Seeking Advice

[treehugger1]

I'm still reading the excellent posts to this site. Many of you know I was able to put off BK 13 for a while. My income has decreased $500/month and will decrease another $500/month by July 1. It will not increase after that. Here is my current situation. I have paid everyone their usual paltry sum through February 1. My secured payments are all on time (two automobiles). I will not be able to pay my CC's for the next 3 - 4 months, while I wait for my income to be dratically reduced. I know there are different perspectives out there, but does anyone think I'll have the CC companies (Cap1, Mbna, Citi, etc) beating down my door in the next 3 - 4 months? I will probably have some local finance companies taking me to court and proceding with a judgement. I can handle this. My state only allows 25% garnishment and this is acceptable to me until I can file with a realistic payment plan. I spoke with my employer's payroll division and they will stop my direct deposit and issue a payroll check. They said, "We fully understand." Thank god my employer has thousands of employees and this type of request is not unique. This will keep the undesirables from getting anything from my checking account. In the meantime (3 - 4) months, does anyone think I will run afoul of serious issues from CC payments, and other national creditors that hold unsecured debt with me? I know I will see late charges and additional interest accrue, but there is not much I can do about that except attempt to negotiate when they begin calling. Thanks ahead of time.
TH

[keepmine]

I last paid my cc's in April of 05 and filed bk in early Oct. of 05=a week or so before the law changed. None of my creditors made any noise about suing. A bunch of phone calls and tons of dunning letteres.
Why are you filing a Chapter 13 as opposed to a 7?

[CATCHMEIFYOUCAN]

Hey TREEHUGGER, been awhile. Your the one that hit for several grand couple months ago, eh? One never really knows how fast or slow it could take a creditor "beating down your door." I can remind you I filed in APRIL, but I was paying creditors below if not the minimum, just to keep them at bay. I would get the occasional friendly reminder letter a payment is past due, but I never got any phone calls - guess cuz they never had my number! I didn't have any of the creditors YOU mentioned, at the same time mine were unsecured on top of several unsecured consolidation loans I had. Yeah, interest accrued - but what can you do. Anyways SINCE APRIL, I've been officially DISCHARGED, BUT not CLOSED, YET! The Trustee is still looking out for ASSETS, which I have no idea why, since I own and am still paying on my not so significant HYUNDAI Sonata. AND he won't be getting any tax returns since I'll be owing on THEM TOO!

Well, GOOD LUCK, when you DO FILE ! Catchmeifyoucan

[treehugger1]

Catchme, I did win a bit and it got me this far (several months). My income continues to decline, so my respite was brief! I guess I won't worry too much about the "big guys" coming to my rural community to attempt to sue me. legal counsel "suggested" (since they can't seem to give advice anymore) that I simply stop all overtime/overload for several months until my paystubs reflect my guaranteed base salary. I'm learning that it is often easier to amend a payment plan upward than to amend one down.

As for the question. Why I will need to file BK 13, I will have no choice. I have reasonable disposable income, no mortgage, and just two car payments. In fact the only thing in my home that is legally mine is a bed, washer and drier, an old mountain bike, and a few sets of "retro" ski gear. At one time I though I'd be at 100% payback, but with my income declining I'm figuring on 75% - 85%. What I find frustrating is that I could simply not pay anyone but the essentials, save up a big wad, and quit my job. I could lie low for several months and eventually file a chapter 7. But, I do like my job and feel an obligation to pay back some of my debt (I probably have paid off principle+ for many of my CC's and unsecured consolidation loans over the past 1 1/2 decades, given the interest.) The 6-month average pay for the means test is killing me.

I wonder how many other folks are in my position; forced to stall the inevitable. I'm guessing that when the economy crashes again (and it will), there will be many folks stalling for filing BK 13 as income plummets and mortgage payments climb upwards. It does not make sense.

[treehugger1]

Catchme

Legal counsel has suggested that my past three year's income 85K to 104K will probably stall the proceedings for a while (looking for assests). But they can look all they want. I have 135K - 150K (75K in student loans) unsecured debt and own NOTHING. I admit I made bad choices over the past decade, but I also believe that choices are only made when they are put out there (constant pleas to borrow money from so-and-so; citi, benefical, mbna, bofa, etc.). I've had great conversations with payday loan lenders about, "Why would someone borrow money from you at your interest rates, if they weren;t close to desperate?" Let's see, here is someone with close to 5K take-home and we are giving them a payday loan. The same is true of the CC consolidation folks. I'm not the only "stupid" one on the block, ha. TH