Once we file-how long before having to make a pymt?

[sheilaE]

Question: Once we actually file, how long will we have before we have to start making payments? We are hoping to wait & file once we receive notice that one of our creditors is taking action. Chase sent us a letter last week saying if they did not hear from us within 15 days-they would be forced to take action. We stopped paying the bills around Dec/Jan and retained a Lawyer.

We've been using the extra to finally get caught up on things such as getting current on the electric bill, garbage & water, etc, etc. It's so nice to see some extra cash in our account rather then stressing because we our completely out of funds and the car needs gas or our children's school lunch accounts are on $0. Would like to drag this out as long as we can before having to turn $$$ over to the trustee.

So really my question is...how long do we have from the time they actually threaten to garnish wages. Once we receive notice, should we rush over to our Lawyer and file that same day or do we actually have another month or so before they act on the threat?

[Scott50]

I believe that your first payment to the trustee is due within thirty (30) days of filing...

[sheilaE]

How will they determine how much we pay? Is that what the 341 meeting is for? Will we have that first?
Thanks!

[Amadan]

You should get notice when you file from your laywer what your submitted "plan" is. That will include your payback amount to secured and unsecured creditors. If I had it to do over again I would have waited until getting sued first to build up more cash reserves and pay ahead on all my utilities, ect. Seeing as you have to spend down every dime you have to qualify, then start paying in 30days, all while trying to get a realistic budget going I dont see how people make it. I am seriously ready to throw myself under a train. We will be over $1k upside down by the end of the month. I cant fix this. I dont see how this is going to work. Also we had to "average" childcare over a year. Right now while school is in, our lookback shows it being around $537/mo. Well, when summer hits it jumps up to $1300/mo. I dont see how I am going to put my kids in daycare during the summer! So do I let a 5 & 8 year old stay home alone?

[momofthree]

You'll know how much your payment will be before you even file. Your first payment will be due within 30 days of filing, often before your 341 meeting.

[SMinGA]

You must review your plan with your attorney before it gets filed. Don't sign it (don't let him file it) if its not right in terms of your income/expenses. You'll know your payment at that point.

The first payment is due 30 days after filing.

[sheilaE]

Ok, thanks all!
Sminga-do you know if I still might have some time re: letter from Chase that if they do not hear from me within 15 days they will take action. How long does it take for them to take action?

[HHM]

Your first payment is due within 30 days of filing. The payment amount is simply what is on the plan that YOU file.

[mtngirl47]

My attorney wants me to bring the "estimated" first payment with me when I come to the "filing" appointment. Wonder what's up with that?

@Amadan: When my kids were about that age I hired a teenager one summer to keep the kids. She was happy to make the $ and I didn't have to drag the kids out of bed in the mornings to rush off. If you live in a safe neighborhood and can find someone to trust, it might be a good option for you.

[sheilaE]

Our attorney kind of caught us off guard by asking us a questions regarding our expenses. He quickly estimated the pymt at $1300.00. Both my husband & I about fell out of our chairs. There would be no way we'd get through the month. After we got back home I logged onto this forum and pleaded for advice. That's when I realized we didn't fully give him all our expenses. We were about $1000.00 off after everything we can legally claim. If ours asks for us to bring the payment in with us, we'll ask him to re-figure the expenses.

[SMinGA]

He may want to make sure that first payment gets made? Such as if he wants to be certain the case gets off to a solid start?

Our atty did not ask us to give him the 1st payment in advance but did stress (and remind us) that we'd need to mail it in by xx date.

[Amadan]

My attorney wants me to bring the "estimated" first payment with me when I come to the "filing" appointment. Wonder what's up with that?

@Amadan: When my kids were about that age I hired a teenager one summer to keep the kids. She was happy to make the $ and I didn't have to drag the kids out of bed in the mornings to rush off. If you live in a safe neighborhood and can find someone to trust, it might be a good option for you.

We are trying to pawn the kids off on family for some of the summer. For the rest of it there are a couple of "stay at home" moms on our block. My wife is too embarrassed to ask them, but if they are hurting like the rest of us maybe we can work something out with one of them. Who couldnt use a little extra $, and they all have kids about the same age as ours...

[daytona]

Sheila-

Chase will likely turn your account over to a "law firm" to handle their collections. Once there you will have about 60days until they file suit if you do nothing and then will have 20-30days to respond to their suit. If you do not respond to the suit they will get a judgement and will then try to come after bank accounts and garnish wages. Bottom line is you have a few months. If it were me as soon as you get the 1st letter from the law firm, DV them and let them know you wish to exercise arbitration to dispute any claims.

It's beyond the scope of your question, but the arb exercise is a major roadblock to creditors now due to NAF being shut down. This roadblock delays things for extensive periods of time now..

Now if you are going to file anyway within the next couple of months (or later) then any "potential judgement" would get wiped out in the BK anyway, so it doesn't matter.

[sheilaE]

If I DV them and let them know I wish to exercise arbitration to dispute any claims, will that effect the bankruptcy that I'll be soon filing? I know I can't make any kind of deals-or talk to them about charge-offs, but I've not heard of disputing claims. What happens once I ask for that? Does it buy me even more time?
Thanks!

[daytona]

It won't effect your potential BK at all...period.

It will buy you lots of time to starve off judgement..like 6 to 18mo+...depending on how hard you push.......and you can still BK them at any point, even way AFTER any judgement, etc...IE, it's all part of BK.

If you Really want to get into it go here: http://www.debt-consolidation-credit...d.php?t=299152