Bankruptcy Update–Met With Trustee
Money isn't everything, but it's a lot
I met with the trustee last Thursday. It was a short meeting. You sit down next to a voice recorder and answer all the questions he asks, which are the same questions you have to answer in writing for your attorney. Your attorney is there with your file so you can refer to your own documents.
When I left, I still had two documents turn in, my PayPal account statement and one of my savings account statements didn’t include all data through 6/30/09.
I also have to complete post-bankruptcy financial counseling by early September. I plan to do that as soon as I have enough money to pay the course fee, which will hopefully be next week. I want to get this done and over with so I can restart my financial life.
All I have left to pay are my federal and state taxes, the student loans I cosigned, and my first and second mortgages. I still have to reaffirm my first mortgage debt.
My credit union suspended my checking account and replaced it with a share account, known in the commercial banking world as a regular savings account. I’m not sure why that is, but I will find out. My attorney says that is unusual but not illegal.
July income was very low because it is the slowest tutoring month in the entire year. I only had two students for half the month. People are reluctant to do summer tutoring because they need to save money. They also tend to take vacations in July. Between tutoring, online income and child support I made ~$800. I couldn’t save up for this month because the bankruptcy court would have taken the money. It’s been a very tight month, but I’ll catch everything up in the next few weeks. Now that I’m on the other side I can start saving money for slow periods, a hill-and-valley fund as Dave would call it.
Changing Directions
The tutoring company I worked for closed so I opened my own tutoring company and started sending out emails to my list yesterday. I’ve gotten two sign-ups for August in under 24 hours. I hope to have at least 20 hours per week scheduled by the end of the month. I charge up front with a registration fee, so money is coming in with sign-ups. I’m allowing people to pay monthly, bi-weekly, semi-monthly or weekly, but it has to be in advance of sessions so I don’t get stiffed.
Saving is Essential
It looks like I may need to pick up a part-time pizza delivery job to pay off the taxes and the second mortgage as quickly as I can. I have to meet with my accountant to get help negotiating new payment amounts that I can afford easier. I have to negotiate with both the IRS and the state. After that, all that will be left are the student loans and my first mortgage.
