Advice?

[SBS718]

Thanks to everyone for all the awesome information on this site.

So my story - I met a lawyer yesterday highly rated on avvo and various sites . All he does is bankruptcy
Means test cost is 1k- i thought that was high . Very nice willing to work on payment plans etc

I am filing alone my spouse has 1 credit card in both our names and wants to keep his USAA in positive - i assume if i file this debt will just pass to him and he can pay it off right ? This is what he wants to do not behind on mortgage .

We both make 70k - high COL - have 2 kids 1 still in daycare for a few more months have a 2400 mortgage etc
Attorney thinks I could squeak by a 7 maybe no promises as my husband gets no paycheck in july / and 1 in august due to teaching . If i wait to file i could maybe do a 7 ....I am kinda shocked by this but i guess this is the strategy of the 6 month prior then filing . I am worried about a very high 13 payment as well . when i calculate it online it shows 350-700 /month if i did it right

I have 65k in debt mostly loans Prosper and ccs 1 student loan ( current )with 6 k and a car payment ( current) no taxes etc and everything is on time right now

He advised to stop paying cards immediately this is so foreign to me and worrisome but i guess this is the whole point right ?

I signed up with him as he offered a discount and now i am worried i should interview someone else - i got a good feeling with him though.

Lastly i have some gambling winnings from every month in the 6 month look back and i have more than enough to offset these so to speak but obviously i had a problem and now I have corrected it and in therapy and have stopped going . These did nt casue the bankruptcy but certainly led to me filing and thinking about it .


I appreciate all the help and advice if you have any .

[LadyInTheRed]

USAA can still file a claim for the joint debt in your bankruptcy and will be entitled to a share of any distributions to unsecured creditors. If you file a 13, a co-debtor stay will apply and USAA will be prevented from attempting to collect from your husband. But, he can still make payments to keep it current if he wants. Your husband will be responsible for whatever doesn't get paid in the BK. The account will likely be closed whether he makes payments or not. Your BK may also show up on his credit report. That would not be allowed if you didn't have joint debt. But, based on my very quick internet research, the law is unclear whether the BK of a spouse can appear on the report of the non-filing spouse who has joint debt with the filing spouse.

If you know you will file BK, definitely stop paying credit cards other than the joint account. Paying unsecured debt that will be discharged in BK is throwing money away. If you end up in a Chap 13, you'll be very happy to have the cash you save by not making payments.

The fact that your attorney is telling you that he can't guarantee you will get a Chap 7 discharge and discussing timing to make it more likely instead of just saying "you make too much money for a Chap 7", is a sign that you are in good hands. The fact that he charges to do a means test doesn't bother me because that is a big part of preparing the petition. The fact that he doesn't offer them for free to get business tells me that he is plenty busy, probably because he gets referrals through his happy clients and his colleagues who are familiar with his work. The only thing that bothers me is the offer of a "discount". It sounds like a sales tactic. Attorneys don't have published rate schedules that they have to offer a discount from. They may have their typical rates, but they can decided on a case by case basis how much to charge. But, I didn't meet the guy. If you got a good feeling from him, that is important.