Has Anyone Here Been Through Chapter 7 Bankruptcy?

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lonegreywolf20

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I talked with a credit counselor yesterday and they couldn’t recommend a debt management plan because I don’t make enough to cover even my basic expenses let alone the debt that I have accrued trying to cover my basic expenses. I would need to come up with an extra $600 roughly in order to come in under a debt management plan. I am already working full time with one of the days being a 24 hour shift. I get my kids on the weekends, so that leaves me with two days for another job, which wouldn’t get me close to the $600 needed.

I only bring home $408 a check after health insurance at $584 a month which is court ordered for me to have for my kids and $200 for child support. I get paid every two weeks. So, $816 a month isn’t cutting it. The counselor recommended bankruptcy as I am in the hole each month by $600.

Has anyone here been through it? What can I expect during the process besides my credit tanking?
 
We cannot give legal advice here. You are supplementing income with credit and that cannot continue indefinitely. You can’t cover your basic expenses and even with concessions from creditors can’t achieve a workout plan. That is where legal counsel comes in.

Please look up pro bono legal aid in your area and talk to a lawyer about bankruptcy and about your current court orders related to your children, perhaps seeking to get some of the financial burden changed in light of your salary.

Bankruptcy won’t solve your issue if you don’t make other changes either increasing income, decreasing expenses, or both.

You should talk to a career counselor as well, perhaps at the local junior college.

You are going to have a to make serious changes in your life or you will be right back in the financial hole.
 
I plan on doing so.

I’ll be going back to school for surgical tech come July 2020. That’ll be a higher income. After the bankruptcy I was going to petition the court to have the health insurance requirement dropped.

I have plans in mind to keep this from happening again. I definitely won’t get into the credit card trap again.

I also wasn’t looking for legal advice, was just looking to see who has gone through it and see what I can expect. I’m waiting to talk to a lawyer tomorrow as I’m at work now till 6 am tomorrow.
 
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In addition to talking to a lawyer, maybe go to your local St Vincent society if you have one? It sounds like part of the problem is that you’re not bringing in enough money to cover unavoidable expenses. Unfortunately there are time when you can’t get more money or reduce expenses enough (I’ve been there). Someone there can likely help you find any assistance you can qualify for.
 
For after the bankruptcy?

Nothing I can do right now according to the credit counselor, short of winning the lottery or suddenly getting a job making much much more than I make now, will help other than the bankruptcy.
 
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Yes. Before. Dave not only deals with this and has personally gone through it, but his moral perspective is also excellent.
 
Agreed, the OP should also talk to county services to see what assistance he can qualify for— SNAP food assistance, utility assistance, HUD subsidies for housing, etc.
 
I have done that and because my gross is too high I don’t qualify for anything. I bring home about 40% of what I make.

They only care about the gross income. I also live in Florida and they didn’t extend Medicaid here. I make too much for that and Snap.
 
I’ll be honest, I found his stuff pretty unhelpful when dealing with genuine poverty. His target audience is really those who are going into debt spending money on things they don’t really need. And his moral perspective is really shaped by that.

It’s quite a different situation if you don’t have a way to get more money right away and your income is less than your basic expenses. He’s one of the “no debt and no bankruptcy ever” folk, which is probably wise if you can manage on what you make but often a bad idea if you can’t. I know in my situation borrowing money for a car was absolutely the right move, for example - the new income opportunities more than made up for the debt.

@lonegreywolf20 do talk to the St Vincent people, if you haven’t. There may be other resources. Some places have no questions asked food banks, for example. Or there may be charities that can be more flexible if you need.

I definitely get the gross versus net income trap. Been there. In my case it was needing expensive medication and not being able to afford that and rent, but since I was insured and the average person could live on my income, I wasn’t eligible for a lot of things. (For bonus the medical stuff also limits my working abilities - not hugely but enough that pulling 60 or 80 hour weeks to get out simply wasn’t feasible.)
 
lonegreywolf20 said:
After the bankruptcy I was going to petition the court to have the health insurance requirement dropped.
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With your income, I would imaging your kids qualify for State Medicaid. Check into it, every State has a program for kids.

ETA: In the past, I have picked up extra money doing pet/house sitting. DH has picked up extra work mowing yards.

Waiting tables or bartending are jobs where, if you can shine, you can make good tips. Delivery work, driving for Uber, heck Walmart starts out paying $11 bucks an hour, Ross retail stores start around $14 per hour and some Chick Fil A’s start at $17 per hour!!
 
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