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    List of expenses or monthly budget

    Hello Everyone,
    Just stumbled across this awesome forum. Glad I did!
    Me and my wife have around $80000 unsecured debts.No assets, started a great new job in october end and current income is 49000: well below the state median level for a family of four. Wife wants to go to school, so not working since 6 months. Honestly tried to pay all debts, (have a record of not missing payments for 76 months!). Negotiated nearly 0 to 5% interest payment plans with banks. Also, this month got enrolled in a private non profit Debt management program (DMP) and had first payments to many cards earlier this week. Have been very sparingly using credit cards since two months (maybe $400 in total, out of 18 cards)Trying to get some cash saved for filing and the attorney, and probably will make it in 3o days. My questions are;
    1. During some of the credit card applications, I did inflate my income two times (please don't pass your judgement!) to get approval or reasonable credit lines. My tax returns will show only 19000 annual income. How common that this issue comes up during creditors meeting?
    2. List of expenses, as someone has posted should not include current credit card payments or unsecured loans. After doing the math, it looks like I might have around 400 left every month, (if I dont consider the credit card and DMP). Is this gonna be a issue for being dismissed to chapter 13?
    3. Last year, nearly every month sent money online around $400 for a senior family member who was abroad and had a big medical issue and passed away. stopped since november. How likely the trustee is gonna check and dig more on this.

    All your comments are appreciated. I am a never-give-up attitude all my life (seen and been through lot!), just to bounce back, trying to be prepared and do this right!
    Thanks in advance

    #2
    Welcome to BKForum.

    Originally posted by jaypee View Post
    1. During some of the credit card applications, I did inflate my income two times (please don't pass your judgement!) to get approval or reasonable credit lines. My tax returns will show only 19000 annual income. How common that this issue comes up during creditors meeting?
    Not likely going to be an issue. Most serious creditors, such as American Express, will make you provide an IRS 4506T to actually confirm what you reported. The creditors have some duty to validate your income (such as some credit unions that will ask for paystubs over a certain credit limit), but many do not. Unless it was egregious and the creditor wants to go down the road of proving fraud, it will just be discharged.

    Originally posted by jaypee View Post
    2. List of expenses, as someone has posted should not include current credit card payments or unsecured loans. After doing the math, it looks like I might have around 400 left every month, (if I dont consider the credit card and DMP). Is this gonna be a issue for being dismissed to chapter 13?
    Yes. If you have more than $250 of "disposable monthly income" (DMI), then you can (likely) fund a Chapter 13.

    Originally posted by jaypee View Post
    3. Last year, nearly every month sent money online around $400 for a senior family member who was abroad and had a big medical issue and passed away. stopped since november. How likely the trustee is gonna check and dig more on this.
    That would not be an issue. You are allowed to take care of sickly parents and family members. What I'm about to write is morbid, but the Chapter 7 Trustee's only recourse would be to recover the money from the person that received money from you. That would be impossible in your specific because the person has passed.

    Originally posted by jaypee View Post
    All your comments are appreciated. I am a never-give-up attitude all my life (seen and been through lot!), just to bounce back, trying to be prepared and do this right!
    If you get a great attorney, you should be able to file a Chapter 7. There are likely expenses that you haven't considered because you can't afford to pay them right now.

    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: [URL="https://www.bkforum.com/blog.php?u=15365"]justbroke's Blog[/URL]

    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      Thanks so much and hats off just broke for your insight and valuable information! Your comments have infused new confidence and energy in me to make a fresh start. I will keep posted here about developments, as I prepare to file next month end.

      Comment

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