Chapter 7 filing procedure

[ppentz]

I am new to this site and I am in the process of filing for Chapt. 7. Currently making payments to the attorney until he has the required $1500. I was just wondering though how my chances would be given the following information: My income is approx. $4,000 per month. It can very slightly with scant OT. I now live in a lower end motel for $930/ mo. My phone is $160/mo. and SR22 car insurance bond is $150/mo. I no longer have a vehicle due to an at fault accident which I had let my car insurance lapse by 2wks. This happened around last Thanksgiving. As a result I have an outstanding car loan of $14,000 and the damage to property (pole building) has now somehow reached $31,000. I have some related and unrelated medical bills that total around $3,000 and a couple of payday loans that tally around $3,000. There is about to be a court order on the car loan. And I am sure the property damages are headed that way. All of this is mostly due to irresponsible living and going out partying and chasing girls. I have squandered quite a bit of money. I have changed my lifestyle now but just can't handle all this debt at this point ( 59yrs. old). My food and personal necessities seem to be around $1,000/mo. because I have to eat prepared food and do laundry and everything else outside of my living quarters. No stove here at motel. It seems I should have $$ left over but live paycheck to paycheck. My take home is 760/wk, so monthly would be around $3,000. I have no assets really of any value. My payments toward lawyer is around $300 to $400/mo. til I can file. Was just wondering what my "chances" are of getting a discharge. I know there are a lot of variables but with the irresponsible living and spending was wondering what may/could happen. Thankyou.

[justbroke]

Welcome to BKForum!

Generally, you should be able to file and receive a Chapter 7 discharge simply because you are under the median. Normal "allowed" expenses for food, clothing, laundry, and other personal items is about $808/month. Hang in there. I don't see any real issues.


See National Standards and other Allowances (UST) at https://www.justice.gov/ust/means-testing

[ppentz]

Is the median your wages before or after taxes and then I saw somewhere about disposable income. I saw that for Ohio the median income was $43,000 for Chapt 7. I don't know if that is before or after taxes and then something about disposable income so hoping someone might be able to clear that up. Sometimes the attorney is slow to respond

[justbroke]

Median income is before taxes. Be careful of what you read on the Internet or get from an unreliable source. The median income for Ohio, for a single person filing, is $61,617 as of 6/16/2024 (Source: UST Means Testing: Census Bureau Median Family Income by Family Size).

Your income of $4,000/month is well below the median for Ohio (as of 6/16/2024). Even if you were to earn more than the median monthly amount of $5,134.75, you could still qualify for a Chapter 7. Being over-the-median requires you to pass the Means Test. You are nowhere near being over-the-median.

[ppentz]

Thankyou very much, I appreciate your knowledgeable response

[BernadetteRe]

Is the median your wages before or after taxes and then I saw somewhere about disposable income. I saw that for Ohio the median income was $43,000 for Chapt 7. I don't know if that is before or after taxes and then something about disposable income so hoping someone might be able to clear that up. Sometimes the attorney is slow to respond

thanks for the information!

[BernadetteRe]

This breakdown of the Chapter 7 filing steps is really helpful — clear, practical advice makes a stressful process feel a bit more manageable. It’s great to see people sharing real experience and tips here rather than just legal jargon. And when you’re trying to handle the unexpected, even finding niche tools like XXXX fax services near me in a positive way can help you track down hard-to-find resources or info you didn’t think would be useful. Thanks for keeping the discussion detailed and supportive!

[justbroke]

BernadetteRe please revisit forum rules on posting advertising links and opening old threads adding nothing substantial to the conversation.

[AbeerSeo]

Hi, it sounds like you’re going through a tough financial period, and it’s good that you’re taking steps to address it. From what you described:

• Chapter 7 generally allows for discharge of unsecured debts like payday loans, medical bills, and old car loans if there are no significant assets.
• Courts look at your income, expenses, and assets, as well as any evidence of fraud or intentional abuse. From your info, it seems your debts may qualify for discharge, but every case is unique.
• Changing your lifestyle and having minimal assets works in your favor. The focus is mainly on your ability to repay versus what you owe.

If you need short-term options to cover any immediate bills before filing, some people check out lenders like LendUp that consider applicants with low credit scores: [link removed by moderator].

Also, keep in mind that property damage claims may be treated differently depending on the circumstances. Your attorney is the best person to advise you about these specifics.

Good luck with your filing, and it’s great that you’re preparing and making payments toward your attorney — it makes the process smoother.

[despritfreya]

justbroke maybe don't pull Abeer's post (but for deactivating the link) so that folks can read and relate it to the following:

LendUp Loans faced multiple CFPB enforcement actions for deceptive marketing, violating a 2016 consent order, and illegal lending practices, resulting in a ban on new loans and $40 million in consumer relief. Complaints focused on misleading "LendUp Ladder" promises (lower rates/larger loans) that were not delivered, unfair loan terms, and, in some cases, violations of the Military Lending Act.

Key Details on LendUp Complaints and Legal Action:

• Deceptive Marketing: The CFPB alleged that LendUp misled consumers regarding the benefits of its "LendUp Ladder," which was marketed as a way to access better loan terms, but often resulted in similar or higher interest rates.
• Failed to Provide Proper Notices: LendUp violated fair lending laws by failing to provide timely and accurate "adverse-action" notices (reasons for denial) to over 7,400 applicants.
• Military Lending Act (MLA) Violations: Between 2016 and 2020, LendUp made over 4,000 prohibited loans to over 1,200 active-duty servicemembers and their dependents, violating the 36% annual percentage rate (APR) cap.
• Legal Consequences: Due to these actions, the CFPB ordered a ban on LendUp making new loans, prohibited them from selling consumer information, and forced them to pay millions in restitution.

And, to the extent CFPB is still operating:

https://www.consumerfinance.gov/enforcement/payments-harmed-consumers/payments-by-case/lendup/

One last item. If you do go to the Lendup web site you will find this comment which tells me it now operates "offshore" leading to more proof that it is a scam:

Headquarters:

We cannot accept customers or conduct any transactions from this location.

LendUp
1750 Broadway, Suite 300
Oakland, CA 94612