Struggling with Chapter 13

[bluelady]

I make too much for a Chapter 7. The thought of BK is totally repugnant to me, be it a 7 or a 13. I'm recently widowed and have always been conservative with money and have always had great credit. My husband left me saddled with a huge debt load and my paycheck doesn't even begin to cover the minimums. I mafe enough money to make house payments, etc but just not enough to begin to retire debt. On top of it all, I'm about 5 years away from retirement. I have consulted an attorney and will go in and get the process started this week for a 13. I have so many questions and so many fears. Will my employer fire me because of the bankruptcy? What will happen to my checking account? Will the bank close it out? Can I reaffirm some debt outside of the bankruptcy? Can I keep one credit card for emergencies and for things like car rentals? My elderly mother lives in a different state and to get there, I need to fly and rent a car. So, this is just the start of my tale of woe. If anyone can help me make sense of my situation and feel OK about taking this step, I would love to hear from you. Thank you. Bluelady.

[woeisme]

I make too much for a Chapter 7. The thought of BK is totally repugnant to me, be it a 7 or a 13.

Join the club! No one wants to be bankrupt, but sometimes it is the best alternative. I'm recently widowed and have always been conservative with money and have always had great credit. My husband left me saddled with a huge debt load and my paycheck doesn't even begin to cover the minimums. I mafe enough money to make house payments, etc but just not enough to begin to retire debt. On top of it all, I'm about 5 years away from retirement. I have consulted an attorney and will go in and get the process started this week for a 13. I have so many questions and so many fears. Will my employer fire me because of the bankruptcy?
Is against the law to fire someone because of BK. Unless you are in a job in the financial industry, or somewhere that you need high levels of financial/security clearance, like you are bonded, etc., your employer probably won't blink at it.
What will happen to my checking account? Will the bank close it out? Do you owe $ on an overdraft line with your checking account? Have credit that is cross-collateralize with your checking account? Otherwise, there is no reason they'd close your account or care one wit about your filing.
Can I reaffirm some debt outside of the bankruptcy? You can reaffirm secured debts. You cannot pay unsecured debts while in your CH 13, as all your disposable income is supposed to be paid into the trustee for equal dispersment, but nothing stops a debtor from paying on discharged debts post-BK. Of course you would not be obligated to pay on those debts either.
Can I keep one credit card for emergencies and for things like car rentals? No. You will need to save $ for such trips, and pre-pay, use debit cards, pre-paid credit cards, etc. Most travel websites have you pay in advance anyhow, so can just use a debit card for these things. Used to be hard to rent a car without credit, that is no longer the case, I've done it many times since I filed 2+ years ago.My elderly mother lives in a different state and to get there, I need to fly and rent a car. So, this is just the start of my tale of woe. If anyone can help me make sense of my situation and feel OK about taking this step, I would love to hear from you. Thank you. Bluelady.

Everyone has lots of fears and concerns prior to filing. But sometimes it really is the only solution to a bad financial situation. You can't change the past, you can only do the best that you can do with what you have now, and change your future. You need to take care of yourself, and this is just one step to help you move on. I'm sorry for the loss of your husband, and sorry he left you in financial turmoil. But try to separate out those emotions from your BK filing, because it may stop you from doing what is in your best interest. It is an economic decision, not a moral failure, to file bankruptcy. Please try to keep this in mind! Best of luck to you.

[jwmc1]

Is all of the debt joint that your husband left?

[maddog2112]

Debit cards these days are just like credit cards, except the money has to be in your account when you use it. You will be able to buy airline tickets online or at the counter just like a credit card. You will even be able to rent a car with the card.This makes a huge difference between filing long ago and now. Good luck. Don`t be ashamed of your situation. Bad things happen to good people, and alot of things, such as a death in the family are no control of ours. Do what you have to do to safeguard all that you have worked for and keep your head up. You`ve probably paid taxes your whole life for some things you have never benefited from. Now is your turn for a little relief. Do you think all the people in big corporations and wall street have any remorse for all the tax dollars they take. Take care of yourself and GOOD LUCK.