top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Income less than expenses - family assistance

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Income less than expenses - family assistance

    Hi – I am new to forum and I am so glad I found it.

    I have been struggling with filing Chapter 7 for over a year now. I lost my high paying job in August 2009 and then my unemployment ran out in May 2009.

    I plan on filing a chapter 7 as an individual. I am married, but all of my cc debt was in my name….close to $70K. I had serious spending issues back then. My husband’s credit is fine. I/we have no assets, well a car in my name that I still have 23 payments on I last made payments on my cards through credit counseling in March 2009 and don’t think I have used a cc since March of 2008.

    The other big issue – we jointly owe the IRS $35K from 2008 and 2009 since returns were filed jointly. The tax debt was also incurred by me. Since I was claiming more deductions to bring more money home to pay the credit counseling program because my payment were close to $2K. I am aware that the tax debt can’t be discharged in a chapter 7 since it is recent. I was able to work with the IRS and they put us in currently not collectible status in September, they also filed a lien in December. I would like to get the BK filed and done, hopefully get a job and enter into an installment agreement with the IRS.

    Fortunately during this difficult time both my husband’s and my family have been helping us financially with rent and bills, also sending us care packages of food. All this has been in the form of cash or checks sent directly to our property management company for the rent. We are short approximately $1600 to $1900 a month. My husband makes $43K a year so we are way below the median for DC – it is $78, 878 for a family of two. This town is so ridiculously expensive. We are thinking about moving when our lease ends in June. But that cost money and my husband has a job.

    I am not worried about the means test. But I am worried about Schedules I & J. Our income is way less than our expenses. We are bare bone even with family assistance. No cash or checks from family have been deposited into any bank accounts since I was not sure how to handle that since the bank statements will be examined. .

    Questions:
    1) How do I explain this to the lawyers I am consulting with? I have not retained one yet. Also what about the Trustee? The money from family is not a loan and will not be paid back, but will not continue for ever.
    2) Should I deposit the money into the bank account, pay the bills so what is coming in matches what is going out on the bank statement? Or should I allow them to pay the bills directly?

    Your help is most appreciated. Thanks.

    #2
    Originally posted by tookie708 View Post
    Hi – I am new to forum and I am so glad I found it.

    I have been struggling with filing Chapter 7 for over a year now. I lost my high paying job in August 2009 and then my unemployment ran out in May 2009.

    I plan on filing a chapter 7 as an individual. I am married, but all of my cc debt was in my name….close to $70K. I had serious spending issues back then. My husband’s credit is fine. I/we have no assets, well a car in my name that I still have 23 payments on I last made payments on my cards through credit counseling in March 2009 and don’t think I have used a cc since March of 2008.

    The other big issue – we jointly owe the IRS $35K from 2008 and 2009 since returns were filed jointly. The tax debt was also incurred by me. Since I was claiming more deductions to bring more money home to pay the credit counseling program because my payment were close to $2K. I am aware that the tax debt can’t be discharged in a chapter 7 since it is recent. I was able to work with the IRS and they put us in currently not collectible status in September, they also filed a lien in December. I would like to get the BK filed and done, hopefully get a job and enter into an installment agreement with the IRS.

    Fortunately during this difficult time both my husband’s and my family have been helping us financially with rent and bills, also sending us care packages of food. All this has been in the form of cash or checks sent directly to our property management company for the rent. We are short approximately $1600 to $1900 a month. My husband makes $43K a year so we are way below the median for DC – it is $78, 878 for a family of two. This town is so ridiculously expensive. We are thinking about moving when our lease ends in June. But that cost money and my husband has a job.

    I am not worried about the means test. But I am worried about Schedules I & J. Our income is way less than our expenses. We are bare bone even with family assistance. No cash or checks from family have been deposited into any bank accounts since I was not sure how to handle that since the bank statements will be examined. .

    Questions:
    1) How do I explain this to the lawyers I am consulting with? I have not retained one yet. Also what about the Trustee? The money from family is not a loan and will not be paid back, but will not continue for ever.
    2) Should I deposit the money into the bank account, pay the bills so what is coming in matches what is going out on the bank statement? Or should I allow them to pay the bills directly?

    Your help is most appreciated. Thanks.
    i think its better if that money never touches your hands or never gets deposited into your checking account
    Filed chapter 7 on 9/17 341 on 10/20
    Chapter 7 Trustee's Report of No Distribution on 10/21
    Discharged and Case Closed on 12/21/2010

    Comment


      #3
      Welcome, Tookie, you've come to a great place! Start getting all your paperwork organized on what you owe, writing the numbers down on a piece of paper is helpful when consulting with an attorney for the first time. Be honest, and tell him/her everything and that you're receiving help. With my other half unemployed, we're still in the red every month, too. Thank goodness for the helping hand! I don't know how the trustee will handle the good will towards you, but when you see the attorney, he should be able to explain that to you. Good luck! Keep us posted!
      Chapter 7 filed 10/8/10...341 Meeting 12/6/10....Discharged 2/16/2011....Case Closed! 3/1/2011

      Comment


        #4
        Thanks - I had all the paperwork organized early last year and because I didn't file I need to reorganize as there is more paperwork. Just can't stand the stress and no sleep. My husband is not supportive and tells me "just ignore it" easy for him to say. I feel like the few lawyers I have spoken to all have a different answers...so frustrating.

        Comment


          #5
          Hi Tookie - Glad you're shopping around. I found that finding the one I "clicked with" was most helpful, as this is a very personal thing to go through, and you want to find an intuitive lawyer who gets you. It's grueling getting the paperwork together. When you're ready to file, go back 6 months on everything, current and unpaid, collection letters, judgements, wages etc. You won't need that at your consult, but have the numbers in your head or on a piece of paper to have the discussion at your consult.
          Chapter 7 filed 10/8/10...341 Meeting 12/6/10....Discharged 2/16/2011....Case Closed! 3/1/2011

          Comment


            #6
            Am concerned what to do with the money that family is providing. I have no problem telling the lawyer about it...but don't want to have any problems with the trustee. I have stressed about this filing for too long and will like to get it in motion in the next month or two.

            Comment


              #7
              What have the other attorneys told you about it? I don't believe a trustee will get into it, from my own personal experience. I have a other half, while not married, he paid a good portion of my bills for a while. I provided the info to my attorney, but the trustee made no mention of it. I filed as an individual.
              Chapter 7 filed 10/8/10...341 Meeting 12/6/10....Discharged 2/16/2011....Case Closed! 3/1/2011

              Comment


                #8
                I'm in the process of "interviewing" lawyers so have not gotten too far yet. I had a terrible experience recently with a lawyer I gave a down payment to last year, actually 2 to cover the retainer and he turned out to be awful. When I met with him about 2 months ago - he told me I would have to file a chapter 13 and he did not even run the numbers - went off the top of his head. Turns out he is a bankruptcy mill and I want to stay away from that type. I see you are located in Maryland - perhaps you have some attorney recommendations? Feel free to personal message me.

                Comment


                  #9
                  Unbelievable. After a lot of research, I have discovered that a lot of attorneys do BK as a "side job". You want to stay away from that type. Did the jerk give you your money back, or did he/she eat it up with billable hour review?
                  Chapter 7 filed 10/8/10...341 Meeting 12/6/10....Discharged 2/16/2011....Case Closed! 3/1/2011

                  Comment


                    #10
                    Just want to see if I could get a few more opinions from folks regarding the financial assistance that my husband and I are receiving from family.

                    1) Should we let them pay the bills, i.e., send a rent check or make an online bill payment?

                    2) Or could the money be deposited into my husband's account so he can pay the bills?

                    Thanks.

                    Comment


                      #11
                      Originally posted by tookie708 View Post
                      Just want to see if I could get a few more opinions from folks regarding the financial assistance that my husband and I are receiving from family.

                      1) Should we let them pay the bills, i.e., send a rent check or make an online bill payment?

                      2) Or could the money be deposited into my husband's account so he can pay the bills?

                      Thanks.
                      I don't think it really matters. Any support from family members could be considered household income on the means test. Now, since your expenses are so high than it shouldn't make a difference....you simply don't have the money to fund a chapter 13.

                      Shop around for a good attorney, you were smart to run from the BK Mill.

                      Comment


                        #12
                        Those funds are either a gift (income) or an unsecured loan(debt). Based on your situation as described, you could go either way and not have it affect your filing. Is there any implied or direct agreement that one day these monies will be repaid?
                        Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                        Comment


                          #13
                          Originally posted by SunshineGal View Post
                          I don't think it really matters. Any support from family members could be considered household income on the means test. Now, since your expenses are so high than it shouldn't make a difference....you simply don't have the money to fund a chapter 13.

                          Shop around for a good attorney, you were smart to run from the BK Mill.
                          People with simple petitions that are easily processed through the system are often better off using a mill if the cost is cheaper.
                          Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                          Comment


                            #14
                            Originally posted by OhioFiler View Post
                            Those funds are either a gift (income) or an unsecured loan(debt). Based on your situation as described, you could go either way and not have it affect your filing. Is there any implied or direct agreement that one day these monies will be repaid?
                            Thanks OhioFiler. This is a gift that will not have to be paid back. Down the road when I'm in a better place I will take care of my folks in some way. So as a gift is it OK to deposit it in the bank or should family actually pay the bills and the money never touch my hands? We would rather deposit it and then pay the bills. The money is for the bills. Even if it is counted as income that is fine as we are still way below the median.

                            Comment


                              #15
                              Deposit it in the bank. Don't try hiding stuff from the court by having others pay your bills directly.
                              Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                              Comment

                              bottom Ad Widget

                              Collapse
                              Working...
                              X