Chap. 7 questions; medical bills and expected future income

1) When they revised the BK laws in 2005, they added to it that debts incurred within 90 days of a bankruptcy filing cannot be discharged. If you file BK before those 90 days are up, the med bills can send their attorney in to fight the dischargeability of those debts, and your whole BK might be in vein.

2) I don't think that in a consumer chap 7 there are questions pertaining to "future" income/employment. I think the only income/employment questions pertain to current and past.

Just to see you can go to www.uscourts.gov/courtlinks and find the BK court you would be filing in. Then go to that court's website and download the BK forms (called a Voluntary Petition / Schedules), you can see what questions you will need to answer.

Debtcruncher is right. There are no questions about future income in the chapter 7 paperwork.

Also, debts that are less then 90 days old can be discharged. It's just that if the creditor objects the whole thing will get thrown out. But it is possible, although very unlikely, that the creditor doesn't object and the debts less then 90 days old could be discharged.

Really depends over how much, whether they object or not...

I've given out a few "small" $1500-2000 loans, where the customer never made their first payment and subsequently filed for Chap 7 before those 90 days were up. (In hindsight, I think they used my loan to pay their BK attorney :( )

In any case, I was going to send my attorney in to fight the dischargeability -- he told me don't bother, that I would end up spending more for him to fight it than the customer owed.

But if you say these med bill are 2X your salary, I'm sure they would be willing to vest some attorney costs if they could recoup those funds. Your best bet is wait for those 90 days.

I appreciate everyone's help.

First, regarding future income, it is on form 6I - "Current Income of Individual Debtor(s)". Line 17 states: "Describe any increase or decrease in income reasonably anticipated to occur within the year following the filing of this document:".

Second, I can not find anything regarding the undichargeability of debts incurred 90 days prior to filing, with the sole exception of 11 U.S.C. 523, which states:

(I) consumer debts owed to a single creditor and aggregating more than $500 [$500 (added by BAPCPA 10-17-05)] for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable;

If anyone can point me in a direction regarding the 90 day period from which debts are exempt in bankruptcy, I would be most appreciative.

I'm definitely not an expert on bankruptcy. I have filed Chapter 7 myself very recently. I understand you have medical bills causing you to consider bankruptcy. If what the law you quoted is true, specifically the part about LUXURY goods or services, I would look into what is defined as luxury. I would think medical bills aren't considered luxury, but who knows. I would look into it.

Ah, yes, I forgot about that question since it didn't apply to me.

I would think that since the increase in income is wanted, but not a guarantee, I would not think you would need to put it. Everyone wants to find a job that pays better, but unless you know for sure that you will be getting a better paying job, I don't think it would be necessary to put it.

[quote]The discharge granted in a Chapter 7 case does not discharge any of the following debt:
Taxes. Taxes will not be discharged if they meet any of the following parameters:
Due within 3 years. Taxes based on income or gross receipts for which a return (if required) was due within 3 years prior to the filing of the petition. [????523(a)(1)(A)] The date due includes any extensions, i.e., if the April 15 due date for income tax is extended to October 15 the later date will be used determining if the 3 year period has been passed. [????507(a)(8)(A)(i)] The 3 year period may be extended by any time in a bankruptcy plus an additional 6 months. [????108(c), 26 USC 6503(h), IRC 6503(h)]

Assessed within 240 days. Taxes assessed within 240 days prior to the filing of the petition. [????523(a)(1)(A)] If an offer in compromise was pending, the 240 days will be extended by the days that it was pending, plus 30 days. If a stay against collections was in effect under a prior bankruptcy, the 240 days will be extended for the time collection was stayed plus 90 days. [????507(a)(8)(A)(ii)]

Returns not filed or filed within 2 years. Taxes for which returns (if required) were not filed or were filed within 2 years of the filing of the petition. [????727(b), ????523(a)(1)(B)(2)]

Fraudulent returns and evaded taxes. Taxes with respect to which the debtor made a fraudulent return or willfully attempted in any manner to evade or defeat such tax. [????727(b), ????523(a)(1)(B)(3)]
Tax penalties, fines, forfeitures. Penalties for taxes not discharged (above), tax penalties regarding a transaction within 3 years of filing, and government fines and forfeitures are not discharged. [????727(b)] [????523(a)(7)]

Debt incurred to pay taxes not discharged (above). [????727(b)] [????523(a)(14), (14A))]

Debt obtained by fraud, false pretenses, or false financial statements. Money, property, services, or an extension, renewal, or refinancing of credit obtained by (1) false pretenses, a false representation, or actual fraud, OR (2) a materially false written financial statement intended to deceive, on which the creditor relied. [????727(b)] [????523(a)(2)]

Debt incurred within 90 days before filing.Consumer debt for luxury goods or services incurred within 90 days before filing of the petition, and totaling more than $500 to a single creditor. [????727(b), ????523(a)(2)(C)(i)(I)]

Cash advances within 70 days before filing.Cash advances obtained within 70 days before filing of the petition, and which total more than $750 from all creditors. [????727(b), ????523(a)(2)(C)(i)(II)]
Debt not listed. Debt not listed in time for the creditor to file a claim, or request a determination of discharge, unless the creditor had actual knowledge of the case. [????727(b)] [????523(a)(3)]

Fraud, embezzlement, larceny. Debt for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny. [????727(b)] [????523(a)(4)]
Domestic support obligations. Includes child support and spousal maintenance. [????727(b)] [????523(a)(5)]
For willful and malicious injury. [????727(b)] [????523(a)(6)]

Educational loans. Educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit and other qualified educational loans are not discharged unless such exception from discharge would "impose an undue hardship on the debtor and the debtor's dependents." [????727(b)] [????523(a)(8)] [????523(d)]

For death or personal injury from DUI. Includes operations of motor vehicle, vessel or aircraft and intoxication from alcohol, drug or other substance. [????727(b)] [????523(a)(9)]

Debt from a previous bankruptcy where discharge was denied. If a debtor was denied a discharge in a previous bankruptcy because the debtor transferred property, concealed records, made false statements, failed to explain losses, or disobeyed court orders, etc., debts which could have been listed in that bankruptcy will not be discharged. [????727(b)] [????523(a)(10)]

Settlements, judgments, commitments regarding financial institutions. Settlements and judgments regarding fraud or defalcation, or malicious or reckless failure to maintain commitments regarding certain financial institutions are not discharged. [????727(b)] [????523(a)(11), (12)]

Restitution.Payments under orders of criminal restitution are not discharged. [????727(b)] [????523(a)(13)]

Fines & penalties imposed under Federal election law. [????727(b)] [????523(a)(14B)]

Debt from a divorce or separation. Debt other than support, owed to a spouse, former spouse, or child under a divorce decree, order, or separation agreement is not discharged. [????727(b)] [????523(a)(15)]
Note: A decree or agreement which obligates the debtor to pay all debt could result in no debt being discharged under a bankruptcy.

Homeowners association fees and assessments. Such fees and assessments arising after the filing of a bankruptcy are not discharged. [????727(b)] [????523(a)(16)]

Fees and cost imposed on prisoners by courts for filing cases, motions, complaints, or appeals. [????727(b)] [????523(a)(17)]

Loans from pension, profit-sharing, and stock bonus plans. [????727(b)] [????523(a)(18)]

Federal and state securities laws violations, settlements, and securities fraud, deceit and manipulation.[????727(b)] [????523(a)(19)] [/quote]