Ok so here is my life story in 2 short paragraphs

[albert88]

Hey everyone...I'll be filing in about 5-6 months so I need some general input:

I used to have good income, but it substantially dropped about 1 1/2 years ago...I resorted to a job that pays me $2,000 a month (1099) and had to move because of a foreclosure so I spent quiet a bit of money on my credit cards in the past month to fund the move and buy things as needed.

Well sadly enough my income has dropped once again from $2K to $1,500. My rent is $725, my car (08 Altima) is $256 and my credit cards are around $500-550 a month. I can go these 5-6 months with help from family to stay afloat, but I need to make sure my debts ($40,000) get discharged because with this income I cannot do much other than pay rent and my car and survive.

If you guys have any input I'd appreciate it...my only question is will the trustee ask me to include my car in the BK so I have some money left over ($775 after rent) to pay my debts back? Will he know that this is 1099 pay and I don't get to keep all $1,500 a month?

Thanks.

[emoney]

Until your income gets back up your car needs to be sold.
regards,
emoney

[albert88]

Until your income gets back up your car needs to be sold.
regards,
emoney

Okay so if my car needs to be sold (it's a lease), I'm assuming this means to put it in the BK and have it discharged? If that's the case, will they try to put me into a 13 since I'll have $700 a month left over after my rent is paid?

[Minnymouth]

You have other expenses besides rent. You have medical, utilities, groceries, gas, clothing, meds, etc. Also do you pay your own taxes out of the $2,000 a month?

You will not know exactly where you stand until you sit down with a consultation with an attorney (I would chat with 3) and see what my options are before I decided anything.

People have to have transportation, lodging, food, clothing, etc and all of this is considered when you file bankruptcy. You have to be able to live before your creditors get paid....

Have your consultations (their free usually) and get back to us with your options.

Keep us posted.

[albert88]

You have other expenses besides rent. You have medical, utilities, groceries, gas, clothing, meds, etc. Also do you pay your own taxes out of the $2,000 a month?

You will not know exactly where you stand until you sit down with a consultation with an attorney (I would chat with 3) and see what my options are before I decided anything.

People have to have transportation, lodging, food, clothing, etc and all of this is considered when you file bankruptcy. You have to be able to live before your creditors get paid....

Have your consultations (their free usually) and get back to us with your options.

Keep us posted.

My basic expenses after rent and car would be food, gas, and the unexpected things like medical care or things for my pet. Taxes are paid by me out of my $2K/month when it comes to tax time.

I had a chat with one lawyer...I'll go ahead n talk with some others.

[FreshLikeADaisy]

Albert, I think chatting with a few other attorneys is a great plan. I have to tell you, though, that if your vehicle doesn't have much equity (you said it is an 08) and since it isn't exactly a luxury vehicle you may want to consider keeping it if you can live with the payments post-bk. $256 doesn't seem high to me, but it does keep you right on the edge with living expenses as you've listed them.

Bottom line, if you feel you got a good deal on the car, are not upside-down on it, and can handle the payments post-bk, keep it. But if you're very upside-down (owe more than what it is worth) consider using that assistance you're getting from family to purchase something used for cash after you have filed, which will free up more of your income after bk. (BTW, your bk is a picture of the expenses and assets you have on the day you file, for the most part, so if you get something cheap for cash so you can let this car go in bk, best to do it *after* you file so that it doesn't look like an asset available for the trustee to take.)

Also, if you know for a fact that you will be filing Chapter 7 soon, your atty may advise you to just stop paying those unsecured credit cards now, which will free up much needed cash to pay him (and maybe look for something else to drive). Good luck!!!