Researching chap. 7 for my mom, need advice

[Whittio]

Thanks for the additional info. I had just found the place where you can change the case studies to one that is more similar last night, then our power went Ka-poot! (twice actually) which I hadn't saved the info to where I was, and now I need to get back and start all over.

About her expenses, if I can list everything she buys (including cigarettes and pet stuff) then her out-go is more then in income. BUT, I am not sure where to list these 'non-food' items along with annual car expenses etc.?

[Whittio]

OK, here's what I got for income vs. expenses. (some of these things I didn't know where to put, so I just added them together.)

Monthly income $1295.32
Rent $445
Electricity/heating fuel $55
Telephone $41 (this is her land line and cell combined)
Home repairs $20 (she rents, but I found someone else who put the cleaning supplies in this category.. hope this is OK)
Food $300 (this includes a daily lunch of $4 x5 days a week)
Clothing $60
Laundry and dry cleaning $25 (this is cleaning supplies and laundry-mat change)
Medical and dental $20 (for Rx and OTC meds)
Transportation $95 (this is gas, and annual expenses of tires/registration/smog check/repairs etc)
Recreation/entertainment $20
Auto Insurance $52
Other $150 (I have listed: pet supls, haircuts, cosmetics, tobacco)

all expenses total $1283

Are these expenses considered reasonable?
Also, what about her $300 savings account? She needs a muffler and some car work done, should she just go ahead and do that with the $300 she has? How much "cash" is she allowed to retain? :s

[originalhealer]

Someone had posted a link with the federal guidelines for cost of living in various areas in the country. I can't remember where it is but from what I can see, the only category that looks a little high is the food category, but if that's the truth then that's the truth.

You only have to list the exact figures in her bank account on the day she files. I know there is a certain limit on how much you can withdraw within 60 days before you file, but I don't think that it is only $300. Besides that, the California - System 2 for exemptions, according to the Nolo book, allows up to a $1,000.00 wildcard exemption. Besides that, cash is considered to be personal property, so from what I can see, $300 falls well within the guidelines for either System 1 or System 2 exemptions. If she wants to fix her car, go ahead. But if she needs the money for lunch or whatever, hold onto it, because it is likely exempt.

[Whittio]

Thanks! The best way for us to go was the system 1, which does include the wildcard. System 2 does not. So yes, I think she'll be just fine. I'll go and put that exemption in there right now!

I talked to mom, and she was actually thinking she would use the $300 to file or pay for a paralegal, but either way, if she doesn't pay her credit cards this month, she'll have a few hundred un-used anyway. Her bills combined are $500, and she normally charges about $300+ on them. So I told her NOT to use them anymore, and pay cash for everything with the money she would have used to pay the CC bill.

I think I am getting the hang of this, I hope it's as cut and dry as I think it is.

[Whittio]

WOW, I just looked and my page numbers were in the wrong order. It's C2 that we want to use for our exemptions. Glad I got that straightened out.

I was also worried they would want her deposits to go toward the bills.. but with the $1000 wild card, that covers her deposits AND her cash.

[Whittio]

Sorry, me again.
The food is high, but in that 1 category, I had to put all her "non-food items" too, as well as "work lunches". There isn't anything on that list that we can't verify using credit card bills/receipts etc. Hopefully we don't HAVE to prove anything, but if we do, we can.

[Whittio]

Yippee! I just talked to this paralegal, she is a sweet older lady. She usually charges $120 to draw up ALL the papers, AND file them! Holy smokes! She said that's all the laws will allow her to charge! She also said she won't be doing this after October. Poor thing!

Anyway, since I have all the paperwork done, she said she would look them over for us for $25. I offer her $100 (there is no way she is only worth $25) to look them over for us, AND file them for us. She was very surprised I offered that much, she said she wouldn't charge that much.. but it's WAY worth it.

So I am printing a copy now, and will run it down to her to look over. If it's all in order, she'll have my mom come and sign the papers and then she'll make copies and file them with the court! Heck, my mom was going to drive them down to Sacramento (about 50 miles each way, in her JUNKY CAR, just gas alone would have been $10).. so this way, it's all taken care of and I can have her sign them that she "prepared them".. I think that helps elevate the red flags, when courts see that a competent person prepared things, they don't have to look at them as closely for errors I think? maybe I am wrong??

Anyway, I am SO excited about this, I can't wait to make sure I did everything OK!! We should be able to get this filed by Monday no problem!

[Whittio]

I just got back from the paralegals office. She is a DOLL! She still insists on not taking more then $50. I told her I would have my mom bring $100 cash, and depending on if everything was in order, she can charge up to $100.

Anyway, she looked them over really quickly and said they look GREAT! She did have a couple forms that I DIDN'T have. They are:
Verification of Creditor Matrix
Verification of Master Address list on Diskette.

I didn't have either one of these on the form7.com software. She thinks they might not be necessary. Also, she usually prints a disk with the matrix on there, but I don't have one of those? Can anyone tell me if I need one if we're filing ourselves?

[Whittio]

OK, I found the "Verification of Creditor Matrix" cover letter. I printed that and will get it to the paralegal.. BUT, do we need the disk and the disk cover letter??

[originalhealer]

Go to the website for the Bankruptcy Court for Northern California. Or, simply call them during business hours. They will tell you exactly what you need to bring.

[Whittio]

OK, I thought I would keep this thread updated, and ask my other question on here.

Mom signed all the papers on Tuesday with the paralegal. The paralegal said everything looked really great! (thanks form7.com) the paralegal made copies and sent them in to the court for us. She said mom should get her copies back either Friday or Monday.

I signed up for PACER the other day, and have checked it about 3 times. I TRY to only check it in the evening after business hours, but today I checked mid-afternoon. Still nothing is showing up. My question is, if it's not there by 5pm tonight, there's no need to look over the weekend as they aren't doing business, is that correct? Do changes ever occur on the weekends?

[herekitty]

I'd like to know too -- I've been checking everyday to see if it's been filed - no word. Attorney said it would be filed Tuesday ... I'm starting to wonder if he did or not.

[Whittio]

I just checked PACER again, and mom is STILL not coming up?! Is this normal? Papers were sent to the court Tuesday night, they had them Wednesday. Shouldn't she be showing up as filed by FRIDAY??

[Whittio]

herekitty, I just saw your post when I came back from posting my second post. I believe you filed the day before my mom's papers got sent in... so if you're still not up, maybe it just takes longer then we think? I thought it would be up immediately?

The paralegal said that the creditors would know by early next week, so they shouldn't be calling mom (her first card isn't even due till the 23rd) and with a week or two grace period (before the calls start), the paralegal felt she shouldn't be getting ANY calls.

[edwards2]

Guys dont get too stressed about Pacer. It is not updated as often as we would like it to be. I too check daily and it has the same info it had a week ago. I am sure the barrage of filings has something to do with it. But it wouldnt hurt to double check with your attorney/paralegal to make sure it actually got filed when it was supposed to. I know you are anxious - been there...done that but it will be okay. You are on your way!