I need help, Please!!!

[scared]

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.

[StaciMM]

I don't think you can use 'what if' expenses.

You can count other expenses, like clothing/laundry/drycleaning, hair cuts & other personal maintenance, vehicle maintenance (gas, insurance, oil changes).

Has your attorney advised you that chapter 7 will not work if you indicate $1400 available?

[scared]

He thought that I would be able to file Chapter 7 because of the amount of unsecured debt. He did say that worse case scenario would be that I would have to convert to Chapter 13. I felt good about it after I left his office but after I've read all the info. from this board I don't feel that I have any chance of filing Chapter 7. My attorney is a bankruptcy attorney and he seemed to have alot of knowledge but now I'm more confused than ever.

[herekitty]

Scared,

Drop up documentation with your parents recording your rental agreement. IE "Tenant is to pay $500 a month in rent by _________, 30 day notice is required, etc." Have it notorized. Pay them that amount via check/money order every month. Keep your reciepts, cut up your credit cards. No longer live on them, cash and cash alone.

Your amounts, if what you said is correct, still applies under the CURRENT LAW (FILE ASAP, no joke). Your expenses leave less than $100 a month disposable, which means you qualify.

I live at home and just had my 341 - now waiting on discharge!

[StaciMM]

The original post indicates rent & groceries of $900 and credit card payments of $1400 on an income of $2400. Credit card payments do not count as an expense, because the chapter 7 is attempting to discharge them.

One thing I just thought of-have you been using your credit cards for day to day items? If so, make a list of what those expenses are as you will be paying cash for them from now on. A chapter 13 is quite likely, it might be hard to come up with $1400-1500 in real expenses. But, if you account for everything you DO spend, you can get into a chapter 13 that is good for you. (You don't want to have to paying $1400 a month if your disposable income is only $500 a month, for example.)

On the bright side, if you're filing before the laws change, you should be able to get into a 36 month plan.

Most likely, your attorney doesn't mind you 'trying for a 7' because he can charge you the 7 fee, then make more money when it gets converted.

Your amounts, if what you said is correct, still applies under the CURRENT LAW (FILE ASAP, no joke). Your expenses leave less than $100 a month disposable, which means you qualify.

[herekitty]

Okay, I understand. But make a list of daily expenses and you'll find out how quickly it adds up.

Sorry Staci.

[scared]

I did make a list of expenses and told the truth which was probably under what I actually spend because I didn't include haircuts and other everyday items. It came up to about 1750.00 leaving me with an excess income of 650.00. He did include my credit card payments as everyday expenses because he said that I was current and that was my living expenses. He has been doing bankruptcy for 20 years and said he had only lost three cases due to failure to reveal that they had previously filed bk. I have physically been sick due to this and if I had known I would've filed for 13. Do you think the trustee will be hard on me for what my lawyer has put down? I don't think I could handle it and do you think that they will convert to the 13 under the new law? Thank so much

[StaciMM]

I think your attorney charged you for a chapter 7, and knows that he can charge you more to convert it to a chapter 13. I think this is one area of the BK reform that is excellent: making attorneys responsible.

I think your attorney gave you horrible advice in counting your credit card payments in your expenses. Every bit of advice I have read (and I've been devouring every bit of BK info I can find for a couple of months now) is that you can't count those because you won't have those expenses after discharge.

You need to revise your expenses to show everything. Analyze all that you spend-whether you were covering by credit card or not before doesn't matter as you'll be on your own after BK. If you don't really have $650 in disposable income each month, you don't want to end up in a chapter 13 w/ a $650/month payment. (And that is very likely if you don't ammend.) Also-keep in mind that you want to consider normal spending, not skimping on basics.

You can file the amendment yourself-if your attorney wants to charge you for it. There shouldn't be a court cost if you're not adding creditors. You can get the form online, print it out, and fill it in. Call & ask the clerk at your BK court what to do to submit it. You may end up in a chapter 13 still (from what you've stated, it doesn't seem your expenses equal your income). But, you'll end up in one that is reasonable based on your budget.

Do you think the trustee will be hard on me for what my lawyer has put down? I don't think I could handle it and do you think that they will convert to the 13 under the new law? Thank so much

[scared]

So, in other words, I'm in trouble now. Do you think the trustee will rake me over the coals. I didn't fill out the paper work my attorney did and then I signed it. I didn't know any better and I thought my attorney did. Now, I'm more worried then ever. I would definitely pay into the Chapter 13 but now I'm afraid they won't even let me do that. Is that a possibility? Thanks.

[StaciMM]

You should be able to amend your info. Maybe you could talk to your attorney about amending your schedules & filing a motion to convert? I don't really know much about the conversion process...

BTW-I didn't realize there was a thread in both folders, I just left a LONG post in the other one.

I'd love to know what HMM or Todd have to say on this! (Hey-Lightning might even have a few choice words for the behaviour of your attorney.)

[scared]

You would think that an attorney would give better advice especially considering that he will be at the 341 meeting with me. HereKitty how did your 341 meeting go with you living at home?

[StaciMM]

Until 10/17, the attorneys aren't held responsible.

Keep in mind anyone can FILE for BK. That doesn't mean that anyone can get a discharge. The attorney can honestly claim that he mentioned chapter 13 to you if he does get any flack. Its not really a relevant point that he didn't go over the pros & cons and requirements for a successful filing. And he collected your full fee for chapter 7, and will get paid again for chapter 13.

You would think that an attorney would give better advice especially considering that he will be at the 341 meeting with me. HereKitty how did your 341 meeting go with you living at home?