Pro Se Bankruptcy Questions

[Anonymous]

Hello,

I am filing chapter 7 pro se by the end of this week. I have about 20K in credit card debt and medical debt on a salary of 40K annually. I don't own a home or any investments, etc. My earnings vs. expenses are very black and white. Just finishing up the paperwork and have a very unexpected dilemma...

I am being heavily recruited by another company and very well could have a job offer by the end of the week. The move would be somewhat lateral, with possibly a tiny pay increase, but nothing substantial. The career change is more about long-term growth and a shorter commute. Should I take the new position, when I leave, I will get a substantial check from the old job for accrued vacation leave/sick leave. Probably somewhere in the neighborhood of 6K. Should I include this as a potential income change? Can I pay off the remainder of my car loan with it (that is the only item I am going to reaffirm)...that is about 4K? Anyone have a similar experience to this?

Thank you for any guidance or input.

[pizza1]

Hi OP, welcome to the boards!

Im posting on here hoping that it sparks some attention so you hopefully get some advice from folks who have experience filing Pro Se.

Im sorry I don't know much about this type of filing, but if you file officially before you accept the new position, and the change in income isn't that significant, and its better for you all around in commute etc, do it.

File first before you make accept the new position, because the new slightly higher pay scale could make or break you getting the means test, and the trustee will want to see you prior paychecks prior to filing.

Now with the lump sum you'll get from your old position, that could be included as income, and again, the trustee will also see your bank accounts and paychecks for the last 6-12 months. If he/she sees a nice bonus check, and you paid off your car with it prior to filing, they can ask for that money back and disperse it between all your creditors.

I had a similar thing happen to me, but I didn't file Pro Se either. I inherited a very small amount of money from a relative upon death, and put it towards my car. When I went to file, and my attorney was looking at everything, and saw this, he suggested that I wait one year from getting the money to file, due to the trustee could demand it back.

So, in my case, I had to wait a full year again to file, and when I did the trustee still brought it up, but since it had been a year prior, he let it go. Just my thought on the situation.

This is why I never suggest Pro Se to anyone. There are all kinds of snags that can come up. BK is so complex, I always suggest using a attorney. Sure the fee is $1-$2k depending on where you live, but your attorney knows the laws, and the trustees, and can advise way better on situations.

See if you get anyone else to comment about Pro Se, but my suggestion is find an attorney to handle it for you, or at least you could make an appt with a BK attorney, and pay him for a few hours to get their advice. Wish you luck!!

[Anonymous]

Making preferential payments to creditors and transfers to family prior to fililng bankruptcy is generally a bad idea.

What's a preferential payment? Taking a significant amount of money (usually over $600 within 90 days of filing) and paying one creditor vs. all creditors equally.

I'm curious -- do you know how much equity you are able to exempt in your state? Aside from having a trustee try to unwind your transfer, you may also have an issue with "creating" a non-exempt asset (the equity that will be created after the payment).

In addition to these concerns -- I question if it makes sense to file bankruptcy over $20k. Have you explored all your options? Credit counseling? Debt settlement? Using the $6,000 payout toward your debt?

[Anonymous]

Yes, I have considered all my options. I am still under a doctor's care, so that is where my focus is. Can I put the 6k towards that?

My state has a 4k wild card exemption for personal property.

I appreciate any and all input.