Tell me I can file for Chapter 7!

[alba216]

Hello I am new to this board, but have been thinking about declaring bankruptcy for some time now. I am married with two daughters, 11 months and six years old. I have quite a bit of debt, can I file for chapter 7, or will I have to file for 13? One thing about my monthly bill is that my car payment is in my moms name, but I make all the payments. Can I include that when I file even though she is the only person on the account.

Salary: $40000
Student Loan: $35000
Outstanding Debt (Credit Cards, past due Bills): $25000-$30000

Monthly Bills I do Pay for
Car Loan: $360
Insurance: $140
Student Loan: $290
Gas: $250
Phone $110
Food: $500
-------------
Total: $1650

[keepmine]

You don't have a legal obligation to repay the loan so, you have no reason to include it in the bk filing. Your mother is on the hook for the loan regardless which chapter you file.
You also won't be able to use the payment as an expense but, you would be able to use the IRS standards as they pretain to operating expenses.

Unless you have more expenses than you listed, you're in Chapter 13 land.
A lot depends on your husbands income and debts as well.

[Help!]

Hello I am new to this board, but have been thinking about declaring bankruptcy for some time now. I am married with two daughters, 11 months and six years old. I have quite a bit of debt, can I file for chapter 7, or will I have to file for 13? One thing about my monthly bill is that my car payment is in my moms name, but I make all the payments. Can I include that when I file even though she is the only person on the account.

Salary: $40000
Student Loan: $35000
Outstanding Debt (Credit Cards, past due Bills): $25000-$30000

Monthly Bills I do Pay for
Car Loan: $360
Insurance: $140
Student Loan: $290
Gas: $250
Phone $110
Food: $500
-------------
Total: $1650

Do you have a mortgage or rent payment?

[JRScott]

Okay we need a bit more information. You mentioned you are married, do you live in a community property estate? What is the income of your spouse?

Student Loans cannot be discharged in a bankruptcy, the threshhold for it is so high that even the disabled often fail to meet it.

[alba216]

Heres the other thing, due to bad credit and such my wife & I were unable to get a car loan. So the Car is in my moms name, can I include this as an expense still?
We currently live with my inlaws, we are trying to save some money up to either start repaying our debt if we cant file for chapter 7. We pay some rent to the inlaws, $300 a month, but this unreported.
My wife currently is unemployed, she is a stay at home moe at the moment.

[Help!]

For a family of 4, your income might be below the median for your state. It would definitely have been to your advantage to have some documented monthly housing payment as without this your Schedule J will show plenty of disposable income available for repayment to creditors. If the car loan is only in your mom's name, you can't include this as an expense. If she co-signed for you, you can use it as an expense but she will be on the hook for the loan. Your CC debt total is also relatively small, so that is making your situation look more like a 13 than a 7.