Don't know where to begin....Want to File

[tiredofdebt]

Hey Everyone...I am new to the forum. I believe that I am ready to file Bankruptcy. I haven't made in leadway over the last 10 years. When i think im catching up on bills and how to straighten out my finances...something happens. Accident...birth of a new baby(3 months old).
I am in the state of VA.

In the last 6 calendar months...i made (net) $16,871.84
I am not married-
I have a 3 month old baby, no other adults in the home
no house...only apt.
would like to surrender my vehicle...mazda tribute bought at car america...high interest rate...car not even worth that much...$8990 left to pay-they sold a 2001 lemon pretty much
Debt personal related
I haven't met w/ any bankruptcy lawyers as of today

Confused

[JRScott]

Okay the following is a list of documents you need:

1. Tax papers for the last few years (2004, 2005, 2006). You'll want copies of state and federal tax returns.
2. Pay Stubs for the last 6 months
3. Bank Statements for the last 6 months
4. Statements of any Retirement accounts you own.
5. Copies of all credit card bills, car loans etc. (Just a neat stack of the ones from the last month probably sufficient)
6. Would probably need a copy of your lease to show rent cost, also copies of your utilities for expense reporting. You'll want to get estimates for what you reasonably spend on everything.
7. You are a 2 person household (you and baby). For the means test you'd take your income the last 6 months, double it and then compare it to your state's medium income. (A lawyer can help you with that during a free consultation)


Set up free consultations with 3-4 Bankruptcy attorneys in your area.

During the consultations mention you'd like to surrender the car.

Okay good luck

[Boscoe]

I don't think I agree JRScott. They would not take her income and double it...even if it were her husband/boyfriend. Income for means test is total actual verifiable household income. Baby has zero income.

The baby would count for household expenses for sure, though.

[BKOnce]

Her income X divided by 2 (X/2) ??

[Minnymouth]

I don't recall your income being doubled just because you have a baby...........???????? (Hope they don't double it for each kid, LOL)

Baby only counts as a household member. She has no income.... LOTS OF EXPENSES - but no income!

Income is what you yourself actually make.......

Now if you make child support off the baby - then that is extra income to be included in your income.

Okay, he is saying take her income for 6 months and double it giving you a total for her yearly income, and then comparing it to the state's medium income for the means test.

[tiredofdebt]

Thanks for all the info......that is just the net income i have made in the last 6 months...no child support....im reading and taking in all the info...but i think i got myself a little confused...i really need to find a good lawyer...and not just someone trying to make extra cash...and not sure if i would file ch 7 or ch 13

[kiddles]

You double her income for the last 6 months to get her YEARLY income. It is YEARLY income that is used for the means test, and the filer's YEARLY income is determined by taking total income for the past 6 months and doubling it.

It has nothing to do with the baby. He has enough to worry about learning to sit up.

[BKTango]

Jr is correct, take your net income from the last six months and double it and compare it to the table of median income for your state.

http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

Go there and compare your income to your states median for a two person household.

The median income for a 2 person household for Va is $58,815. You fall way below that so you would qualify for a chapter 7.

[JRScott]

As Kiddles and BK pointed out above I was determining their yearly income properly for the means test. Point 7 was about the means test.

I thought of something else though, you need to go to annualcreditreport.com and pull your credit reports for all three bureaus. That's something I left off above. You are allowed 1 free one per year.

[tiredofdebt]

I did get all 3 credit reports last week......credit score is just too embarrassing to share...

[Boscoe]

If your score is under 500, a bk filing will likely improve it, believe it or not.

Just make sure when you file to include ALL debts, even ones you may not be sure of. That way, they all will be discharged.

Regarding the car, it sounds like you are "upside down", meaning the car is worth less than what you owe on it. I would keep it, but do NOT sign any reaffirmation agreements. Just keep making those monthly payments.

I would also keep making your utility payments at your apartment, as it will be more costly to deal with your electric and gas bills if you stop paying these. Get them paid up in full before you file and do NOT include them in your bk filing. That way they will be unaffected by this whole process.

Is it fair to say that most of your debt is credit card related? Imagine it all wiped out and you owe none of it. With your income and the fact you have a baby, a chapter 7 is tailor-made for you.

check this out:

Day 1 - you file
Day 25-35 - you attend a 10 minute "341" meeting with the bk trustee and your lawyer. It won't be bad, trust me.
Day 90 - deadline for any creditors to object, unlikely to happen if you have been 100% honest

Within a week after this date, all debt is discharged/gone (except your car loan which you should keep, especially with a baby).

sound better than where you are today?

But, find a good lawyer. It is important.

[tiredofdebt]

Thank you guys so much...my credit score= 517 w/ equifax....my utilities are up to date.....finally....i just pretty much had to stop paying everything else.....in order to keep up....so you do suggest keeping the car although i have $8k left?....i am upside down....i know i wont be able to trade it in....and get another car....if so...i would have to still pay 6k....along w/ the new car note. i have 3 cc w/ $300 limits....i have 5 outstanding payday loans....and other bills....along w/ a threat from a womans insurance co. of $6000k...they say they are going to take me to court...no judgement yet....and my old apt complex...they have 3 different judgements.....someone broke into my apt....and i wanted to move right then and there....there were so many break ins going on.....they released me from my lease....but they still charged me the next months rent because they couldnt find anyone to rent it ....until the month after that....and then just other bills that have accumulated....

[tiredofdebt]

not only do i have utilities.....i also pay $140 every week for daycare...i just pray this trustee/lawyer doesnt give me a hard time.....i dont want to breakdown in his office

[Boscoe]

Just take your time and be sure to list out ALL of your debts, even if you are not 100% sure how much you owe each one.

Again, keep the car! They won't repo it if you are making all the payments on time and you need a car!

Pay the rent, car and utilities and you can let everything else go. Hire an attorney and forward any collection calls to them. Or you can screen all calls and not return any.

Sooner you get the attorney, sooner you file. Sooner you file, the sooner you get discharged. Sooner you discharge, the sooner your life is back in your hands!

Keep your head up..........

[lrprn]

Thanks for the good information, TOD!

Let's say you file now with your income for the last six months. Doubled that = $33,742. The median income for a VA for a one earner family like yours is $46,601 - you are well below that. Looks like there's a good chance Ch 7 is in your future!

Do go ahead and make appointments with 3-4 experienced bankruptcy lawyers in your area. Most give free initial consultations. With all the things JR told you to find, you'll be way ahead of the game.

Also start looking back over the last year or so to get a sense of your living expenses, especially with a new baby's considerable expenses added on recently. Here's a good source for making sure you capture all your expenses - http://www.ca-bankruptcy-attorneys.c...alculator.html

Have you made cash advances within the last 70 days or charged on your credit cards within the last 90 days? When are you hoping to file?

Keep asking questions - we'll help you sort things out as much as we can. Hang in there - relief is coming your way within 3-4 months of filing!