A brief respite from filing: query

[treehugger1]

As I mentioned in an earlier post, I had to deal with some auto issues and refinance a new vehicle (capitalone blank check). I also won several thousand at a local casino. If I were to file at this time, I would still be paying $2300 - $2500 per month to a trustee. I have been told that my overload/overtime pay will go away (guaranteed) in July of 2007. Estimating, my monthly payment would drop to $1500, or so, based on projected earnings after August of next year. My legal counsel stated that I could continue to sturggle along until I have a better idea of what my "true" earnings will look like. I know that some of you here feel I probably should not continue to pay on unsecured debt, but I only see gain, if I can pay some debt down over the next 7 - 9 months. This also gives me the opportunity to carfeully document my actual expenses (I have been quite negligent in this). I suspect that my income will again slowly increase in late 2007 into the future. It seems to make sense to file for BK 13 when one is at a low point in monthly salary. i know that everyone does not have such a luxury, but I feel one must tread carefully.

I'll continue to lurk here and pay careful attention to comments and posts. I think it is important that those folks who can plan their future toward bankruptcy realize they can give very careful consideration toward timing such a future possibility. Any comments related to the downside of filing 7 - 9 months from now would be greatly appreciated. Cheers.

[SinkingFast]

Timing, as you so eloquently noted, is everything. Well almost, that is.

For us, it worked OK to not pay anything to any of our Creditors for 10 months prior to filing. Out of 9 accts, only 3 had been turned over to Collections Agencies. And just shortly before we filed at that.

Some people here have not been as fortunate. One poster I remember was sued after only 5-6 months missed payments. Others have gone a year or more.

A lot depends on the Creditor. How much you owe. What assets you own. House, car. Do you have regular income Creditors can garnish.

Creditors don't just go out and sue. They research potential targets. They wanna know if you're worth going after. When we started pulling our Credit to clean up after filing BK, BoA had pulled, pulled, pulled on us. EVERY month for months.

So you gotta consider lots of variables in deciding what's right for you to do.

[dac67]

Yes, we were being sued by 2 creditors when I origonally tried a settlement program, the stress of the phone calls and worry over being sued by 2 pushed me into chapter 13. I couldn't hold out , like the settlement companies told me.

[BassBoy]

[lrprn]

Members, if you are tempted to contact srfinancial 13, please read BassBoy's "A Nightmare" post first. 99% of the time ARMs are not the answer to severe financial problems - they only worsen them in the long run and can potentially cost you your home. Srfinancial13 has not requested permission to advertise here and has already received an infraction for including links to his website and signature in his first post. You are advised that responding to him via PM is done at your own risk.

Srfinancial, if these covert attempts to get our members to contact you continue to be the only contributions you make to the forum, you will be banned. We welcome your participation if you share your knowledge freely and without hidden strings attached that ultimately benefit only yourself.

[treehugger1]

I don't own a home. Never did, never will. Just a personal lifestyle choice. So, there is no home to refinance. I do have several 100K in retirement/deferred comp accounts that I need to protect. Other than that, I have approximately $150K in unsecured debt versus a 65 - 80K income (year dependent) and 23K secured. I can make minimum payments every month, but it would take two decades to pay off unsecured credit cards, student loans, etc. Down the road, BK 13 will be my financial freedom. My decision only relates to timing. I'm looking at a 100% payback plan. If I pay a big chunk off my student loans in the next 7-9 months, and then see my income drop (which is what I fully expect), then I can shave hundreds off my monthly payment to the trustee and still be quite close to 100% payback. I have been told that paying a great deal against guaranteed student loans is not considered preferential. I'll probably know in a few months. As for my credit rating, it is quite stellar. I'm just tired of the "borrowing money" game and watching my CC interest creep up. If my credit rating/score goes to rock-bottom, I don't care. Again, a personal lifestyle choice. Thanks for the response.