Please, throw me a line.

[runforcover]

Shut off water heater to cut down on electric bill so I can survive the upcoming car and cc payments.
Potted meat is basically ground hotdog with spices in a 34 cent can.
Taxes have to be paid on forgiven debt. It is considered income.

[JRScott]

runforcover debt forgiven in a bankruptcy does not generate a 1099 where tax has to be paid. If the bank in a private deal with you forgave the money (Say one of those hey pay us 30% and we'll forgive the rest) then you would owe the tax but not in bankruptcy.

You can use the water heater sporadically to help with electric bill just remember to turn it on an hour or so before you shower and then shut it off when done. (Same for washing clothes/dishes).

For food I'd invest in spaghetti, beans, rice. Some of the cheapest food out there .

Move your accounts first.

Don't pay on anymore CC unless you haven't paid 90 days on a card yet, then pay that card and only that card.

You don't have to wait to talk to a lawyer many will set up a payment plan for you to file. It might be time to sit down and start discussing the situation, they may even have suggestions to help you in the process.

[StartingOver08]

Also, instead of financing a car for $10,000, get one for less - you would be amazed at what you can buy today for under $5000. Things are much easier with no car payment (as in buy a beater type car), but certainly a small payment is easier than a larger one.

As to the water heater, put on a timer to have it kick on only a couple of hours a day. You will also save lots of money that way.

Go to anglefoodministries.com and sign up. It is not a charity, but a method to get good balanced meals at a very reasonable price. AngelinaCatHub and his wife know more about this....

There are no taxes due on debt discharged in bankruptcy. Taxes are due only if you settle the debt with the creditors and do not file bankruptcy. It is one of the factors that makes bankruptcy a better option if you have overwhelming debt.

[runforcover]

Good ideas

Very good ideas. Thanx, StartingOver08. No point in starting anew with a lot of new debt.
Yea, I was confused on that point. Pay taxes on forgiven debt from a settlement. But not for discharged debt by a judge.

But what about letting the defaults go until the creditors sell off the accounts to collectors? Would creditors have any say after that?

JRSCOTT...The payment plan...all up front? I have heard figures from, 1k to 2k. I have not spoken to an attorney yet. I want to know as much as I can first. This forum is helping.

[freshstartfl]

I just wanted to chime in. I'm in Florida and I lease an apartment. I do not believe my complex was even notified of my bankruptcy. On my papers I put down how much rent I pay, and I gave a copy of my lease to my attorney, but the BK papers don't list the name or address of my apartment complex office anywhere. Also, I just renewed my lease today, and nothing was said to me about my bankruptcy. I honestly don't think they have any idea that I filed!!

[runforcover]

Thanx for the info freshstartfl I was about to forewarn the apt manager. I guess I will wait and see what happens.

[freshstartfl]

I assume that if my complex knew about it, they would've said something to me, especially when we signed the renewal papers today. Not sure if this makes a diff, but I'm not the only one on the lease -- my fiance is on it, and was on the prior one, too. My name is listed first.

[JRScott]

The lawyer has to be paid in full before he can file the Chapter 7, in a Chapter 13 he can roll his fees into the plan. However even though he has to be paid in full for a 7 before he can file many will allow you to pay them a little at a time and retain them. They'll then field calls for you and take some of the stress off of you.