Lots of questions

[drowningindebt1]

I guess I am just looking for some answers on if anyone thinks its possible for us to file chapter 7. I have about 60,000 in debt and my husband about 60,000 in debt, together about $120,000 in unsecured debt. My husband's father was staying with us last year and pretty much paid for everything, then he moved back to Poland. In the beginning we were doing fine, hubby and I were both working but in construction he lost his job and decided to become a trucker. I was able to get a loan about 7 months ago for $40,000 ( i said it was to pay off bills) but we used it to pretty much get by while he went to trucking school and we also bought a semi truck so he could be an owner operator, but we just aren't cutting it. We keep doing balance transfer after balance transfer and we are drowning. This is literally making me sick, wondering how to pay the bills, he keeps having to fix this truck and we just can't afford it anymore, we could afford our mortgage payment but not the extra $2000 a month in credit card debt. If we filed chapter 7 how do we prove the means test, he is a owner operator and files taxes at the end of the year, I am so lost. We want to keep the house and car and we have absolutely no equity in our home. So my question again is how do we prove how much money we are making when he is self employed, 2nd question, would he have to give up his truck ( that is how he working), or should we offically open up a business name and put the truck in the business. He only makes about $9,000 a month but almost $3500 goes right to gas and that isn't including maintainence on the truck. Another question is do you think we will be able to even file for chapter 7 and lastly, if we can't file for bankruptcy, what happens if I just stop paying the bills, we just can't afford them, but I am still using one credit card to pay off another one and so on. any advice would help wonders, I truly appreciate anything. Again the money we used to get by ($40,000 loan) and purchase the truck was unsecured. We have two small children and with him gone over the road I can't work, after $300 week in daycare I would be lucky to walk away with $5.00. I am also going to school, I have $18,000 in a chase private student loan, is that dischargeable?

THanks again

[Flameout]

According to my attorney when I had to file, if over half of the debt is business, you should file chapter 7 which we did. Also, I was not required to take the means test because of the business debt. I hope that this is the case for you otherwise you may be looking at a 13.

[BROKENN]

Hi,
Student loans are not dischargable.

You prove the means test with Profit and Loss statements. One for business and then what is left over to your personal expenses.

You really need to see an atty because of the self employment and it may impact your future self employment, sometimes not. It is complicated, hence the atty. Get one that has done some business BKs.

A C7 Business can only be done if the debt is over 50% business, which includes your house. Otherwise you are a C7 Consumer.

Get your paperwork and P/L ready before the atty consult so that he can better answer your questions the first time around.

[rockyroad]

Can you explain how this works?
Take the value of your home plus any debts from buying personal items
Compare that to total debt from business expenses
If the business debt is more than your home, you can file non-consumer???

[epiphany]

Hi,
Student loans are not dischargable.

You prove the means test with Profit and Loss statements. One for business and then what is left over to your personal expenses.

You really need to see an atty because of the self employment and it may impact your future self employment, sometimes not. It is complicated, hence the atty. Get one that has done some business BKs.

A C7 Business can only be done if the debt is over 50% business, which includes your house. Otherwise you are a C7 Consumer.

Get your paperwork and P/L ready before the atty consult so that he can better answer your questions the first time around.

How do you prove how much money your husband is making? His Profit and Loss Statement from taxes. If you won't have one of these until the end of the year, then use whatever you would use to tally the last six months and arrange that information all in a nice pretty row.


As far as using one credit card to pay another, stop. Do some serious research on this forum and you will come up with more information than you were possibly ever seeking.

It will be the best free time that you have spent in a long, long time.

Good luck to you.


ep

[JRScott]

My dad was a trucker for many years. We still have boxes of receipts. He kept receipts for everything.

So hopefully your husband has as well. Keep in mind while on the road eating out and things of that nature are expenses.That's the first place to start, gather up all the receipts for ins and outs for the business and tally it up.

I'm not sure how you got an unsecured loan on the truck, since the truck is an asset depending if it has equity or not you might can save it. It could fall under tools of the trade I suppose but that's a stretch. If you borrowed money and your bank statements prove it went to the truck then that could be considered an asset.

Student Loans are very difficult to have discharged in a bankruptcy, so hard that you might say impossible. I doubt even the hardship you describe is enough to do so.

You really should probably consult with some bk lawyers in the area, 3-4. Try to seek out ones that have dealt with business bankruptcies before. If folks ask why you are doing bankruptcy I'd mostly blame it on high gas costs and increased maint. cost on the truck.

Also my mom also stayed home while dad was on the road for similar reasons.

[ALICIA21]

I guess I am just looking for some answers on if anyone thinks its possible for us to file chapter 7. I have about 60,000 in debt and my husband about 60,000 in debt, together about $120,000 in unsecured debt. My husband's father was staying with us last year and pretty much paid for everything, then he moved back to Poland. In the beginning we were doing fine, hubby and I were both working but in construction he lost his job and decided to become a trucker. I was able to get a loan about 7 months ago for $40,000 ( i said it was to pay off bills) but we used it to pretty much get by while he went to trucking school and we also bought a semi truck so he could be an owner operator, but we just aren't cutting it. We keep doing balance transfer after balance transfer and we are drowning. This is literally making me sick, wondering how to pay the bills, he keeps having to fix this truck and we just can't afford it anymore, we could afford our mortgage payment but not the extra $2000 a month in credit card debt. If we filed chapter 7 how do we prove the means test, he is a owner operator and files taxes at the end of the year, I am so lost. We want to keep the house and car and we have absolutely no equity in our home. So my question again is how do we prove how much money we are making when he is self employed, 2nd question, would he have to give up his truck ( that is how he working), or should we offically open up a business name and put the truck in the business. He only makes about $9,000 a month but almost $3500 goes right to gas and that isn't including maintainence on the truck. Another question is do you think we will be able to even file for chapter 7 and lastly, if we can't file for bankruptcy, what happens if I just stop paying the bills, we just can't afford them, but I am still using one credit card to pay off another one and so on. any advice would help wonders, I truly appreciate anything. Again the money we used to get by ($40,000 loan) and purchase the truck was unsecured. We have two small children and with him gone over the road I can't work, after $300 week in daycare I would be lucky to walk away with $5.00. I am also going to school, I have $18,000 in a chase private student loan, is that dischargeable?

THanks again

great article. I will bookmark this

[drowningindebt1]

How do they know your assets

We haven't even seen an attorney yet, but are likely to very soon. ANother question I have is, how do they know your assets, such a television, furniture and so on? Do they come to your house, or do they just take your word on it? We do have two tv's, two sets of furniture, one for living room, one for family room.

[BROKENN]

They usually don't come, they take your word. Once in a great while they will audit but will warn you.

Value you property at garage sale, fair market, like Craigslist

Good luck