Too early to file?

[simonhall]

I'm going to file my own chapter 13. I've read all of the materials on it and am familiar enough to be able to do it. I've already done the credit counselling. I have a question though because I haven't found any information to guide me in this aspect of it.

I am still doing ok with making my minimum payments on my credit cards and I will be able to make my payments for a few more months. But in another six months my income will decrease by several hundred dollars per month and then I will have a hard time making the minimum payments. Since the writing is on the wall, can I just go ahead and file my chapter 13 now?

If I do file it a little early, what is the worst that could happen?

[aa06a47]

I'm going to file my own chapter 13. I've read all of the materials on it and am familiar enough to be able to do it. I've already done the credit counselling. I have a question though because I haven't found any information to guide me in this aspect of it.

I am still doing ok with making my minimum payments on my credit cards and I will be able to make my payments for a few more months. But in another six months my income will decrease by several hundred dollars per month and then I will have a hard time making the minimum payments. Since the writing is on the wall, can I just go ahead and file my chapter 13 now?

If I do file it a little early, what is the worst that could happen?

Try and get at least 90 days past any charges you have made if that is possible, especially any big purchases or cash advances. Filing early won't hurt you unless a creditor could come back on you for fraud or something like that. The earlier you file, the better in my opinion, at least you stop the interest, and by making all them min payments now, your just throwing away your money. Unless there is a reason to keep making the payments(buying time to get past fraud charges) you should file as soon as possible (In my opnion)

Your only issue I see is your income dropping. Your chapter 13 payments will be based on your income for the previous 6 month period. You should be able to get your plan amended at that time.

If I were you, even though you have read up on everything, I would use a couple of free meetings with attorneys to discuss this situation with your income dropping. They might give you some good advice you can use down the road.

[aa06a47]

Another reason for filing early, and this is according to my attorney. Right now, there is alot of interpretation being done on the new law. As it stands now, this interpretation favors us in many ways and not the credit card companies. She estimates that down the road, many things will change.

She wants me to file quickly, and it is because of a loophole (interpretation) that applies to my case as of right now. She said the trustee is bascially saying, tough crap, that is how the law appears to be written, so that is the way it is. Both her and I know, it isn't suppose to be that way, wasn't what Congress meant.....And one day, a judge will send down a ruling that will correct the loophole. She said take advantage of it quickly, she couldn't guarantee it will even be there when we have our day in court!

[keepmine]

Will the drop income puit you under the median for your state?

[NowOrNever]

Can you share? What's your loophole?

[simonhall]

Thank you for the answers everyone. Yes, the dropped income puts me below the median. I was only over it by a tiny bit and will be below when the income drops.

What I'm wondering though is, can I filed even though right now I am able to make all of my minimum payments? I do have a very hostile creditor who is sure to object to the slightest thing.

[aa06a47]

Can you share? What's your loophole?

Don't really want to discuss it at this point. After my case if finished, I will let you know what it is.