Going to FINALLY File. A few questions, concerns

[daveg38]

I've kicked around filing CH7 for about a year now, but now that I've got $47k in credit card debt and other debts on CL Verify, ChexSystems and whomever else, I think it's time to clean my slate.

A few concerns I have though.

1) I am self-employed. IF I submit my bank statements which essentially proves my income, I'd be disqualified by virtue of making more than Indiana state guidelines. Should I just say I'm self-employed and close my bank account, and have my payments sent to a prepaid card?

2) I want to reaffirm my VW auto loan which I've been paying faithfully for almost a year. Will that help my scores coming out of CH7?

3) I will have 5 accounts that are closed in good standing that will stay on my report through bankruptcy, helping my 4.1 year AAoA. Will that help me sustain a decent score?

I have all my paperwork pretty much in order, but haven't ordered my CL Verify, Teletrack or ChexSystems reports. I can pay the attorney and the filing fee in cash right away. I just need to figure out whether I make too much or if there's a way around this so I don't get looked at 'funny' by the trustee.

[Anonymous]

The concern that I have is that if you do what you say, would that be considered BK Fraud? That isn't something you want to explore. I would talk to your attorney. Just because the gross income may be too high, I'm sure there are expenses that would lower the net. Don't try to game the system. You might be able to, but if not, you could be in a load of trouble.

As far as the loan, if you reaffirm, make sure you include language in the reaffirmation agreement that states they will report to the CRAs. Without it, they are under no obligation to do so.

The closed accounts will continue to show after the BK is discharged and should help your AAoA. How much will depend on how many new accounts you open after your discharge.

Good luck to you.

[daveg38]

My intent is not to embark in nefarious BK filing. I cannot afford CH13 because although I do make just above the median for my state, it's gone nearly as soon as I get it.

I did a means test online (without tweaking or adding anything that wasn't necessary) and I BARELY passed with the IRS standardized deductions.

[Shooting-For-800]

I made way more than the standards for Chapter 7 and was still approved (even though two attorneys said no chance.)

I completed my entire Ch7 myself without an attorney.

Honesty goes a long way.  You get caught trying to trick the Trustee and you are in serious trouble.

They will review 1-5 years of your checking account statements.

You know if your heart if you can afford to pay your creditors or not.

Self Employeement is volitale.  Stress that.  If business is getting better, explain the expenses that will increase with it.

If business is steady or declining, explain that.

If you are married, make sure you include wife's bills, expenses, student loans, etc.  

He/She has the right to spend money on herself, her family, etc.

It is all about how much is left over each month after reasonable expenses.

If you have $500 or more left over each month, you will probably have to do a Ch 13.

Your credit will be fine 1 year after discharge.

[daveg38]

Well first, I am not nor would not attempt to trick anyone - I simply asked what I should do (having never done this).

I cannot complete a CH7 by myself - no patience with legalities and wouldn't know where to start.

The BK attorney here only needs 6 months of bank statements. I've only had my bank account for 2 years, which 13 months of that was spent in the low $200's or negative.

I know in my heart I cannot afford to pay these guys. I'm a freelancer so some months I make a few hundred, other months $5k or better. It averages out to about $4,415. With advertising, paying for necessary memberships, bills, car, kids, I have very little left over.

Business is not getting better. It's declined thus far in 2016.

Not married. Have a domestic partner who is 1 year clear of her CH7.

After the allowed deductions, I have about -$109 left over according to the means test.

[daveg38]

Well, the deed is done. Attorney said I qualify easily because I pay support and other business expenses we discussed.

Paid the fees today. Sign paperwork Monday. Reaffirmed car.

I just hope I remembered everyone.

The journey begins...

Question: What will happen to this $400 CL First Premier Bank card? Will it carry through CH7 or will they whack it? (has $0 balance, all fees paid)

[Anonymous]

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@daveg38 wrote:

Well, the deed is done. Attorney said I qualify easily because I pay support and other business expenses we discussed.

Paid the fees today. Sign paperwork Monday. Reaffirmed car.

I just hope I remembered everyone.

The journey begins...

Question: What will happen to this $400 CL First Premier Bank card? Will it carry through CH7 or will they whack it? (has $0 balance, all fees paid)

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Hi daveg38,

I just filed on 2/5 and my wife and I were well over the state median as well.  But with expenses etc...we passed the means test too!  From my reading on here, the First Premier Bank card, even though it's reporting a $0 balance, will likely be closed by the creditor once they receive word of your filing.  

[daveg38]

Glad to see you are starting your journey, too!

I really wasn't too concerned about the FPB. Just didn't plan on using it regardless if they took it from me, or not.

So, I will have the following positive accounts pull through:

• VW auto loan: closed, paid
• VW auto loan: open, never late (reaffirmed)
• FPB: close by me (3 years ago)
• Barclaycard - like $500 limit, closed, paid as agreed
• Auto loan (9 years old, paid as agreed, closed)

I'm IIB:

• Cap 1 (x2)
• Chase (x2)
• Walmart
• USAA
• BofA
• Barclay Ring
• NFCU (card and a -13.09 overdrawn share account, not sure how that happened either)
• Montgomery Ward
• QVC (Easy Pays. xmas presents. Lawyer said to include everyone I owe, so I did these guys too).
• 2 x old judgments (over 7 years old)
• Fingerhut
• An old Comcast bill
• An overdrawn PayPal account
• Stoneberry
• Regions Bank (checking and payday loan product they offered)
• $9000 in PayDay loans to sources I forgot (attorney said don't worry about getting CL Verify, ChexSystems, Teletrack, Certegy, EWS)
• A buddy of mine that I borrowed money from while I was in college
• $500 for an attorney that didn't do a thing but still claims I owe her $500 for a phone call.

So I will come out looking pretty good I think. At least I didn't do Discover, Citi, or Amex wrong...and I'll be able to get a credit card with my bank (eventually).

Signed up for PACER, too.

[Shooting-For-800]

You should be fine.

the means test is to stop abuse.

honest people in bad situations come out fine 99% of thr time.