Had my consultation today and am a bit confused...

[Gar]

After lots of agonizing and worrying, I finally visited a law office this afternoon for a consultation about filing Chapter 7. The lawyer was very nice and spent about 45 minutes with me going over my options but his recommendation left me a bit puzzled...

I have 14k of unsecured debt on one visa card and that's it - Currently no job, no property, truck worth under 1500, no assets to speak of and living with my mom while trying to get back on my feet with some health problems. An open and shut case. His advice was to just stop paying that credit card bill and see what happens, saying I may get some harassing calls but ultimately they can't get water from a stone. That said, he said he would gladly take my case if I wanted but that was his advice overall and to just think about it.

Is this a viable option? I'm more confused now than before I visited him.

[deadbroke99]

Yes I agree with your lawyer. You don't owe enough to file bankruptcy unless you go to court and they try to garnish your wages.

[teacher]

Agreed especially since it is only one creditor. Let it go into collections and maybe you can make arrangements to settle on a smaller portion of the amount.

[deadbroke99]

You could file no matter how little you owe but I think it would be a waste of your time and lawyer fees. I think the creditor will harrass you but other than that, one creditor isn't going to do too much for that small amount.

[Gar]

Wow, thank you all for the quick responses. I guess that makes sense but couldn't it be drug out for years and years of creditor phone calls, threatening letters, etc? When I get a job in the future, couldn't my wages be garnished? I'm sure these questions have been posted before and I've been slowly crawling through the forums looking for answers. I appreciate your taking the time with these newbish questions.

To me, 14k is A LOT of money and I just can't imagine them not hounding me for the rest of my life, LOL.

[Trixie007]

They could. But generally you could ignore just one little creditor. One would be a walk in the park. They might be able to garnish your wages at some point, if they sue. But right now you don't have any income, and who knows what else might happen down the road, you play your BK7 card and it's gone for 10 years - plus the fees would likely be 10% or more of the debt!

[OregonMom]

I had one of my creditors send me a notice that they were just going to charge off the debt I owed and that was it. I never heard from them again. I did include them in my bk just to be sure. $14K is such a little amount to be filing bankruptcy for and ruining your credit for the next 10 years.

[Frshstart09]

I concur with everyone else. Wait it out. Bad credit is still better than no credit and 10 years of BK on your report :o)

[Gar]

Thank you, thank you and thank you. I cannot express how much I appreciate everyone's answers. I know 14k is "small" but to me it seems like an insurmountable amount at this point... I told the lawyer that I've never been sued, never been to a court, never messed up... until now... I've reached a point that I can't pay the minimum CC payment (I received a notice telling me my interest was being jacked up and it was nothing I did - I guess a pre-emptive measure for that new CC law that might pass soon)?

I want to honor my debt but can't and I am more worried than I have ever been. To be honest, I am just not sure what to do. I feel sick to my stomach every day as I like to consider myself an honest person. Things have just gotten out of hand... I have thrown up several times in the last few days because of this. It's just reached a point that I can't pretend to go on with no problems.

Thank you... I know I'm not a special case but I appreciate everyone's answers more than I can express. Right now I'm just trying to cope. Thank you

[ready2puke]

Hi Gar

Your amount is small compared to all of ours, but it is relative. What your feeling is what we all feel especially in the beginning. It does get better or you just get used to it or numb to it... I remember I couldnt sleep for the longest time with such bad anxiety..then I found this wonderful board with all these folks that are going thru or have gone thru we I am...
Everyonce in awhile I lay in bed and feel that pain of anxiety and I just breath and think...nothing I can do about it at 2am so go to sleep lol...

I think your attorney did you right, he could of talked you into BK and took your money..you got lucky my friend. There is something called SOL..statue of limitation and each state has their own.. I think in Ca. its 4 years. after that the debt is gone...kaput...
Keep reading it'll help but really just know your going to be ok...

[justbroke]

Think of Bankruptcy like the ultimate trump card in your deck of cards. You don't want to play that card until you need to. Pulling the bankruptcy trump card out now -- with your debt, no job, etc -- is like using the Ace of Spades on a 2 of Clubs.

If you file a Chapter 7 and receive a discharge, you won't be able to play that card for 8 years!

[Gar]

So if I take the lawyers advice and just stop paying, then what? I assume calls will begin and that debt would probably be sold to a collection agency. Do I just ignore them for 4 years and hope they don't sue? If they do, then I do a chapter 7?

Thanks again, everyone - The response have really made me feel better about this.

[pookieny]

If you owe to Capitol One, be forewarned they will get a judgement on you within a year of you stopping payments to them. If you have a job, house, bank accounts they will try to attach.

[aces67]

Really I think right now you should quit paying them and just wait to see what they do next. If they decide to sue then file BK but otherwise I'd just ignore them also.

Good Luck!

[Amy26]

Since you have just 1 creditor, you may want to look at debt settlement. You can look it up on the web to see what its about (just don't hire anyone to do it for you, they are usually scams) ... basically after a long time of you not paying the credit cards will (in most cases) offer you a settlement. Usually so many pennies on the dollars. A lot of people do this and negotiate it themselves. Basically, take all the money you can and start saving it up without paying that creditor. Depending on the creditor, after a while they may offer you say 5,000 (just making up a number) and call the debt settled.

Just thought I would throw that out there...