Do I qualify for Ch. 7 in your opinion?

[Falcon]

Here is my situation....

I have been in debt since my Senior year in high school due to credit cards. I have ALWAYS made my payments on everything. Paid off my car in full early (4 years), just bought my FIRST home in March ($130K, probably no equity), but I need a new truck as well.

I owe $30,000 in credit card debt.....which sucks. I hate debt. Always told myself I would pay it off eventually. Now, however, I make $2,000 per month before taxes ($1600 after taxes), have an $800 mortgage and utilities and my fiance also pays some of the utilities and $300 of the mortgage.

Now, considering I make only $1600 per month net pay after taxes, I would probably have VERY little disposable income left after expenses.

In yalls opinion (Im from GA, so I say "yall"), would I qualify for Chapter 7 or 13? I seriously doubt I would be able to even afford $300 per month if I get a new truch due to my current car being a piece of junk.

Your thoughts?

Thanks in advance.. NB

[Ablazed]

[killinstinct]

Talk to an attorney. Hell, talk to five. They all offer free consults. They are the experts. You probably can file, but SHOULD you is the question.

Also fill out your income, etc on the legalconsumer means test calculator. That will tell you 7 or not. It is last 6 mo. income.

[StartingOver08]

Also, have you adjusted your tax withholdings? You are now a homeowner and have interest and real estate taxes that can be deducted on your 1040 in addition to the first time homebuyers tax credit. It sounds like you have been having too much withheld from your taxes if your net is $1600 on a $2000 salary. Talk to a tax professional to get a more accurate idea of what your actual tax liability is and only have withheld what you owe, not more.

I agree with the others that you can work yourself out of this with a plan.

One more comment, why don't you hold off on the purchase of a truck until you can pay cash for it? Last thing you need is another monthly payment, JMO

[backtoschool]

In deciding whether to file for chapter 7, and whether or not you will qualify, here are some things to keep in mind.

1. Your fiance's income will be taken into account if she lives with you.

2. Your disposable income only needs to be about $180 a month after allowed deductions to get pushed into a chapter 13. A chapter 13 will go on for 5 years, and the trustee will have control of your finances for those 5 years. If you only have $30k in debt, you will probably be in a 100% chapter 13 plan.

[BrokeMike]

In deciding whether to file for chapter 7, and whether or not you will qualify, here are some things to keep in mind.

1. Your fiance's income will be taken into account if she lives with you.

Is this right?
My girlfriend lives with me and the attorney did not say anything about that.

[ace13]

Is this right?
My girlfriend lives with me and the attorney did not say anything about that.

My boyfriend lives with me and his income does not count. There is no regular monthly contribution to my household income. I am recently divorced (last 2 years) with a child, and my attorney advised that my BF income does not count. He could be gone tomorrow....

Again, a question for your attorney. I think as long as you lay it all out there, you will be fine. I was up front and honest with my attorney. Didn't want to "hide" anything....good luck.

[backtoschool]

Is this right?
My girlfriend lives with me and the attorney did not say anything about that.

For the means test, you have to use household income. If your girlfriend lives with you, her income and expenses are counted. Your attorney should have told you this.

[backtoschool]

My boyfriend lives with me and his income does not count. There is no regular monthly contribution to my household income. I am recently divorced (last 2 years) with a child, and my attorney advised that my BF income does not count. He could be gone tomorrow....

Again, a question for your attorney. I think as long as you lay it all out there, you will be fine. I was up front and honest with my attorney. Didn't want to "hide" anything....good luck.

This is a different scenario than most, since the boyfriend does not contribute at all to expenses. The trustee will be looking very carefully at why your boyfriend lives there and does not contribute though.

[BrokeMike]

Many thanks for your response ace13. That's what I thought also.

Also thanks backtoschool. My girlfriend is a full time student and she had very little income this year from part time job.

[backtoschool]

Many thanks for your response ace13. That's what I thought also.

Trustees look especially hard at situations where someone is living in the house and not contributing to expenses. It is a red flag for the trustee. Expect to provide an explanation of why your girlfriend is not contributing to expenses.

[ace13]

This is a different scenario than most, since the boyfriend does not contribute at all to expenses. The trustee will be looking very carefully at why your boyfriend lives there and does not contribute though.

I am prepared to answer those questions. Believe me, I have reviewed this over and over again with my attorney and he assures me the situation is fine and no need to worry on my end. At the end of the day, my BF has his family to financially provide for, and I have mine. We are not financially connected in any way, shape, or form and, as I stated, he could be gone tomorrow. I am solely responsible for my debt and if I don't work, there is no money.

Thanks for your response.

[Falcon]

In deciding whether to file for chapter 7, and whether or not you will qualify, here are some things to keep in mind.

1. Your fiance's income will be taken into account if she lives with you.

2. Your disposable income only needs to be about $180 a month after allowed deductions to get pushed into a chapter 13. A chapter 13 will go on for 5 years, and the trustee will have control of your finances for those 5 years. If you only have $30k in debt, you will probably be in a 100% chapter 13 plan.

Actually my girlfriend does contribute $300 per month towards bills, but she is a student and will soon begin her student teaching which will leave her without a fulltime job (only a part time job) beginning in March.

I did ammend my 2008 tax returns to get the $8000 first time home buyers tax credit, but that was in late Sept and havent gotten it yet. I owe my Mother $2500 for a loan she gave me well over a year ago and planned to repay her out of the $8000.

Also, my total bills total $1300 per month (minus the CC bills), but I dont get 40 hours every week. More like 33 to 36 on average. So my actuall income fluctuates depending on the workload we get at my place of employment. All my check stubs show this, and in fact I havent had a full 80 hours for two weeks in quite some time. Your thoughts?

Nick

[Ablazed]

I did ammend my 2008 tax returns to get the $8000 first time home buyers tax credit, but that was in late Sept and havent gotten it yet. I owe my Mother $2500 for a loan she gave me well over a year ago and planned to repay her out of the $8000.

[OhioFiler]

Actually my girlfriend does contribute $300 per month towards bills, but she is a student and will soon begin her student teaching which will leave her without a fulltime job (only a part time job) beginning in March.

I did ammend my 2008 tax returns to get the $8000 first time home buyers tax credit, but that was in late Sept and havent gotten it yet. I owe my Mother $2500 for a loan she gave me well over a year ago and planned to repay her out of the $8000.

Also, my total bills total $1300 per month (minus the CC bills), but I dont get 40 hours every week. More like 33 to 36 on average. So my actuall income fluctuates depending on the workload we get at my place of employment. All my check stubs show this, and in fact I havent had a full 80 hours for two weeks in quite some time. Your thoughts?

Nick

How does one amend one's 2008 tax return to reflect a transaction which occurred in March 2009?