New law qualification?

[okane]

What do you guys think. I am planning on filing with the new law so I can give my balace transfers I did in June more time since I do not want any chance on a objection. I am a single mom with 2 kids, my annual income is $26,040 ($1850 net take home pay every month) and my house pmt is $1,074 which only leaves me like $776 for food and all other living expenses. Will I see any problem-complication with the new law?

[Charmony]

You may not have a problem with the end result. But with the new rules, you will first have to see a financial advisor and a debt consolidation specialist before you can even be considered for either CH 7 or 13 BK (all at your own expense).
Hope that helps.

[HHM]

The other problem is that under the new law, the look back period on balance transfers is longer.

Qualifying for bankruptcy under the new law is a whole new ball game. Anyway, for anyone to have a shot at giving you the info, we need to know what state you live, what is your states median income for a single parent with two kids, and the IRS expense tables for your state.

However, based on what you said, you will probably still qualify for a Chapter 7, but it will be more costly and time consuming.

[Lightning]

The first thing a financial counselor will tell you is that you cannot afford that house payment on that salary. You either need to move to a cheaper place, or get a job that pays more. Filing bankruptcy will not lower your house payment. Mortgage/rent should never be more than 30% of income.

You're spending nearly 50% of your gross on housing.

[StaciMM]

Do you have other sources of income? With the income & house payment you mentioned, it doesn't seem like BK is going to address the issue. While you would have no more credit card payments and not be getting further into debt, you're still going to be short every month.

Have you started formulating plans to overcome that?

[hhou812hh]

The other problem is that under the new law, the look back period on balance transfers is longer.

Qualifying for bankruptcy under the new law is a whole new ball game. Anyway, for anyone to have a shot at giving you the info, we need to know what state you live, what is your states median income for a single parent with two kids, and the IRS expense tables for your state.

However, based on what you said, you will probably still qualify for a Chapter 7, but it will be more costly and time consuming.

About how long do they look back? I'm kinda in the same boat and my atty said to wait at least a year. I can only afford to do that since I am working long hours but if and when my OT stops the well will run dry.

I know the "look-back" period for transfering property they will be able to look back to 2 years from the present 1 year. I also know they raised the usual "burden of proof" thing from 60 days to 90 days.

[hhou812hh]

The other problem is that under the new law, the look back period on balance transfers is longer.

Qualifying for bankruptcy under the new law is a whole new ball game. Anyway, for anyone to have a shot at giving you the info, we need to know what state you live, what is your states median income for a single parent with two kids, and the IRS expense tables for your state.

However, based on what you said, you will probably still qualify for a Chapter 7, but it will be more costly and time consuming.

HHM, I know you mentioned many times that the new laws are very tough on debtors, but sometimes it's all we have. I'm in the same boat for the same reason as okane and while it will be tough and expensive,etc. anything maybe better then the agony of being in debt for life. I wish I qualified too under the present laws but as per my atty I'm too late. I didn't plan on filing bk. I had some issues in May and I decided in July it was the thing to do.

Since joining this forum I learned so much and realize how lucky I really am even if I'm stuck with the new law. Some people here had lost loved ones or are ill themselves or have children with cancer or they are coping with unemployment, divorse,etc. I have none of these! A few months ago I was hoping for a ch7 under current law, but now I'll take anything I can (except life long debt).

[sunshine08]

Not to be nosy, Don't answer if it makes you uncomfortable, but do you get or are you to court ordered to receive child support. That is looked at also, along with any other sources of income. I don't know how you do it without some serious help, you are good if you can maintain that rate. Do you have daycare expenses, etc?
Speaking from the heart, as kids grow so do expenses, especially the unexpected, unplanned ones. One of the things that credit counselors will work with you on is about budgets, expenses, and income. Pity to pay for that advice when you can get some of the same advice here for free, that is if you have thick skin.
I would think long and hard about choosing the bk road. Doesn't sound like you have too many unsecured debts or debts that you want "to turn in", that are going to make enough impact on the amount of money that you have left over each month.
Is downsizing to a smaller or cheaper home an option? Also does your mortgage cover taxes and insurance.? I would think with the situation that you should probably get a pretty decent tax refund each year and possibly use that towards possibly refinancing home or existing debt. But it still sound like you have a high debt/income ratio.
Sorry we don't seem to be very helpful.

[hhou812hh]

We probably need to know where she lives first. By me allowable housing expenses is 1900 a month by IRS standards. That's more then my parents make in social security or most people make in a month. Welcome to Nassau county N.Y.

Once we know that we can better assist.

[sunshine08]

Also, I think if Okane could "just go out & get a better job" she probably would. It isn't always that easy. If it was none of us would be in this forum, we would be in the forum of how best to spend all of our money. Just a thought.
Just trying to spread a little sunshine.

[okane]

My debt situation-kind of long

Well, I don't even get child support because the dad of my children was deported to Mexico and the law here in US cannot go after a mexican citizen in Mexico to pay child support, its not fair but thats how it is. I have credit card debt of $35,000 I want to get rid of by filing bankruptcy. The way I been making pmts on my debts is using my tax refund. like using $300 of it each month till it runs out, then I am lucky I have a Dad that helps me alot with my kids but I just can't count on him all the time so I wanted to file bankruptcy before 10/17. But I did that huge balance transfer in March-June for a lower interest rate so I am not 100% safe to file before 10/17 because I cannot face a chance on a objection that I cannot pay back. Also even though my house pmt is $1074 I really want to keep that for the sake of my kids. Even if I was to go rent a place, for a 2 bdrm or 3 bdrm apt, it still will be $700-$800 a month plus utilities. I live in the sate of Utah. Any more info you guys can provide me about the qualifications under new law and possible things in the new law that my complicate a bankruptcy for me under it.

[StaciMM]

Okane-

Here is what I came up w/ searching for Utah info. Under the new laws median income $51k-so you're well under. I don't know what county you live in, but checked a few and each came up w/ allowed housing & utility & living expenses over $2,100 so you shouldn't have issues there either.

Living expenses allowed:
Food $470
Housekeeping Supplies $49
Clothing & services $158
Personal Care $44
Misc Expense $161

**Not counting auto expenses, housing & utilities.

This is a long shot but no harm in trying-check back with the attorney you consulted with, and see if he'll agree to charge you later the same fee he would charge you now. It is expected that attorneys will charge more after 10/17...