New to the Forum; Considering Filing

[Venge97RI]

Hi All -
Well i have found this forum and have found a lot of great info , Basically I'm considering filing a ch 7 , and about a year ago spoke to a lawyer about it , he advised me that i would be able to file , however i do need to make some income "disappear" as i live at my parents and don't currently pay them any rent etc... At that point in time , i was not able to come up with the $1300 he wanted to file for me , and decided to let it rest for now..

Here i am about a year and a half later , looking into it again , i am working. but don't have much money left over at the end of the month. I got a consult over the phone from another lawyer , and he advised i could file , but i should wait six months , and get my own place , showing that i pay rent. Realistically thats not feasible. based on what i have left over per month ( i don't want to leave myself with absolutely no cushion in case of a car breakdown or Medical expense) .

I took the means test online at the nolo site. and based on my income , I'm below the median for RI , but i fail the means test by approx 30 dollars. I have no Assets , I have a vehicle that my father has under his name , and i make the payment , also have bills such as cell phone, car insurance , and just the usual gas etc to get to and from work.. at the end of the month , i should have about 800 left over , if nothing comes up...

Just wondering based on peoples experiences here , will i be able to file a Ch 7 ( open to the idea of a 13 as well, but don't know as much about it) . Also i would consider filing myself , just because coming up with the 1500-2000 that i have been quoted has been difficult , unless i could get a monthly payment plan. What I'm really trying to avoid is being sued by a creditor and getting my wages garnished , making what little i make , even less.

Thanks for any and all advice.

[Cavedog]

Hi Venge,

What type of debt do you have? Filing yourself is an option, but if you are able to save $800 a month, then in just two months you could pay for that attorney. If you have to wait 6 months anyways from the advice of your phone consult, the money spent on an attorney might be the best money you ever spent.

[debee]

I took the means test online at the nolo site. and based on my income , I'm below the median for RI , but i fail the means test by approx 30 dollars.

If you make less than the median, you don't take the means test. It's an automatic pass.

[Venge97RI]

Hi Cavedog , the Debt is mostly Credit Card and Medical , I'm not sure if we are allowed to put amounts or anything on these forums , but its in the 35 - 50 K range.

Debee - thats what i thought as well , however one of the lawyers that i consulted with said , the trustee will still be looking to see where the money is going , as i technically dont have rent/util's/etc to pay. making them feel i could possibly pay into a ch 13 plan.

[Cavedog]

Hiya Venge,

Sure you can put stuff like 10K citibank, 15 K chase, 185K mortgage with Bank of America. However don't put stuff like names of lawyers or trustees in a general post. Save that for PM's. Welcome to the Forum.

[debee]

Debee - thats what i thought as well , however one of the lawyers that i consulted with said , the trustee will still be looking to see where the money is going , as i technically dont have rent/util's/etc to pay. making them feel i could possibly pay into a ch 13 plan.

Right. What your lawyer was talking about is schedule I/J. Everyone has to fill in their income and expenses. If your disposable monthly income (dmi) is in the range of $117-$195, then you may have enough to fund a chapter 13 plan and repay your creditors.

Before filing it's always a good idea to take a good look at your expenses. You can fill the forms out yourself and see whether or not you qualify for a chapter 7 before you ever file. The forms are available here. You are looking for B6I&J.

You can also post your numbers (expenses) on a thread and members will help out.

[daylate]

and remember when filling out Schedule J it is your actual expenses going forward after bankruptcy. So if you are not paying your debt, you should be able to pay rent or buy a car or both to get your projected expenses to where your Chapter 7 will fly. Good luck.

[Venge97RI]

Thanks for the info everyone.. i guess the point im getting at , is without me either getting my own place , or being able to show that I'm paying a substantial percent of my currently " disposable" income toward rent a ch 7 most likely would not happen , as after bills , and transportation expenses, i end up with 150-200 a week that i am trying to save , or use for any emergencies that may arise. I'm just having an issue with having to cut it so close, any small issue that may come up ( car breakdown, medical issue) would derail my currently semi-balanced budget.

One option that i do have available to me is to move in with my Girlfriend , but she lives in MA , and i have lived in RI for the past 10+ years, and plan to file in RI. I would be able to pay a Lesser amount in Rent and Util's and keep a smaller cushion of extra money for Lawyer fee's or unexpected expenses. Would living in MA and Filing in RI cause a substantial issue ?

[BKAttyMI]

In a case like this, having an experienced bankruptcy attorney on hand would be very valuable. He or she should be the one giving you advice on what chapter to file. If you are moving out of state, you definitely need to contact an attorney. Most will set up a payment plan for a Chapter 7, allowing you to pay every month on your case, then filing once you are paid off. If a Chapter 13 is your only option, you can usually roll most of the attorney fees into the case itself and just pay the court filing fees and expenses up front, but that depends on the attorney.

[debee]

Stop paying credit card bills. Get apartment. Pay rent. File Chapter 7. Bills disappear forever. Free to move back in with parents or girlfriend or get VW van and road map.