guidance please

[momxx5]

As some may know, DH lost his job last Wed. It has been such a rollercoaser of emotions.

He has to sign a non compete contract along with tons of other restriction type phrases. We are seeing an atty for this matter on Monday.

Now, in reference to our BK, I have provided our atty with most of the info needed to determine how to proceed. Everyone is in agreement that Ch 7 is the way to go (even before losing job - although we are above the income, but have 5 kids so hoping the expenses met the means test) but it was discussed that we may file Ch 13 the convert to Ch 7 shortly after filing.

We paid the atty a retainer and I am fully confident in him. I did a consult and compared to other atty in area he is very established and strictly handles BK. He is very soft spoken and calm....which drives me crazy sometimes because I am so high strung and want things done NOW.

When I talked to him on Wed he said he was thinking that we may have to wait a couple of months to file. I see no benefit in this at all. He explained that it would work out better when all the numbers are plugged into "the crazy system created by the legislature in 2005 by the cc companys.

Yesterday I dropped off our tax return for 2008 and it is not pretty. We owe A LOT. He was really interested to see our "tax expense" and said that may be all we need to kick us into Ch 7.

I really want all the gears set in motions, file with a case number, a date for the 341, and anticipation for it all to end.
One major holdup is that we'll need to pay him in full, so that would happen Apr 30th. DH gets paid monthly.


Aslo, DH will continue to have an income (that maybe over for means test but is a decrease of over 60% of previous income)even though he is no longer employed(in contract that I'm not to talk about). DH will not be collecting unemployment.

So does anyone have any advie or guidance in this matter? I don't want to bug the atty, he just keeps stating "we'll see what the numbers tell us" .

Thanks in advance

[momxx5]

Okay, my mind is always on BK every spare minute I have.

So tonight while running errands with the kids it hits me....the atty suggests waiting a few months before filing. This is agrevating(sp?) to me because I want to file NOW.
So, now I think I may see his reasoning.....since DH lost his job but will be recieving compensation/severance pay monthly that in a couple of months it will be time distance from losing job. I think the income will still be close to cut a Ch 7, but at least I am guessing at his reasons.

I'll talk more to him on Monday.

We really need to take DH's 401k to pay some annual expenses, but we cannot touch this money until after the 341 meeting, thus wanting to get this all going.
It is so depressing to not be able to purchase the kids new shoes (greatly needed) or even a quick drive through meal.

Thanks again to the wonderful wealth of knowledge on these forums.

[Brighterdays]

sorry, but I gotta ask.... What does DH stand for? I tried googling it but have gotten many different answers. divorce husband, dumb husband?

I have just decided to file ch7 and i swear right after, it was the best nights sleep I have ever had.

why are you in such a hurry. Do you have recent purchases or cashadvances on your CC? Your attorney may know best. You could always go for a second opinion, and not tell him you have already hired another attorney. you know just to see what he says.

[relief13035]

sorry, but I gotta ask.... What does DH stand for? I tried googling it but have gotten many different answers. divorce husband, dumb husband?

Hey don't be sorry. I asked the same question when I was new.

I thought it stood for DAMN HUSBAND. LOL I was informed by members of the forum that it stands for "dear husband".

Personally, I like the way you and I think better.

[dingdong]

I always referred to him as DH ( rhymes with ) Rick Shead ( replace the R with a D and take off the S)




Just kidding!

Maybe thats why I am single!


Sorry guys, just being silly!

[momxx5]

LOL In most instances DH stands for DearHusband, so I refer to my husband as DH, my children...boys = DS, darling son; girls = DD, darling daughter.

I guess I feel rushed to file because I want it over and done with.

A very important issue is that we will be needing DH's 401K. I know we'll face penalties and taxes, but since he will not recieve his annual bonus, we need that money to pay annual expenses. I pay life insurance for a full year, car insurance for full 6 months, and some other expenses once a year, so these expenses will be coming due and without the 401k I don't know how we will manage.

Also, I want to understand why we would have to wait to file.

Thanks again.

[StartingOver08]

The attorney may change his mind regarding your filing date once he reviews your numbers.

He sounds like the cool, rational thinking type of attorney, which is definately an advantage when filing BK.

Since you are in agreement about the Ch 7 and he can not file until he is paid in full, make sure he has the petition ready so when you pay you can be filed right away. Have you provided all the information he needs to complete the process? Or does he wait until he is paid before he begins putting the petition together. It just may be a simple miscommunication - or it may be the attorney's schedule. Did you retain the attorney yet? (Sign the retainer and pay a partial fee).

[momxx5]

I paid him $300 as retainer.
I have a reciept.

He said to give all my creditors(collection calls) his name & phone number so that we do not have to recieve calls at home anymore.

[StartingOver08]

Actually, so far it sounds as if he has your best interests in mind (but I don't have all the facts you do).

You have retained him so he is working for you. Also, at least he takes the collections calls (as much as he can) - hopefully that is giving you some phone call relief from the CA's.

Just ask him what will waiting the extra couple of months do for you in the BK? Ask if there are any flags in your filing. This will give you the information you need to determine if this is truly the attorney you want to stick with or not. But, I have to say it is normal to get that "I want to file right now and get this over with" feeling at this stage of filing. I think it is human nature to want to push through the negative events as fast as possible to put them behind us.

[tay666]

I am betting that he wants to wait so the reduced income will show on the 6 month look back.
If you file right now, you have to use the numbers for all the income earned the past 6 months. It doesn't matter what you are making right now.
In a couple months, that 6 month look back will be a lower number as there will be a couple months with less money coming in.

There are a lot of times where it is best to wait a little while before actually filing.
One to put some distance between the last card uses and the filing of BK
Another is when income has dropped. You want as much of that lower income as possible to reflect in the 6 month look back. Otherwise, on paper, it will look like you are making more money than you actually are.

[momxx5]

Thanks y'all

I will call him tomorrow to clarify everything. I don't want to be a "pain" but I am so wrapped up in this and wanting it behind us.

There is no current charges on any of the credit cards because most are closed in collections or over limit due to interest & fees. So the distance from use is good.

I think you may be right about the last 6 months distance thing......although all of DH's monthly pay stubs show the same gross income, the ones from 2008 show year to date income and that number is high. However even in January we knew fully that DH would never be making that amount of money from that job. I'm guessing atty wants the last 6 months of pay stubs to show year to date income as the lesser amount.

The fact that DH lost his job didn't factor in as much as I hoped for because of a severence package - seeing atty tomorrow on that matter. We are waiting to see how it will show...if he'll get pay stubs, etc.

Thanks again.


Patience is a virtue I have yet to master.

[dingdong]

Just a note. Planning is very important in BK. Your attorney is doing the right thing. Most of the time, the reason debtors want to "get it over with quickly" is because the collections calls are driving them absolutely crazy. Which is completely understandable, these people are professional harassers and they know just how to get ya.

You mentioned that your CC were in collections already, so paying them isn't a part of the equation you are trying to avoid (at the present, I mean) by filing. Your attorney has already stated he will take the collection calls, so that should thwart any CC from wanting to file suit as they are not going to get anything if they do.


He is probably just making sure you are having the best chance at qualifying for a 7 by waiting until he has all the info regarding your husbands severance package, and if waiting can make the difference between a 7 or a 13, waiting is the absolute best method of having a successful case.

Be happy he is not just running you through the mill- but is looking after your best interests. SOunds like you found a good one.

[momxx5]

Dingdong,

Thank you for your wise words. I have to remind myself that it is all a process. Good point, and I agree we have a good atty, because we are not being run through the mill.

Yet another great reason I love these forums. Great knowledge shared. And equally as important....great understanding without judgement.

Wishing everyone a happy start of the week tomorrow.



(We'll be seeing an employment atty concerning DH's paperwork, any thoughts & prayers are appreciated)