Expenses exceed income even after debts discharged

[Skinsfan]

I still have a negative income EVEN after discharging all of my debts.

I do have significant assets in IRA's and plan to use that money judiciously after BK. Could he nullify my lease and tell me to find something cheaper?

What types of questions will I get at the 341?

[SMinGA]

If you're referring to an apartment lease - you could choose to find less expensive living arrangements and any balance owed (for termination and such) would be eligible for discharge.

If you're referring to an auto lease - it depends on how expensive you're talking. If you're well over the IRS allowance of $489 then the US Trustee might challenge it in an effort to see if there is room for a ch. 13. Would probably depend on the totality of your case however - income, other expenses, etc.

341 questions are pretty basic. Its pretty much going to consist of confirming that your petition is accurate & complete, give creditors a chance to ask questions (about income, assets, intents, etc.) though that doesn't happen too often. The trustee may ask about likelihood of inheritance or settlements in your favor, tax returns/refunds, if there have been any changes in your financial standings since filing, etc.

[Skinsfan]

If you're referring to an apartment lease - you could choose to find less expensive living arrangements and any balance owed (for termination and such) would be eligible for discharge.

If you're referring to an auto lease - it depends on how expensive you're talking. If you're well over the IRS allowance of $489 then the US Trustee might challenge it in an effort to see if there is room for a ch. 13. Would probably depend on the totality of your case however - income, other expenses, etc.

341 questions are pretty basic. Its pretty much going to consist of confirming that your petition is accurate & complete, give creditors a chance to ask questions (about income, assets, intents, etc.) though that doesn't happen too often. The trustee may ask about likelihood of inheritance or settlements in your favor, tax returns/refunds, if there have been any changes in your financial standings since filing, etc.

Yes, an apartment lease. But, I don't know what you mean, "in an effort to see if there is room for a ch. 13."

My income is $19,000. How could they put me in a Chapter 13?

[SMinGA]

W/ $19k in income - should not be an issue for ch. 13. Since you didn't give details about the lease I didn't know what you were referring to. Say you had a $1500/mo lease on a vehicle... Trustee could see that as room to get a less costly vehicle payment and pay in $1000 to a plan.

If your income is only $19k per year, and the lease is expensive, it might be worth your while to find out about renting something lower in $ now. Coming out of a BK with an overpriced rent payment will set you up for more financial problems down the road - and renting a new place with a fresh BK on your history would probably require a hefty deposit. Giving notice now (apt complex probably will not release your rental history to the new place without notice) and getting approved for a new place might be worth considering. Any balance owed such as for terminating the lease, even if you owe rent at time of moving out, would be unsecured debt & eligible for discharge. As long as you stayed in the new place for a while & had good payment history, it should not be a real problem for you down the road to rent elsewhere.

[BCA2009]

I still have a negative income EVEN after discharging all of my debts.

I do have significant assets in IRA's and plan to use that money judiciously after BK. Could he nullify my lease and tell me to find something cheaper?

What types of questions will I get at the 341?

What expenses do you have? You will need to move to a less expensive place, get a cheaper car, etc. You can spend your retirement, but that is a temporary patch. You have to learn to live within your means.

[Skinsfan]

What expenses do you have? You will need to move to a less expensive place, get a cheaper car, etc. You can spend your retirement, but that is a temporary patch. You have to learn to live within your means.

My apartment lease would be the problem. After we separated, I was living in hotels using priceline. Wow, four-star hotels for $45/night.

Then my daughter and wife get into this huge fight and she comes to live with me...in a hotel. I had to move fast and got a furnished two-bedroom near her school. We live in an expensive area of DC metro. I was hoping my wife would give me the child support for my daughter, but she is refusing to do so, something about her having to maintain the house in my daughter's school district. Yes, I can go to court, but, ugh, I want to avoid that at all costs.

So, I'm in an expensive lease, but it is month to month, so I could get out pretty quickly if the trustee demands it. Or, perhaps, when I meet with lawyers, they'll suggest the same thing.

Yes...live within my means. Agreed.

[BCA2009]

If you file chap 7 with a 19K income and no other questionable issues, the trustee is not going to pay any attention to what your rent expense is, you will easily qualify and they won't waste any time questioning you. They have bigger fish to fry.

[Skinsfan]

So, the trustee doesn't care that your schedule I and J are negative?

I know most people here are trying to ADD expenses to qualify for Chapter 7.

I show up at my 341 and I show expenses of $5,000 and income of only $3,500. That is okay?

I just don't want the trustee to cancel my apartment lease.

[newbie2]

So, the trustee doesn't care that your schedule I and J are negative?

I know most people here are trying to ADD expenses to qualify for Chapter 7.

I show up at my 341 and I show expenses of $5,000 and income of only $3,500. That is okay?

I just don't want the trustee to cancel my apartment lease.

People file all the time with negative income. Heck, that's the most common reason people file. There is no reason the trustee would want you to cancel your lease. They are not there to help you budget, but rather to find money for unsecured creditors. You don't have any extra to go to them.

[BCA2009]

So, the trustee doesn't care that your schedule I and J are negative?

I know most people here are trying to ADD expenses to qualify for Chapter 7.

I show up at my 341 and I show expenses of $5,000 and income of only $3,500. That is okay?

I just don't want the trustee to cancel my apartment lease.

You would probably be better off to let you apartment lease liability be discharged. I doubt the apartment owner is going to kick you out as long as you pay the rent on time. And if it has been discharged you can walk anytime if you need to.