Should I file Chapter 13?

[tofu4you2]

Really need help? I have unsecured debts of $100k+ We make about $90k. We are being hit left and right with lawsuits and arbitration papers. We owe on about 10 credit cards. We thought we could settle, but no one can validate the debt and now they are suing. We have about $50k in savings from a house that we sold. We are renting now. I'm afraid that one of the lawsuits or arbitration will get a judgement on us or freeze our bank accounts and get all our money. Trying to keep up with all the letters to CA's and JDB is crazy. A judgement can hang over our head for 10 years +! I just want to be done with all this and pay what we can now even if it means filing Chapter 13. Can anyone give some advice on this. What kind of disposable income will we have to pay our creditors. Would they immediately take all $50k to start with. I also have about $6200 in gold coins that I bought a few months ago. I was just scared and didn't want to be without any money once this was all settled. After our house sold, my husband lost his job. We had to use the money from the house sale to live on for about 5 months. He got a good job about 3 months ago. I think we could keep up with the payments for a chapter 13.
Sorry this is so random, but it's late and I really want to find a way to be done with all this.
Thanks in advance.

[lrprn]

We have about $50k in savings from a house that we sold. We are renting now. ... I also have about $6200 in gold coins that I bought a few months ago. I was just scared and didn't want to be without any money once this was all settled.

Without knowing your state, it's hard to determine whether Ch 13 is a good idea or not. Given your high income, it's most likely that's the bankruptcy you'll be able to file.

One thing for sure, no state exemptions protect that much cash but California, and even then only on one of their two systems if you don't own a house. What state are you in? Are you and your spouse filing jointly?

Depending on your state's bk exemptions, you may have to ask your lawyer to help you figure out a way to spend a lot of that cash on acceptable purchases (think new car paid for in cash, etc) before you can file Ch 13.

What kind of disposable income will we have to pay our creditors.

It's impossible to tell with any certainty until a knowledgeable and experienced Ch 13 lawyer completes your Means Test and Schedules.

Hang in there. All of us start confused and scared. You are doing the right thing trying to understand your situation better.

If you haven't met with any bk lawyers yet, now is the time to do so. Set up free initial consultations with 3-4 bk lawyers in your area. You'll find out a lot about whether you can file and what can be done with all your cash if you do.

[frustrated7]

I agree with what has already been written to you that you should consult with BK attorneys. Go to several free consults to check out what options you have. Make a list of your questions before you go. Good luck.

[tofu4you2]

I am married, filing jointly. We live in NC. Wouldn't they use that $50k to just help pay our creditors. How does it look to have given my daughter $8k toward her college tuition and a wedding. She is will finish school this semester and is getting married the beginning of Aug. Will they make me recover that money? All the other monies I just held on to to try to pay creditors, but everything as gotten so confusing with collection agencies and arbitration and lawsuits. I don't think this will ever go away!! HELP

[tofu4you2]

I guess I put this in the wrong place first! I am married filing jointly. We live in NC. Wouldn't they use that $50K to help pay our creditors? Also about 3 months ago I transferrred $8k to my daughter for her college tuition and money for her wedding. Will they make me recover those funds in some way. I have been holding on to the rest of the monies to pay my creditors, but everything has gotten so confusing with CA's, lawsuits, and now arbitration. I don't know which end is up. HELP!

[CH33 Paralegal]

The wealth you possess that cannot be exempted is equal to the amount of money you would need to propose to pay unsecured creditors in your case.

You are never required to pay more than what is owed. You either pay the amount of wealth you possess over the next five years or you pay all your unsecured debt off...whichever is LESS

[CH33 Paralegal]

I'll amend that.....The amount of wealth you WANT TO HANG ON TO is equal to the amount you will need to fund to the unsecured creditors.

[tofu4you2]

So basically if I owe $100k and have about $50k (from sale of our house- we are now renting) that will all go toward the unsecured debts. We make $90k now for a family of 7 (our daughter will be getting married in Aug, so that would be a family of 6 then). After rent, utilities, living expenses we only have about 500 left of disposable at the end of the month. How would that work for a chapter 13? We live in NC. Thanks for all your help. I'm not sure how this will all work out, but with all the lawsuits, collection agencies, and now arbitration....not sure how to get out from under 10 cc's.