Broke 25 year old living at home.

[Trish91171]

I am researching Florida Bankruptcy for my 25 year old Nephew. He has been unemployed for over a year. Unemployment is running out. He got wrapped up into some unhealthy things and has struggled with medical issues. He is about $30,000 in debt. He is prepared to loose his car, for he is to fat upside down in it. But he owns nothing else, except for clothes. He is living at home with his parents, after exiting rehab and is wanting to file bankruptcy to help get his feet back on the ground.

With no income, and no Assets, is it possible for him to file bankruptcy or does the fact he lives at home rent free, exclude him from qualifying? Tried doing the online means test, but the houshold size for figuring the Median Houshold income is confusing with him living with his parent. His parent are not on any of his debts. He is unable to hire an attorney due to finances at this time. And the collectors are hounding him day and night.

I recently went through Chapter 7 myself, so he came to me. Any advice others could offer would be greatly appreciated!

[starr4law]

I don't see why he would be precluded from filing. He would just simply pass the means test (he wouldn't list any dependents, just himself), since his income is so low. He would list $0.00 for the rent/utilities, and the rest of his "income" that he is getting from unemployment was be used for food, gas, etc on Schedules I/J. He would only need to complete the very beginning of the means test anyways. When computing, he needs to pretend like he isn't living with his parents, but rather in a "rental" in which is isn't paying rent. The fact that it is his parents is irrelevant.

[summerlander]

I am not 25...

But i am broke and living at home with dear ol (89) yr old Mom as this keeps her out of an expensive old folks home. Why is there concern over him living at his parents at the time of aquiring debt?

[DebtHater]

While I don't think your nephew would have a problem filing BK I do think it's the least of his problems.

In no specific order he needs to get and stay clean. If he exited rehab on his own then he should go back in. If he exited because he completed the program that excellent. Regardless of which, a strong family support group is important.

The second issue is this: Even if he was discharged tomorrow, he still doesn't have an income. Being unemployed for over a year is pushing the limit in my opinion. While he may not find something in his field, there are a lot of things a 25 should be able to do make money. Mowing lawns, delivering pizzas or newspapers, he's got to do something.

[Dougie011]

I have had to help my parents out because they are having financial troubles also. I have moved in with them while I try to get my finances in order to. I put down what I give them each month as room and board and that puts me at $0 DMI. My attorney said that I wont have a problem with the way I came to my figures. After I get my finances and help them get their finances under control, I can go back and be on my own. Is it embarrassing that I am at their house, yes, but I will be financially more stable and so will they after everything is finished with.

[Trish91171]

Thank You DebtHater,

He finished the rehab program, that was part of the problem, he was in 8 months. He is job hunting, but in the construction trade, and with the economy it is rough right now. With his unemployment running out, plus he lost health insurance and is having to pay for continue therapy out of pocket, along with perscriptions....it is day by day. He has some potential opportunities, but it could be several weeks out, and they are coming for the car any day now. In the mean time, he is picking up add jobs doing families lawns and honey do lists that have been on hold for various spouses of family members.......but he is so far out, that BK might give him the room to recover....I worried about the means test, just from the household size question in figuring median income.

[tay666]

My advise would be to hold off on filing BK until he has a job and a steady income.
Anything can happen between now, and whenever that occurs.
With no income, he will just rack up more debt, that he won't be able to get out of, if he already filed for BK.

Right now, there is nothing other than his car that his creditors can touch.
So he is basically collection proof.
He should bide his time, get his life in order and decide on his career path.
Once he has a steady job, there are ways to make the numbers work.
Legal ways, well within the rules.
But until there is actually a reason to believe he will be able to support himself, there is no good reason to pull the trigger on BK.
Because once you use that bullet, you can't reload again for a very long time.

[mrskal]

I have to agree with tay666 on that one. What are they gonna get out of him at this point anyway? If it the creditors hounding him, cant he do a cease and desist letter? Have any filed a judgement against him? He has no wages to garnish if he has no job.