I need help with Chapter 7

[lennon121881]

This might be a tad long so I'm going to apologize in advance........sorry

I have been thinking about filing for Chapter 7 for about 2 years now ever since all hell broke loose in my life. I have always worked hard and paid my bills on time, well 2 years ago my mother was diagnosed with advanced MS and could not work anymore and her SS is a joke, so money became tight around here but my father was still working which was good. Well not even 6 months after my mother was diagnosed I get a call that my father was in a car accident and is in the hospital..............long story short he was hit from behind by an illegal immigrant in a tow truck and was injured to the point of being in the hospital for over a month and we had to pay out of pocket for most of the medical expenses. This is the time when I had no idea what to do, so I left school to come home and help my parents out.

Well my pay check just was not cutting it so bills started to pile up and I had to make the difficult choice of keeping a roof over our heads and food in our stomachs or paying the CC's and car.....................needless to say I chose the roof and screwed my perfect credit up to no return. I lost my car and now I have about $30k in debt and to top it all off the company I worked for shut down so I was out of work for 2 years and did odd jobs to get by.

FINALLY I'm starting to get back on my feet a bit with a new job that pays decent and is a bit more secure, but I have only been there since August of this year so I have not had time to straighten out anything................not to mention I have been working around 73 hours a week .

So right as I start getting back on my feet I start to receive calls from Oxford Management and something called the warrants division telling me they are going to take legal action against me for my reposed car, which I lost last summer. They sold my car for $7K and that left me with a $7.5K balance to pay, but I have not had the money to pay and I wont for sometime, so I have been thinking about filing Chapter 7 because at this point I dont think I have much of a choice. I contacted a lawyer but with my work schedule I have not had time to meet with him and I'm worried about them filing suit against me before I can talk to the lawyer, does this make a difference..................I mean I dont want to get arrested

So I guess any advice on this would be great, this is a whole new world to me I'm not used to this kind of stuff and I feel like a low life criminal for trying to take care of my family.................and I'm only 26.

This just a few of my questions, but please feel free to answer others that I have not thought of yet.

Also do they want to see bank records, if so what do I do with the money I have in there?

[BassBoy]

First, WELCOME TO THE FORUM!

Next, you will not get arrested for the debt that the creditor is threatening to sue you for. At the worst, the creditor will be granted a judgement and wages may be garnished.

With the amount of debt you have and receiving threats from a creditor, and if BK is your last resort, then seeking the advice of an attorney should be done soon.

What will help us give you a better idea of your options would be to provide more information, like your income, all of your debts, the state you live in and if you have any assets that you own.

[lennon121881]

First, WELCOME TO THE FORUM!

Next, you will not get arrested for the debt that the creditor is threatening to sue you for. At the worst, the creditor will be granted a judgement and wages may be garnished.

With the amount of debt you have and receiving threats from a creditor, and if BK is your last resort, then seeking the advice of an attorney should be done soon.

What will help us give you a better idea of your options would be to provide more information, like your income, all of your debts, the state you live in and if you have any assets that you own.

Well I dont have any assets really.................I dont own anything except clothes, PC, and a TV. I live in Mass and my biggest debt is my car at $7.5K (repoed), but other than that I have 8 credit cards totaling about $10K, a $1000 Gas bill, 2 cell phones at $200 each and $897 in excise tax. I just got back into work this August after 2 years of not working and I make $12 Per hour, so I'm not rolling in the money or anything. I'm still paying off people I borrowed from.

[FreshLikeADaisy]

This is just my opinion, but I think this is a perfect time for you to file Ch7. At $12 an hour, chances are good that your expenses eat up most of your pay and you would get a 7 without a problem. You could go for a 13, but that's a hard road to walk for five years. Some people would say that for such a small indebtedness it wouldn't be worth it, but when you're making nothing, or next to nothing, it's just as much a godsend as it is for someone with $100k in debts. Seriously, I think you should look carefully at a Ch7. Good luck!

[lennon121881]

This is just my opinion, but I think this is a perfect time for you to file Ch7. At $12 an hour, chances are good that your expenses eat up most of your pay and you would get a 7 without a problem. You could go for a 13, but that's a hard road to walk for five years. Some people would say that for such a small indebtedness it wouldn't be worth it, but when you're making nothing, or next to nothing, it's just as much a godsend as it is for someone with $100k in debts. Seriously, I think you should look carefully at a Ch7. Good luck!

I agree with you, not mention I'm paying the cable bill, electric, and food.................man life can be tough at times I'm hoping to get some free time after the holidays...............like December 26th to meet up with the lawyer, even though he is asking for $1500.

[FreshLikeADaisy]

If you are already pretty certain you are going to file Ch7, one option is to stop paying unsecured debts like credit cards, and use that money toward an attorney. If you are supporting your parents, that is a household of three with expenses to match in one of the most expensive states in the country to live in: you would not have a problem getting a 7.

Keep in mind that attorneys make more off of a Chapter 13 than a Chapter 7, so if the first attorney tries to steer you into a 13, see a couple more before you take his word for it. You would not be the first person this had happened to, so be informed. You can see as many attorneys as you can make time for; initial consultations are usually free. Find one that you feel good about, doesn't rush you, and answers all your questions. You may find it helpful to read up on bankruptcy before you go, and to write out an estimate of your income, debts, expenses, etc that you can just hand to him -- it will save a lot of time and allow you to ask more questions, and well informed questions too!


P.S. Since you only worked five months this year, chances are good that you will get back most if not all of your withheld taxes when you file, and have a nice fat tax return. Be sure to file your taxes and spend that return BEFORE you file for bankruptcy, though you can start talking with attorneys right now. You could even use that cash to pay for the attorney. Also, your income probably allows you to be eligible for the Tax Freedom Project, which allows you to electronically file your taxes free of charge (like with TurboTax, though there are others) and get your return direct deposited much more quickly than if you file paper. If you made less than $25k this year, chances are you will be eligible for this program. Check http://www.taxfreedom.com after January 8 to see if you are eligible and to use the program. This is how I filed when I didn't have a penny to my name, and it's no good paying someone to electronically file for you if you can do it for free.

Good luck!!!

[woohoogirl]

I was diagnosed 7 years ago with MS. It can be a tough road. I can't offer any useful advise, but my thoughts are with you and your family. Your mother is grateful you are there for them. You didn't mention RX costs, but I know they can be very high with MS (hence the reason I am here) and there are alot of patience assistance programs for people on SSI with low income. Your mom's neurologist should be able to point you to any assistance programs for medications. (((hug)))

[keepmine]

$30K worth of debt on $12hr. is nothing to play with. Were I you, I'd go ahead and file and then put on a fullcourt press to find a better job.
As someone mentioned, stop paying all debt you wish to discharge and be sure you spend that tax refund before filing {if it can't be exempted of course}.