Filing Ch. 7....Questions....

[michaelsmom]

We found out that we can file chapter 7 (in Colorado) and plan on doing so at the beginning of next year (probably around April). We are waiting because we are having our second child (due in October) and don't the medical bills from the birth to be an issue. The attorney we spoke with said that if we filed right after we have the baby it could look back and the case could be dismissed. He said it's similar to going to to Vegas and spending thousands of dollars and then filing. Anyone have any input on this? Does this sound like accurate information? We aren't using this particular attorney (he was really impatient and sort of a jerk), so we are meeting with another attorney on Tuesday to see if we like him better.

Anyway, we own our house and 2 vehicles (an 03 Explorer and 00 Jetta). We have to give up the Explorer, but can keep the Jetta. We can keep the house, but aren't going to. So my next question is, when should we/can we go out and rent a new place? Can we do it long before we file, or right before, or should we wait until after the case is discharged?

Thanks is advance!

[JRScott]

The lawyer is probably advising you correctly.

Large charges/debt made in the 3-6 months prior to filing generally come under greater scrutiny than older debt. His concern could be that if you filed the doctors/hospital could argue that you knew you could not pay the debt and thus that you were attempting fraud. That isn't to say they would but they could.

Depending on the age of any children if they are in school it might be advisable to move before the school year to reduce stress mid year on them. This is something you should ask the next lawyer.

It also depends if you need the house payment and car payment to qualify for the chapter 7.

[whipster1]

Medical bills usually get a free pass here in TX, you can file the day after you incur them...but check with another attorney that isn't a jerk in your area.

[michaelsmom]

The lawyer is probably advising you correctly.

Large charges/debt made in the 3-6 months prior to filing generally come under greater scrutiny than older debt. His concern could be that if you filed the doctors/hospital could argue that you knew you could not pay the debt and thus that you were attempting fraud. That isn't to say they would but they could.

This makes sense, I can understand why we should wait then.

Depending on the age of any children if they are in school it might be advisable to move before the school year to reduce stress mid year on them. This is something you should ask the next lawyer.

Our son is only 2 so thankfully we don't have to take any of this into consideration.

It also depends if you need the house payment and car payment to qualify for the chapter 7.

We do need the house payment to qualify, but we plan on renting a place that would cost the same as our current mortgage (maybe a little more since we won't have all of the other bills after the bk). So how does this work? Could we use the rent AND mortgage as an expense, or just one of them? Are we better off staying in the house until we file or even until the bk is discharged?

[michaelsmom]

Medical bills usually get a free pass here in TX, you can file the day after you incur them...but check with another attorney that isn't a jerk in your area.

Good to know, it would be great to be able to file sooner than next April!! We'll definitely ask the other attorney on Tuesday.