Chapter 7 ? living with roomate.. Problem?

[HPFan]

I am in the process of filing bankruptcy (ch. 7) and I live with a roomate/friend. I have lived here for few years and all my mail comes here. My roommate fears that my bankruptcy with affect their credit and become a problem on their property. I don't own the house and I was only paying utilities up until I lost my job in September '07. Will this be an issue when I file? I don't want to hurt their credit or anything.

[Tbornetun]

Your bankruptcy will not affect their credit in any way. Seems they are being a little paranoid. It isn't your property, it is theirs. No worries.

[d80indebt]

Nope. Your bankruptcy will not effect your roommate/friend in any way.

[dr618]

That was my concern too. I live with a roomate and thier income and expenses are seperate from mine. The bills and rent are paid by her. Legal aid told me at first this is not going to affect my roomate, now when I asked again (because I'm paranoid) he said, I don't know, I have to check on that. I don't want her stuff to get taken away or have her income disclosed.

[d80indebt]

The way I understand it is that the expenses that she pays for you would be your income. But since you're declaring those as your expenses anyway, that should not be a problem. And since you're only bring in $400 a month, there is no way that you're above the median income. Even with her paying your expenses.

[magyar123]

That was my concern too. I live with a roomate and thier income and expenses are seperate from mine. The bills and rent are paid by her. Legal aid told me at first this is not going to affect my roomate, now when I asked again (because I'm paranoid) he said, I don't know, I have to check on that. I don't want her stuff to get taken away or have her income disclosed.

It will not affect your roommate - but the scenario you're describing - her paying the rent and the bills - might bite you. No household expenses.
Unfortunately you will have to list her income for total household income purposes - which will be subtracted out from your final income figure. But since you don't have any expenses contributing to the household expenses you might get stuck with all of your pay being considered disposable income.

[d80indebt]

But since you don't have any expenses contributing to the household expenses you might get stuck with all of your pay being considered disposable income.

Unless you can account for the income you have as spent on food, clothing, etc.

[Bandit]

It will not affect your roommate - but the scenario you're describing - her paying the rent and the bills - might bite you. No household expenses.
Unfortunately you will have to list her income for total household income purposes - which will be subtracted out from your final income figure. But since you don't have any expenses contributing to the household expenses you might get stuck with all of your pay being considered disposable income.

Right. They would do better off to get some checks or receipts going that show a substantial portion of income going out toward rent, even if that means writing the check to the roommate & then they pay the rent bill for awhile.

That way they wont have to list someone elses income for anything & they wont get stuck with dispoable income. I doubt they will ask for a renters agreement but it would be best to have all ducks in a row, just in case.

Everyone needs to use the household expense when possible because it is an easy one to work with & adjust, unless of course there is no income.

[dr618]

Well the expenses that I do have are, paying my own groceries, household stuff, cell phone, and transportation.

[d80indebt]

You should be fine, then. (I read in another thread that you're only pulling in about $400/mo. I'm sure that all goes on basic needs, right?)

[dr618]

Yeah, it does, and right now I am also paying 3 of my creditors every month

[magyar123]

Yeah, it does, and right now I am also paying 3 of my creditors every month

If you really intend on filing don't pay the creditors anyomore - save your money for the attorney's cost.