Why I am Unemployed

HOw would you pay for bankruptcy if you are unemployed? Its pretty expensinve.

So basically you can work you just don't work?

There is something where the bankruptcy fees can be waved for people under certain incomes. At least it used to be that way under the new law, and I think it may still exist. And as far as garnishment, you can only be garnished by one company at a time. And with the new bk laws, you want to watch declaring bk 7 while being unemployed and then taking a job right afterwards.

I didn't know they actually could waive the fees for someone unemployed! Well, I figured they could for someone who was unable to work.

What will you do when the bill collectors start hounding you? they won't care if you are unemployed or not, they are heartless.

As far as the bankruptcy goes, I don't think the judge or the other employed folks in the courtroom are gonna look to lightly on your situation unless you are disabled. Alot of working folks find themselves in your very situation and some of them have child care involved. If you are justifying not working because of this, it may inflame alot of folks. I am not real sure how a judge would handle a situation like this, he probably would order you to pay. Just my thoughts. Good luck.

Fedup is right on the money. Your argument also reminds me of why people used to justify staying home and collecting welfare in the days before welfare reform, and we all know how well those arguments went over, right? I really think you are taking a big chance here but wish you well!

OMG, Kscornell, you said what I really wanted to say, but did not want to offend anyone. If I was the judge...................... stop fed!

Just see too many of us, working and still struggling, sigh!

I have an old large debt of $32,000 on a credit card. I own nothing of value. No house, no car, no money.
If I were working, making gross $3200, a month, would a judge allow me to file bankruptcy?

I can't afford to work unless I file for bankruptcy.

How can you afford not to work??? How do you eat?

I don't know how the welfare system is set up in your state, but in the county that I live in in Ohio there is a time limit on how long you can be on welfare and if you are able body and can work you have to go to job training classes and if you don't you don't get the welfare check. So if you can work that would be your best bet. If you have a large amount of debt you might want to try to consolidate your bills and pay a little each month.

How old is the debt and what type is it, the statute of limitation may have expired on it. What state are you from?

I am not on welfare, and have NEVER even applied.

I eat at my sister's house.

The debt is 4 yrs old. I live in a 6 year sol state.

If I work, and am sued, and a judgement for $32,000 is filed, then I cannot afford to work. That means about $700 a month garnishment. And, I can't live on $2400 minus $700 a month, and be able to pay for housing and food, and car expesnes...and health care.

It's better to wait two years until the SOL expires. My sister doesn't mind if I stay here for 2 more years.

I just wondered if I should file for bankruptcy and work, too.

But if you file for bankruptcy, don't you have to list your pay as an asset? I think it would depend on what chapter you file...

If your debt is extreme, more than your salary, and assests, and you can't afford to live and buy food, due to debts, wouldn't chapter 7 be appropriate?

I did some research. I found that if you live below, or have been living below the US proverty level, for the last six months, then you qualify for chapter 7.....if you do not own a home.

I don't want to file for chapter 7, but if there is a judgement placed on me, then I will file.

Ok, I won't bother you guys anymore. Thanks for your time.
Good Night, Good Bye, and Good Luck.

I would think though that you would have to have some bills to justify where you money is going if you have a job and don't wish to pay the bill.

But if you do indeed have an income below the US poverty level, but are living rent-free in a relative's home, wouldn't that still be considered household income? I think what it comes down to, if I may be frank, is that you can't have your cake and eat it too. Either you are or you aren't....

I do not work in my sister's home. She does not pay me. Sleeping here is not considered income.

If I become employed I will move out. That's where all my income will be spent(housing, food, transportation, medical)

Yes,
But you are benefitting by eating the food that is provided there, watching the television and using the comforts and amenities of her home, right? That can be considered income as it is part of the household where you are residing. When my daughter applied for financial aid for college, she had to disclose not only the income from her part-time job as a high school student, but also mine, as she is in my household and is benefitting from my support. She is my dependent and if you sister has provided more than half of your support for at least 6 months of the year, then the IRS would probably let her claim you as a dependent.

My sister doesn't claim me as a dependent.

College kids must meet an age requirement in order to be claimed as a dependent(under 25), and proof of being a full time student.



IF housing and food are considered income, the dollar amount wouldn't be considered more than normal rent and food, which would be about $1300....still below proverty level. I think the IRS would consider living with a sister, as family kindness and charity, not income.

That's all. Thanks for your information, and opinions.

There is NO age limit on dependency! I have known of people who have had their parents living under their roofs, and still have been able to claim them as dependents! The main tests the IRS looks at are: living with the person for at least half of the year, and having provided the person with at least half of their support. If your sister meets these tests, there is a very good chance that she could claim you as a dependent!

My sister did not claim me as a dependant. I don't know if she was advised to do that by her accountant, or not.

One local BK lawyer told me not to consider fiing for bankruptcy unless I get a judgement. He said I am judgement proof, and wouldn't be garnished.

I am just considering options.
Thankyou for your time.
I will not repsond to this topic again. You do not know my life's history, therefore, you hould not be hateful or nasty in your responses, as some of you have been.

I am sorry if you think I or anyone else here has been nasty or hateful. How would stating the IRS's dependency tests be nasty? I am telling you that if it was my sister living with me for whatever reason, and I was supporting her, yes I would claim her as a dependent--and she is older than me! This would only help me as it would help your sister, if she really meets these tests as determined by the IRS, as she could claim your self exemption on her return, which could mean that she would get more money back on her refund.
And from a fairness standpoint, if you are reaping the benefits from her income, and it sounds to me like you are, shouldn't this be declared as household income? How is this hateful or nasty? Like I said before, when my daughter applied for financial aid in my state, although she has her own income, mine was also declared, since I am supporting her and she is reaping the benefits from it. So why shouldn't you report your sister's? Why is it OK in one instance and not another?

I think the dependency test for colleges is based on your federal tax forms. I believe if an 18 year old claims independent for 1 year and 1 day until the age 19 then they can claim independent for financial aid even if they still live at home. It has been a while since I looked at the forms but if I remember correctly they did not ask about monthly bills like rent and what not. It has been a while though so maybe the rules have changed.

I had an appointment with an attorney, today. I was given great advice and information.

I asked how often do the collecotrs file in court for a judgement, in this county.
I was told only one collection agency has a reputation for filing in this county. (it's not the one sending me bills)The collection agency hires local lawyers to represent them, and often, they do a very poor job. The collection agency is required to show many proofs of the debt belonging to the debtor.
I was also told that my prior state's SOL may be a great defense.
I was told NOT to file for bankruptcy at this time.

DollarsandSince, your information is correct.