Questions about expenses and security deposit- please help!

[Karen2005]

I'd really appreciate it if anyone can help me out with these questions!

First is about what to put down for my expenses. I have BARE BONES expenses due to my only income being school finaid and welfare. I am currently waiting to hear whether i qualify for Social Security Disability. However (cross my fingers) I may be getting better and may soon be well enough to go back to work despite my illnesses. If I do get a job before my 341 meeting will the trustee be able to use my new job salary and compare it with my bare bones expenses? This would put me into a chapter 13 as my current expenses are extremely low. So should I leave my expenses as is? (They are way over what i'm getting in income (I've survived by selling stuff and receiving personal loans). Or should i pad my expenses at least up to the IRS minimums? I really thought returning to work would not be an issue as everything you earn after you file is supposed to be outside of your bankruptcy, but i thought i'd check just to make sure.

As far as my security deposit for my apartment I'm wondering if I have to keep current on the rent AND the arrears that were agreed upon in a settlement in order to keep from being evicted? It seems like i should be able to just stay current with the rent and not pay the arrears as that should be covered by the automatic stay. Is this correct?

If I dont stay current with my rent and my landlord gets the stay lifted (only for re-possession of the apartment) and evicts me will I then be entitled to the normal refund of my exempted security deposit since the arrears will be covered by the stay and will likely be discharged?

Thanks in advance for any help!

-Karen

[Minnymouth]

Are you filing pro se or using an attorney?.
List your expenses and income as they really are.
Any future income (within 180 days) could put you into a chapter 13 if you have disposable income.
Do not list income you "think" you might be receiving, only income you actually receive.

Minny

[Lightning]

I admit I am confused. How can you qualify for SSDI while still qualifying for student loans or grants? And if you're disabled and receive government aid, how can you work to earn an income to cover the loans?

Will you receive a certain amount from the government for your partial disability and then also receive a paycheck from your employer because you can work? I've not heard of this before, but I'm interested in knowing how it works.

[AAAArt]

I'd really appreciate it if anyone can help me out with these questions!

As far as my security deposit for my apartment I'm wondering if I have to keep current on the rent AND the arrears that were agreed upon in a settlement in order to keep from being evicted? It seems like i should be able to just stay current with the rent and not pay the arrears as that should be covered by the automatic stay. Is this correct?

Sorry, but no.

If I dont stay current with my rent and my landlord gets the stay lifted (only for re-possession of the apartment) and evicts me will I then be entitled to the normal refund of my exempted security deposit since the arrears will be covered by the stay and will likely be discharged?

Again, sorry, but no. At least that is my understanding.

-Karen

Wish I had better news. And I may be mistaken. I hope for your sake that I am.

[Karen2005]

Minny you wrote:
"Are you filing pro se or using an attorney?"

>>Pro se. No money for an attorney.

"Any future income (within 180 days) could put you into a chapter 13 if you have disposable income."

>>ACK! So how would they know if I went back to work? Am I supposed to tell them? I thought the 180 day period was for things like inheritances and such? I can see where big windfalls like inheritances or lawsuit settlements would matter, but do they honestly expect everyone to report if they get a raise??? Or a new job that pays a lot more than their old job? If I had to be reevaluated would they at least allow me to fill out a new budget since my expenses would then be higher?

[Karen2005]

I admit I am confused. How can you qualify for SSDI while still qualifying for student loans or grants?

You are not allowed to draw welfare and school aid at the same time. Which I havent. I believe you are allowed to go to school and receive finaid while on SSDI, but maybe the school provides a discount so you dont have to take out loans. AND you are allowed to work part time(under a certain number of hours a week) and receive SSDI. But you have to get qualified for SSDI which is a HUGE drawn out process. Basically they drag it out so that you either die first or ruin your health even further by being forced to take something to survive. However, most people are entitled to a year of state disability and if it looks like it might be long-term they can start the SSDI process while on the state dis. Unfortunately some of us dont have a crystal ball that can tell us if our disease/injury is going to worsen and how fast or get better, and so we dont always think we need to put ourselves thorugh the daunting SSDI process right away.


"And if you're disabled and receive government aid, how can you work to earn an income to cover the loans?"

People heal up from disabilities all the time! Or they learn new ways of coping with their limitations, or their new education trains them for a career that they can handle or their disease(s) go into remission, etc. etc and they can go back to work. Also there are a TON of scholarships and grants for people with disabilities so that most probably dont need loans. Also there are deferrments availible on student loans that will suspend payments for a limited amount of time.


Will you receive a certain amount from the government for your partial disability and then also receive a paycheck from your employer because you can work? I've not heard of this before, but I'm interested in knowing how it works.

You can go to the SSDI website to read about the partime work program they have in place.

[Karen2005]

AAAArt how can the automatic stay not cover the arrears? I thought all back rent was dischargeable in BK, so even if the stay is lifted on the apartment that doenst lift it for the debt.

Also, if the security deposit is exempted and the arrears are discharged then what justification would my landlord have for keeping the security if I moved?

Please explain if you have time. Thanks.

[Lightning]

Why would your expenses go up if your income goes up? You'll have real trouble getting ahead in life financially if you live by that philosophy.

[Karen2005]

Why would your expenses go up if your income goes up? You'll have real trouble getting ahead in life financially if you live by that philosophy.

I'm not sure what you meant by those comments Lightning. Could you please clarify?

Ok. Just kidding. I guess I'll draw you a picture. Work = commute expenses, regular haircuts, makeup purchases, clothing purchases, lunch purchases when there is no time to make a brown bag, medical expenses and copays as I will no longer qualify for free medical care, etc. etc. As far as your last comment goes it sounds very assumptive and negative rather than helpful. Thanks anyway.

-Karen

[AAAArt]

AAAArt how can the automatic stay not cover the arrears? I thought all back rent was dischargeable in BK, so even if the stay is lifted on the apartment that doenst lift it for the debt.

Also, if the security deposit is exempted and the arrears are discharged then what justification would my landlord have for keeping the security if I moved?

Please explain if you have time. Thanks.

Karen, Here is my thinking. As I said before, it's not legal advice and based only partly on personal experience.
1. The automatic stay DOES cover the arrears and they are discharged. However, you entered into a contract and did not live up to your end, so they are released from keeping theirs...i.e., providing you with a p;ace to live. Consider what some people have written re: banks and credit unions and what they have done to their checking/savings accts and/or cc's when a loan at that institution is discharged.
2. Re: the Security Deposit. It is a "security deposit". Normally you get it back if when you move out your rent is paid up and the apartment is left clean. You may be thinking, "Just as long as it's clean and undamaged, i will get my money back, but it also covers lack of paying rent. I have a security deposit on my apartment, but it did not enter into my Bk, because I have no plans to move.
I had a savings acct connected to a secured cc which I have had for many years. I was not smart enoough to request that after a number of years of good payment history to request that it become an unsecured card, so I now will have the debt I owe that co. discharged, but they get to keep the "security deposit" of the savings acct. It is not considered an asset which is to be divided among the creditors, it is simply theirs. That is the general category under which I believe your security deposit falls. Read your contract from your landlord and I think you will find that it also covers non-payment.
Your situation is slightly different and much more emotional because you are talking about having a place to live. Unfortunately, most of the laws concerning protecting your domicile have to do more with homeowners rather than renters...in my opinion.
Taking the emotion aside, which the law totally does, I hear your question as being close to having a credit card, having the debt discharged and then continuiing on using the cc under the original conditions, but with a zero balance.
Again, sorry not to have better news and hope that someone more knowledgable in this specific area can give you advice that will change things. i know that it sucks, but I would think that your best course of action now would be to save your money by not paying rent and start looking for another place. There is a "sticky" under the "Rebuilding Your Credit after Bk." section that talks about "Renting after Bk" I have not read it recently, but you might find some guidance there. Best wishes, Art

[Lightning]

Your post said, "Or a new job that pays a lot more than their old job?" If you already have a job, expenses should not increase just because the pay increases. If the job is further away, then obviously fuel costs increase. But you didn't include that bit in your post.

One of the reasons people get into financial trouble is because they live at the edge or beyond their means. The actual income amount doesn't matter. A single person making $100,000 a year can find themselves filing for bankruptcy while another person earning $50,000 supporting a family of 4 does just fine.

If you're just taking a job that pays more, your expenses should not increase. If there are other factors in taking the job that cause increases in expenses (commute, clothing requirements, insurance premiums), then you should deduct those from the amount of the pay increase to get the actual pay increase.

[bkfiler]

spending allowances increase as income increases per IRS. their rule.

[FoolAndHisMoney]

spending allowances increase as income increases per IRS. their rule.

I second that!

[AAAArt]

Cough, hiccup, choke... I have to agree that Lightning has made a valid point. My guess is that the IRS has upped the allowances, partly because many of the higher incomes are because two members of the household are working.
There are some extra expenses which normally come with a higher income job, and the original poster did an excellent job of responding to those.
However if you're now spending 90% of your income and it increases by 50%and you still apend 90% of that you will be getting ahead a little more than you were before, but nearly as much if you did not increase your spending level more than was required for the job.
We often discuss how to increase our credit scores on this forum so that we can qualify for decent rates on major purchases, especially mortgages and cars. We think of how much lower our payts will be w/ lower int. rates, but one of the biggest savings we can make on mortgages is to have saved up enough to avoid paying PMI. Lots of savings there. Also a savings acct./C.D.'s/stock accts, etc. are good for boosting the credit score and getting the best credit cards.

[Lightning]

Do you have a source for that info, bkfiler? Everything I've read says allowances are based on state median income and family size.