13 may be only hope..need help!!!

[Atrix]

2 Business that I want to save....and 4 cars...3 paid for.... $170,000 in CC and $15,000 in tax debt.
I made a big no no and made some charges to different cards $5000 on one and $1900 on another for rent and supplies for business. I took bad advice from someone before I understood that 13 is my only option.

Should I keep paying on these cards even though they are 20 days late now and CC are starting to call so that there is some payment on the cards I used or???..Help..I feel so alone and so stupid for putting myself in this situation...

I have an appointment with Attorney on Thursday.

Does anyone know how it works in CA with renting a house?.. We have lived here for 3 1/2 years and rent is $2327...am I going to have to move??? We work out of the house as well...Please Help!!!!!

[newbie2]

2 Business that I want to save....and 4 cars...3 paid for.... $170,000 in CC and $15,000 in tax debt.
I made a big no no and made some charges to different cards $5000 on one and $1900 on another for rent and supplies for business. I took bad advice from someone before I understood that 13 is my only option.

Should I keep paying on these cards even though they are 20 days late now and CC are starting to call so that there is some payment on the cards I used or???..Help..I feel so alone and so stupid for putting myself in this situation...

I have an appointment with Attorney on Thursday.

Does anyone know how it works in CA with renting a house?.. We have lived here for 3 1/2 years and rent is $2327...am I going to have to move??? We work out of the house as well...Please Help!!!!!

It sounds like you don't own your home. If you are currently renting and haven't missed any payments you should be fine. Most landlords don't want you to leave if you have been a good tenant.

[Atrix]

Yes..I am renting....we have never paid late. Does my landlord find out that I am filing BK even if I have always been current? I didn't realize he would have to be told!...When I asked earlier if we would have to move I was wondering more about if the rent is too high and that we would not be able to pay that amount.

I have read so many posts where people have to live so tightly on a budget within the IRS guidelines for an average family. I guess I just don't understand what we would be aloud to spend each month on bills. EX...my electric bill is averaging $500 per month (We live in the Desert)....Will this be an expense I will be aloud to make or????

And I am so worried about thoe last CC charges...I wasn't trying to do anything wrong when I made the charges....I was planning on a balance transfer and thought I could till handle all this....but I was very very wrong...I know I can pay something in a 13 but not the $4500 to $6000 I have currently been paying.....

What has anyone been paying in a 13 and how much were you aloud for Rent for a home? or car payments? or electric bill? health ins? and all else....

Any help and informantion would be so so so appreciated!
Thank you

[momofthree]

Here is a link to the IRS standards. Your rent may be questioned if it is significantly higher than IRS standards for your area and family size...utilities are often fine as long as you can provide proof of your actual expenses.

As a side note, I'm also in the CA desert and if you have PG&E I highly recommend their balanced billing--where they average out your electric bill over 12 months so that your electricity is much more affordable during the summer months.

IRS standards: http://www.justice.gov/ust/eo/bapcpa...anstesting.htm

[Atrix]

Thanks for the info....Momof three

Since I have not meet with my attorney yet...I was wondering if you can tell me exactly what I have to anticipate? How long will this whole process take?

I am a Mom to a 4 year old and I feel like I have destroyed his future!!! I feel so bad. I just want to do the right things from now on.

Maybe you can tell me a little about what things an attorney will want so I can get organized.....I have his list of things that his assistant emailed..Taxes for 2009, bank statements for my business, and my CC statement...what else would you uggest I get ready for him?

Also..what happens with the Trustee? what do they ask? etc? Did the trustee agree on your payback right away or did things take a long time...I am so looking forward to knowing my next steps and moving on with my future and doing right for my son..

Thank you so much for any information....I feel so so so sad and lost.

[researchnerd]

Atrix, you seem really stressed out by your situation. We've all been there and had that sad, lost feeling, and it sucks. First, before you do anything else, take a minute...take a few deep breaths...try to relax. Beating yourself up over this doesn't serve you, doesn't improve the situation, doesn't make you a better parent. You have not destroyed your child's future, or yours for that matter. There is no shame in bankruptcy. It will take a while to dig yourself out of this hole, but you can do it.

Second, we can't tell you exactly what to anticipate because everyone's situation is different. However, reading a good book about bankruptcy can help you understand the process and will help answer a lot of questions. I recommend the Nolo Press books The New Bankruptcy: Will It Work for You? and Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time. If you're strapped for cash you may be able to find them at the library, but check publication dates because the laws have changed a lot since 2005.

To answer some of your questions:

1) The Ch13 process can take anywhere from 3-6 months to a year or more, depending on your situation, attorney, trustee, and judge.

2) If your attorney provided a list of things to bring, then only worry about those things for right now. If they need additional info at some point they will be sure to ask you for it. It can help to bring a list of questions to ask your attorney though; I always forget a couple of things.

3) Different trustees request different kinds of information, depending on personality and on jurisdiction. Many ask for 3-4 years of tax returns, mine asked for only one. Our 341 meeting is this week so I haven't been through it yet, but my attorney says it's mainly a formality and should take less than 15 minutes. Again, if there's information they want or need, they will ask you for it.

4) There's no point in continuing to pay your credit card bills. The attorney is likely to advise you to stop paying immediately, but even if he/she doesn't, a few more days won't matter. Use some of the money to take your kid out for pizza. Screen those creditor calls until after you see the attorney.

[Atrix]

Thank you....It helps so much to hear that I am not the only one going through this!....But I am still so scared and ashamed!

I just don't know how this is going to turn out. Should I start looking for a new home to rent?....I am paying $2300 a month...but we also work from the home...Is the trustee going to allow us to stay in a house with that rent? Or? Also..my car payment is $615...we use it for business the other 3 older cars are paid for.

Does anyone know?

How offen does a trustee object?....We have $170,000 in CC debt. and owe $20,000 to the IRS for 2009.

Thanks in advance to everyone for any advice or information...I so so so greatly appreciate it.

[car67]

Atrix

Dont worry your case will be fine. No you dont have to move. Just relax your going to be fine. Trust me I know the feelings your having. Dont worry its piece of cake your entitled to help its the LAW.......

The only advice I got for ya, you shouldnt be using any credit cards 90 days prior to filing preferably 180 days as this looks like fraud if your using a card knowing your going to file....

Also if your going to file... Stop paying all bills now. Dont pay another credit card or loan at all. Just pay your rent and utlilities and food and medical and dont worry bout the rest. Your going to be just fine.

Also if you have loans or credit cards at the bank where you keep your checking take all money out of them accounts and start a new bank account from scratch at a nuetral bank.

thanks

[Atrix]

Thank you Car67......Thank you for your support!!!!

I already switched banks because I had read that that is the thing to do...so thanks everybody!!!!!!!

A Question?????? Since I did made charges on my CC at the beginning of June (a lot of them) $5000 on 1 card $1700 on another (for rent at my business and some utility bills on the house)will the attorney not file until at least 90 days have passed?...

and can I still hire an attorney so I have somewhere to defer these phone calls or do I have to wait to hire him until the 90 days has passed....

and what happens if a CC sues me before the 90 days?...what happens then?

Thanks again.....I SOOOOOOO greatly appreciate any and ALL advice!!!!
THANK YOU...THANK YOU!!!!!!

[momofthree]

Sorry if this is a stupid question, but didn't you say you work out of your home? But then you said you charged $5000 for rent for your business?

Since you just stopped paying your credit cards within the last 30 days, you're probably safe from being sued if you file in the next 6-8 months or so....

[Atrix]

We have 2 businesses. One we work directly from the home we use about 1/3 of the house for this. The other is a very small retail operation so I keep all the inventory at my home and use my home as the office...there is no space in the store for an office or to keep any extra inventory.

I didn't realize it took that long to sue...that is good news...thanks for all the info......TY TY

[momofthree]

And even if you are sued, it's not instantaneous, they'll send you a summons in the mail at least 30 days prior to taking you to court, which gives you plenty of time to file sooner if you need to...

[car67]

Yea no need to rush You can retain the attorney now and if anyone calls on a bill you can tell them to call your attorney. Yes you will need 90 to 180 days of non use on those cards or you wont be able to file on those charges and will be forced to pay... Tear your cards up now dot use now more and get the clock started.

[Atrix]

Thank so much Car67....

What a relief to know that I can have the attorney deal with the phone calls...and then wait the 3 to 6 months.

I have felt so much better after reading the responces from everyone here...thank you so much!

I felt so alone and hopeless a few days ago....Now I am starting to understand that it is a prosess and I just need to take one it step at a time.

I am meeting with an attorney end of the week....I am nervous and anxious and looking forward to answers to lots of questions. He seemed great on the phone so I am very hopeful..

Thanks again for answers to my questions everyone....It has been so helpful!!!!!

[car67]

No worries I understand the stress level TRUST ME I had to too take medicine when I filed just to sleep I understand the stress and anxiety LOL I even stressed so hard I flooded my house I forgot to turn bath water off and feel asleep exhausted woke up to a flooded house... It was some rough days... but looking back YA i can feel your pressure and trust me its overrated. Just tell the courts the truth and you will be fine and keep working!