Stressing out and need some support

[queenbeen]

I've been reading this forum a lot over the past few weeks, and I thought it would be a great place to get some advice/support as I begin this whole BK process. Up until now, I thought I was okay, but today I had a bit of a meltdown and just needed somewhere to vent besides my husband.

I'm looking to file Ch. 7 by myself since all of the debts are in my name, but I need to wait until September to let some credit card charges age off and to count only my unemployment pay. I was sure we would qualify for Ch. 7 because I've been unemployed since December and my husband's business hasn't turned a real profit in the past year. But he is now starting to get some projects and I'm just afraid that the BK could in some way have an effect on him. Or that he'll receive a payment at some point that could put us over the median. The lawyer I think I'm going to use said that we should revisit his income in August and see where we stand. I don't know how they look at income from a business because even when he receives a payment from a client, he still has to pay his employees, buy equipment and other things, so we don't receive much of the money at all for ourselves.

I don't know if the trustee will just look at his business account and see money and assume that it's ours, when in fact, he still needs to use the funds to complete the project. Anyway, between that and finding out that the credit union where we have our cars and one credit card could repo the car we want to keep, I'm just so worried. This will be the first month we're behind on anything and I'm not looking forward to the calls, or worrying about our car being taken.

We want to surrender one car and keep our SUV, but I've heard that they won't let us do that. Others have said they may work with us. It's so up in the air and I'm already tired of thinking about this. Waiting until Sept. is going to drive me crazy, and I just wish I could get it over with now.

Sorry for all the rambling and this extremely long post, but I am getting sick with worry and tired of researching everything so much. I think I could be a lawyer now Thanks for any words of encouragement.

[justasking]

OK so first off, just take a deep breath.

Here's a primer on business income:

Gross Revenues = all money that comes in
Expenses = all the things needed to run biz
Net Income = $$ left over to pay owner
(if any -- tends to be running total for the year)

Most businesse don't pay their owners if there is not enough net income. And though IANAL and I have not done personal bankruptcy, the monies you report to your lawyer in my humble opinion, should be NET income, not gross revenues.

Review that with your lawyer ... you'll see the bottom line won't be very much if you've got 8 months of expenses but only a few months of revenues.

Hope this helps.

(And remember to breathe!!)

[frogger]

the monies you report to your lawyer in my humble opinion, should be NET income, not gross revenues.

Be careful with your humble opinion, because if you only report net income, you will be perceived as hiding income from the trustee.

You must report ALL income. You will also be able to report ALL expenses. The trustee can and will figure out what is net.

[justasking]

Well, I didn't think my response was hiding income.

The appropriate forms will have the appropriate lines on them. And arrive at the appropriate result.

Gross - expenses = net.

Her lawyer and the judge should already know that ... but she did not, so this explanation was to help her see what the bottomline NET would be ... which would not necessarily be as bad as she thinks.

And without getting too snippy, I did also say IANAL (although I do have my MBA) and to review it with the lawyer.

But hopefully ... she is breathing better now.

[queenbeen]

Thanks so much for your reply, and yes, I am breathing more now! Just had a rough night

[espo1357]

Thanks so much for your reply, and yes, I am breathing more now! Just had a rough night

we have all been there.
I just try not to think about it too much, and just pay the bills and enjoy life.

this forum is absolutely going to get major rewards from God in heaven because it gives people lots of hope, in a world that lacks much faith.

Well done bkforum.com!

[Okieblue]

I've been stressing so much, missed two car payments, we were ahead by 1, and missed a loan payment, thought we were paid ahead, not, oops. Went to a specialist today and he gave me some Ativan cuz the anxiety is eating me up and affecting me physically, where I feel like I can't breathe. Where is that sand so I can stick my head in it? So, you aren't alone Queenbeen.

[espo1357]

I've been stressing so much, missed two car payments, we were ahead by 1, and missed a loan payment, thought we were paid ahead, not, oops. Went to a specialist today and he gave me some Ativan cuz the anxiety is eating me up and affecting me physically, where I feel like I can't breathe. Where is that sand so I can stick my head in it? So, you aren't alone Queenbeen.

Same here. I was experiencing some serious chest pains for a young person, and that is when I knew it was time to end the nonsense of playing dodge ball with my creditors.

It was easily the best decison I ever made, although, like most people, I still find myself complaining about the payback. This is not good, of course. And, I just have to think back to the time before the BK to really appreciate all that BK protection has provided for me and my future and my family.