Recent Credit Card Charges

[guitarman1908]

We have charged a few credit cards recently (this month) for some home improvements ($5000 Home Depot) Sears last month ($8000) the rest on a visa ($7500) and also charged a lap top for my daughter in college and last weekend a TV 26" for her as well ($2600 to Best Buy) along with Christmas gifts on a discover card. My husband just lost his job yesterday and we know we will not be able to make all of our bill payments. I am not sure how long we can make it on just my pay and I fear we will have to file for bankruptcy of some sort.

If we find it hard to make our payments, can we file for a chapter 7?

Does the attorney or trustee ask to see what you charged on your credit cards like for wal-mart, home depot, the mall?

Thank you for your help

[willsurvive]

Most likely you will have to wait at least 90 days so it doesn't appear as fraud.

[justbroke]

If we find it hard to make our payments, can we file for a chapter 7?

Does the attorney or trustee ask to see what you charged on your credit cards like for wal-mart, home depot, the mall?

Thank you for your help

Filing Chapter 7 is not about being able to not afford payments. It's about your income! It's about your income over the past 6 months (averaged).

The longer you can hold out the better. I suppose that the items you purchased have deferred payment terms (meaning you don't pay now, you pay later)?

If you file now, you could end up in a Chapter 13. Again, this all depends on your income and your ability to fund a Chapter 13 plan.

You should probably seek some pre-bankruptcy counsel and planning assistance.

[guitarman1908]

Will they come get our appliances we bought at Sears if we wait 90 days?

[guitarman1908]

Our income is around $50,000. Oh, before I forget, ,my income is from a disability policy. Our house payment is $1500.00, Cars $750, Furniture $300.00 Credit cards IDK maybe like $750 a month, Medical bills out the wazoo, Utilities $average $400, insurance, food etc... plus our other expenses

How does all this work?

[justbroke]

Will they come get our appliances we bought at Sears if we wait 90 days?

First, let me reassure you this.

No one is coming to get your appliances... now.

The terms of what secured items, like refrigerators, cars, and even your homes, are decided based on your Bankruptcy filing.

The way that things move... you are not going to have someone knocking on your door for your items today. All of that needs to be done through a court and you'd have very good notice on that. (You'd get a notice of lawsuit served on you.) Unless and until that happens, you should be planning your Bankruptcy... preparing to file.

Generally, lawsuits don't start until after charge-off which is generally 6 months after no payments (or when your first major default occurred). I believe that you have plenty of time to perform pre-Bankruptcy planning.

How many payments have you missed?

[guitarman1908]

My income is from a disability policy. I make about $50,000 a year.

[justbroke]

Our income is around $50,000. Oh, before I forget, ,my income is from a disability policy. Our house payment is $1500.00, Cars $750, Furniture $300.00 Credit cards IDK maybe like $750 a month, Medical bills out the wazoo, Utilities $average $400, insurance, food etc... plus our other expenses

How does all this work?

Depending on your State of residence, you might just qualify for Chapter 7. You'll need to take a sample Means Test to see if you pass it (which is what you want to do).

Your medical bills would be discharged, so wouldn't count. What's your family size like?

I'm sure someone will post a link to the Means Test... someone?

[guitarman1908]

We have a family of 5. My son will be 18 in June and will go into the Army. What is a Means Test?

I live in Texas. Does the court decide whether you file a Chapter 7 or 13?

[liz417]

Spend some time reading the previous posts on this fourm, the more info you know the better decisions you'll make regarding your ch 7 or ch 13. The "stickies" on each forum is a great way to start.
Here's the link to the means test: http://legalconsumer.com/

Good Luck!

[justbroke]

I live in Texas. Does the court decide whether you file a Chapter 7 or 13?

The means test determines whether you can file Chapter 7. Sometimes you don't get a choice.

I guess I'm trying to say that it's not so much the court, as it's the circumstances around your income and liabilities and what you're specifically trying to do.

[michele71]

You will definetly need to wait at least 90 days--but I agree the best thing to do is get ahold of a lawyer who would be in the best position to answer your questions.

[mintz]

Thank you for all your help

[guitarman1908]

According to Texas law we make about $10,000 above the means. Does that mean they will make us do a Chapter 13?

[guitarman1908]

Do you bring your w2 to the trustee or lawyer or your check stub? Hos do they know how much you made in the past 6 months?