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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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my wife and i need to file bankruptcy. we live in ky and are

Resolved Question:

my wife and i need to file bankruptcy. we live in ky and are both self-employed. due to the economy my route sales business dropped dramatically. i sold the route in january and have been doing delivery services but we can't catch up now. we want to keep the house and vehicles. what do i need to do to file?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 5 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

Do you have any equity in your home or vehicles?

Customer:

No, we just bought our house 4 years ago, before the real estate market took a nose dive. I wouldn't say that we are really upside down in the mortgage, other houses in our area have been selling for similar amounts as we paid 4 years ago.

Customer:

As for the vehicles, one is a 2005 that I believe we still owe 2 years on. The other, my work van, is a 2002 with 200,000 miles on it. No lien against it.

WALLSTREETESQ :

Then in most cases you can keep your home and vehicle, as their is limited if any equity in them, it will be up the trustee of the court to see if you can afford the payments, but in your case I do not see why, unless you have no income to pay the mortgage anymore

Customer:

The biggest issue is the fact that my income has dropped quite a bit. My gross income for 2008 was $98,000. My gross for 2009 was $67,000 and for 2010 it was $52,000. From 2009-2010 I ran up a lot of credit card debt trying to keep my business going. The business was a bread/snack route that sells to retail stores. The recession has really hit that market hard. I ran up the credit card debt by putting a lot of my business expenses on the cards and using the income from the business to live on. The route's overhead was around $43,000 per year, leaving me with a taxable income of $55,000 for 2008. I reduced the amount of overhead as much as possible over the 2009-2010 period, but it was still around $25,000 for 2010, leaving my taxable income at $27,000. As you can see, quite a bit of a loss of income.





4:00 PM



My current delivery business grosses $800+ per week, but due to the lower overhead, I clear around $600-$650, totally depending on fuel prices. We're just so far behind in everything now, there is no way we'll ever get ahead of the game. My wife does in-home daycare and makes around $17,000 a year doing it. That is mostly cleared income, as with the tax advantages of her business, she pays a little into social security and that's it. If it wasn't for all of the credit card debt, making the bills would be no problem. Our mortgage is just under $1200 a month, utilities run around $300, and the van payment is $287. I had thought of using the "Making Home Affordable" plan from the government tp get my mortgage payment lowered, but I wasn't sure if I could do that while declaring bankruptcy.



Expert:  WALLSTREETESQ replied 5 years ago.
WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

Do you have any equity in your home or vehicles?

<span class="JA_chatAuthorName"Customer:

No, we just bought our house 4 years ago, before the real estate market took a nose dive. I wouldn't say that we are really upside down in the mortgage, other houses in our area have been selling for similar amounts as we paid 4 years ago.

<span class="JA_chatAuthorName"Customer:

As for the vehicles, one is a 2005 that I believe we still owe 2 years on. The other, my work van, is a 2002 with 200,000 miles on it. No lien against it.

WALLSTREETESQ :

Then in most cases you can keep your home and vehicle, as their is limited if any equity in them, it will be up the trustee of the court to see if you can afford the payments, but in your case I do not see why, unless you have no income to pay the mortgage anymore

<span class="JA_chatAuthorName"Customer:

The biggest issue is the fact that my income has dropped quite a bit. My gross income for 2008 was $98,000. My gross for 2009 was $67,000 and for 2010 it was $52,000. From 2009-2010 I ran up a lot of credit card debt trying to keep my business going. The business was a bread/snack route that sells to retail stores. The recession has really hit that market hard. I ran up the credit card debt by putting a lot of my business expenses on the cards and using the income from the business to live on. The route's overhead was around $43,000 per year, leaving me with a taxable income of $55,000 for 2008. I reduced the amount of overhead as much as possible over the 2009-2010 period, but it was still around $25,000 for 2010, leaving my taxable income at $27,000. As you can see, quite a bit of a loss of income.





4:00 PM



My current delivery business grosses $800+ per week, but due to the lower overhead, I clear around $600-$650, totally depending on fuel prices. We're just so far behind in everything now, there is no way we'll ever get ahead of the game. My wife does in-home daycare and makes around $17,000 a year doing it. That is mostly cleared income, as with the tax advantages of her business, she pays a little into social security and that's it. If it wasn't for all of the credit card debt, making the bills would be no problem. Our mortgage is just under $1200 a month, utilities run around $300, and the van payment is $287. I had thought of using the "Making Home Affordable" plan from the government tp get my mortgage payment lowered, but I wasn't sure if I could do that while declaring bankruptcy.



(edited by MsChase-mod)
Expert:  WALLSTREETESQ replied 5 years ago.
You can apply for bankruptcy as you clearly would be able to clear your debt, in regards XXXXX XXXXX mortgage modification, Inform your bankruptcy trustee that you would like to modify your loan. He will either notify your lender of your request or give you the proper documentation to complete and submit yourself. In New York, this is a "notice/request for loss mitigation/mortgage loan modification," but the exact form can vary from state to state.

Your mortgage lender may not be willing to modify your loan if they know you are in bankruptcy and if that is the case, you can reaffirm the mortgage, meaning keep on paying the mortgage and when you are out of bankruptcy modify your loan, as you would no longer have any debts.
Customer: replied 5 years ago.
Is there a time period for what can be written off? For example, (rhetorically) anything that was charged in the last six months can still be declared?
Expert:  WALLSTREETESQ replied 5 years ago.
No, all debts that you accumulated prior to bankruptcy can be discharged, the only problem that may occurr, is if you incurred debt within a few months or days prior to bankruptcy, that can be fraud.
WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
Thanks for clearing that part up for me. What would you say the average length of time from beginning to end with the process is?
Expert:  WALLSTREETESQ replied 5 years ago.
For a typical chapter 7 bankruptcy expect 3-4 months
WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
Should I start the process now or wait until after the new year?
Expert:  WALLSTREETESQ replied 5 years ago.
I would file it now, as if you file it in start of the year, it is possible the trustee may take your tax refund,
WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
That was my thought as well. I'll find a local bankruptcy attorney and make an appointment. What information will they need?
Expert:  WALLSTREETESQ replied 5 years ago.
they will need your most recent tax return, and last six months paystubs, and a list of monthly expenses as well.
WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
Would a copy of my bank deposits work? I'm a 1099. Most of the payments I get aren't in payroll form.