My Bankruptcy Concerns...Please Help

[ParanoidAsWell]

First off, I just want to say thanks in advance. I've read a lot of these threads and everybody here seems very kind and helpful in their responses with something as delicate as bankruptcy. With that said, I had a few questions/concerns I wanted to voice and hopefully get some feedback on. I'm hoping you guys can be equally as helpful in answering my questions.

First let me briefly explain my situation. I'm in my mid 20's and am currently working a job which pays me about 29,000 annually. However I have about $45,000 in debts (credit cards, an auto loan for a vehicle which has since been repoed, and a personal loan for corrective surgery for a deviated septum). These massive debts have prevented me from being able to move forward with my life and as such I am stuck at home still living with my parents. They charge me rent, but have been kind enough to keep it lower than what i'd be paying in my own place. Needless to say however, i'm at an age where i really need to be out and on my own.

Anyway, I tried treading water as long as I could, but I got to that point where my payments exceeded my income and now it's time to get out. However I have some things in my past I am concerned will come back to haunt me in my meeting of the creditors. I will preface these next few questions by saying i'm not the sharpest tool in the shed sometimes, and I recognize the stupidity in what was done.

Anyway, my credit card which I've had for about 6 years holds the bulk of my debt, but my concern is that when i filled out for it, i misunderstood (here's where the stupidity comes in) the household income question and responded with the total income of everybody in the house (FAR MORE THAN I MYSELF MAKE)...if i'm currently making $29,000 but when I filled in my credit application (mind you this was 6 years ago) I wrote in around a 6 figure income, is this going to come back to bite me in the butt when I attempt to get these debts discharged?

Also, another HUGE concern is that, I had a custodial savings account that my mother opened for me when I was very very young. Later down the road, she used this account to hold money for herself (around $30,000) and only pulled all that money out about 8 months ago. I never touched that cash, I never claimed it on my taxes, and I wasn't the one who signed off on closing the account. Do you think this will also effect me in my bankruptcy case?

I have another question or two, but I'd rather save those until I hear back about these. After all, depending on these answers I may be unable to file as is. Thanks again guys. Your help and support is much appreciated.

[newday]

When I applied for my credit cards I also misunderstood and put in the combined income of myself and my parents, needless to say I got a large credit extended to me and unfortunately accrued a large debt. I filed and was discharged last year, with no complaints from cc companies. $14k with BOA and $10k with AMEX.

I make $50k now and have a $750 credit limit post bankruptcy. I've learned to benefit from the use of credit and make sure to pay off my balance each month now. I had about $90k credit limit prior to filing and honestly, every time they raised my limit it would make me panic and I often asked them not to extend more, but they kept raising it. I ended up filing with $35k in debt, majority was on cc's.

I think the bank account issue won't be a huge one if you wait a few more months, but be prepared to have your mother explain her ownership of the account if the trustee wants more info.

[SinkingFast]

I don't think the Household Income question will be a problem for you. Partly because what you said was probably true,......... For the household. And partly because it was 6 years ago. That's a lifetime and anything could have happened. Shoot! Hubby had lost a job, unemployed for 7 months, and got a new job out of state. 2 years had passed and we had moved way before our Creditors ever knew we were in trouble.

The bank acct may be a different story. You have to declare all bank accts closed within a year prior to filing BK.

Chances are, and this is just a guess mind you,............. If you were a minor when Mom opened the acct, her SSN was the primary on the acct. If Mom never changed that status, then it was Mom's acct and you may have nothing to worry about.

If, however, you were listed as the Primary on the acct, you're gonna have to list it for sure.

You need to check old bank statements for that acct or maybe even contact the bank. See who's SSN was listed as the primary and look for the SSN the 1099's were reported under.

[ParanoidAsWell]

I don't think the Household Income question will be a problem for you. Partly because what you said was probably true,......... For the household. And partly because it was 6 years ago. That's a lifetime and anything could have happened. Shoot! Hubby had lost a job, unemployed for 7 months, and got a new job out of state. 2 years had passed and we had moved way before our Creditors ever knew we were in trouble.

The bank acct may be a different story. You have to declare all bank accts closed within a year prior to filing BK.

Chances are, and this is just a guess mind you,............. If you were a minor when Mom opened the acct, her SSN was the primary on the acct. If Mom never changed that status, then it was Mom's acct and you may have nothing to worry about.

If, however, you were listed as the Primary on the acct, you're gonna have to list it for sure.

You need to check old bank statements for that acct or maybe even contact the bank. See who's SSN was listed as the primary and look for the SSN the 1099's were reported under.

If her SSN is the primary and the 1099's were filed under her SSN, would i have to declare it in my paperwork? Thanks guys, you're advice is extremely helpful.

[Spartan]

According to my attorney, such debt cannot be discharged. The credit was granted based on false financial info. Had they known the actual info, they wouldn't have granted you the credit.

Now, that is how things ought to be.

The question is, Will they go through the trouble to investigate? Chances are, they wouldn't be bothered to investigate something that occured 6 years ago, and for the amount of debt involved. You are just another one of the bizillion cases they have.

Get a good lawyer and make your case sail beneath the radar.

[ParanoidAsWell]

According to my attorney, such debt cannot be discharged. The credit was granted based on false financial info. Had they known the actual info, they wouldn't have granted you the credit.

Now, that is how things ought to be.

The question is, Will they go through the trouble to investigate? Chances are, they wouldn't be bothered to investigate something that occured 6 years ago, and for the amount of debt involved. You are just another one of the bizillion cases they have.

Get a good lawyer and make your case sail beneath the radar.

So i'm assuming pro se is pretty much out of the question on a case like this?

[Spartan]

Talk to a few lawyers. Free initial consult. They will tell you what they are going to do for you. Verify that with what the NOLO book says, and see if NOLO can do the same for you. Then you will know if you can go pro se. If it is a simple text book case, then you can go pro se.

See what they say about the 2 curve balls in your case. If they say no sweat, no need to mention the bank account, then your case seems pretty straight forward enough to go pro se.

[9877donna]

OP Don't worry about the credit card you got 6 years ago.I doubt they'll even sneeze in that direction.And as other posters have said unless you are named the primary account holder for your custodial savings account that should not be an issue either.Definitely make app'ts with a few BK lawyers and get professional advice.It's the best way to go.
Donna

[brainless twit]

Regarding the CC - I wouldn't worry about it at all. My income was far less at the time of filing than it was when I applied for my CCs. It would be one thing if you listed that income last month and filed this month, but a lot can change in 6 years. For all they know, you were making that kind of income at the time, but now make less. The CC company is not going to ask where your income went - that's not their business. I doubt they even maintain record of things like that - it's just what they need to get the card open and get you charging. Loss of income is often the reason why people file BK; it won't come as a surprise to the creditors.