Bankruptcy and employment?

[bingo]

I apologize but, your posts are just confusing.

As Art just said, the roommate rent checks aren't income to you since you pass that along to the LL. Your income is the $1900/month from your job.

Using the numbers you posted about your car and insurance and the $400/month rent-those items alone are about 60% of your takehome. That's high.And, you still haven't paid utilities, cable/internet, phone, food, auto maintenance and all the other things we spend money on.

The best way to find out if bk will really help is, just stop paying all those debts you wish to discharge and use that money to support yourself. If you still struggle, you have a problem bk can't fix.

[Wins the Battle]

I was wrong, the OP has gross rent of $1250. He's paid $960 total, by his roommates, and that makes his net rent $290, plus utilities, which it appears he himself pays.

 

Rather than call the money from the roommates "income", though, it would be better for purposes of filing Ch 7 to state that his rent is the above: $290 plus approximately $150 in utilities.

[despritfreya]

Folks, while this thread is all over the place, I need to correct what appears to be an incorrect assumption that the funds paid by a roommate are not included as “income” to a debtor. These funds are reported both on Form 22A and on Schedule I and is correspondingly offset by the total rent payment listed on Schedule J.

As highlighted by the US Trustee. . .

 

STATEMENT OF THE U.S. TRUSTEE PROGRAM’S POSITION ON LEGAL ISSUES ARISING UNDER THE CHAPTER 7 MEANS TEST

Following is a line-by-line summary of Form 22A and various recurring disposable income issues likely to arise in chapter 7 under the BAPCPA provisions of 11 U.S.C. § 707( . The summary gives the position of the United States Trustee Program (USTP) on these issues.

Line 8, Any amounts paid by another person. . . for the household expenses of the debtor. .

* Includes payments regardless of written agreement with contributor

* Includes payments from roommate

So, unless OP’s local UST office or specific case law in OP’s district holds otherwise, the rent he is collecting is included in his income for calculating Chapter 7 eligibility and for Schedule I.

Des.

[Clydesmom]

online loan 1: I owe 2680.

online loan 2: remaining balance is $1352.11

online loan 3: remaining balance 177.50

online loan 4: remaining balance $1124.15

online loan 5: remaining balance $1060.54

online loan 6:remaining balance approximately $930

 

Are these actual pay day loans or real loans?  Who is the lender?  I ask because if you default on actual payday loans the worst they will do is harass you by phone.  They rarely if ever sue and do not report to the credit bureaus.  The reason is they do NOT want to face any scrutiny and comply with collection laws.  They want the easy cash where you keep paying.

 

It MIGHT be possible to simply stop paying them with no consequence to your credit depending on who the lender is.

[ArtVandelay]

Folks, while this thread is all over the place, I need to correct what appears to be an incorrect assumption that the funds paid by a roommate are not included as “income” to a debtor. These funds are reported both on Form 22A and on Schedule I and is correspondingly offset by the total rent payment listed on Schedule J.

As highlighted by the US Trustee. . .

 

So, unless OP’s local UST office or specific case law in OP’s district holds otherwise, the rent he is collecting is included in his income for calculating Chapter 7 eligibility and for Schedule I.

Des.

Thanks for contributing this. This is the reason to have an attorney determine what needs to be included/excluded. This shouldn't be a problem with you filing, but it could be a problem for you later on if one of them moves out. 

 

 

Are these actual pay day loans or real loans?  Who is the lender?  I ask because if you default on actual payday loans the worst they will do is harass you by phone.  They rarely if ever sue and do not report to the credit bureaus.  The reason is they do NOT want to face any scrutiny and comply with collection laws.  They want the easy cash where you keep paying.

 

It MIGHT be possible to simply stop paying them with no consequence to your credit depending on who the lender is.

This is a definitely something to consider. I have no experience with or even know of anyone dealing with these type of loans. As @Clydesmom stated this may not even be a problem in the long run if you decide not to file BK. You always have the option of letting everything else go, excluding the car loan, and see what happens. Its not going to be easy, but you might be able to wait things out. That way you can keep the BK card to use if/when you need it later on. Not a suggestion one way or the other, but something else to think about before making your final decision. 

[chadinchas]

Folks, while this thread is all over the place, I need to correct what appears to be an incorrect assumption that the funds paid by a roommate are not included as “income” to a debtor. These funds are reported both on Form 22A and on Schedule I and is correspondingly offset by the total rent payment listed on Schedule J.

As highlighted by the US Trustee. . .

 

So, unless OP’s local UST office or specific case law in OP’s district holds otherwise, the rent he is collecting is included in his income for calculating Chapter 7 eligibility and for Schedule I.

Des.

 Thank you for this. This was my assumption as well. Whenever I went through the credit counseling program that you need to complete prior to filing BK, they did indeed include the rent payments to me from the roommate (at the time I only had one) as part of my income, so I was assuming that was the case. Also, it's just easier with my math skills.

 

Are these actual pay day loans or real loans?  Who is the lender?  I ask because if you default on actual payday loans the worst they will do is harass you by phone.  They rarely if ever sue and do not report to the credit bureaus.  The reason is they do NOT want to face any scrutiny and comply with collection laws.  They want the easy cash where you keep paying.

 

It MIGHT be possible to simply stop paying them with no consequence to your credit depending on who the lender is.

 Three of them are regular loans I did get online, which I make a monthly payment on - Cash Central, Lending Club, and Avant Credit. The other three are installment loans/payday loans, that take a little out of every paycheck.

 

Thanks for contributing this. This is the reason to have an attorney determine what needs to be included/excluded. This shouldn't be a problem with you filing, but it could be a problem for you later on if one of them moves out. 

 

 

This is a definitely something to consider. I have no experience with or even know of anyone dealing with these type of loans. As @Clydesmom stated this may not even be a problem in the long run if you decide not to file BK. You always have the option of letting everything else go, excluding the car loan, and see what happens. Its not going to be easy, but you might be able to wait things out. That way you can keep the BK card to use if/when you need it later on. Not a suggestion one way or the other, but something else to think about before making your final decision. 

 I'll keep that in mind. I am meeting with two different bankruptcy lawyers for free initial consultations this week to see what they say. Also, I do know one roommate is moving out in May of next year, and so I'll have time to find a replacement long before then. I live in a generally nice area, and the town I live in is somewhat of a college town and frequently has new people moving into town, so as long as the other roommate also gives me 30 days notice, I'll be able to find a new one fairly easily.