Thinking Ch 7, Looking for some answers.

[orange88]

Hi all:

Here's my story. Really hope someone can answer a few questions for me.

I'm single, 29 and I live in Rhode Island. I have no assets, dependents or income at this point. I've been out of work since Decembet (no unemployment). I have 46k CC debt. I haven't used or paid on a CC in a year. No judgements, suits...yet. My car is paid in full, and worth about 10k.

I live in my aunt's house while she is in a convalescent home, and her trustee (my father) is providing room, board and gas while I repair/improve/pack the house for sale to pay for my aunt's escalating health care costs. I've also been doing any odd jobs I can get (child care, dog walking, etc)

I'm thinking about filing chapter 7, and I have a few questions.

1. I'm not sure what to say about income, or even calculate it. I guess I could 1099 the odd jobs, but I haven't kept a P&L or anything self-employed related as it was about $200 a month for the last couple of months, and in cash. Not sure whether to include this as I don't know how "self-employment" complicates a Ch 7.

2. My father is kind enough to keep me afloat for other expenses while I work on the house, and look for work. How do I explain how my cell phone, internet, etc is being paid without any pay stubs to show the trustee?

3. As my living, food, transportation costs are being paid by someone else - do include them in my budget?

4. As I live in my aunt's house, I read that I would have to include her income in a "household calculation". Are there any alternatives? I really don't want to drag her into my issues.

I'm scared, confused and really appreciate any guidance you could give me.

Thank you,

Kristie

[tcreegan]

unemployed

Hello Kristie,

I am not a lawyer, but....

I would get some document that shows your being fired/laid off/unemployed.
When asked in bk papers, use the last paychecks you did receive, then use the "or such tax/pay advices/etc do not exist" A notarized statement that you have been unemployed would probably be handy.

A few odd jobs hardly constitutes self-employment. But....there might be some good tax credits if you file taxes with a self-employment taking a huge loss.

You may not need any expense documentation. If your income (avg over last 12 months) is lower than the RI median income, expenses become a moot point.

The $$ your father provides goes on line 13 of schedule I That will be your monthly income. You can add the odd jobs here if you want.

Your expense on Sched J should be equal to what Dad pays + your odd jobs

Crashing at your Aunt's house hardly calls for a "household calculation" Technically you are staying gratis your father anyhow.

Again, I am NOT a lawyer.....just some thoughts

Tom in Colo

[Floridagail]

I would not file or do anything if you have no income, and if you get sued then go see a attorney. He will probably tell you , you are judgement proof meaning nothing to get from you. My son never got sued and they eventually dropped from his credit report.