Help Me Please!
I recently filed because of the panic that my credit card payments would double. I am currently living with my parents who have had major medical issues and I contribute 500.00 to them for rent. I also pay for the groceries which cost around 400.00. I currently bring home around 2400.00 and 1400.00 goes to credit card companies due the high interest rates and payments. My question is if I lived on my own and had my own car then I would not have any excess income. Right now due to the fact that I pay my bills on time each and every month with little money left over would the trustee take into consideration the expenses that would occur if I didn't live with my parents. My lawyer plans to file for a Chapter 7 but then I would have excess income by living with my parents. I'm in a panic mode right now and would appreciate any help. Also, I have 45,000.00 in credit card debt from helping them out over the years and having medical problems of my own.
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Scared -the key to filing a Chapter 7 is about how much disposable income you have if you DONT pay your credit cards. Your case may be a little tricky because you pay your parents - which is a good thing - but you never know how the trustee will view it given it is your parents. How the trustee would view it if you lived elsewhere is an interesting question. Obviously you would be paying a lot more than you are now because your rent doesnt include utilities, phone, etc. Trust your attorney. Typically they will tell you if a Chapter 7 is possible and if you can expect any objections from the trustees. Whatever you do - do it now. -
He filed Chapter 7 last week. He didn't even comment that a 13 would be possible until I was leaving. He said that would be the worst case scenario. Should I be as concerned about this as I think I should. I'm physically sick right now and don't know what to do. You're right, if I lived anywhere else, I would be paying a lot more. If I get converted to Chapter 13 will it go under the new law? Thanks!Comment
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He was covering his *ss. Now, he can say he advised you that a 13 might be appropriate.
If you get converted to a 13, I understand it will be based on laws at the time you're filing. So probably just 36 months. Unless you have another $500+ in expenses that you didn't list, its VERY likely the trustee will either recommend dismissal or conversion to a 13. I think you should be concerned, but it is fixable. Obviously, you've come across enough info on your own to encourage you to ask more questions. If you were comfortable w/ his advice - you wouldn't be worried now. Trust your instinct. My personal motto in life is to not trust anyone just by their word alone when I have the ability to check it out for myself.Originally posted by scared
No one gets a chapter 7 discharge based solely on the amount of their debt. If that were the case, everyone would run up their cards, make payments for a few more months, and then file a year or so down the road. (These are my opinions, I'll admit, but any expert on BK-I am not one-will say that if you have more than ~$100 available after expenses then you probably won't get a chapter 7 discharge. You'll probably have a hard time changing your expenses if you wait to the 341 meeting. At that point, the trustee might think you're trying to pull a fast one.) Does your attorney work alone, or in a practice with others? If w/ others, perhaps you could ask to work w/ someone else in the group. You'll likely need to keep working w/ them for a 13-I hear its hard to change BK attorneys mid stream. You can research further but I've always seen it advised that you not do a 13 without an attorney.Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.Comment
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