Can I still file for Chp 7?

[blwjrma]

I am $29000 in debt and after I pay all my cc and loan bills I dont have much money left every month. I make all the minimum payments each month and have only been late with one in the past 6 months. Would I still be a good candidate for filing bk? With such a large debt like I have and not able to pay more towards it each month I feel I will never get this paid off.

Thanks!

[HRx]

I am $29000 in debt and after I pay all my cc and loan bills I dont have much money left every month. I make all the minimum payments each month and have only been late with one in the past 6 months. Would I still be a good candidate for filing bk? With such a large debt like I have and not able to pay more towards it each month I feel I will never get this paid off.

Thanks!

What's your Debt to Income ratio? If you're DTI is ideal for Chp7 you can stop paying on your debts immediatley to plan on filing for Chp7. However, you will need to stop using your credit cards at this time too.

Good Luck!

[blwjrma]

filing chp 7??

The problem is with my dti ratio. I work as a valet and alot of the money I earn is cash which I dont report on my taxes, its all under the table. I make a base pay of $6.00 an hour which is reported on my taxes but as I mentioned most of my other income is cash which isnt. Im not sure what direction to go in but feel I need to file bk. Any advice??

[HRx]

The problem is with my dti ratio. I work as a valet and alot of the money I earn is cash which I dont report on my taxes, its all under the table. I make a base pay of $6.00 an hour which is reported on my taxes but as I mentioned most of my other income is cash which isnt. Im not sure what direction to go in but feel I need to file bk. Any advice??

Have you been doing this work for the last two to three years? Just locate your W2's anyhow.............

You should be fine, but be prepared to possibly answer questions regarding unreported tips.

-Todd

[blwjrma]

filing chp 7??

I have been doing valet almost 8yrs now and I also have a small handyman business I started last year for extra cash to help pay my bills. The money I earn from that is under the table as well. I feel with so much of my money not reported I may be a bad candidate to file for bk, but on the other hand even working 2 jobs and paying my bills Im barely making ends and feel bk is my only option!!

[HHM]

Well, if you go the BK route, you should have an attorney because you have several issues.

Odds are, you woefully under-reported your income, which could raise IRS issues for you. Also, if you are working as a handyman, under-the-table, my guess is you are not licensed which could create problems for you with your state's contractors board (assuming your state requires a license, most do incidentally).

Your problem will be that you also have to list your expenses in your BK, and my guess is, they are substantially higher than someone who would be living on what you "reported" as your income. So you will likely be questioned accordingly.

Do your W-2's report any tip income at all? If they do, you should be alright, but if not...????????

For future reference, when you work at a job that has tip income, you should report some reasonable level of tip income in addition to your base wage.

[blwjrma]

My state doesn't require a license(Massachusetts) and no unfortunately I dont report and tip income on my W-2.

[blwjrma]

So does this mean I wont be eligible to file for bk with my unreported income issues??

[HRx]

Blwjrma,

If you're planning on hiring an attorney to file your Chp7 petition for you, just be prepared to possible answer questions and defend, your unreported tips (wages). Some attorney will still submit a Chp7 petition with your circumstances, and others won't. Just disclose this discepancy during your initial consultation.

-Good Luck!

[HHM]

Whether you are eligible depends on your income vs. expenses. So long as your expenses exceed your income, you should be all right,

[blwjrma]

Thanks guys!