Just a question

[JTL]

I've made several errors in my credit, do to going to a school i couldn't afford, Gambling when I couldn't afford to lose, trying to win, and because of it I was living off my credit cards.

Now 6 months ago I decided to relocate back to my home town, away from casino's as well as other temptations. I've moved back in with my parents.

Now in the means test, my income is about 10 thousand dollars below the state for a single person (Missouri) but with my relocation back into my parents home would I have to include in there income? I've been putting money to the side to move out from there house, because moving back in with them was only a temp fix situation.

Would I qualify for chapter 7 or am I going to have to move before filing.

[SinkingFast]

It would be easiest for you if you do move before filing.

We have an odd family. NOT. An elderly parent living with us. And 3 teenagers. The oldest is in college and working to pay for his tuition, books, and fees.

Our attny has decided it's best to include both Elderly Parent's SSI and Son's income with ours. Parent's SSI will automatically get deducted out, but son's income remains behind. Even tho son does not contribute to any of the household expenses. It takes every penny he makes to pay his way thru college.

If you move out on your own, you'll save yourself all that trouble of having to explain your situation to the Court. Plus, if you're paying your folks rent that they don't claim as income, you could be saving them some grief too.

Take a short term lease so you can establish yourself independently for BK as far as expenses go. If money get's tight, you're not tied to a long term lease. Then you can always move back home after you file.

[JTL]

Follow Up question

If I were to move out in the next month or so, how long would I have to be in residence before I would be considered independent again?

[keepmine]

I'd give it a few months to show rent and utility payments.
A good question to ask your lawyer.

[aa06a47]

Your parents income should NOT be a factor. As long as they are not supporting you, and your not claimed on there income tax, this should not be an issue.

[keepmine]

I dunno AA. He has two problems. One, the definition of HH income and two, no expenses of his own which will create a lot of disposable income.

[SinkingFast]

You'll need to show 2-3 months of rent and utilities payments, so I'd give it at least that long.

[aa06a47]

I dunno AA. He has two problems. One, the definition of HH income and two, no expenses of his own which will create a lot of disposable income.

I agree that he has no expenses of his own which will create disposable income. He needs to create those expenses through paying rent, utilities, car payment. There is a strong possibility that he would be forced into a chapter 13 unless he has those expenses.

I would disagree that his parents income would be considered part of his household income, unless they are claiming him as a dependent. If this person had just moved into a friends home, would you think the friends income would be added in as household income? Maybe there is something legal here, I just don't know.

I think his penalty here is that if he doesn't pay rent, doesn't pay food, he has no deduction creating disposible income..... My advice is if he has a job, he rents a place and gets back on his own. That clears this muddy water.

[SinkingFast]

I agree, Aa.

I didn't think his parents' income would be added to his. I was thinking along the same lines as you. Basically no expenses creating disposable income.

Rent/mortgage, utilities, and such are in his parents' name. If JTL pays parents, he/she would have to get those payments documented.

Also, if JTL pays parents some for rent and a share of the utilities, and they do not claim the payments as income, it could create a sticky situation for the parents as well.

Just cleaner and neater all the way around if JTL takes an apartment on his/her own, establishes a set of bills and expenses for themself. Easier for everyone that way.

If JTL needs to save money, he/she can just take a short term lease and move back home after filing BK.

[JTL]

Back again, still things have not gotten better.

I moved out and started renting from a friend, so a lease was not required and I have reciepts for rent, as for utilities they are in his name, but I do have transactions (pay online reciepts) that show the transfer from my account to the City .

So I think I'm good to go, I meet with a lawyer on Nov 7th hopefully this will be the one, (he was recommended) and his retainer is only $100 dollars.

Wish me luck.