Need Advice and Help

[KenInNY]

Hi All, here is my situation:

I'm single, 48, don't own a home, car is a 1991 Honda, and live in NY.
I owe about $60,000.00 in credit card debt.
Plus I just took another cash advance of $15,000.00 as backup
because I really don't have anyone that I could ask for help if
I needed money, and I also need it to help pay the credit card bills.

I lost my job last year and I'm currently collecting
(extended) unemployment benefits. The job market is tuff and
I don't know what kind of job I'll be able to get again. But I know
I won't be able to continue to pay rent and the credit cards
at the same time unless I'm making over $60,000.00 and I don't see
that happening with the economy as it is and where it's going.

The banks/credit cards have been good to me and I really
wanted to pay them back, but things have not worked out as I hoped and
I'm absolutely terrified over this.
I was able to keep moving the balances back and forth on the cards
and was paying 2.99 apr and even 0.0 apr most of the time. But those offers only last for 6 months or a year
(the fee is about $450.00 for each transfer offer).
But I can't move the balances around anymore because all the cards
are used up. I applied for another card, but was turned down.
So now, the APR on the 6 cards will be going to the default rate, which
is probably 17.99, 21.99, or even higher, I don't even know.
When this happens, this will be insane and I will NEVER be able to
pay these cards off. The interest fees will be crazy.

If anyone can help with the following questions or offer any insights
or information that would help me, I would be extremely grateful:

1. Is Chapter 7 a good choice in this situation?

2. If I do file Chapter 7, should I stop making credit card payments for a while
and then file, or should I file while my credit score is good.
My credit score is 770 now.

3. Can you apply for Chapter 7 while being unemployed?

4. Anything else I should be aware of?

The main factor here is whether I can get job that pays what I need.
Right now, I'm guessing (even hoping) I'll get something
around $30,000 - $40,000. I could live on that (with no debt).

Thanks
Ken

[StartingOver08]

You will need to wait awhile to file because you just took out a cash advance. At a minimum you need to stop using your cards now. Pay on the card where you have taken the cash advance for at least another 3 months. Do not charge anything else. Do not take any more cash advances and do not do a balance transfer from one card to another.

It is best to put as much time as you can between your last activity and the filing in order to avoid the 'presumption of abuse'. Ch 7 sounds right for you, but normally it is best to wait until you have a job so you have income to support yourself after your filing. Certainly you can file while you are unemployed.

Check your exemptions for what you are allowed to have:

http://www.legalconsumer.com/bankruptcy/state_bankruptcy_info.php?st_fullName=New%20York

You do not have too many details in your post, but it sounds like you would certainly be under median income if you are unemployed. In your situation, you will need to work out a budget, such that it is, for survival until you can file. Are you able to find a job in your line of work or are you considering other avenues at this point? The issue becomes, without the cards, the budget is much more restrictive. So you need to time this carefully.

[KenInNY]

Thank you for the info . . .

>> It is best to put as much time as you can between your last activity and the filing . .

How long should this time be?

[StartingOver08]

At a minimum you want to pay 3 months of minimum payments on the cards where you have done a recent balance transfer or cash advance, and then you can stop paying. If you are able to get a job, even a lower paying job, it does not look like you never intended to repay the debt. You need to have at least 70/90 days from no charges, BT's or cash advances. However, with your large cash advance you probably want to wait 6 months or more from the cash advance.

An experienced BK attorney can detail for you how the Trustee's behave in your district and give you better guidence on how long to wait.