Probably going to have to file

[compulsive]

I have about 30k in credit card debt. This will be the first month where I will not be able to make payments. I currently have no income, as I am looking for a job. Right now I live with my sister rent-free. I have a car that is paid off and the KBB/NADA clean retail value is about $14k. I also have a joint account with my dad with about $3,500 and I have about $1k in my bank account. I also haven't filed any tax returns because I was a student for the last four years, will that look bad? I also have $90k in private student loans.

Under Ch.7 will I still be able to keep my car? If not, what can I do? Can I transfer ownership?

The joint bank account: Can I just remove my name?

I just found this board today so I'm trying to read and see what applies in my case. If you have questions, please ask.

[lrprn]

Welcome to BKForum, compulsive - glad you found us!

Some very important questions we need to ask before we can help:
- What state are you in?
- If you look back to last March 1 up to today, how much income have you made from all sources?
- Besides your sister and yourself, are any other adults or children living in the house with you?
- Do you contribute money to your sister to support the home? (groceries, pay a utility, etc)
- For each year you didn't file tax returns, did you make below the stated minimum income the IRS set so you weren't required to file?

The answer to most your questions depend on the answers to these questions.

And I'm hoping you already know that it's 99.9% likely you cannot wipe out your $90K student loans in bankruptcy. You'll have to pay them in full even if you file.

[dscurlock]

I have about 30k in credit card debt. This will be the first month where I will not be able to make payments. I currently have no income, as I am looking for a job. Right now I live with my sister rent-free. I have a car that is paid off and the KBB/NADA clean retail value is about $14k. I also have a joint account with my dad with about $3,500 and I have about $1k in my bank account. I also haven't filed any tax returns because I was a student for the last four years, will that look bad? I also have $90k in private student loans.

Under Ch.7 will I still be able to keep my car? If not, what can I do? Can I transfer ownership?

The joint bank account: Can I just remove my name?

I just found this board today so I'm trying to read and see what applies in my case. If you have questions, please ask.

the IRS suckers do not care if you are a student, if you had any income in the last four years, you were required to file your taxes, nothing but death can release you from that obligation, excpet by law if you were not required to file because of income levels. it will catch up with you like it did me...

[lrprn]

...if you had any income in the last four years, you were required to file your taxes...

Sorry, dscurlock - not true.

Direct from the IRS website at http://www.irs.gov/publications/p501/ar02.html#d0e1218 - "If you are a U.S. citizen or resident alien, whether you must file a federal income tax return depends upon your gross income, your filing status, your age, and whether you are a dependent."

If compulsive earned below the income limit set by the IRS for each year (typically around $5K) and doesn't owe any special taxes, then there's no requirement to file (although it may be beneficial for him/her to do so anyway to get any potential returns, etc).

[compulsive]

Welcome to BKForum, compulsive - glad you found us!

Some very important questions we need to ask before we can help:
- What state are you in?
- If you look back to last March 1 up to today, how much income have you made from all sources?
- Besides your sister and yourself, are any other adults or children living in the house with you?
- Do you contribute money to your sister to support the home? (groceries, pay a utility, etc)
- For each year you didn't file tax returns, did you make below the stated minimum income the IRS set so you weren't required to file?

The answer to most your questions depend on the answers to these questions.

And I'm hoping you already know that it's 99.9% likely you cannot wipe out your $90K student loans in bankruptcy. You'll have to pay them in full even if you file.

- I'm in CA
- My income from Mar 1 is less than 1k.
- My sister's husband and my mother also live with me.
- I was paying about $500/month up until May. I would aslo help a little with groceries and other misc expenses, but it wasn't consistent.
- And yes I didn't file a tax-return because I didn't make below the minimum. I was in school full-time.

Yeah, I wasn't expecting to get the student loan discharged.

The big thing for me is losing my car, it's the only vehicle I have and in Southern California it's a necessity. Also the car has 2 owners listed on it. It says "[my uncle's name] or [my name]".

[MajorMike]

what school do you go to that it's 90K? How long can you defer them until you get a good job?

[lrprn]

what school do you go to that it's 90K? How long can you defer them until you get a good job?

MM, these are nosy personal questions.

Frankly it's easy at almost any college or university to rack up $90K or a lot more in student loans after years of paying for schooling on your own. And how long student loans can be deferred depends on the type of loan, if the student is still in school or not, and how many deferments have already been granted.

Compulsive, I encourage you not to answer overly intrusive personal questions like what school you attend on a public internet forum.

[BKOnce]

Please file tax because IRS give Earned Income Credit to low-wage or no-wage people... send you a check of couple hundreds in refund possible if your income fall below federal poverty level (see IRS Poverty table, maybe < 8K-9K/year?) .. I filed for people/student have minimum/no income before so I know there is no tax due but only refunds for standard deductions...

[magyar123]

Please file tax because IRS give Earned Income Credit to low-wage or no-wage people... send you a check of couple hundreds in refund possible if your income fall below federal poverty level (see IRS Poverty table, maybe < 8K-9K/year?) .. I filed for people/student have minimum/no income before so I know there is no tax due but only refunds for standard deductions...

Don't think that will "fly". The EIC is only available to full time workers who make under a certain amount. Not to part-time workers. If it were available for everyone, even the burger flippers could take advantage of it.

[familyof7]

The EIC is available to ANYONE who made less than the allowed amount. The burger flippers probally gain more. They make little and struggle

[whatamess]

I used EIC working part time 28 hours per week before. I had my taxes done at H&R block too.
BTW 90K in student loans is nothing unusual. Both my niece and nephew are attending University right now at 35K & 40k per year.
Some of my friends (early 30's) are still paying down loans upwards of 150K who went to grad school. This is why so many grads are moving back with mom & dad.

WAM

[compulsive]

Back to the bankruptcy topic.

[BKTango]

"- My income from Mar 1 is less than 1k.
- My sister's husband and my mother also live with me.
- I was paying about $500/month up until May. I would aslo help a little with groceries and other misc expenses, but it wasn't consistent."

We need your last six months of income total. I'm confused on how you could only have made 1k in six months and paid about $500 a month for three months and help with food, misc. when possible.

At any rate, the joint account with your father will cause some concern, I don't have any advice to offer you on the best way to handle that.

If the equity in the car you own falls under the states allowed exemptions then you will be able to keep the car.

Someone else hopefully can come along here that has some knowledge in the joint account issues and offer you some better advice on that.

[Lindsay]

I've heard of some couples that have $300,000 worth of student loans between them. College is expensive now. That's why I have to go to a community college. I'm in my 2nd year and I haven't had to take loans because the Pell grant covers most of the expenses. I've looked into going to the State University after I get my associates degree and its significantly more expensive. I'll definitely have to take out a loan if I continue past the 2 year degree. One of my relatives is in a private university and had to sit out this semester until she sells her car because she is maxed out on her student loans already.

But back to bankruptcy, 30K is small debt compareds to some of us on this boards. I have over 80K and BK is the only answer for us. From what I've read, the CA bankruptcy exemptions on a vehicle are only about $2700 so the trustee would probably be interested in your car. If it were me, I'd probably try to find a solution other than bankruptcy because after the car would be sold, the debt would only be around $18,000. I'd probably try to get a couple jobs and pay the creditors, settle with them for lesser amounts maybe, and avoid bankruptcy for now. I guess it depends on how badly you want to keep the car. I don't know if you could take your name off the bank account with your father, but if there is a way, I think the trustee would want that money. I'm not sure about that though, hopefully someone else will know for sure.

I used to work in the student loan department of a bank and I'd give deferrments all day to borrowers. That was my only job. We gave them for unemployment, hardship, and other reasons. They were pretty easy to get, I can't remember my boss not signing off on too many of them. I'd do the deferrment paperwork and she'd sign on it.

[compulsive]

"- My income from Mar 1 is less than 1k.
- My sister's husband and my mother also live with me.
- I was paying about $500/month up until May. I would aslo help a little with groceries and other misc expenses, but it wasn't consistent."

We need your last six months of income total. I'm confused on how you could only have made 1k in six months and paid about $500 a month for three months and help with food, misc. when possible.

At any rate, the joint account with your father will cause some concern, I don't have any advice to offer you on the best way to handle that.

If the equity in the car you own falls under the states allowed exemptions then you will be able to keep the car.

Someone else hopefully can come along here that has some knowledge in the joint account issues and offer you some better advice on that.

I had leftover money from my school loans and I also took out cash advances.