Can / Should I do it myself?

[dormonid]

What is the name of your state?
Los Angeles, CA

I've been thinking about filling my own Chapter 7 and would like some advice.

My case is not complicated at all: about 40k in debt (credit cards and medical bills only).
I am separated from my spouse and all the debts are under my name.
I don't own anything, but a car that I am still making payments on (and will continue).
I make about 2,400 a monthly and have very little left after I pay my bills.

I am considering buying the Nolo book, since I've heard only good thinks about it and do it myself.

Any thoughts?

M.

 

[azgrandpa]

Uncomplicated BK? Where?!

I don't think any of the legal minds on this forum would disagree with this statement! No such thing as an uncomplicated BK!

First of all, you live in a community property state. That alone complicates matters 10 fold! Secondly, you are separated, another possible complication!

Yes, the Nolo book on filing Ch.7, is an excellent source of info. Whether doing it yourself or with an attorney; it never hurts to be educated on the matter.

Also, I found a source for software that has all the forms required for the bankruptcy, including the local forms required by California. It allows you to fill in all the blanks on your computer and edit them if needed. You download the entire program for free, but only allows you to fill out the Petition form until you pay them a small fee to unlock the full features of the program.

This is the link: http://www.form7.com

Also, your spouse may not be immune to this proceedings! Read EVERY reply to the following thread! Opinions switch back and forth about whether your creditors will go after your spouse after the discharge! Here's how to find the thread: do a search on "consumer bankruptcy" using this search term, "community debts", select the post, "best pre-BK strategy", posted by "Caligurl".

Hope this helps a little.

 

[dormonid]

So I get a divorce b4 filling?

I am scared they will sue me and garnish my wages...

 

[JETX]

My first thought is that making $2400 per month will likely exclude you from a chapter 7 and force you into a chapter 13.

 

[azgrandpa]

Divorce won't protect your spouse one little bit from the creditors. They will still come after your spouse, even if you agree to take responsibility for the debts in the divorce agreement!

The question still seems to be unanswered as to whether the federal bankruptcy laws protect the non-filing spouse in a community property state, like California. You might want to spend a couple bucks to ask a reputable attorney for an opinion on that point of law.

As for JETX's response about being forced into a ch13; I've never heard that claim in my year of studying bankruptcies and as of yet; have never seen it in the bankruptcy statutes!

 

[JETX]

"As for JETX's response about being forced into a ch13; I've never heard that claim in my year of studying bankruptcies and as of yet; have never seen it in the bankruptcy statutes!"
*** Then I suggest you 'restudy' the bankruptcy code.
Simply, the courts will not agree to a chapter 7 (liquidation) filing if the petitioner has sufficient income to provide for payment of at least some of the creditor claims.

The writer said "I make about 2,400 a monthly and have very little left after I pay my bills". I don't see any way that the court would allow a chapter 7 and discharge ALL of those debts and leave that much income intact.

 

[dormonid]

When I say I have little money left I mean that I pay my living expenses only. I am not making payments on my cards or medical bills. If I do that I can not eat.
My husband doesn't have any assets. He still making payments on an used car and that's about it.
I know I want to file for ch 7, but I am confused about how I should do that.
I saw 2 bk attorneys that told me I could file for ch 7 without getting my husband involved in it and that I would have no problems making the money that I make...
But I am doing my own research and it doesn't seem that simple...

 

[bigun]

well, you live in one of the most expensive areas of the country and $2400/month in LA won't go as far as $2400 in other areas of the country.
Take a hard look at your expenses. Here's a sample calculator.
http://www.ca-bankruptcy-attorneys.com/calculators/expense_calculator.html

Since it sounds like your ex is on his own, I'd say get the nolo book and give it a shot. What do you have left over after paying all living expenses.

 

[dormonid]

I have "left" about $200, that is not at all true because I send $150 to my mother abroad every month, but I was told by one of the attorneys that I could not declare this as an expense.

I don't know why because if I don't send her money she will starve to death...

 

[azgrandpa]

Did this $200 "leftover" funds come from using the monthly expense form website that Bigun suggested? If not, go figure your expenses on it. Most people don't think of all the expenses they actually have for the month! You'll probably find that your expenses are greater than your income! That's why we can't make our payments, or in other words, we're bankrupt!!

As for the payment to your mother; the official expense form, (schedule J), has a place to declare payments to additional dependants for support, that are not living with you. So I would suspect that it is allowed as an expense. However, you can expect to be questioned about it by the trustee.

Being that the cost of living is so high in California; I don't think you have anything to be concerned about as far as the amount of income that you have.

 

[dormonid]

Attn: azgrandpa

Thanks so much for all your help!

Yes, I did use that website to calculate my expenses (great help!)

I'll buy Nolo's book tomorrow and let's see how it goes from there...

Thanks again,

M