Lawyer told me I was perfect candidate for Chapter 7 now he's singing another tune!

[helpmepuhlease!]

I just recently visited an attorney here in Massachusetts about filing for bankruptcy due to the fact I was being brought to court so that the credit card companys could garnish my wages. (I owe $66,000 in credit card debt.) When I met with the attorney he told me I was a perfect candidate for Chapter 7 as I have no property, I am single and I only make $39,000 (which is not alot in Boston) a year. I gave him all the neccessary items for hm to decide this by the way my w2's, paystubs, told him about my expenses, etc... So I paid the fees ($1535) to begin the process.

Today I receive a call from him saying that I might not qualify for Chapter 7 because after all my living expenses I have around $800 left at the end of the month. I should also say I am 32 and still live at home with my parents because the rent is astronomical in Massachusetts. It's 1000 a month just for something halfway liveable. So you might be thinking if I had $800 left over every month why couldn't I pay my bills?? Well I had other CC's that I was paying with that, that my attorney told me a month ago to default on.

I don't want to have to file for chapter 13. It doesn't seem fair that I will have bankruptcy on my credit report for 10 years even though I would be paying it off. Not only that I don't want to live with my parents til I'm 37! I have been looking for an apartment prior to all of this. So what my question is if I find an apartment and move in soon can I put the rent down without doing something that I would get in trouble for if I was audited? That way I could qualify for Chapter 7? Please help!

[Spartan]

Easy. Just start paying rent to your parents! pffff, the $800 is expensed..

It is perfectly legal.

Otherwise, say hello to Ch 13.

[BKOnce]

Agree!... Fill out a rental contract form between parent (landlord) and you for $800 per month for board + foods in last year before file. Now, 800$ maybe too much for a room?

[SinkingFast]

I posted a response about this Q in your other thread.

Saying you pay your parents rent can bring up a couple of issues that might cause problems.

Payments to Insiders.

Are your parents prepared to submit copies of their filed taxes showing your rent paid as income.

Cleanest, easiest thing to do is take on a short term lease somewhere. Wait a couple of months to establish utilities expenses. Then file.

[helpmepuhlease!]

I agree sinkingfast..I don't want to get my parent's involved with my bad budgeting.... I was looking for an apartment before all of this began so if it will qualify me for chapter 7 it's seems like the best thing for me to do. Just out of curiosity why a short term lease?

[FilingOnMyOwn]

Short term lease, because you only need to show the expense at least until your 341 is over, but preferably until discharged. So 3-6 months is all the rent you want to consider signing over unless you really want to have that expense otherwise.

[SinkingFast]

Just out of curiosity why a short term lease?

When Hubby moved here, he came on ahead of the family. We rented a small apt for him on a 4 month lease agreement. He wound up staying there 6 months with the last 2 month on month to month basis.

Where most leases are 6 months to a year long, a short term lease is less than 6 months. You can go 3 months or you can start out month to month from the beginning. That way you're in no long term commitment with the Landlord.

Just get you a rental figure and establish your utilities so you'll have those numbers available for your attny.