How much of a risk would I be taking?

[derp]

Hi board! This is my first message on here.

I've been thinking about filing for a chapter 7 for a year now. I used to consider bankruptcy a dirty word, but I've warmed up to the idea. Honestly I can't think of any other way out.

Basically, my take home is about $1,600 a month, and my expenses are just over $1,600 a month. Unless I work more overtime than I'm already working I usually end up using what remaining credit I have to buy groceries or gas. My car is falling apart, I can't afford to meet up with friends, and buying new work shoes sounds like a luxury at the moment. My job does not allow moonlighting.

I owe $19,000 purely in CC debt. My minimum monthly payments are around $650 a month. The last cards I received were from Target and Citibank. Both were applied for in July '08, after I earned my CDL-B and received a few job offers. The job offers never panned out, and it took another 10 months until I found the job I have now.

My hesitation to file lies in my work history, or rather lack thereof.

I've been at my current job for 10 months. That's not my concern. I lost my job in '03, and while looking for another job I took a PT one delivering pizza. I only worked enough so my wages wouldn't cut into my unemployment. I ended up never finding the job I was looking for, moved back home, and worked at the shop sporadically. I also sold collectibles at flea-markets, and on Craigslist and ebay, which is were I made most of the money I used to pay my credit card bills. I haven't filed my taxes since 2005, since the income on my W-2's was always under the required amount to have to.

I did file taxes for 2009 this year, and got $1,300 back in early February, which was gone in 3 weeks from catching up on bills.

I was looking up information about the statement of financial affairs. It asks for the previous 2 years gross earnings, and I'm on the verge of having a panic attack just thinking about what I should put. I don't know if the money I made selling old Transformers and video games should have been claimed on my tax returns from all of these years. Do I claim it as income? Do I have to do my taxes from these years and include whatever I made (even though I never kept records of any of it) after all?

How much of a red flag is it going to raise to the trustee if I put down that I only earned $300 in 2007, and yet had no problem coughing up the money for pay my CC bills? I mean, I was living at home, and still had money saved up from when I did work, in addition to the money I brought in selling my old things.

And another question, this one about my living situation.

In August of '08 my girlfriend bought a house with her parents as co-signers. I've lived with her ever since, and have been paying half of the mortgage. I don't have my name attached to anything, but I don't have a lease or renters agreement either. How am I supposed to verify that the $$$ I'm withdrawing from my checking account every month is going towards rent?

[nerves]

I don't think I can answer all your questions, but I don't think you really have anything to get too disstressed about. From personal experience and what I have seen others post, the last two years of tax returns is all you need, so your 2008 and 2009 is what they will want.

As for the mortgage, as long as it is reasonable, I don't think you have issues with this either. You will probably need to have your girlfriend provide receipts of payment or provide a statement stating the portion of the mortage you paid.

If you haven't done so already, it is recommended that you get a few free consults with a legal advisor to get a feel of where you stand. It is very helpful to write your questions down for your meetings with them so you hit the areas of concern about your specific situation.

Welcome to the forum.

Nerves

[momofthree]

As for the 2007 income, just tell them what you just told us. You were living with your parents, using your savings to pay the few bills you had, and sold assets when necessary. Unless you made a profit off of those assets, they do not count as income (i.e. paid $20, sold for at least $20.01+)

[derp]

That's the thing. I only have my most recent tax return. Since my W-2's for the previous years were so small, I figured I was exempt from filing them, and so I didn't. Should I go back and complete them now, or do I simply state that I was exempt?

I guess my main concern is whether or not the CC companies would see any of this and cry foul, since I claimed I made a certain amount on my applications (the numbers were modest, something like $20,000 a year, which is less than my current gross earnings per year) in anticipation of what I would have been making if I had actually been hired at one of the companies I was talking with at the time. Then again, that was two years ago, and I've been keeping up with my payments ever since.

As for the mortgage payment, I kinda figured that was what I should do. Maybe I should pay her with checks and write "rent" on the memo line, and maybe do that for all the utilities that aren't in my name as well.

And yes, I do need to consult a lawyer tomorrow.

Thanks.

[Flamingo]

As to your tax questions about income from selling items at flea markets, eBay, etc...if you purchased these items and then sold them as a profit and they were not your own items you were selling, it could be stated you had a business since it was not like a one time garage sale - you did it continually and did not file taxes for those years. I would highly, highly suggest you consult with a tax expert since you did not file for 3 years prior to 2009. It could be a big red flag as to where the income was coming from. If you do not iron that out, it could come back to bite you badly at a later time so protect yourself and investigate the situation...

[derp]

Flamingo:

It was all my own stuff. My parents had boxes and boxes of my old toys in the basement, and I figured it would do more good to sell it all than to let it sit around taking up room. I might have made a small profit on a couple of items, but for the most part I was selling old, out of box Transformers figures, old Nintendo games, ect. It was enough to cover the credit card payments at the time.

[Flamingo]

I don't think you will have an issue but I wouuld surely discuss your situation with an attorney to be on the safe side. Note also that filing BK will not resolve employment or cash flow issues. It will remove your debt burden, but the unemployment and no cash flow issues will remain. Go get yourself several free consultations so you know exactly where you stand. Put together a complete listing of your debts, monthly payments, asset listing, sources of any income, any paystubs and your most recent federal and state tax return. Take all that with you. Best of luck...

[blessed]

If getting rid of all the CC debt would allow your monthly income to support yourself easily, I would set up 3 free consults with attorneys in your area and get started. They can advise you on what to do about the 2008 income tax, you shouldn't need the years before that.

Put in your zip code for a list of attorneys: http://www.nacba.com/

GL!