Income still dropping, have to get rid of health insurance

[Critty]

Okay heres the skinny of our situation. Filed Chapter 7 on 4/29/08. Had our 341 on 6/6/08. The Good is that everything seems to be going fine other than the trustee took our stimulus and therefore will be converting our no-asset to an asset case.

The Bad is that my husbands income has continued to drop. We used to make 8K a month. Then it went 7k, then 5k, now this month was 2800. After taxes, child support, and health insurance we netted $600. Yes, I have been crying all day. We are going to apply for state aid for health insurance. My question is will this effect our bankruptcy since we will no longer being paying out $678 per month for insurance? Does changes in your expense schedules matter after filing/341?

I hope we don't make it to the Ugly stage of things.

[rfassett]

It should not affect the bk one iota. You filed for bankrutcy protection on 04/29/08. What happens after that date, with few exceptions, is irrelevant.

[Critty]

Ok, here's another thing. In order for us to keep a roof over our heads I am going to need to surrender a life insurance policy for its cash value of $1700. This was an exempt asset that the trustee could not take. Will he have rights to it if I cash it out? He never requested specifics on it (company name or acct #). There won't be a record of it being cashed until we get a 1099 next year for taxes.

[Phillymanhere]

I'm pretty sure the answer is the same--its yours.

Here's the way I understand it: an exempt asset is an asset that is protected, that remains in your hands. Therefore once you got it exempted, it's no one's business whether you continue paying on it or cash it out.

I think you are good to go! ... Did you run this by your attorney?

[JRScott]

What is causing the loss of income?

As for cashing in the life insurance policy I'd consult your lawyer first.

[Critty]

My husband works in auto sales. As the economy goes south so does our income. He was promoted to a managerial position a few months back which has been the worst thing for us. After deductions, our last check was $0. Ironic thing is the owner was off on a trip to the Caribbean. Nice! Just a little bitter! All the managers at all levels got their pay cut. Looks like nobody will be making their mortgage payment. I am going to ask my church for some help.

We filed pro se so I don't have a lawyer to ask. My brother-in-law is a corporate bk lawyer. I will see if he might have any insight.

We are getting rid of every "extra" expense we can think of. Home phone, YMCA membership, vitamins, going to basic cable (since tv is our only source of ET). Lowering the coverage on our vehicles to minimum, surrendering our second vehicle. CLosing off our upstairs and turning off the AC up there. The kids love sleeping on the couch anyhow, lol. Applying for state aid health insurance because we cant keep paying $680/mon for health ins.

I am trying to find a job that will pay more than what I make doing data entry from home. Problem is I then have to calculate in child care and gas, and, unfortunately, I do not have the education to get a high paying job.

Trying to keep my chin up but its getting harder every day.

[Flamingo]

Make sure you advise your attorney of the changes to your husbands income, your applying for state aid for health insurance and also the need to cash in your life insurance. Your Chapter 7 has not yet been discharged. Even though the life insurance funds were exempted, I would check with your attorney first to see if it is safe to take them out prior to your discharge. Now is not the time to guess or make mistakes.

Things will work out - you just need to batten down the hatches, regroup and reorganize as best as you can - what is occurring with you is happening to many families around this country and it will take many years for people to get back on their feet. I don't know your ages or any other informatoin about you but the health care industry as to nursing and techs has an extreme shortage - looking into going to school to maybe move toward that field might be a thought (there are loans available for low income or needy students).

[Critty]

[QUOTE= I don't know your ages or any other informatoin about you but the health care industry as to nursing and techs has an extreme shortage - looking into going to school to maybe move toward that field might be a thought (there are loans available for low income or needy students).[/QUOTE]

Funny, got a friend who's picking up an app for me to work with her as a tech. Don't have any training but they just hired a manager from a starbucks so she thinks I might also have a good shot. Been wanting to get a job as a nurse but could not afford the schooling and did not qualify for aid. Hubby made to much (then). Some hospitals will help put you thru school for nursing if you contract with them after completion. Problem is I need money now. I will keep praying that things will work out.

[AngelinaCat]

Funny, got a friend who's picking up an app for me to work with her as a tech. Don't have any training but they just hired a manager from a starbucks so she thinks I might also have a good shot. Been wanting to get a job as a nurse but could not afford the schooling and did not qualify for aid. Hubby made to much (then). Some hospitals will help put you thru school for nursing if you contract with them after completion. Problem is I need money now. I will keep praying that things will work out.

Hi Critty: So sorry to hear about your situation, but welcome to this wonderful Forum. Your ascent from the BKHell-nightmare has just started. May I ask what this application is for? Perhaps I can offer a little more information for you.

[Critty]

App to work as tech in ER or maybe as a unit secretary. Scary thing is I haven't worked in 4 1/2 years and don't really know how to sell myself into a field that I have no experience. Loved staying at home with the kids but that has put me seriously behind in todays job market. Also bites that I have no money for a suitable wardrobe. Hope scrubs don't cost too much (if I get the job).

[AngelinaCat]

App to work as tech in ER or maybe as a unit secretary. Loved staying at home with the kids but that has put me seriously behind in todays job market. Also bites that I have no money for a suitable wardrobe. Hope scrubs don't cost too much (if I get the job).

Hi Ms. Critty:

"Scary thing is I haven't worked in 4 1/2 years and don't really know how to sell myself into a field that I have no experience."

First thing to do is to practice standing up TALL, like you are on top of the world. [You ARE, you know. You feel like you are in a hole, it is up to YOU to dig yourself out.] Do this in front of the mirror if you need to. Practice striding across a room confidently, straight and tall, with shoulders held back, and greeting another person by looking them in the eyes, with a firm handshake.

Now, regarding experience: 'Staying home with the kids' is EXCELLENT background for what the application is for. Think not? How many times have you bandaged bloody knees, cuts, scrapes, or dealt with children's illnesses, flu?, chicken-pox?, allergies? Other, more serious matters?

How many times have you stayed up at night consoling a sick child, that can't sleep due to whatever problem he or she has had? That gives you the experience to deal with a sick stranger.

Basically, [been there, done that with a spinal fusion], a sick adult is a terrified adult that wants a sympathetic shoulder to cry on.

If you end up in ER, you will be fine. If you end up as a secretary, the very fact that you have the skills necessary to post on this Forum shows that you have office skills. Prospective employers are usually understanding about these type of things. Just answer the questions to the best of your ability. But, whatever you do, don't say, "I'm only a housewife, and I stayed home with the kids." No. You are a Household Manager, and play up your positives.

As far as wordrobe for interview, I would think--if you have it--a nice pantsuit, or black tailored slacks, with nice, solid color blouse that becomes you, and perhaps a tan blazer-type jacket. Black pumps also if you have them. If not, I have gotten some really good deals at Goodwill or the other thrift stores around town. Another place to look is Dry Cleaners that are selling off their unclaimed customers' stuff at pennies on the dollar.

All my best wishes and prayers go with you~~~

[anonymuse]

Just remember that there are many other issues besides the obvious. It depends where you live; however, generally, if you are without medical insurance for over 90 days and have a pre-existing condition, a new medical insurance company can deny coverage on your pre-existing conditions for up to a year with the new insurance. Find out the specifics for your state.

[Help!]

Ok, here's another thing. In order for us to keep a roof over our heads I am going to need to surrender a life insurance policy for its cash value of $1700. This was an exempt asset that the trustee could not take. Will he have rights to it if I cash it out? He never requested specifics on it (company name or acct #). There won't be a record of it being cashed until we get a 1099 next year for taxes.

I'm assuming you mean you'll cash it out after your BK? No problem there.

If I misunderstood and you mean you're cashing this out right now, my opinion is that it's best to postpone things like this until you're out of the woods. It sounds unlikely that the trustee would find out about it, but why risk it? If you need the money right now and you have no choice, I'd be sure to inform my attorney in writing about it (email with read receipt) to document that it was disclosed.

[Hopefull1983]

I too am in sales. I live in California and have been in the marine industry for 8 years. I sell high end motor yachts and have made a very good living. The past two years have cut my income in half and now that half has become even smaller. The economy has forced me into a corner which in turn has forced me to declare BK. I feel you and your husbands pain, but the good news is that it will get better Good luck to you!

[cetiya]

I'm a unit secretary and also a monitor tech. I have seen people with no experience get hired, I got back into the hospital world by taking my CNA class and then when I was hired, moved to the desk. it doesnt start out super great, but I've been a secretary for almost 20 years and I make 17.33 per hour. its an interesting job, but can be very stressfull. go to night shift, its easier. there are classes you can take to become a secretary, and more classes to learn to read rhythms. not a bad job compared to others out there.