Down and Out in CA

[jdeclue1]

I'll attempt to give the short story.

CC Debt = 22k
Furniture Loan = 1.2k

My name is the only one on the loans. I had a long term relationship with my girlfriend (over 5.5 yrs) She has moved out and left me to my 1325/month lease, utilities, and other incurred cost of living.

I've been through 2 moves in the last 6 months, one of which was to relocate to a lower paying but much more stable job.

When we moved out we had nothing so counting my chickens before they hatched I decided to go out and use my shiny new card to incur some debt so that we could live comfortably in our new apartment.

Then a couple months later I get offered a permanent position with the same company I was working with (the current position was temporary but full time and paid well)

I'm rambling a bit, but basically my girlfriend's decision to move out and abandon the relationship, the 2nd unexpected move, and the lower paying position have forced me into the negative each month.

I'm aware that without changing my lifestyle overall i won't come out of the monthly negative, but as it stands I even if i were to pay the minimum balance on these debts i would be about 25% over what i make in a month.

I make under what the means test allows for chapter 7.

I don't own my own car (drive one of my parents') but I have to maintain it, nor do I own my own house.

I recently spent a fortune on trying to keep my girlfriend around (gifts and a vacation).

So, I'm wondering how long i should wait before filing and what other actions should i take during said time to make sure my bankruptcy goes through without a hitch? Would paying my bills with my my remaining credit be seen as fraud if I don't have any other means to pay said bills before I file for bankruptcy? Also, what should I be expecting for attorney costs, because if I dump whatever i have left in my bank account towards my bills then nothing will be left for the lawyer.

If I've left out any important information, ask away and i'll be happy to answer any and all questions.

[DivorceRuinedMe]

What bills do you have that you need to pay immediately? That makes a difference as far as fraud. It's best to wait 90 days after the last charge before you file to get around the presumption of fraud.

Attorney's costs vary widely around the country. Anywhere from 1200 - 4000 is what I've read for a Chapter 7. I know the 4000 sounds outrageous but I think that was in California, that's why I mentioned it seeing as your screen name is down and out in CA.

[SinkingFast]

Many attnys don't wanna file a BK for a person with "luxury" charges or cash advances within 90 days prior to filing. So, for a rough guesstimate, look at your latest flurry of charges and figure 3 months from then.

The longer you can wait, the better. As long as you aren't in danger of a Judgement, law suit, or lein of some sort, then take your time. Consult with several attnys. Find one you like. Get your documents all gathered together. Get your pre BK Credit Counseling taken care of. Then you're all prepped and ready to go if need be or when you're ready.

One thing you need to do is move to a less expensive place to live. You need to get into something that's roughly at or less than 25% of your Net, monthly. You can include the current Lease and list your Landlord as a Creditor in your BK. That can be Discharged along with your other debt.

Transportation expenses may be a tricky issue for you. Some Trustees don't allow auto expenses when you don't own the auto. You'll wanna ask attnys about that as you Consult around.

[EZDUZIT449]

Hi Down and Out,

This is my first posting. And have been reading all the posts to gain some info. This is an awesome site full of very valuable info and alot of uplifting spirits.

I too am in Calif and just now coming out of denial and on my way as we speak to clean up my mess, and file Ch 7 in a few months. Keep reading around theses posts and you will start to feel their is hope and alot of info and support to change your life style and start an honest hopeful new beginning.

[JRScott]

Okay

Take a deep breath.

There let it out

It'll be alright.

Okay first off I assume the furniture is a secured debt with the furniture itself being the collateral. (Even if its undersecured which commonly happens in these situations).

The credit card debt is of course non priority non secured debt.

Given 22k in credit card debt, that's probably minimums of what 660 dollars a month or thereabouts. If you stopped paying the credit cards immediately can you still pay for the furniture and a lawyer?

I'd strongly suggest a lawyer, it makes things easier but there are some Pro Se filers here too if you decide to go that route. If you do be sure to get the NOLO book, you'll need it.

Okay what I'd do is immediately stop paying all the credit cards. Start saving the money saved to help pay the lawyer.

You'll want to wait at least 90 days before filing after the last 'luxury good' or cash advance you charged. 6 months can even be better.

Once you stop paying the credit cards they'll start calling you. Buy an answering machine and let it screen your calls, set the volume down low. Also if you have caller ID get the service that blocks calls that refuse to show their ID. If you do pick it up, tell them you're sorry but going through a rough time and don't have the money. Don't tell them you are filing bankruptcy until you can retain a lawyer (or file your papers if Pro Se). Telling them you are filing might cause them to speed up their normal process of seeking restitution and you want as much time as you can get.

Taking these steps you probably have at least 3 to 6 months before anyone starts any proceedings, and could have a year.

Note that if you don't pay the furniture it is likely they'll come get the furniture depending on your agreement.

Anyway hang tight we are all in this together .

[EZDUZIT449]

JRScott, you are an inspiration to this forum. Every wheres I read you offer inspiration, non shaming hope and valuable info to each individual's circumstances.

I have just started reading this forum last week and it has helped me to understand myself, come out of denial and start on a better financial path.

I have been on disability for 3 months now and every financial obligation I have has gone way beyond manageability. It is very frightining. This forum helps me realize that my life might not have to come to an end over all of this, thank you

[JRScott]

Glad I can help EZ. Hang in there pal, I know it seems overwhelming at first but we can all get through it working together.

[CindyLou]

An apartment under 1300 in any california metro area is almost unhear of! Believe me, I understand. And as far the girl, apparently she didn't appreciate the things you were trying to give her! Her loss. Hope you stay around this forum. I am in California, the LA area, and I know how hard it is to stay afloat around here, (or really anywhere for that matter), but being from Louisiana, it just seems so much harder here. But you can't beat the weather!!!! Try and hang on for your 90 days from you last major purchases. If you need to pay a bill or two (like utilities or food) I wouldn't think that would be an issue. But technically once you decide to file and see an attorney, then any charge you make could be considered non dischargeable. Oh, and where is your furniture financed through? Was it a local loan before you moved here or did you purchase it here? Did you charge it on a credit card or was it financed through a finance company? My brother had furniture that was financed through a local store in Louisiana. I was secured, however it was damaged in Katrina. So when he filed, he told them it was damaged. He never heard another work and they didn't even file a claim (he filed chapter 13).