Need Help Knowing what to do.

[bizrock]

Hi,
After losing my job over 1 year ago my family and I have struggled to find one where I can make as much as I was. we lived of CC and other loans for 3 months as I found a job that could pay most of the bills we are now trying to short sale our house and we cant keep up on all the debt about 215 in the hole right now. How do I even go about doing a BK do I need a Lawyer? Im just lost and needing any help anyone can offer. Thanks for the help

[dingdong]

You should probably first find 3-4 BK lawyers in your area and set up some free first consults. Gather some info, like your tax returns, debts/cc statements, general financial stuff and start going over your numbers .

Buy the NOLO BK book , getting it in E format is easiest/cheapest ( google for promotional code-you can usually get it for 8.00 with a code.)


read, read , read here on this forum before you go to your first consult with attorney, so that you are aware of any potential issues with a BK filing and can go in armed with specific questions.

[bizrock]

Thanks Dingdong. Im located in Utah not sure who to even trust. Anyone have an idea what a lawyer charges for a Bk?

[dingdong]

It depends on your case. But ballparking it generally 1200-2500 for just the filing/341 attendance.

Extra stuff like reaffirmations, AP's, ( creditor objections) usually are billed at a per hour fee.

You can call around and ask "what do you charge for a CH 7" before going.

But cheaper doesn't always mean best value.


Do you know anyone that has filed?

You can ask them who they used and how they felt about them.

Definitely meet with at least 2, preferably more and ask specific questions.

Ask them if they will be with you at the 341 (sometimes they send a sub attorney)

I filed pro-se (w/0 an attorney), but my BK was fairly straightfoward, no assets, secured property. So I am not the best source for lawyer shopping.


DD

[dingdong]

One of the first steps to filing is to see if you are under median income for your state.

Since you stated that you are unemployed, that shouldn't be an issue.

You also want to be aware of your states exemptions for assets.

Since you are wanting to short sale your house, I can assume you have no equity in your home.

If you have autos, you should check to see if they are protected ( if you have equity)

If you have any other assets of value, you would want to check those exemptions as well.

Once you know that all of your property is exempt under BK law, you would probably want to start saving your CC statements to your hard drive. Go back as far as the bank will let you and save them all, just in case, because as soon as you file, you will lose access.

Also if you have deposit accounts that are with a bank that you may have a CC with, you should probably open a new account at a bank that is not associated with any debt in your BK. Banks can use a right of offset once you start missing CC payments, before you file.

If you have any accounts at CU, with an associated loan, move that money as well.

Do not use Wells Fargo as your new bank, as they have been known to freeze accounts where a debtor has filed BK, whether you BK on them or not, especially if their are a significant amount of funds in there.


Read on the forum about preferential payments,balance transfers, etc and do not buy anything extravagent (over 600.00 in one transaction)with a CC within 90 days of filing, as the creditor may object to the discharge of that particular debt ( or at least the CC would have a chance of objecting-doesn't always happen) But large purchases right before filing looks a bit naughty in the trustees eyes.


If you are seriously considering filing, meet with a BK attorney right away, because if you are still paying on your CC, you are most likely throwing your money away.

Talk with an attorney first before stopping payments.

dd

[bizrock]

Thanks Again. I have looked at the standards for a BK and Im under the income and the property I have is all safe. Im going to have to get a new account though. I guy I know says his good friend is a trustee for the area Im in and I can work with him is that a good idea?

[dingdong]

Many debtors use attorneys that are also trustees.


They would definitely know what will fly in your district, since they wear both hats, so to speak.

Check out more than one, though and don't be afraid to ask questions you are concerned about.

One thing you can ask is "how long will it take for you to file my case, once you receive my packet?" Know their timeline for filing, some seem to take quite a bit longer than others, just from what I have read on this board.