Is Chapter 13 my only choice?

[babyvo]

Thank you, that's really helpful information. Does anyone know, if in a chapter 13, what bills would I stop paying? I know I'd stop paying all credit cards, but would I still pay on my car loan, or would that become part of my monthly payment plan to the trustee? I was told I'd stop paying on my student loans, but are they totally deferred, or would some of the money from the trustee go to them? What's confused me is that the lawyer told me my payment plan would most likely be $250-300 a month. But if I'm not paying my car, student loans, or CC any more, then that monthly payment is less than what I'm currently paying on those things.

I'm trying to set up more consultations for this week, but I think something needs to be done about the suit before friday or a judgement goes against me. Does anyone know what would happen if I don't do something about the suit before the 20 day window has passed? I'm feeling really stressed and pressured to make a decision quickly because of this impending suit.

[LadyInTheRed]

Some plans include car payments in the plan payment, others do not. Whether student loans payments can be paid during the plan varies by district. The fact that your monthly payment would be lower than you are paying on those items now, does not mean they would not be paid through the plan. If included in the plan payment, your car loan could be paid over the entire 36 month plan. Your student loan would not necessarily be paid at the same rate as you are paying now. Your credit cards would only receive what is left. It is not uncommon for a plan payment to be lower than a debtor's pre-filing debt payment. Before BK, you are struggling to pay what you contracted to pay. After filing Chap 13, you are supposed to pay what you can afford to pay.

You should definitely talk to more attorneys to see if you can qualify for a Chap 7. As already pointed out, you should be able to exempt your car using the federal wild card exemption.

Don't let the fear of a judgment rush your decision. If a judgment is entered before you have a chance to file, just don't leave cash in your bank accounts. You could also file an answer to try to delay a judgment.

[doni49]

What is the "average condition retail value" of your car (www.nadaguides.com)? From what you've told us, that would be the one asset I'd be concerned about the trustee taking if you go BK7. But if the eequity (value - debt owed) is less than the wildcard, then it would be exempt. If you don't have any other assets the trustee would want then you should be safe.

As to the court case, read the stickies over in the collections section of this forum. There is some really useful info to get the court case delayed.

[lillymarlene]

I don't know if this will help or not, but by July 2010, I had 2 suits pending against me. I went to the "pre-trial" phase of the first one, and claimed I really didn't know how to answer a lot of this; that I needed more time to prepare. Then my case was continued, which bought me a little more time, and I was able to file chapter 13 before the "trial."

[babyvo]

My car is valued around $4,500. From everything I've read, it seems like it should be safe in a 7?

I spoke to another lawyer on the phone today and he said I should be able to file 7, but I'm going to meet with him next week to go over all the details of my situation. (and silly me, when I met with the first lawyer, I didn't have copies of some things like my paystubs, so he has the originals and only copies, and now I need to go back and get them. I'm not usually that dumb!) He basically said what you all have been saying, $1900 isn't a lot per month, and can very easily be explained away. I've spent so much time reading about 13s, I guess i need to get more info on 7s now too. Do 7's usually cost more up front for lawyers fees than 13s?

This new lawyer also said not to worry about the suit either. Since they can't garnish wages in PA, I just need to worry about my bank account, like you said LadyintheRed. Since that would take awhile to process anyways, he said I have a little more time to figure stuff out. To be on the safe side, I think i'll look into how to respond to the suit, if only to buy some time, but does anyone know if it only has to be post-dated in the 20 day window, or does it need to be received in that time?

I feel like I can breathe a little easier now that I don't feel so pressured to decide this week, and that I've got another option. Thanks again for all of your input.

[keepsmiling]

7's cost less than 13's, but you will have to have it all paid by your 341- so yes, it will probably cost more upfront. But it will be worth it to be over and done in 3 months instead of 3-5 years! Prices vary, do be sure to shop around and interview at least 3 attorneys.

[doni49]

And when shopping around, cheapest price isn't always the best idea.

Find a few that you feel comfortable with and then maybe go with the cheapest from THAT group.

[ess]

I didn't see you list anything for medical, do you pay a portion for your insurance? I also didn't see a figure for car insurance, that is different than car maintenance. I wouldn't even mention living with your boyfriend since he is not on your lease or any of your utilities. His earnings at this time have nothing to do with you.

[ess]

7's cost less than 13's, but you will have to have it all paid by your 341- so yes, it will probably cost more upfront. But it will be worth it to be over and done in 3 months instead of 3-5 years! Prices vary, do be sure to shop around and interview at least 3 attorneys.

I'm paying my attorney in installments and he won't be paid by the time I have my 341. He will be paid before the BK is closed.

[keepsmiling]

I'm paying my attorney in installments and he won't be paid by the time I have my 341. He will be paid before the BK is closed.

I think that's extraordinary. You must have a very understanding attorney.
Most here want payment before filing. We found one who would take installments up til the 341.

[ess]

I think that's extraordinary. You must have a very understanding attorney.
Most here want payment before filing. We found one who would take installments up til the 341.

I've worked for attorneys for over 20yrs although none of them I work for now does BK's. Back in the late 90's my old boss did them so that is what I did for people. I asked the attorney I am using (and I do know him but that doesn't make a difference) if he has to be paid in full first and he said no. I mentioned to him that back in the late 90's they had to be paid in full first otherwise they would have to be listed as a creditor on the petition. He said not now. Infact, the people he met before me set up weekly payments with him, I overheard them. I broke my payments into 4 installments. I could have filed on my own but I'm still of the old school and believe only a fool represents himself. It's taken me a year to save up for it and I wouldn't be filing now but I was aware of a judgment coming from Cap One...they are the worst...I can understand why people call them Crap One.

[babyvo]

My car insurance is listed there. I do have medical listed as well, $50 for prescriptions, vitamins, etc. My medical insurance is taken out pre-tax from my paycheck, it's $120/month.

I only talked to the second lawyer briefly last week, but I think he said for a chapter 7 he charged $1600 and required $1000 either upfront or before the 341, I'm not sure. These are obviously details I'll need to go over when I meet with him this thursday.

Side note, I called the first lawyer last week to ask some more questions (like if he thought I would qualify for ch 7, etc), and to get my originals back so I could meet with other lawyers. He essentially blew me off, telling me to call back after the 16th (after passover), and started talking really fast and over me without listening about all the reasons he needs originals over copies of my papers. I understand I'm sure he's busy, and it's an important holiday, but the way he blew me off made me pretty uneasy. When I brought up my concern about the law suit and not giving a response in time, he said i'd receive another notice telling me I have 10 days to respond to the suit. Does anyone know if this is true? I feel like our whole conversation was bologna and I should just go get everything from his office tomorrow.

[TheBajan]

My car insurance is listed there. I do have medical listed as well, $50 for prescriptions, vitamins, etc. My medical insurance is taken out pre-tax from my paycheck, it's $120/month.

I only talked to the second lawyer briefly last week, but I think he said for a chapter 7 he charged $1600 and required $1000 either upfront or before the 341, I'm not sure. These are obviously details I'll need to go over when I meet with him this thursday.

Side note, I called the first lawyer last week to ask some more questions (like if he thought I would qualify for ch 7, etc), and to get my originals back so I could meet with other lawyers. He essentially blew me off, telling me to call back after the 16th (after passover), and started talking really fast and over me without listening about all the reasons he needs originals over copies of my papers. I understand I'm sure he's busy, and it's an important holiday, but the way he blew me off made me pretty uneasy. When I brought up my concern about the law suit and not giving a response in time, he said i'd receive another notice telling me I have 10 days to respond to the suit. Does anyone know if this is true? I feel like our whole conversation was bologna and I should just go get everything from his office tomorrow.

Regardless of whether or not what he said was true, you should go get your documents and kick the dust off your feet at his door. I wouldn't have a lawyer who refused to listen to what I have to say. That's not to say I expect him to do whatever I tell him but that he should have enough respect for me as a person and as a client to value my input and my concerns. Find a new lawyer and toss this guy to the curb.
Best of luck!
The Bajan

[SMinGA2]

I say go with your instincts. If his behavior makes you uneasy, then don't ignore that.

Most ch. 7 attorneys will require payment in full upfront. I've heard of some allowing you to make payments that continue after your filing date - but I don't think that is the norm.

[ess]

I agree, go with your instinct. You are under no obligation to work with that first attorney. Don't wait for him just call his office and tell them you will be coming in (give them a time) to pick up your original papers please have them ready at the front desk. I'm not sure why he even took your paperwork if you didn't give him a retainer.

My chapter 7 is costing $1600 as well although it can vary. Not sure about PA but in CT if the utilities are in your name you can throw those bills into the BK also. Everything is in your name, you're not married so it's all your responsibility to pay the bills. After taking what you owe and what you make it looks like you qualify for chapter 7. Can't remember if I saw it on your list but in CT we list entertainment and clothes on the petition also.