Still paying on loans... want to file in a few weeks... is this bad?

[hboyd4]

My boyfriend and I are filing chap 7 in a few weeks. He refuses to stop paying on his loans. He is borrowing from family to pay his minimums but he can't live like that forever. He actually hasn't missed any payments on his credit cards or loans. Isn't this going to look really bad? If I were the person to approve the bk or not, I would say... doesn't look like you have a problem paying.

My boyfriend has this fear that he will not be approved for the bk and then he will have to go back to paying his loans and credit cards. They won't be manageable after late fees, interest fees, over the limit fees...

So is it going to effect his outcome since he hasn't missed any payments???

Thanks so much!

[jessegirl]

Why would you waste the money on paying these accounts when they are going to be included in the BK? Have you seen an attorney? If so, has the attorney done a means test? That will tell you weathe ror not you qualify for a chapter 7 or not. He should be saving that money for other things.

[hboyd4]

Why would you waste the money on paying these accounts when they are going to be included in the BK? Have you seen an attorney? If so, has the attorney done a means test? That will tell you weathe ror not you qualify for a chapter 7 or not. He should be saving that money for other things.

I totally agree with you. We are filing on our own so no attorney. He qualifies by the means test.

[jessegirl]

So then why is he afraid that it won't be approved? I know I was nervous to that we would be forced into a 13 instead of a 7 because we were ALOT over the median, we own a home and 2 cars and we were fine. Its very nerve racking, but believe me in the end you will be fine. Once you stop paying the cc's the calls will start in and being you a doing pro sec you will have to contend with the phone calls. I just referred them to my attorney and made them take all the calls. If you are pro sec keep reading and reading these forumns, there is a wealth of information on here. I have learned sooo much from all of these good, caring and compassionate people. Goodluck to you.

[relief13035]

Stop paying - you are just throwing away good money!

[hboyd4]

So then why is he afraid that it won't be approved? I know I was nervous to that we would be forced into a 13 instead of a 7 because we were ALOT over the median, we own a home and 2 cars and we were fine. Its very nerve racking, but believe me in the end you will be fine. Once you stop paying the cc's the calls will start in and being you a doing pro sec you will have to contend with the phone calls. I just referred them to my attorney and made them take all the calls. If you are pro sec keep reading and reading these forumns, there is a wealth of information on here. I have learned sooo much from all of these good, caring and compassionate people. Goodluck to you.

He is worried he won't be approved because we live with my parents and since we don't have rent or utilities he comes out on top with his debt to income. We have extra money. We wouldn't survive if we had our own home and utilities. We don't want to live with the parents for the rest of our lives.

[jessegirl]

Have your in-laws give your rent receipts..... You paid them in cash right?? You have been paying in cash for quite a few months right??

[hboyd4]

Have your in-laws give your rent receipts..... You paid them in cash right?? You have been paying in cash for quite a few months right??

I got ya ;-) But we would have to say we pay them like $700 in rent and doesn't that seem a little high to say for living in someone else's home? Does that sound legit????

[Genenco]

I got ya ;-) But we would have to say we pay them like $700 in rent and doesn't that seem a little high to say for living in someone else's home? Does that sound legit????

Depends on where it is. I paid my older sister $400 a month when I was there, now I pay $450 and 1/3 utilties for the place I am at now..But I sure like it better

This is in Vancouver, WA. just as an aside.

In fact, we (This board) has seen quite a few CA residents who declared rent/housing expenses WAY above the "allowable" expenses in Shedule J, but that's normal as CA is a high priced state to be in.

Several commented the trustee said nothing in that they too understood that what the IRS says, isin't how the country sees it or pays for it.

[hboyd4]

Depends on where it is. I paid my older sister $400 a month when I was there, now I pay $450 and 1/3 utilties for the place I am at now..But I sure like it better

This is in Vancouver, WA. just as an aside.

In fact, we (This board) has seen quite a few CA residents who declared rent/housing expenses WAY above the "allowable" expenses in Shedule J, but that's normal as CA is a high priced state to be in.

Several commented the trustee said nothing in that they too understood that what the IRS says, isin't how the country sees it or pays for it.

This is good to know Genenco... We would need to say like $600 - $700 and that just seems a little outrageous. They do live in a large house but still it just sounds high to say we are living with my parents and they are charging us $600 to live there.

[po man]

I know this will go against some peoples thinking, but...

In my exper on fixing the aftermath of bk (rebuilding credit). If you can pay the bills or pay what you can, it helps NOT to build up late payments on your reports prior to filing. If I could go back, I would have paid what I could prior to filing. It pays off in the long run, though it cost you in hard times. Keep all the late payments off that you can. If its not a tremendous amount, you are not wasting the money.

[philslyn]

Ok

the first thing that we need to run is the median income
if you guys are not married neither joint taxes then hes the only who will file.
then if he meets the median income then he is eligible for the chapter 7, if not might be no option but 13 or simply consolidate the bills.
anyway the credit cards are mostly dischargeable in BK. so stop paying it and make himself behind payments. but make sure he can come up with a reason on what he did with the money since he stop paying. gather all your bills secured or unsecured anything that you owe or he owes i mean.
is the reason of filing is changes of salary or what.
anyway i have this client i met last month. hes not behind also and even has money in the bank but really wanna file bk owed 90k.
i suggested him to not pay the bills that are dischargeable and keep paying his car and keep all the bills and wait 2 or 3 months to be behind and the rest i will take it from there. thats what i told him to do.

[lrprn]

Since you two aren't married, you can't file jointly. Each of you has to file your own individual bankruptcy. However, since you are living together, whatever income he pays towards your living expenses counts on your bankruptcy, and vice versa.

You two would do well to set up 3-4 initial interviews with experienced bk lawyers in your area. Even if you aren't going to use a lawyer, it's a good way to sort out what issues you each might have to worry about if you file.

Hope everything works out for both of you.

[hboyd4]

Since you two aren't married, you can't file jointly. Each of you has to file your own individual bankruptcy. However, since you are living together, whatever income he pays towards your living expenses counts on your bankruptcy, and vice versa.

You two would do well to set up 3-4 initial interviews with experienced bk lawyers in your area. Even if you aren't going to use a lawyer, it's a good way to sort out what issues you each might have to worry about if you file.

Hope everything works out for both of you.

I never really thought of going to see lawyers even though I wouldn't be using one... I would probably get a lot of answers from visiting some. I always wondered if he can put what he pays towards my living expenses even though we are not married. Do you think I count as a member of the family when he does the means test? You know how it asks how many people do you support? Well we have two kids and then there is me. So technically there are 4 people in his household BUT can he not count me since I am filing on my own... would that be like double claiming me??? Make sense?? Thanks for your help... I really appreciate it!

[Logan]

I paid my loan on time until the end. I have absolutely 0 lates on my credit report. I decided to do this for a few reasons and I had a little cash to burn.

I did see a woman's credit report who filed BK and 2 years later she had credit scores of over 700 (I think 740 ish) and had never been late with any payment.

I don't necessarily recommend this and I have not checked my scores recently so I don't know if it has benefited me or not.

Logan