Quitting part time job to qualify for Chapter 7

[kcfaninin]

I'm curious how much debt you are looking to discharge. If you were to keep working how long would it take to pay off the debt with the extra $39,000 annual income?

I see you working one job but splitting your time between two agencies. It seems to me the detriment to your health is a result of working the graveyard shift not the four 12 hour shifts.

I would ask a few questions of you at the 341 if I were a trustee (but of course I'm not!).

We have $78,000 in unsecured and $33,000 in student loans to pay. I make more working night shift. If I worked 12 hour day shifts, 7am-7pm, I wouldn't see the kids much and wouldn't be home to help with home work. My job is an hour away from home, plus there is an hours time difference. I wouldn't get home until 9pm.

I have been working like this for almost 3 years in order to pay down the debt and it isn't working. My husband even picked up a part time job a couple years ago and just quit this summer. He was gone from 5am-10pm between the 2 jobs. It wasn't making a difference and the kids were being left home alone. It wasn't worth it.

[whipster1]

There is normally no "hurry" to file a CH 7 unless somebody is suing you. Why the rush?

[OhioFiler]

We have $78,000 in unsecured and $33,000 in student loans to pay. I make more working night shift. If I worked 12 hour day shifts, 7am-7pm, I wouldn't see the kids much and wouldn't be home to help with home work. My job is an hour away from home, plus there is an hours time difference. I wouldn't get home until 9pm.

I have been working like this for almost 3 years in order to pay down the debt and it isn't working. My husband even picked up a part time job a couple years ago and just quit this summer. He was gone from 5am-10pm between the 2 jobs. It wasn't making a difference and the kids were being left home alone. It wasn't worth it.

So you have $78,000 dischargable debt and want to cut your income by $39,000. I would save my butt off then make a settlement offer to the credit cards for about $10-15,000 total in 10-12 months.

[Amy26]

I would disagree with OhioFiler... nobody should have to work their tails off like that for that little wage and suffer their health and family time. Debt settlement is not a path I would recommend as it does work for some people but personally I think its not worth the hassle.

If you can successfully cut back your working, make the bankruptcy, and then balance your work/family life with adequat money for your bills post bankruptcy then I don't see why you should continue to bust your ass at the risk of health and lifestyle.

I cannot offer advice about not having to wait the 6 months out for the income to drop off but have you consulted with more than one attorney? Have you already retained the attorney that is advising you this? I would at least consult with one or two other attorneys and see if they agree with the statement that your current attorney has given you.

It is unfortunate in times like these that we have to second guess legal advice that is supposed to be there for assistance because we lack the knowhow. However each district is different in what they allow/require and each lawyer can have a different knowledge set!

Good luck!

[kcfaninin]

There is normally no "hurry" to file a CH 7 unless somebody is suing you. Why the rush?

Well, attorney said we need to get something done before we do get sued. We have had a couple collection letters arrive already.

We also need to be discharged before April. Our lease will be up on our Ford and we'll need to get another vehicle. Nobody will approve us now with our credit the way it is. Attorney recommended we try to trade it in now before filing, but can't get approved.

[kcfaninin]

So you have $78,000 dischargable debt and want to cut your income by $39,000. I would save my butt off then make a settlement offer to the credit cards for about $10-15,000 total in 10-12 months.

I picked up the 2nd job for that purpose, to help pay down debt. I have been working like this for almost 3 years and it has made a dent. Most of the credit cards have 25-32% interest.

Plus, one of our creditors is Toyota and we owe $17,000 on my husbands truck we surrended in our Chapter 13. (we have since dismissed the case, couldn't make plan payments) I doubt they will accept $2000!!

[NoMoreCards]

I would disagree with OhioFiler... nobody should have to work their tails off like that for that little wage and suffer their health and family time. Good luck!

Sorry Amy, I have to disagree with you here. OP stated she works (4) 12 hour shifts which equals 48 hours per week, with a salary of 73K. I know nursing is highly demanding and they work their tails off, but 73K would be nice and in my book is not "that little wage". I suspect the OP's health issues are mainly due to such little sleep, as night shifts are rough when children are at home. I totally get that.

Although I do agree, it is sad we must second guess our attorney's in todays world. I don't understand how one attorney can say this, while another says that while looking at the same darn thing!!!

I hope the OP can find a way through this financial mess, it is clear she has been working at this for quite some time and I am sure the stress of all this is wearing on her health as well.

[Amy26]

Well yes, I agree with what you're saying as well NoMoreCards... however from a different perspective. I would consider 73k a nice wage too... for a normal FT position working normal hours and not 2 jobs. For it being 2 jobs with a stressful schedule, that is what I meant by little wage. And yes, I'm sure the health issues are related to the schedule... but they have already stated that that schedule was the only thing that allowed time at home and the benefit of the higher income.

Yes its only 48 hours a week... but I certainly could not do those shifts. But we are no one to judge motives or what is best for someone else.

[AngelinaCatHub]

So you have $78,000 dischargable debt and want to cut your income by $39,000. I would save my butt off then make a settlement offer to the credit cards for about $10-15,000 total in 10-12 months.

Rare but this time I have to disagree with you OH. The reason we live and have a family is time for them.

DEATH, is natures way of telling us to slow down.

I believe this person is on the brink of disaster if she does not get some relief.

It is my opinion that she needs a rest and some relief. Then at her liesure, take time to work when she wants. I happen to know, (as my daughter is an RN) that they are so short handed that she could pick her hours. Now however, she has other problems that MUST be addressed just for mental health. ONLY my opinion. 'Hub

[DeadManCrawling]

I agree, not that it matters.

Get rid of that job and spend more time with family. That IS what counts.

Whether you should wait six months to file is a judgment call no one here can offer useful advice on.

You MUST rely on your attorney in this. If you wish to be ultra-safe, wait it out. Chances are you won't be sued in that period. If you are, there are methods of delaying judgments and delaying the whole process. Goodness, we were sued over 2 years ago, and it is only now getting serious, in terms of possible penalty. We are filing tomorrow.

No way, no how, would I EVER let creditors dictate my family time. And that goes for BK as well. I cannot imagine working at a stressful job, with extra hours, to pay back CREDITORS!!!

Geez, we owe the bank 380k on a house we bought for 380k 10 years ago. In the meantime, we have paid 500K in INTEREST!!!! Quit job, have family time.

Wait six months if you have any doubts at all, and get on with life.

Good luck,

-dmc

[backtoschool]

[miozelous]

Boy can I relate to your story! I worked 3 jobs last year to try and make ends meet. One full time (45hrs/week) and 2 part time (24hrs/week). My health suffered, I thought I was having a heart attack but it turned out to be a panic attack. This is when I decided it was time to file. I waited the 6 months to be on safe side per lawyer. I am now discharged and have not had another attack. I get to spend time with my kids and watch them grow up. There comes a time when you just have to learn to say no more and mean it. Quit your job and enjoy your kids while they are kids. Best of luck!

[Michigan1951]

With respect to the OP, I bet when your kids grow up and think back to this time, they would say mom was gone all the time trying to pay off debt. The kids will grow up too quickly as it is. OP is being a good role model to put the kids first. In bk, the debt will go away, but you can't get a second chance to raise your kids.

[kcfaninin]

Thank you to everyone for your advise and support. I know I have to temporarily quit my second job for health reasons, but financially, we can't live 6 months without some sort of extra income. It all comes down to our mortgage. If Chase will approve the loan modification, I won't have to work so much. If they deny it, it comes down to working to keep the house or giving it up.

If it were just my husband and myself, we would get rid of the house in a heartbeat. For 8 years we lived in an apartment and there were no children for our kids to play with. We finally live in a great neighborhood where we feel safe and it's full of children. They LOVE it where we live so, we do it for them.

If we give up the home, that will free up $2325/mo to repay creditors and throw us into a 13, which we don't want. We need that expense to qualify for a 7.

Ideally, we want to file a 7 and get a loan modification after discharge, but we don't want to risk foreclosure either.

[DeadManCrawling]

There IS another real possibility.

You MAY, depending in district, judge and trustee, be able to claim the mortgage expense and work on your mod. Then, in a few months, after discharge, the mod may not go through. This is an increasing occurence.

Then you have successfully used the mortgage expense and been discharged. So the extra money is used on rent.

This is a very gray area, and new really, since the housing bubble bust, but it is something we discussed with our attorney. He said it was workable, since not even a BK trustee or judge can get major lenders like BoA and WF to move faster.

Our plan was this:

Claim the mortgage expense in CH 7 even though we were behind. Inform the court we wer working on a mod.

Wait throught he 341 and to discharge, while the lender repeatedly lost docs, filed for relief, and so on.

Discharge.

Wait 30 days and then WE start losing paperwork. Or simply decline the mod.

Ride the wave for 4-6 months while foreclosure proceeds. Save money. Rent a new place.

done.

This may not be workable where you are, but we are in foreclosure ground zero (Florida), and our attorney says he has used this strategy successfully dozens of times in the last year. Bottom line is the housing market is not improving and everyone, including BK courts, knows it.

This may take a stomach of steel, and may or may not work, but it is an option. Talk to your attorney. If this is acceptable in your district, it may be worth looking at.