quest for knowledge

[runforcover]

I am heading into trouble. Ever since Katrina I have taken hits. Everything was fine before that. I am a courier. My car is my office. A tank of gas every day. My car is an HHR. It is a plague ship. 117,000 miles/4 sets of tires. Just found out there is a factory defect in the frame mountings. I just spent, (charged) $2,300 in repairs as my last attempt to raise my situation from the depths. It did not work.
Guess I am in the market for a paralegal to do my ch7 paperwork. Made 31k last year. Don't have a house. If I sold everything, maybe $7k.
I am not in massive debt. But it has become more than I can do. That car repair is a months wage for me.
That, with $23,000 in cc debt. I am toast.
I have not defaulted but it is coming.
Here are my questions...
1. I gotta get a car or I will lose my job. Is it a bad thing to go get one? Maybe not new, but usable? While at the same time, default on this HHR that I still owe $16,000 on. Just take it to a dealership, while they still exist, and give them the keys. Would the judge or trustee look at that? I can't reaffirm the HHR. It is the hardship that mostly got me here. My credit is good now. So getting a car would be easy. I would reaffirm it.
2. I have a few credit cards with zero balances. One, I have not activated. No way I will use them. Should I close the accounts? Should I report those accounts? They will be closed over 90 days before I file.
3. I really do not want a lawyer. But can a paralegal accurately do all the required paperwork? Can they inform me as to what they need from me?
4. What about reaffirmation? I read here somewhere, that it is a separate issue. Different paperwork?
5. Is there any threads here discussing the pitfalls of online full service preparers? I can't seem to get trustworthy info anywhere else.

[justbroke]

1. I gotta get a car or I will lose my job. Is it a bad thing to go get one? Maybe not new, but usable? While at the same time, default on this HHR that I still owe $16,000 on. Just take it to a dealership, while they still exist, and give them the keys. Would the judge or trustee look at that? I can't reaffirm the HHR. It is the hardship that mostly got me here. My credit is good now. So getting a car would be easy. I would reaffirm it.

It's not a bad thing and you probably should get a reliable car, as your credit will be shot once you file. While I can't give you specific debt counseling information, many have defaulted on their current vehicle and purchased a new one. They then surrender the defaulted vehicle as part of the Bankruptcy.

2. I have a few credit cards with zero balances. One, I have not activated. No way I will use them. Should I close the accounts? Should I report those accounts? They will be closed over 90 days before I file.

Right! Do not even think about using them if you don't plan on paying for them. Don't close them... just let them close as part of the Bankruptcy. Matter of fact, some of the $0.00 you may be able to keep (depending on the mood of the creditor). Noting that most creditors automatically close the accounts when they learn of the filing.

3. I really do not want a lawyer. But can a paralegal accurately do all the required paperwork? Can they inform me as to what they need from me?

I've answered some of this on another thread, so won't repeat it here.

4. What about reaffirmation? I read here somewhere, that it is a separate issue. Different paperwork?

If you were to keep the HHR, then on your Statement of Intentions (SofI), you would say that you want to re-affirm. I'm not sure I would re-affirm a vehicle that needs to be a workhorse, and has 100K+ miles on it. How much do you owe on it, and how much is it worth? If you owe more than it's worth... that's a no brainer! (Provided that you can actually get a new vehicle before filing.)

5. Is there any threads here discussing the pitfalls of online full service preparers? I can't seem to get trustworthy info anywhere else.

I have already answered this elsewhere... and welcome others to respond. In general, you'll find that most people, on this board, do not use them at all, so you won't find much information about it on this board. By them, I mean on-line "full service" preparers as well as paralegals. So, I apologize in advance if you don't find much information on this particular question.

[runforcover]

$ Money $

Lets say that my emergency funds are finally depleted. Now I must choose to pay cc's or rent. Of course, it is rent. So now I default on cc's. This allows for funds to be redirected towards hiring an attorney. (If that was the path I would take.) I have to wait 90 days or so after my last charge. During this time I manage to save the money for an attorney. But now I am also saving more than that.
1. What do folks do with extra cash that accumulates because of the defaults?
2. Do they report it?
3. Do they spend down the funds until the 341 meeting is over?
4. Do they just stick it in their pocket and forget about it?
I know there are certain exemptions, such as, tools of the trade. Of which I have about 2k worth. That info, I know is all over this forum. But if I somehow managed to save $ over the exemptions, meaning...not spent but on hand.
(Reference back to 4 questions)

[MrSmithster]

My BK-Pro Se

I used a local Atty that handles everything online/over the phone or full service, your choice. I choose the cheaper of the two.($499 compared to $2000). Consider you will have to file papers at the Court yourself and go to your 341 alone. All i did was sign and copy and file. Lawyers are charging more for BK's as so many are filing. My BK was a simple no asset case, i passed the means test as my salary is down 30% this year and i have a 12 y.o. son. My BK is in Los Angeles, Calif.

From above in order...
1. From what i heard at my 341, you would have a hard time buying a new car, then quickly filing BK, while you still have the first car, without some change in income, but i could very well be wrong. (I went to my 341 three hours early, just to listen in, some very interesting cases compared to mine). You might end up with the HHR anyway. Trustee's main complaint issues where charging/buying/transfering/advances right before/after filing, big tax refunds recieved after filing and claimed house values that seemed questionably low with no comparison data.
2. I didnt declare any cards with a zero bal. Some closed, no word from others. One cc that i had a zero bal with sent me a notice that because of BK, my new limit is $500 @27.99%.
3. Im happy so far that i didnt spend thousands using a Lawyer(knock on wood). I was able to call and get some questions answered a few times. At my 341 they scheduled all us Pro-Se filers at the end of the session(4 out of 35 filers). We seemed to have an easier time than the Lawyers had with the Trustee. He didnt grill us at all, but ours where all very simple. But was a little scary when you see everyone with a Lawyer except you.
4. ? I have no experience with that. Maybe you can go to a Lawyer for a consultation to find out, then decide. I went for two different consultations, both gave me the means test and good advise for free. Ask them about the car.
5. Online can be OK if its a very straight forward BK. A friend used one of the online sites a few years ago and his BK went fine, again, no reaffirmations, no assets. I saw some as cheap as $79. I paid the $499 so i could get some questions answered if needed and know real people where involved, not just a program. If you live in the So Cal area, I can give you the Law firms contact info that i used. I dont want to post it here unless invited to, but i am very happy with them.
Second set of questions...
1. Save it as cash
2. no
3. no
4. yes

[runforcover]

Interesting

Thanx to all for your answers. I would not bet that when the trustee learns of my extreme car issues, he would still allow me to reaffirm it. Besides, I thought that doing the same thing over and over only to have the same miserable outcome was at least one definition of insanity. I am looking for a vehicle under 10k with low miles. Not anything new.
In your opinion, If I had documentation on all the repairs, tire purchases and mechanics opinions that the frame mounts in my car are the source of my troubles. That being a factory defect. Next, I took the car to a dealer and gave them the keys. Then purchased a good used car for my job. Do you think that the trustee might would view that as a responsible action? I mean. I could "charge" 2k more to fix it. Wait 3 or so months to file. Then reaffirm the hhr. But then, we go back to that definition of insanity.The next shot at fixing it may not work either. Also, charging when I now know I am in trouble is not a good thing. So, I have run out of options.

It is good to hear that an online full service preparer is a possible way. I found one who has a lot of credentials and will handle reaffirmations as well. There are those here at the forum that strongly object to that choice. Which I do appreciate. But their cases had to be more complex. Mine could not be as complex to do. So it seems.

[DeadManCrawling]

in your case, what the trustee thinks is of no matter. He/she follows a very strict set of laws. And their opinon means nothing.

Think about what matters to YOU. What you NEED, not what you want.

Get rid of that albatross of a car. There are other posts here that detail how and when to do so. Keep the plates, drop off at dealer, etc.

STOP paying credit cards. Save the money, in an account unconnected to the rest of your accounts, or in cash.

Buy a used car that fits your needs/budget.

Going forward, consult your attorney, or if filing pro se, learn all you can about the process.

No matter what it IS time to start looking out for YOU. Conserve cash, save your time and energy for the things that count. And that is pretty much everything EXCEPT credit cards.

Best wishes,

DMC

[runforcover]

very good

I know that...about the tag. But with all this going on I would have overlooked it...Thanx. The time is coming to surrender that car. I am also giving them a copy of the purchase printouts reflecting tire purchases and repair costs. Won't matter to them. But I will get something out of it. They may wonder why I spent $2300 in repairs and then surrender the car. There is a lot more to repair than first thought. That's why.
I will make one more payment on my cc's. Then my emergency stash will be done. I will close my bank account. Open a new one somewhere else. Keep reading the forum and run for cover.
I have my questions answered for now. I am sure there are more to come. But THANX everyone for helping me focus these issues on my particulars. I understand better that way.
I heard today that some banks are soon ending the practice of a "grace period". Once a charge is made, interest starts to accrue.
I do not think it matters though. If cap and trade becomes law, they may be standing in the bankruptcy line along with a third of America. We are still America, right?