Advice From Lawyer On Rent Payment?
The basics: went to see a lawyer re Chapter 7 with 60K in credit card debt. He said I was "living too frugally", at least on paper, and based on recent trend in local bankruptcy court, they may try to force me into a Chapter 13 if I don't claim higher expenses. Recently, I got a job that grosses 46K - prior to February '03 - I had been grossing 23K and less for the last 10 years which is how I landed myself in such debt. The fact is, even now, I don't have money leftover at the end of the month - having stopped making the credit card payments & using the credit cards - expenses I had previously paid for with credit are coming out of pocket. I currently pay $400 a month for a one-bedroom apartment which is grossly below the going rate for the neighborhood I live in. If I were to rent today, I would easily pay $800 -$1,000 for a one bed. Let me add that I do not and never had a lease for this apartment I've lived in for 6 years. Question is, will the court ask to see my bank statements to see what checks I've been writing? Lawyer basically said "you need to "get" a more expensive apartment". I was under the impression that he was encouraging me to say the I'm paying more in rent than I really am. Has anyone had a similar experience? Besides the fact that this puts me in a moral quandary, if I can't claim Chapter 7, I'm literally screwed at the prime of my life (31) - I can't imagine handling this psychologically, given the misfortune I've had in my family and personal life as of late.
Answer:
Well, you're going to have to include a monthly budget with the court when you file for bankruptcy. I would advise that you put a reasonable estimate for all of your expenses. Take a look at what you spend on food, utilities, clothing, transportation, housing, etc. and do not low-ball these numbers when you make up your budget. If your budget numbers reflect the reality that you have no money left over at the end of the month, then I cannot see a court forcing you into a Ch. 13. Generally the later (though they can always request them).
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