Financial Hardship Question

[ManFromMunchkin]

Greetings:

I have a question.

Consider the case of a person who has already:

***Filed for Chapter 7 bankruptcy in August.

***Attended his "Meeting Of His Creditors" with the bankruptcy trustee in September.

***Completed his 2nd required course which deals with budgeting and money management after bankruptcy, also in September.

He has done everything that is required of him.

He has completed all of his paperwork.

This person is now waiting for the final official decision as to whether his debts will be officially discharged, which should now take about two months or less.

However, this person has a big problem.

He is broke.

He lives on a very meager state disability income.

He recently applied for Social Security Disability benefits (for the second time) and received official word today that he was denied again.

His has no savings.

He has no stocks, bonds, or any other financial assets that can be liquidated.

His checking account will be in the red until he receives his next disability check.

This will leave him with no money to pay his rent next month.

He has already been officially warned by his landlord that he will be evicted the next time he is late with his rent.

This will leave him with no money to pay for some of his medication copayments next month.

Although his telephone service and car insurance were current when he filed for bankruptcy, he has since fallen behind in his payments for these services.

As a result, he is receiving warnings of the termination of his telephone service and his car insurance coverage.

He has very little food in the house and has been eating dry cereal for his meals most of the time.

He usually has about a teaspoon of gas left in his car, which is usually just enough to see his doctor once a week and go to the grocery store once a week.

He used to make a little money on his side by tutoring in students' homes.

But now he doesn't have enough gas in his car to drive to his students' homes and contine with his tutoring.

Paying his attorney's bankruptcy fees set him back financially by wiping out just about all of his cash reserves, thus contributing to some of his immediate financial problems described above.

He is in a state of panic and severe depression in regard to his increasingly worsening financial situation.

It is his understanding that it is against the law for him to take out another loan, even from a family member or a friend, while his bankruptcy case is in progress.

Is this true?

It is his understanding that it is against the law for him to sell any personal property, in order to raise money to meet his survival needs, such as his rent, gas, medications, and food.

Is this true?

Actually, the only property he has to sell, which might bring him a little bit of money, is an old antique coffee table. It might be worth $1000.

If it is against the law for him to borrow money from a family member or a friend.............

If it is also against the law for him to sell any property........

For the sole purpose of meeting his emergency financial needs, such as his rent, food, medications, and gas for his car......etc...

Then what can he do?

Is he allowed to accept money from a friend or family member in the form of a gift?

What can this guy do to avoid being evicted from his apartment and going hungry?

Any and all comments and suggestions will be appreciated.

Thanks in advance.

Munch

[familyof7]

Gifts are fine. Ido strongly suggest he dont give up and appeal the ssi decision for a third time. I know from personal experience they deny everyone and the third time usually does the trick. I waited 2.5 yrs after the third appeal.

[lrprn]

It is his understanding that it is against the law for him to take out another loan, even from a family member or a friend, while his bankruptcy case is in progress.

A "temporary gift" from a family member is fine. He can pay anyone back he wants after his case is closed. However, going to a lender to get a real loan needs his trustee's permission since his Ch 7 case is still active.

A real monetary gift is absolutely fine.

It is his understanding that it is against the law for him to sell any personal property, in order to raise money to meet his survival needs, such as his rent, gas, medications, and food.

Not true. He can sell any personal property of his that is not secured and not listed as an asset on his bk forms.

For the sole purpose of meeting his emergency financial needs, such as his rent, food, medications, and gas for his car......etc...

There are many community agencies and local churches that help folks that are down on their luck with food, clothing, less expensive housing, etc. He needs to get hooked up with these services in his area asap!

If he's a veteran, the nearest Veteran's Hospital can help with low cost medicines and treatment. Otherwise start calling local hospitals to see what lower-cost services they may provide for him. If he can get hooked up with a social worker, then those folks know all the community resources that will help him out.

Hope your friend finds his way out of the financial hole. Unfortunately he's a perfect example of folks who file bankruptcy but still don't have enough income to make it. He's very lucky to have a friend like you who wants to help!

[JollyGG]

Your 341 meeting is over you can make every effort to increase your income. You can accept gifts.

It sounds like you need to do something to either decrease your spending, or increase income. I know you are in a tough spot right now.

Can you take in a roomate, can you get an online job or some other job from home, Is there any public transportation in your town - could you get by without a car.
Have you checked with absolutely everyone who could possibly provide aid. Have you talked to the local churches, government aid offices, is their a soup kitchen in town. Talk to a social worker at the doctors office or hospital they may be able to hook you up with some local resourses. Others will chime in with some ways to make ends meet and other aid orginizations you can try.

Keep posting and we will try to help.

[Kam]

There are many programs that offer rental and energy assistance. This is usually a one-time gift payment (they pay directly to the creditor). As suggested there are food and clothing banks to also use as a resource. Have you applied for emergency food stamps? If you are living on disability I would presume you would more than eligble for medical and food stamps. Is there Section 8 housing where you live? Is there a public transit system where you live? Are you a senior citizen? If so, you are eligible for discounts with regard to many services. We don't know if you are living in a rural or urban setting. You might be able to get free food, clothing, etc., in exchange for volunteering at a food bank or homeless shelter. Have you checked into online bartering groups in your area? You know, you come mow my lawn and I'll give you food?

I've used food banks before during some lean times and I always repaid them back with cash and monetary donations when I was able to. I've donated produce out of my gardens when I've had a surplus. Check out your local freecycle online group (you would have to check out freecycle at yahoogroups.com). I've given away *alot* of my girls' outgrown school clothes, shoes, books, etc., to other families in my area who really needed the items. In fact, I would encourage everyone to check out freecycle in their respective areas.

[B12]

Contact the St. Vincent de Paul society immediately. Call the local Catholic Church and they will give you the phone number.

I have been a big supporter of this charity for years and they do amazing work.

Tell them just what you told us and they will help with immediate rental assistance, food, money for utilities. They are very unjudgemental.

No one should be eating cereal for dinner every night in this rich nation, yet there are so many acutally starving people. Sad.

This is not a government agency, hence, it is very successful in helping the truly poor.

[ManFromMunchkin]

Thanks For All Of Your Helpful Replies

Hello,

I want to thank you for all of your very helpful and informative replies.

I have printed out all of your replies and am following through with much of the advice you gave.

He has already been able to receive some assistance with some food and clothing.

Please accept my apologies for my delay in responding to your replies. My computer was down for nearly two weeks, and I only just got it back up to working again yesterday.

I do have one more question.

My friend, to whom I have been referring in this thread, has not been able to pay his October rent yet.

He expects to receive his eviction notice sometime this week, if not today. This is a 5 day "Pay or Vacate" notice. If he is unable to pay by the deadline stated for the 5 days, then he will be taken to court for proceedings toward an eviction.

Somebody recently told me that one cannot be evicted from an apartment while one's bankruptcy case is still in progress and who is, therefore, still under the protection of the bankruptcy court.

If this is true, I am not so sure that this would apply to my friend.

My friend was not behind on his rent at the time of his original bankruptcy filing. He was caught up and current on his rent at the time of his filing. Therefore, his landlord was not listed as a creditor.

In view of the above, would my friend still be temporarily immune from eviction from his apartment, while his bankruptcy case is still in progress?

To review:

He filed for Chapter 7 bankruptcy in August.

He had his 341 Meeting of the Creditors on September 12th.

He lives in the state of Virginia.

Thanks again for your replies.

Any information you may have in regard to my last question above would be deeply appreciated.

Thanks in advance.

Best Wishes,

Munch

[JRScott]

I'm not sure what to tell you Munch. I sure hope things improve for him.

He could also call The Church of Jesus Christ of Latter Day Saints. I'm not sure who the local bishop would be but he could probably find the number in the phone book. They are willing to help with food and rent if necessary in many cases. He might could get the local bishop to pay his rent considering his condition.

HOpefully this is a temporary situation for him.

[keepmine]

I wouldn't think the automatic stay would apply since the creditor was not listed in the bk.
I have to wonder why he filed bk to start with since he has no assets and the source of income is exempt from garnishment. A bk is an execrise in futility if you can't support yourself post bk.

[ManFromMunchkin]

I'm not sure what to tell you Munch. I sure hope things improve for him.

He could also call The Church of Jesus Christ of Latter Day Saints. I'm not sure who the local bishop would be but he could probably find the number in the phone book. They are willing to help with food and rent if necessary in many cases. He might could get the local bishop to pay his rent considering his condition.

HOpefully this is a temporary situation for him.

Hello JRScott,

Thanks for the tip!

I will definitely forward this information along to my friend, along with the information I found on the Church of Jesus Christ of Latter Day Saints that I found on the internet.

Thanks again!

All The Best,

Munch

[ManFromMunchkin]

I have to wonder why he filed bk to start with since he has no assets and the source of income is exempt from garnishment. A bk is an execrise in futility if you can't support yourself post bk.

On the other hand, wouldn't the failure to file for bankruptcy subject him to a lifetime of potential creditor harassment, in the event that his circumstances improve?

He wasn't planning on being unable to support himself after bankruptcy indefinitely. This is unacceptable to him.

Instead, it is his goal to do whatever it takes to find gainful and fulfilling employment, within the limitations of his disabilities, and become and feel like a productive and useful human being again.

One thing that threw him for an additional loss is that a second career he was trying to get training for, through his state disability agency, has suddenly become outsourced to another country to a large extent.

During the first half of 2007, he had several sample work assignments in this line of work, which gave him a great deal of satisfaction, both emotionally and financially.

However, he hasn't had an assignment since June, which is very likely and possibly due to the outsourcing I described.

He has already made an appointment with his state disability agency to review his annual Individual Employment Plan, and it looks like some changes will have to be made with respect to his training.

In other words, it's back to the drawing board.

In the meantime, the clock is ticking on the payment of his rent.

By the way, he received his eviction notice today.

I will keep you posted.

Best Wishes,

Munch