Please need help/advice for Chapter 13

[Jamieleigh88]

Hi everyone. My husband and I have come to a conclusion to file Chapter 13. We have our first visit to our attorney in 2 days. I had no idea about filing bankruptcy so for the past week or so I've really been trying to do my research. My husband technically is just filing, I look at it being both of our credit but it's just his. We first discussed debt consolidation or settlement but after all the horror stories and reading more on Chapter 13 I think it is a better fit for our situation. Ok a little background- I'm 24, my husband is 29, we started out on our own very young at 17,18 and immediately started usiing credit cards, nothing crazy though. We purchased our home March of 2008, perfect credit everything was going great. We have always had debt but over the years it just seems to have gradually building, I know because of our stupidity. I just want relief and not get a stomach ache going to get the mail, or checking our bank account. And seeing the "Make minimum payment paid off in 10, 14, 17 years" on our credit card bills and that not changing in the past 5 years I'm just stressed, and feel like we will n\ever see the light at the end of the tunnel. As of now, his credit score is around 670-690 and never miss a payment on anything. But that is why we're working, to pay our bills. I don't have $260 to fix the car, I don't have $310 to fix the lumbing under the kitchen sink because we have to pay everything else. As of right now, we are in roughly $20,000 in cc debt. We owe $51,000 on our home, $500 mortgage payment which is so low that we should have no problem to pay. Never been a day late on one payment, but I just can't take it anymore. We want to have children like now but can't because of our financial situation. My husband makes about $43,000 a year. I am a waitress and make maybe $16,000-$20,000 a year which on paper it shows I make maybe $12,000. We have a $320 a month car lease. We should easily be able to afford all of our basic bills but... because of all the loans and cc's just can't. Right now we spend roughly $1000 on our cc's and loans. I know we will have a payment filing chapter 13 I am just hoping it won't be too high because what's the point then? Our whole goal is to be debt free, be comfortable and have a savings which we don't other than his 401k which has maybe $20,000 in it. We are young, with no guidance and no parents to turn to for help or advice. Please, any help or tips or whatever would truly be so appreciated! And also, when we go into our attorneys office and tell him we want to file chapter 13, is he going to look at us like well your not behind on your bills, you have a good credit score so you don't need to file. We literally live paycheck to paycheck and I'm just sick of it. Anyone know maybe a clue as to what our payment would be? $3800 a month take home for the both of us, $2500 goes out in bills each month, $1000 of it in cc's. Also we only have maybe $10,000 equity in our home if I calculated that correctly. Thank you for listening to me ramble!!

[Sammie]

Jamie, Have you and your husband taken the Means Test yet to put down all of your monthly bills & debts? We did this first and brought it with us when we met with our Attorney. If I read your post correctly, it is just your husband that is filing for Bk? Discuss with your Attorney if the cc's are in both your names you will most likely be responsible for the debt. My husband was just going to file alone but when I found out that I would still have to clear up the debt I decided to file also. You will have a much clearer picture once you meet with him/her to discuss your case & then you will be told how much your monthly payment will most likely be.

Good luck tomorrow & keep us advised. sammie

[keepsmiling]

Hi Jamie and welcome!
Relax, breathe.... again.... ok lol...

You are in the right place. Lots of good advice, comfort, support. More often than not, folks here can't share this with their parents anyway... see some recent threads lol....

Anyhoo, write down your expenses; call a few attorneys; and see where the cards fall. You don't have to file tomorrow; you have time to get your ducks in a row, get a clearer picture of where you are headed, and calm down a lot as relief will soon be on the way.

Do NOT sign with the first attorney you meet. I was so desperate at my first sit down that I made this mistake and wound up having to fire her. You may be surprised at the wide range of interpretations you will get from different lawyers. Your story is not unusual, aside from you being in better shape than many.

Good luck and keep us posted on your progress.