Disposable income is negative

[lillaimof2kids]

What happens if our disposable income is around -$1300? Right now I'm the only one bringing in an income ($1400/mo.). DH is looking for a job (he lost the business 2 months ago). I think/hope he's going to get the one he just interviewed for on Thursday. Once he gets a job, we'll be in the green again, but of course we have no idea how much he will be making.

Our 341 isn't scheduled yet, but what if DH still hasn't found a job by then? Could the trustees make us get rid of our home? I sure hope not since our mortgage is cheaper than rent would be. What about health insurance? Can they make you drop that since we have an individual plan and it's not thru my employment? (I hope not, 1 prescription I'm on will cost $300/mo. That's just 1 med. Between Dr. visits and meds each month, it would definately be higher than my monthly insurance payment.)

[mcdulph]

Hi--if you can pay your mortgage, you should probably be ok. Are you filing Chapter 7 or Chapter 13--it might make a difference.

If you had a whole lot of nonexempt equity in the house and were filing Chapter 7, you could possibly lose the house. But I don't think that happens very often.

Also, you are allowed to have health insurance and life insurance, at least in a Chapter 13.

(BTW The trustee can't actually "make" you do anything; (s)he can only ask the judge to order you to do something.)

Hope that helps, and good luck to you and your hubby.

[keepmine]

The question I'd have, is how are you supporting yourself on $1400/month and $2700 in expenses.

[coma]

I agree with keepmine. I do not mean any offense, but BK doesn't help, even with your debt discharged, you are still negative. you've got to either reduce expenses or do something to bring in more money.

[lillaimof2kids]

I forgot to mention we're filing ch7. We got a decent tax return ($7000) and sold a piece of our equipment from the business and made a little over $7000. Now before we got that money, I was behind on everything. But somehow I was always able to keep up on my house payment. My mom has let me borrow a bit of money here and there. Right now I'm current on the regular bills.

I honestly have no idea how we did not end up on the street before our tax return came in. I've begged our welfare dept. for help, they offered me $26 in food stamps per month. I qualified for the medical card but I wasn't able to drop our current insurance (how does that help my situation). I wanted to spit in their face. I took 2 hours off work to listen to this and walk away with nothing. No I didn't take their food stamps.

Our equity in our home is within the range to be able to file ch7...thank goodness.

I've reduced as many expenses as I possibly can. We have no landline phone, just my work cell phone. I dropped our cable to min. package with internet (my lifeline). We personally don't have a lot of debt, just mortgage, car, JCP, Kohls and equity line. The business had a LOT of debt, around $185,000. So that'll all be gone once this is all over with. We quit paying on CCs in July and quit paying on the loans in Dec., so everythings been repod already.

We have another appt. with our atty. Friday. I'm so scared about our health insurance. It's one of those evils, can't afford to keep it, but can't afford to get rid of it. If DH could just get this job we would have insurance in 60-90 thru them, plus another income!

Thanks for taking the time to help.

[keepmine]

Insurance is a legimate expense.
Have you stopped paying all debts you wish to discharge?

[lillaimof2kids]

Oh yeah. I'm only paying what I have to and what I need to keep, like my house.

[Cali]

So will you be able to make it once everything is discharged?

[lillaimof2kids]

No matter what I will be in the negative until DH gets a job. Is there anyway to survive on $1400/mo after taxes with a 12yr. old boy who eats as much as a grown man and a 15yr. old girl? I haven't figured it out yet. So DH best be busting his butt to get a job...quick!

[lillaimof2kids]

DH has been working for the last month!! He's finally bringing home a decent paycheck. We're still below the median, so no big deal there. So we were finally able to take our final paper work to our attorney. What a relief. Looks like things are going to start looking up for now.

[keepmine]

Good job on being patient and filing the bk once your finances stabilzed.

[justplaintired]

Good luck and congrats on DH getting a job.

[lillaimof2kids]

Thanks so much! Looking at the economy and what's going on, we're counting our blessings he was able to find a job! He doesn't like it much, he has to travel and is gone for 3-5 days at a time. But we'll survive! At least I can pay my bills now in a timely manor!