Questions before I file

[struggling]

I'm planning on seeing an attorney in the next couple weeks to file BK. I'm assuming that I'll qualify for a ch.7 as I only make $17k/year (I'm a flight attendant, and it's difficult to supplement my income with a second job). I will be one month behind on my car payment. Will they take my car because I'm not current? Or will I have time to catch up with my payments during the process?

Also, I receive a per diem of $1.65/hour during my layovers. Would this be included in my income?

Oh, one more question (I promise!)....I have a judgement and they've already begun garnishing my bank account. It was one "non-periodic" judgement (not sure what that means) so far. How soon, if at all, after I file will the garnishments stop?

I truly appreciate your help.

[lrprn]

I'm planning on seeing an attorney in the next couple weeks to file BK. I'm assuming that I'll qualify for a ch.7 as I only make $17k/year (I'm a flight attendant, and it's difficult to supplement my income with a second job). I will be one month behind on my car payment. Will they take my car because I'm not current? Or will I have time to catch up with my payments during the process?

If you file Ch 7, then to keep an asset like your car, the payments must be up to date when you file. You can't catch up on payments in Ch 7 like you can in Ch 13.

Also, I receive a per diem of $1.65/hour during my layovers. Would this be included in my income?

If the $1.65/hr per diem counts as wages when figuring your income taxes every year, then yes, it does count as income.

I have a judgement and they've already begun garnishing my bank account. It was one "non-periodic" judgement (not sure what that means) so far. How soon, if at all, after I file will the garnishments stop?

According to Cathy Moran, a well-respected bk lawyer from California, "Bankruptcy will terminate garnishments as to wages earned after the filing of the bankruptcy. Wages earned before the filing may be recoverable from the sheriff or the creditor if those wages would otherwise have been exempt. ." See http://www.moranlaw.net/lawsuits.htm. I don't know how long it will take the garnishment to stop - that's a great question to ask a bk lawyer who is familiar with the bk court's practices in your local area.

[jal1129]

Check with an attorney to be sure but your layover per diem should'nt be counted as income.

edited to add: your gross income is what should count as income, not reimbursements (which is basically what a layover per diem is).

[lrprn]

I also get per diem reimbursement for my job (I travel to work with out-of-town clients every week for long stretches of time) and whether my per diem counts as income or not is tricky. Depending on the amount of time an employee spends at each remote work location and the state each location is in, under certain circumstances per diem reimbursements can become taxable income. See http://216.239.51.104/search?q=cache...lnk&cd=1&gl=us for the details on how the IRS interprets this situation.

Chances are very good that Struggling's per diem is not taxable,because I doubt he/she spent more than the maximum number of days allowed at one location over the year. However, unless we know more about Struggling's travel patterns, we can't say 100% that the per diem isn't income.

[jal1129]

uh....never said 100% it's not income. I also recieve per diem for out of town work. I said "check with your attorney, it should'nt be", if for some reason that was interpreted as saying 100% it's not income, my bad.