Filing Ch7 Soon, have some questions....

[evilspark]

Well, lost my job on Friday and need to file BK ASAP.

Main thing I'm concerned about is there is a judgment against me for an accident. I wasn't drunk or anything, so its dischargable. I've been in a settlement agreement paying them $350 a month to keep my license and not have an SR22 Requirement.

Right now, I'm current on payments. I know if I default (done it before..) they get an Abstract of Court Record to send to the DOL who then send me a letter that gives me about a month to straighten it out, or lose my license. It takes about 2 months from the time they get the Abstract to the Suspension Date.

If my license gets suspended, I need to carry SR22 for 3 years. According to emails from the DOL, if I get a discharge before the suspension date, no SR22 requirement comes into play.

I've been reading a TON online, and some sites say that an automatic stay does NOT prevent a driver's license suspension.

If I'm current on payments, and the automatic stay goes in effect before they notify the DOL (no pending suspensions) of anything, wouldn't the automatic stay prevent them from taking further action against me (sending the abstract to DOL to get my DL suspended)?

If that doesn't work, would I be better off paying them 2-3 months advance so I don't default and by the time i miss a payment, i should hopefully have a discharge?

I can't afford SR22, as I'm 20 and don't have a car for me to insure, but have a special policy that lets me drive any car. They won't do that with SR22.


Another question. I'm applying for Federal Student Aid soon, as I need to go back to school. I plan on filing on April 5th, and applying for Student Aid on April 15th. Any negative effects?

Those are pretty much my worries about BK. I did the means test, and I failed it, so I get a Ch7. probably going prose in this

sorry for the long post, but I'm trying to be as detailed as possible.

[coolmom04]

I don't have the answers to all your questions, but are you going to apply for loans or grants or what?

If you are just interested in grants & scholarships or work study, I don't see how that can be a problem... but I don't know for sure. Definitely don't apply for loans - I am pretty sure that's a no no - to incur more debt after filing and before discharge/close.

Others will chime in

[evilspark]

[evilspark]

Sorry for all the questions, but this is a big one..

Due to being in ChexSystems, I haven't had a bank account in a while. I made about $2000/month, which is well below the median.

I don't have any receipts, as I literally lived "cash only" and threw away the reciepts. I opened a chase account a couple months ago to get my tax refund put in, and spent that with all the records of my chase account.

Is that going to be a problem? I'm unemployed as of Friday, and the last 6 months, I was below the median. Is there any foreseeable issues?

My life can never be easy..

[coolmom04]

That's a very good point about the student loans! I am sure someone else will chime in with a better answer for you.

Lots of luck to you

[Coldplay]

Student loans are almost never discharged. Not 100% about wage garnishment, you might need to look into that a bit further.

[evilspark]

Student loans are almost never discharged. Not 100% about wage garnishment, you might need to look into that a bit further.

Yes, I know they are almost impossible to discharge, and I posted the exact part of the USC that prevents garnishment of student loans.

Doesn't really affect me because I'm not trying to discharge student loans. I am applying for Federal Student loans

[Coldplay]

Yes, I know they are almost impossible to discharge, and I posted the exact part of the USC that prevents garnishment of student loans.

Doesn't really affect me because I'm not trying to discharge student loans. I am applying for Federal Student loans

I'm sorry I went back and read your post again. I misunderstood/misread it the first time. Going gaga

From what I've read and what I've been told.....You can still apply for student aid. They can't discriminate against you because you have filed for BK. We have a parent plus loan for our daughter and we were concerned as well about getting additional tuition money for her.

My personal opinion is that since it's not dischargeable they allow you to continue taking student aid out because they know you HAVE to pay them back.

Good luck to you !!

[coolmom04]

I'm sorry I went back and read your post again. I misunderstood/misread it the first time. Going gaga

From what I've read and what I've been told.....You can still apply for student aid. They can't discriminate against you because you have filed for BK. We have a parent plus loan for our daughter and we were concerned as well about getting additional tuition money for her.

My personal opinion is that since it's not dischargeable they allow you to continue taking student aid out because they know you HAVE to pay them back.

Good luck to you !!

Oh.. as far as the receipts go... I am pretty sure it's a case by case thing. Do some searches in the forums for people who use cash only and/or don't have receipts.

You can definitely still get FA (student loans, etc.) after filing. I've gotten them and I filed back in 2002.

Lots of luck to you.

[evilspark]

Yeah, I'm not worried about student loans since they go based on needs, and my last tax return shows my income at $4k, and my EFC is $0.

I'm mainly concerned about my license, student loans issue is solved AFAIK.

Just applied for Unemployment today, hopefully all goes well with that..

[evilspark]

Do they view expenses paid to a family member as insider? I live with my mom and give her rent (she applies it to her mortgage), my share of the cell phone bill and car insurance so I can drive her cars.

What about people you owe money to? I owe my buddy $500 (hes already said screw it and doesn't care about the $$) and I owe my mom about $1000. Should I list them as creditors

How do I value my possessions? I have a new laptop, I got as a replacement form Dell. My original laptop was $700, but the replacement one they sent me had an invoice cost of $1900. Its about 4 months old, so would I use the invoice price or a lower value since Dell has already replaced this one with a newer line. (I didn't buy it 4 months ago, my original purchase was 1yr before for $700)

I have a flat screen I bought for $800 1.5-2years ago. Similar TVs sell for about $700-$1000 now.

My most "complicated" is a 5-6yr old desktop computer I built. Initally spent about $500 on it, but was valued at $2000 when I built it. Now I can pick machines that have the same specifications as it for $100-$200 at a second hand computer shop. No clue what to value it at!

I've read they changed the laws to replacement value rather than garage sale value, so I'm a bit concerned.

Sorry for so many questions, but I'm really getting nervous about this.. I just want to get it over so I can concentrate on going back to school

[Shawshank]

You will list anyone you owe money to.
I would value the computers and tv at what you could reasonably expect to pay for them if you bought them today via ebay or craigslist.
I imagine it's a lot less than you think.
Unless you have a page full of high end electronics, the trustee is not going to give you the third degree about your computers or tv ;-)

[SMinGA]

Since you're 20 - unless you're married - your parents income also is used to determine your FAFSA EFC.

Yes - list all you owe debts to.
Regarding paying rent to your mother, that may or may not be a problem. Best to consult w/ your attorney since preferential payments to family/friends is a problem, but rent is a regular expense.
Value possessions at replacement cost - and keep in mind a 5 year old item is not the same value as a brand new item even if the specs are similar.