If you are over on schedule J, do you automatically get switched to chapter 13?

[hboyd4]

My boyfriend and I just moved in to my parents house with our two boys. My boyfriend lost his job and I don't work. Well since we don't pay rent or utilites, now he has enough to pay his bills plus a tiny bit leftover so it looks like we don't need to file bankruptcy... BUT we can't live here forever. So how does this work? We are only supposed to be here a year and that isn't enough time to pay off our debt.

I am afraid that he will be over on schedule J and then get switched over to chapter 13... we won't be able to move out on our own unless we can each file chapter 7 and get a clean slate.

Does this make sense??? Thanks :-/

[justbroke]

Technically, it's the Means Test (Form B22A) which determines if you qualify, are presumed to be abusive, or are abusive under the current law (BAPCPA 2005).

Schedule J is not all telling, however it is often used in combination with the Means Test to determine those cases which are borderline (may be abusive).

If you're not paying for rent, utilities, and other things, you may have some trouble.

Are you above or below median income?

So many questions than answers.

[hboyd4]

Technically, it's the Means Test (Form B22A) which determines if you qualify, are presumed to be abusive, or are abusive under the current law (BAPCPA 2005).

Schedule J is not all telling, however it is often used in combination with the Means Test to determine those cases which are borderline (may be abusive).

If you're not paying for rent, utilities, and other things, you may have some trouble.

Are you above or below median income?

So many questions than answers.

Thanks for your quick reply! We are both below the median income for both of our cases. We pay a coupe hundred a month to my parents for helping us out but other than that, no rent, no utilities. We can't live with my parents for long and we definetly can't make it on our own right now. I am just trying to figure out the right way to go about all of this. And not to mention that I am trying to do this on my own, both of our cases.

[justbroke]

Thanks for your quick reply! We are both below the median income for both of our cases. We pay a coupe hundred a month to my parents for helping us out but other than that, no rent, no utilities. We can't live with my parents for long and we definetly can't make it on our own right now. I am just trying to figure out the right way to go about all of this. And not to mention that I am trying to do this on my own, both of our cases.

The right way... and this is not legal advice.

I, personally, would stay with parents as long as possible, while saving money to move. Then move to a place which is suitable for your family size. You should also be seeking employment if possible. You need some way to earn money in order to save money. Make sure you use all the saved omoney on the new place, food, clothing, medicine, doctors, etc.

Then file.

That way, you can claim utilities, rent, and all the trappings so that a realistic view of your expenses are put on the forms.

Of course, this is just my opinion. I hope others will chime in.

[hboyd4]

I guess I am just stuck in a tough situation. I am in school right now so I can make a living and help out but I won't be done for about two years. We can only stay with my parents for a year so this brings us up short on income. If I were working we would never have got ourselves into this situation but I can't find a job that pays enough to even pay for childcare for my two boys let alone actually bring home some money too. I haven't paid on my credit cards for 7 months so they are all in collections and the calls are insane. They actually slowed down, which kind of scares me. I have about $10,000 in debt but I have no way to pay it. What happens if my debt sits for another two years until I start working?

[lrprn]

hboyd4, you are dealing with some unusual circumstances and there aren't simple, reliable answers to your questions.

I suggest that you set up 3-4 free initial consultations with experienced bankruptcy lawyers in your area. How the local courts and trustees deal with some of your questions depends on local court customs and case law decisions in your bk district.

Talking to several experienced lawyers for free and asking the same questions you are asking us will go a long way to figuring out where you two stand if you do file for Ch 7.

Hang in there, and go make those appointments. Come back and let us know what you find out, ok?

[JRScott]

At this point I would not file bankruptcy.

I would at least wait until he manages to find employment again.

To assist in a bankruptcy you could sit down with your folks then and work out a rental agreement. Make it in writing and get it notorized. Then pay on it 6 months then file.....

With him being unemployed you might waste your bk option to early if something major came up.