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Couple questions about filing a chapter 7 case...

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    Couple questions about filing a chapter 7 case...

    I've been browsing this forum a lot and I've read many thing about BK, mainly how good it is after it has been discharged

    To put it short, I'm 20 with a judgement against me for 25k, some collection agencies totaling $10k. All dis-chargeable, as they were neither fraud and no malicious intent was involved.

    Not really a great way to start out life. I figured might as well file BK because I'm going to be in College for the next 4 years.

    I landed a temp job a couple months ago making about 2k a month after taxes. My expenses are about $1550 a month, but most of that goes to my mom for rent, food and whatever else while $250 is going towards the judgment. So I have about $450 extra a month. I'm still working there, and will be until summer, then my income falls to $0 because of school

    Looking online, it looks like I fall below the median of $3750. I've read conflicting things saying even if I fall below the median, I still gotta take the means test, which means I flunk and get ch13 which is less than ideal when my income becomes $0

    Not to mention, the trustee can rule that payments to my mother for rent are preferential, and go after my mom.

    My question is, do you have to take the means test even if you are below the median income level?

    I also just recently applied for Federal Student Aid, since I made $4k last year and my EFC is 0, I should be eligible for at least a loan. From this site, a ch7 case is about 5 months from start -> discharge of the case. If my student loans gets disbursed to me or whatever, will the trustee seize that in the middle of the case?

    Can I claim my 1900$ computer as "tools of trade" since I am a contracted PC Tech? I haven't done any work for them since this temp job, but will return after I go back to school.

    Another question, do they watch you after you've been discharged? as it is right now, I own nothing worth anything except my laptop and TV. A friend of mine has a car worth about 5k that I want to buy. He has agreeded to sign the car over once I make 5 months ($500/month payments) worth of payments and I can pay him the rest. Will the trustee or whatever see this and try and seize the car or reverse the discharge? I don't have the car, and haven't payed anything, so I'm not hiding it under someone elses name, just waiting to purchase. If not, I'm gonna try to qualify for a regular loan afterward.

    Sorry to keep adding on, but I was going through other threads, and it said the trustee wanted 6 months of bank records.

    I just opened a new account after not having a bank for so long. They closed my accounts because of overdraft fees over a year ago. Since then, the checks I've recieved get cashed by a check cashing place and I just spend the cash minus the judgement payments which are Money Order. Am I not allowed to file BK without banking records?

    Sorry for writing a novel, but I'm just trying to get my life in order. Thanks for any help!
    Last edited by evilspark; 02-24-2010, 01:46 AM.

    #2
    Well.....

    Generally......

    The look-back period is 180 days, or six months. What state are you in? Knowing that will help posters give you a more informed answer.

    Once you are Discharged, there should be no reason why a trustee would go back into your account. Do NOT count on this, however.

    I am having trouble following your situation: 'Tools of the Trade' are dependent upon what state you are in.

    Student Loans are NOT discharged in any case unless you can prove 'hardship'.

    As to the Means Test, our attorney kept putting our numbers into it--still do not know the outcome of that.

    You will HAVE to provide some kind a financial history for the six months prior to filing BK. At least that is OUR experience, as well as what I have read in other situations. You will also need to provide at least one year of income tax returns.

    Schedule at least three free consults with BK attorneys and see what they have to say. At age 20, you may be better served to simply tighten your belt and ride this out.

    Good Luck~~
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

    Comment


      #3
      I'm in Washington

      I'm not trying to discharge student loans, I'm trying to GET student loans to go to College. My worry is if my BK is processing and the college disburses me the remainder, the trustee will take it.

      WA has a "Tools of the Trade" exemption worth $5k.

      I don't know how I can prove the 6 months.. FML! Like I said, everything was done with cash, minus $250 for payments towards the judgement. Its hard for me to get a back becuase I'm in ChexSystems, but I just opened one up at Chase (which I found out might get randomly closed ....) Tax returns are no problem, I have all of them back to when I was 16.

      Kind of hard to ride this one out, and by the time I actually NEED credit, it'll be 4 years since BK. Been living cash only, never had a credit card in my life.

      Comment


        #4
        Originally posted by evilspark View Post
        I'm in Washington

        I'm not trying to discharge student loans, I'm trying to GET student loans to go to College. My worry is if my BK is processing and the college disburses me the remainder, the trustee will take it.

        WA has a "Tools of the Trade" exemption worth $5k.

        I don't know how I can prove the 6 months.. FML! Like I said, everything was done with cash, minus $250 for payments towards the judgement. Its hard for me to get a back becuase I'm in ChexSystems, but I just opened one up at Chase (which I found out might get randomly closed ....) Tax returns are no problem, I have all of them back to when I was 16.

        Kind of hard to ride this one out, and by the time I actually NEED credit, it'll be 4 years since BK. Been living cash only, never had a credit card in my life.

        If you have been living cash only and have never had a credit card in your life, how did you get a $25K judgement against you? And the $10K that is in collections?

        The reason for these debts is important. Because some debts aren't dischargeable.

        Comment


          #5
          Originally posted by helpmeout View Post
          If you have been living cash only and have never had a credit card in your life, how did you get a $25K judgement against you? And the $10K that is in collections?

          The reason for these debts is important. Because some debts aren't dischargeable.
          25k was a car wreck I got in when I was 17. No injuries and I was sober, it was property damage because insurance had lapsed by a week.. hit a expensive car if youre wondering

          10k in collections is from losing my job, getting evicted, them saying I did damage work 3.5k to the building, bills relating to the apartment and some medical bills.

          I've done a lot of reading on bk, and all of my debt looks dischargable and unsecured
          Last edited by evilspark; 02-24-2010, 03:58 AM.

          Comment

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