Filing Ch. 7 with "Special Circumstances"

[clevelandmom]

Hi BacktoSchool,

We pretty much did all the deductions that we are allowed from what I know. I can't be that specific on here, but is there anything you would think that most people don't think about? I am hoping to go through all of it again next week with the attorney, line by line, and see if we can't find something else that they haven't thought of. I keep thinking there must be SOMETHING. . .but I have to see the list in front of me. I am pretty sure that we will have to file with special circumstances though. I do realize it's a red flag to the UST, but at the same time we can prove that we are not abusing because our 6-month total is continuously diluting.

[2manybills]

Hi 2manybills: Husband has now been on unemployment for 2.5 months. I know we have 9 stubs because the first week was a "waiting" period. We are in Ohio. I would think our income is diluted enough by now, but apparently not. He made too much at the beginning of the year (there was a little overtime too, not much, but a little). The biggest problem we have is my pending garnishment. If it wasn't for that, we would have no problem waiting because we would probably pass the Means Test (we think) within the next month or 2.

You guys should be fine. Even if he made a lot of money at the beginning of the year, your attorney should only be doing a "6 month" look back, not an entire year. Ask your attorney about that, because I don't know why he's going back a full year. Also, I agree with BTS, I would not want to file "special circumstances". Do everything you can to make this work normally without raising any flags.

[clevelandmom]

Hi 2manybills: Husband has now been on unemployment for 2.5 months. I know we have 9 stubs because the first week was a "waiting" period. We are in Ohio. I would think our income is diluted enough by now, but apparently not. He made too much at the beginning of the year (there was a little overtime too, not much, but a little). The biggest problem we have is my pending garnishment. If it wasn't for that, we would have no problem waiting because we would probably pass the Means Test (we think) within the next month or 2.

[backtoschool]

If you post your expenses here, we might be able to find you some more legitimate expenses that would get you closer to passing the means test without the special circumstances. Special circumstances are a red flag for the US trustee, and it would be better to file without them if we can find a way to get you there.

[2manybills]

Clevelandmom - wine does get us through some of this, that's for sure! How long as your husband been on unemployment? In California, they technically only have you file 8 weeks worth of paystubs when you file, or in the case of being on unemployment, you file nothing, but a statement.

[clevelandmom]

Hi Everyone. Thank you for posting all of your stories about your own financial hell so that I don't feel alone. This Forum is probably cheaper than therapy.

Here's our scenario: Husband is in construction and has been riddled with a lot of lay off periods in the last couple of years. We stopped using AND paying credit cards in August of 2009. Last year we STUPIDLY attempted to use a Debt Consolidation Firm (NOTE: DO NOT EVER DO THIS!) - and after paying over $400 per month, we ended up getting sued by a credit card anyway this past July. Husband did work the beginning of this year, but was laid off again in mid-August. Probably will be for quite a while too. I work full time as a secretary.

The lovely law firm who is suing me (just me, this particular cc was in my name only) now has a judgment against me and just last week furnished me with garnishment papers. We have been waiting to file Ch. 7 for the last couple of months because we did not pass the means test. We are getting close, but are still $135 over. Our atty. today said that we will file our Ch. 7 next week (just in time to avoid being garnished) and that we will file it with "Special Circumstances" - stating that with my dh on unemployment AND me getting garnished will leave us destitute. The atty told us it will be an uphill battle but she does believe we can win this. She said that most likely the Trustee will file a Motion to Dismiss but we will come back with this argument and prove that there is no way we are "abusive." Has anyone had any similar circumstances? Does anyone have any advice? This waiting has been horrible, and I really think the only thing that has kept me sane is reading your stories. Oh, and the wine. Cheers. Thanks in advance for any advice and best of luck to all of us!!