUT, school loans are not dischargeable (I wish they were!) and old taxes may or may not be as I understand it.

Sounds like what you really need is a higher paying job, although I know that is easier said than done. Good luck!

[lrprn]

Hi and welcome to BK Forum - glad you found us!

You live in Connecticut in a 2-person household. Your gross income looks to be around $44,000/year. The state median for a 2-person household in Connecticut is $65,930, so you're well under that. Filing Ch 7 is possible.

The real problem as other members have already said is that you have multiple high dollar expenses that aren't dischargeable - your student loans for sure, child support, and your IRS taxes from last year (they have to be at least three years old to even consider if they can be discharged in bk).

The key for you is going to be how much income can you free up if you can discharge all your other non-secured debt in Ch 7? Is it enough to cover your remaining expenses? If the answer is no, then you really only have three choices - make more money, surrender assets, or reduce your expenses. Are any of these possibilities?

[Iluvres]

Sounds like what you really need is a higher paying job, although I know that is easier said than done. Good luck!



HI all,
Thank you guys n gals so much for responding!!!!!!!!!!!! and PA you are absolutely right...I do need a higher paying job. I am back in school to get my bachelors in nursing (LPN now) but its going to take me a while before I actually finish because I have to work so much to pay these bills!!!!!!!!!!!

[cathywhite4495]

If you're in school, you can get a deferment for your student loans. That might help somewhat. I agree that the child support seems really high. Maybe after your son graduates (no more tuition) and you get a deferment on your student loans, the pressure will release a little bit. I'm assuming there would be a pretty good pay increase if you went back to be an RN. It's going to be getting by in the meantime that's hard.

[Iluvres]

if you can discharge all your other non-secured debt in Ch 7? Is it enough to cover your remaining expenses? If the answer is no, then you really only have three choices - make more money, surrender assets, or reduce your expenses. Are any of these possibilities?



LRPRN,
44k is what I am at now for income last year I was at 69, 271 by the end of the year and in 2005 I was at 50,973 by years end. So this year i think I will at least hit $55k. My income SUX and I do not get paid a lot. I do mucho OT to try and pay bills. I am however back in school to try and better my income.

As far as your questions....I don't have any assets. I do have my vehicle and I am more than willing to do something with that. I called the car loan place the other day because I am two months behind. The guy tells me that I orginally had a 72 month loan (I been paying on this truck for 2.5 yrs) he said my interest rate is 17% and that I still have 48+ months to pay on truck. He also said I owe $20k still on truck. I looked up the book value on the truck and it is 12k if in EXCELLENT condition!!!!!! That right there made me want to cry.

I just feel so overwhelmed...so beat down....so like I should just give it all up!!!!!!!!!!!!!!

I want to know my options with this truck to.
My rent is $1k. I need to find a way to reduce that too. Probably means moving to Hartford to live among the murderers and theifs who plague our city and make it on the list of the top 25 most violent cities in America. Any advice guys on the car?

[reallynervous]

Iluvres,

Can you clarify your income...

Are you saying that YTD as of 8/30 you have made about $44K? That amount would be for an 8 month period, so I am thinking that you may be close to the median income when you calculate an annualized number.

Generally you use the total of the 6 month period prior to the month you file BK in and then double that to get your annual figure for Means Test comparison.

Also, are the student loans you are paying for your LPN schooling? If so, check with some other employers in your area to see what sort of incentives they might be offering as hire bonuses. In some areas, they are offering to pay off/pay partial school loans if you agree to work for them for a period of time (which is usually pretty short).

Also, you should look into what employers in your area are doing as far as Tuition Assistance. You may be able to find one who will pay for your RN schooling if you agree to work for them, etc.. Check into Long Term Care facilities as they often have a lot of challenges getting and retaining RNs.

Good luck,
reallynervous

[Iluvres]

If you're in school, you can get a deferment for your student loans. That might help somewhat. I agree that the child support seems really high


Hi,
I have been doing deferrments on my student loans for years now secondary to hardship. I am taking two classes now. i wonder if I have to be over 6 credits to do the in school deferrment?

My childsupport is MIGHTY high. I pay 288/week (1238/month) for 5 kids. Its killing me. But it goes by the guidelines in the state of CT. I should try and have this modified. This might have been based on my income in 2005 when I made 69k. hmmmm worth looking into.

TIA for making me think guys.