Unemployed and want to file Chapter 7 on my own

[Gohurdler1]

What is the name of your state? CALIFORNIA

I have been unemployed since mid May and I have had a collection agency threaten to take me to court for a medical bill. I explained to them that I was unemployed and wouldn’t know when I would get a new job. The person I spoke with was very condescending and at one point said that his caller ID said I was calling from some telephone call center implying that I was employed. I called the phone company and they told me that wouldn’t occur on the caller ID, so the collection agency rep was lying. I’ve also had calls from some company in Texas that never leaves a message telling me why they are calling. I haven’t checked my credit report in several years. I have thousands in credit card debt that I can recall. My student loans were in default and the student aid commission sent me a letter stating that they were going to garnish my wages. I called them up and told them I was unemployed and that I couldn’t afford to pay and that I had some pretty crappy paying jobs since I graduated from college. They told me that I could consolidate my loans and that would defer my payments for a year.

I want to file for Chapter 7 bankruptcy on my own because I can’t afford to hire a lawyer and if I get employed within the next month I doubt that I will be able to come up with the $2000 a lawyer might ask for upfront especially in time to beat the change in the law regarding bankruptcy. Would I need a book such as Nolo’s “How to File for Chapter 7 Bankruptcy” ?

I’m not completely sure who I owe now. The last time I checked my credit report it appeared that some of the debts were either sold to other companies or they were sent to collection agencies.

I assume my credit report would tell me who I owe now? I just don’t want to call any companies right now and have them think I am filing for bankruptcy if I ask for information and offer not to pay and then have them try to file a case against me.

I don’t own any assets such as a car or home. The only things I owe of real value are a camera (that I use for work), a TV and two computers one that is 5 years old and another that is 2 and a half years old. I used these computers for work and when I was in school. And if I get into graduate school within the next year or two I will need them again. Together they are probably worth $2,000 (rough estimate).

I don’t plan to nor can I afford to purchase a home within the next 10 years so I don’t have a problem with the bankruptcy being on my credit report. I want to attend graduate school because my BA doesn’t appear to be worth the paper it’s written on. Would a bankruptcy hurt my chances at getting new student loans? I was told that consolidating my student loans would allow me to get financial aid again.


I did manage to pay one credit card off several years ago because the collection agency offered to reduce the amount if I could pay it off right then and there over the phone. I had the money so I did. But there is no way that I could do that with any other company now.

I did look into a consumer credit counseling agency several years ago but they only thing they could offer was to lower the interest rates but I would still have to pay everything back. I later found out that these counseling agencies get a percentage of what people pay back, so it was in there best interest to make clients pay everything they owe.

Any advice????

Thanks

 

[dbake]

online BK services

Hi!

I was in the same boat. Couldn't afford any of the bills, so how on earth was I supposed to afford an attorney? Well, there are companies who do all the paperwork online. In Colorado, I went with this link...

http://212.179.36.21/easybkdocs/index.asp

They had a special if you paid for services by June 30th. It cost $175 for Chapter 7. There should be something similar for California.

Another suggestion is "We The People," they do BKs, divorces, etc, for a fraction of the cost of what a lawyer would charge, and they have offices to go to so it is not online.

In case you are wondering, my paperwork prepared by Easy BK Services was perfect. The only question the trustee had for me was about my 2004 tax refund. He wanted to know why the check I received was for less than my refund amount. It was because I had to refile 2003 taxes because my employers accounting dept screwed up, and what I owed was taken out of the 2004 refund.

I really hope this helps! Don't worry, the decision is the hard part. If you belong to a church, talk to your minister, he can offer good advice to help you decide, also.

 

[Gohurdler1]

EasyBKServices and other Qs

Hello dbake and others:

I will look into EasyBKServices but the only problem I have with that company right now is that it doesn't have a contact phone number only an e-mail form on its website. Does anyone else out there know anything about this company? I just feel a bit uncomfortable sending my SS# and other information to a website that is probably out of state. I will also look into We The People and see how much the charge for bankruptcy help. Does anyone know if it would be best to go into a place like We The People instead of an online company?

What if I can't recall everyone I owe, such as a medical bill from an accident that happened 8 years ago ( I don’t think I’ve heard from them in years, long story lawyer dropped case and I got screwed be getting treatment at a facility the lawyer recommended)? Am I screwed if I don't include them in the filing? I read that if you don't include a company they still can go after you if you forgot to include them? I just don't want to stir things up with companies before I file. I am sure many of them know that people are trying to beat the deadline in October.

What types of documents will I have to submit for the bankruptcy? Are they going to want income tax forms for the last 5 years?

Thanks,

 

[rimi2001]

Gohurdler1,

If you feel you will be burdened with this debt for years to come and you are behind on everything now, creditors are non stop calling, I would definately file a bk. Whether it be chap 7 or 13.

1st step) Right down your income minus ALL expenses for the month that you owe and are paying for now. Not the ones you stopped paying on. If there is anything remaining, that would be your disposable income.

2nd step) 3 Free Credit Reports are allowed once a year by law now from the 3 seperate credit bureaus. One from equifax, experain and trans union. I think this is an awesome service! We pulled ours last week. Make sure you pull all three reports. Each have different info. for some reason. This will help you find out everything you owe. This is where you would need to start.

https://www.annualcreditreport.com/cra/index.jsp

 

[Gohurdler1]

Hello rimi2001:

Well right now I am unemployed and have like zero in my account. I haven’t paid the credit card debt in years and the only outstanding bills that I was able to keep up on were phone, internet rent, gas, food, Satellite. Since I have been unemployed I have moved back with family. I need to find a job ASAP so I can file for bankruptcy and can afford to pay the fees associated with it.

But what do you and others think about that online service EasyBKServices and We The People?

Thanks,

 

[rimi2001]

I have just heard of those sites today and I will look into that myself. We cannot afford a lawyer either. We want to file pro se, but we have a mortgage to worry about and I am afraid of really screwing things up for us. But so far, I have recieved great advice from this forum and have learned a little more each day.

You may be able to handle it yourself if you do not have a mortgage to deal with. Here in La. it costs 209.00 to file a chap7 and even less for a chap 13. There is a book that is out there that can help you with the bk. I forgot the name of it.

Just type in the search bar bankruptcy book. It may come up. I will let you know what the name of it is when I find it.

 

[sunar27]

I have just heard of those sites today and I will look into that myself. We cannot afford a lawyer either. We want to file pro se, but we have a mortgage to worry about and I am afraid of really screwing things up for us. But so far, I have recieved great advice from this forum and have learned a little more each day.

You may be able to handle it yourself if you do not have a mortgage to deal with. Here in La. it costs 209.00 to file a chap7 and even less for a chap 13. There is a book that is out there that can help you with the bk. I forgot the name of it.

Just type in the search bar bankruptcy book. It may come up. I will let you know what the name of it is when I find it.

It's the nolo press book, File for Chap 7

http://www.nolo.com/product.cfm/ObjectID/F87C0B36-D2FB-4FE2-801B76AD0792C01A/catid/462A9501-9B21-4E09-A08C5A7B8AF51A79/213/161/

I'm going to file pro se as well. I dont' have a home but I am married but as long as i post her income and expenses i should be ok. I talked to a few lawyers but i wasn't impressed by them at all. I can do a better job representing myself.

 

[Gohurdler1]

Hello All,

But If I am single (and currently umeployed but will have to be employed so I can pay for bankruptcy) and own no real assets such as a home or car other than computers and a camera will I be approved for bankruptcy or will they deny me because of that and say you should be able to pay all of your credit card debt and student loans off without filling for bankruptcy (I know you cant have your student loans included in the bankruptcy). Will they force me to sell my computers and camera off even though I will need them for future schooling and potential work?

With the upcoming changes will I be worst off in trying to get a bankruptcy approved or are the new changes meant more to screw over people who are making $60,000 per year as individuals?

Also how many more success stories are there out there of people who have used those online services or of those paralegal types of companies?

ALSO how many other semi recent college graduates out there in the same boat?

Thanks!

 

[Ladynred]

But If I am single (and currently umeployed but will have to be employed so I can pay for bankruptcy) and own no real assets such as a home or car other than computers and a camera will I be approved for bankruptcy or will they deny me because of that and say you should be able to pay all of your credit card debt and student loans off without filling for bankruptcy (I know you cant have your student loans included in the bankruptcy).

What ARE you talking about ??? If you are unemployed with no income and a mountain of debt, there is very little chance you would be denied a bankruptcy ! I don't know where you got the idea that you had to have an income and assets to file BK, that's just not true, not for CH 7. For Ch 13 you must have a steady income, but you don't need a Ch 13.

Will they force me to sell my computers and camera off even though I will need them for future schooling and potential work?

It is highly doubtful you'd lose a single thing in bankruptcy. TX has HUGE exemptions for personal property so all your stuff would be protected.

http://www.bankruptcyaction.com/txexemptions.htm

The NOLO press book is the best out there, if you insist on filing on your own, that's the one to get.

Stay AWAY from online BK 'services'.. all they can do is fill out your forms, they cannot help you or give you any advice and they sure as heck can't be there with you at your 341 meeting. To top if off, several BK districts have ruled that these places are promoting bankruptcy fraud. One of the bigger ones around here "We The People" was slammed by the courts for the 'illegal practice of law", they are ONLY allowed to prepare documents.

When you sit in front of the Trustee at your 341 meeting, you need to know exactly what's in your schedules, and WHY its there. The Trustee may ask you questions about what's on your schedules and you cannot sit there and hemm and haww with your answers.

With the upcoming changes will I be worst off in trying to get a bankruptcy approved or are the new changes meant more to screw over people who are making $60,000 per year as individuals?

The new law is meant to screw practically everyone in one way or another. Unless you're dirt poor, the new law is going to be extremely painful for most people with an income, even if you are below the state median level. Its going to COST more to file, it REQUIRES credit counseling before you can file at all, and it REQUIRES that you take a money management course before you'll get your discharge.. and the cost will ALL come out of YOUR pocket. All that's on top of the increased fees lawyers will be charging. The there's the ridiculous IRS collection standards for allowed expenses. No more will your ACTUAL expenses be considered. If your expenses are above what the IRS says you can spend, the excess expense will be disallowed and added back into your disposable income. You can appeal that, but it will be costly to do it, it means more court proceedings. The IRS collection standards were never meant for this purpose, they were meant to be punative for tax evaders. If you own your own home, you have a small advantage, if you rent, look out, chances are you could be FORCED to move to some place where the rent is within the IRS's allowances.

Its going to be BAD in so many ways its not funny. I just hope there are plenty of people out there ready to study the wreckage this new law is going to leave.

 

[Gohurdler1]

Include money owed from companies you haven't heard from in years?

If in the past you’ve owed money for a medical bill (or anything else for that matter) and you haven’t heard from them in years should you attempt to contact them or if you have an old bill from them should you include that in your bankruptcy?

Should I just ignore them since I haven’t heard from them in years (not sure if they are on my credit report)? Or should I cover my butt and get a copy of the bill from them if I can’t find one just to make sure they don’t come knocking on my door after the bankruptcy?

I just don't want to stir things with companies that know people are going to make a mad dash to file for bankruptcy before the new law takes affect in October.
Thanks

 

[Ladynred]

You don't have to call them at all. Just list them on your schedules and be done with it. The SOL could protect you in the event of a lawsuit, but including any old debts would completely PREVENT any lawsuit.

 

[Gohurdler1]

If I can't recall how much I owe

Wouldn’t I have to call the companies if I can't recall how much I owe (or if they are not on my credit report)? Or if the companies names changed? I might have an old bill around the house somewhere if I am lucky but I can’t say for sure. some of these bills were from 5 years ago plus

Thanks,

 

[Ladynred]

Wouldn’t I have to call the companies if I can't recall how much I owe (or if they are not on my credit report)?

No, because the number you put in for what you owe does not have to be exact. In fact, it will never be exact even with accounts you'd have NOW because of the way interest and fees are calculated daily.

If you're going to call these companies, do it from a pay phone, but it likely won't do you much good on a 5 year old debt. They will have sold it off to collection agencies or junk debt buyers long ago and they'd probably be in about the 4th tier of collections.. if not more. IF they can even pull up your account to tell you who they sold it to, that same CA is unlikely to still have it.

 

[Gohurdler1]

HELP started new job can't visit Court House to look at packet example

Hello,

I recently became employed so now I can’t go to the court house to see an example of how and what documents/forms are suppose to be submitted for the California Central Court in Santa Ana. I tried looking on line but I couldn’t find any local forms the court in Santa Ana needs. Does anyone know what forms they (SANTA ANA) require by chance including the format of the matrix?

I did call a local We The People office and they wanted close to $200. They told me that I fill out something for them with the required information and they in turn put it on the required forms. It just sounded like I would be doing the work for them just to have them retype it on court forms.

Thanks,

 

[Ladynred]

There are no 'Santa Anna' forms, BK forms are FEDERAL and they are ALL alike.
All of the BK districts have websites from which you can d/l all the forms plus read the local rules.

ALL the forms are here:
http://www.uscourts.gov/bkforms/index.html

CA courts are listed here:
http://www.uscourts.gov/courtlinks/details.cfm?type=1&st=CA