Filing Chp. 7 again, " Order to Show Cause" Please help.

[davscor28]

So embarrased feel like a loser filing a second time

Background: Filed BK on 5/5/2004 Discharged 8/2004.


Re-filed Chp7: July 2011 Pro-se I cannot afford an attorney. I re-filed due to Job Loss in 2008 and medical disability in 2010. Fiance lost his job in 2009 and his unemployment benefits has been exhausted as of July 2011, EDD California encourged him to apply for welfare. I am the only one currently working and trying to support my family of 5. Our expenses as a family is far more than my net income, So a chapter 13 would not be feasible for me (I'm -2k a month, car payments are behind, utilities are behind just pay enough so things don't get shut-off.) I don't have any disposable income. I currently have a judgement out and they have already taken money out of my bank account (thank god it was only $5.00). It is one of the reasons why I filed right away because If they continue to take my family's only income we would be on the streets. I needed protection. My problem is I'm in the 8 year window about 9 months to be exact new laws states no discharge until 8 year mark has passed. I am currently doing the BK filing fee payment plan if I don't keep up on it my Case would be dismissed. I already have a 341 meeting coming up as well. I just received from the BK courts a "Order to show cause why denying a discharge should not be entered" it is a hearing coming up in September. It is a reference to the 8 year mark. I cannot afford an attorney and even if I did I cannot use their services because I'm on the payment plan. I research the web in regards to this "Order to Show Cause" hearing but there's no information on it. I did "asked an attorney" websites and all they tell me is "My Case WILL be dismissed" and "Hardships are no exceptions" due to the 8 year rule. It seems kinda cruel to me especially in this economy we are in if the BK judge dimisses my case. Anybody know anything about this hearing? Anybody received a discharge before the 8 year mark on a repeat Chapter 7 BK? Thanks, any info will be appreciated.

[newbie2]

Unfortunately the attorney information is correct. You cannot receive another Chapter 7 discharge without hitting that 8 year mark. The "show cause" hearing is merely a formality. It gives you the opportunity to let the judge know if the records are incorrect and you are in fact eligible for a discharge, or not. In your case it's "not". I wish I had better news for you.

[newbie2]

I wanted to add that since your income is so low you may be free of risk of wage garnishment. Do a bit of searching on Google for the exemptions in your state for wage garnishment. This could buy you some time until you can file again. Good luck to you and your family.

[ValleYum]

newbie2 had a great idea - since your income is the sole earnings for a family of 5 - you may be almost garnishment-proof.

I found this:

In California you may be able to stop the Wage Garnishment through filing an exemption. You may be able to have the wage garnishment stop or reduce the amount being garnished if you can show that the money is needed to support you or your family. If you can show that the the money is needed to provide for the basic necessities of life then you may be able to stop the garnishment. There are several steps you need to take in order to stop the garnishment through filing a claim of exemptions in California. First you need to: File a Claim of Exemptions Form. Then you need to: Fill out a Financial Statement. You must include a financial statement with your Claim of Exemptions. The financial statement details your income and your expenses.

http://www.socaladvocates.com/stop-wage-garnishment-in-California.html

Links to the 2 forms you need are at the website address above. Maybe that will help you?

Hopefully one of the CA gurus will chime in with some of their knowledge for you!!

I wish you good luck and hope the next 9 months pass by as painlessly as possible for you and your family.

[despritfreya]

If you wish to obtain a discharge you need to convert to a Chapter 13. You can park yourself in a 13 at $50 to $75/month (assuming you can produce a budget on paper that says you can afford such a minor payment) for 36 months and obtain a discharge in 3 years. OR, and probably he better approach, let your case get dismissed and refile after May 5, 2012.

Des.

[justbroke]

I'm with Des on this. First, you case absolutely will be dismissed unless you convert. It's just that simple.

[averagejoe]

Don't feel bad. I've file chapter 7 twice. Once in 1996 and again in 2011. Both discharged! Not feeling bad about it at all. Will do it again for a third in 8 years if I had to.

[davscor28]

thank you everybody for the responses. What happens after dismissal? Do I get a refund of the fee I paid the court? What happens to the creditors that were notified by the BK courts? Is it for sure I can file another Chapter 7 on 05/2012, the courts will not give me a hard time this time around cause by then I WILL be 8 years out? thank you.

[despritfreya]

After dismissal. . .

1. No refund.

2. Creditors are notified of dismissl and may resume collections.

3. Code says you can obtain a 7 discharge in a case that is filed 8 years after the filing date of a prior Chapter 7 in which a discharge was granted - that's the law. Wait 8 years and 1 day from your prior filing date and you will be fine (assuming you "qualify" under means testing).

Des.