My chapter 7 case

[schuxxx]

What is the name of your state?
Missouri


I have been lurking for a week with a few questions but here is my case.

I owe $8,000 in credit cards. Not too bad I realize but by the time I make the minimum payments on them, I have little or no cash too by food, clothes and God help me if a car breaks down or a the fridge cuts out.

Will the trustee view that amount as too little and send me packing?

I am upside down on my mobile home and both cars and I figure that I have less than $6000 of assets if valued reasonably. My mobile home sits on someone elses land that I pay rent to so I reckon that the land is safe.

I have a couple of concerns.

1 my wife (whom is filing with me) inherited like 35k two years ago. We used it to travel, pay off debts, move our home. We feel like fools for wasting it but it is gone. Will the trustee hold that against us? I recieved a $4200 tax return this year. It is gone, about half was used to pay off debts. How is that fact gonna play out? Will I be able to keep future refunds?

I found an attorney in St Louis that will fill out our forms for $199. So with that and filing I am looking at $409. The catch is that I will have no one with me at the meeting of creditors. Anyone got opinions on that?
My wife and I make $22,000 a year.

One more thing. I know that it is common for folks to stop paying on unsecured debts once they decide to file. I am going to wait for 60 days from last sunday to file because it was the last time that we used a card. Will the interest and late fees inccurred in that time period be dischargable or is that evidence of fraud.

Any anwers will be appreciated.

 

[Quddus702]

You say your debts are only $8000 and you wanna file chapter 7 on that?

 

[schuxxx]

missouri

Let's just say I have seen the writing on the wall....

 

[freespirit79799]

You say your debts are only $8000 and you wanna file chapter 7 on that?

The way I see it, $8000 is over 36% of his annual salary. Good enough, using a ratio scale, even if laws soon won't agree. If a couple's combined income is 60 grand, a $28,000 debt balance would be 36% of their income. By ratio, each couple has an astronomical debt.

 

[schuxxx]

Just bumping for more feedback

 

[LdiJ]

What is the name of your state?
Missouri


I have been lurking for a week with a few questions but here is my case.

I owe $8,000 in credit cards. Not too bad I realize but by the time I make the minimum payments on them, I have little or no cash too by food, clothes and God help me if a car breaks down or a the fridge cuts out.

Will the trustee view that amount as too little and send me packing?

I am upside down on my mobile home and both cars and I figure that I have less than $6000 of assets if valued reasonably. My mobile home sits on someone elses land that I pay rent to so I reckon that the land is safe.

I have a couple of concerns.

1 my wife (whom is filing with me) inherited like 35k two years ago. We used it to travel, pay off debts, move our home. We feel like fools for wasting it but it is gone. Will the trustee hold that against us? I recieved a $4200 tax return this year. It is gone, about half was used to pay off debts. How is that fact gonna play out? Will I be able to keep future refunds?

I found an attorney in St Louis that will fill out our forms for $199. So with that and filing I am looking at $409. The catch is that I will have no one with me at the meeting of creditors. Anyone got opinions on that?
My wife and I make $22,000 a year.

One more thing. I know that it is common for folks to stop paying on unsecured debts once they decide to file. I am going to wait for 60 days from last sunday to file because it was the last time that we used a card. Will the interest and late fees inccurred in that time period be dischargable or is that evidence of fraud.

Any anwers will be appreciated.

Money that you had in the past isn't relevant if the money is spent. Therefore the inheritance and the tax returns won't matter.

With your income level, its unlikely that the Trustee would either send you packing or require you to file chapter 13.

All the debt will be dischargeable, even the interest and late fees. If you want to keep your home and car then you will need to reaffirm those debts.

However...you might want to investigate Chapter 13 anyway. You stated that you were "upside down" on the home and car. A chapter 13 may help you get in a better position on both of those loans.

 

[Ladynred]

Will the trustee view that amount as too little and send me packing?

No, there are no 'minimum' amounts in bankruptcy.

I recieved a $4200 tax return this year. It is gone,

As long as you can account for where that refund went with receipts and such, then no, it should not be a problem.

Once you include the creditor in your filing the WHOLE debt is discharged, not just some part of it unless for some reason part of it is deemed non-dischargable, unlikely in your case.

If you are in the WESTERN District of MO, reaffirmation or redemption on secured debts is required. If you are in the EASTERN District, the rules may be different. You will have to ask a bankruptcy lawyer if you're in the Eastern District.

 

[schuxxx]

Missouri

Thank you for the feedback. Another question

Will the trustee be able to demand any of my 2005 refund that I will get next year? I am planning on filing CH 7 around July 1st of this year. Almost all my federal refund will be the result of EIC and Child tax credit.

Thanks again everyone

 

[Ladynred]

Probably not and if he/she does, it would be a pro-rated amount.