Want to file ch. 7, scared to lose my car

[backtoschool]

To the OP, the thing about filing for 12k in credit card and medical debt is that you will not be able to file again for 8 years. Most of your debt will not be discharged in the bk anyway since it is student loan debt and taxes.

The thing about simply not paying the cards is that they can get judgements and your wages can be garnished and your bank account seized once they have the judgements (that is why I am filing before I go back to school....)
This usually takes over a year of being late on payments though, so you would have time....

Since you have a part time job, you could probably file a chapter 13 and only have to pay back part of the credit card debt. This would protect your car and keep the creditors from touching your wages or bank account.

[LuciluS]

To the OP:

I'm so sorry you lost your job and considering bankruptcy. I don't mean to add 'fuel to the fire', but I believe you must have all your Tax Returns filed with the IRS and the State of AZ, Before you can file for bankruptcy.

If I'm wrong, someone please correct me. I hope you are able to find a job real soon. Also, you need to try to stop using your Credit Cards and quit paying them. I know easier said than done, especially without having a full time job.

If you decide to stop paying on your Credit Cards and have a checking account. If I were in your shoes, I would close that checking account and go to paying your bills with Money Orders. If you are going to have a hard time cashing your part time job paychecks open up another account with a small bank or Credit Union before you stop paying on your CCs.

I wish you much needed Luck!

Luci

[bkmaggster]

If you decide to stop paying on your Credit Cards and have a checking account. If I were in your shoes, I would close that checking account and go to paying your bills with Money Orders.

Just curious - what is the reasoning behind this advice? I stopped paying CCs in May/June of 08 and never closed my bank account and always had my pay direct deposited. I did not have any type of loan agreement with my bank, though.

The rest of your advice is spot on, I believe.

I still do not think the OP should file for bankruptcy over 12k when their income situation hasn't stabilized and they own a only partially-exempt asset that could wipe out the debt.

[backtoschool]

To the OP:

I'm so sorry you lost your job and considering bankruptcy. I don't mean to add 'fuel to the fire', but I believe you must have all your Tax Returns filed with the IRS and the State of AZ, Before you can file for bankruptcy.

If I'm wrong, someone please correct me. I hope you are able to find a job real soon. Also, you need to try to stop using your Credit Cards and quit paying them. I know easier said than done, especially without having a full time job.

If you decide to stop paying on your Credit Cards and have a checking account. If I were in your shoes, I would close that checking account and go to paying your bills with Money Orders. If you are going to have a hard time cashing your part time job paychecks open up another account with a small bank or Credit Union before you stop paying on your CCs.

I wish you much needed Luck!

Luci

You have to have all tax returns filed to file bankruptcy, although you can still owe back taxes, which will not be discharged.

[eddiep]

could you defer your student loans long enough to dig out of the cc debt?

[LuciluS]

Just curious - what is the reasoning behind this advice? I stopped paying CCs in May/June of 08 and never closed my bank account and always had my pay direct deposited. I did not have any type of loan agreement with my bank, though.

The rest of your advice is spot on, I believe.

I still do not think the OP should file for bankruptcy over 12k when their income situation hasn't stabilized and they own a only partially-exempt asset that could wipe out the debt.

First off - I never stated I believe the OP should file bankruptcy. I just stated if I were in his shoes I would close the checking account and go to money orders.

The above advice was given from reading the Collections Section of this forum every day since last October. When deciding to stop paying your CCs & not knowing if and when you will file for BK, you leave yourself wide open for possible lose of monies in your checking account.

Yes, you are 'supposed' to be served a Summons to go to Court before a Judgement is granted to remove monies from your account. However, depending on the OP's State Laws this summons could be served by regular snail mail and the OP wouldn't know to show up in Court for such or he may not know how to respond to the summons, ignore it, and Poof all monies are taken from his checking account. The first place a CA or JDB will look for monies is through the Debtor's checking account.

Take the time to read some of the posts In the Collection Sections. There are a lot of people who highly recommend closing checking account & paying by Money Orders or buying pre-paid debit cards as they are unable to file BK for various reasons. Some of gone many years without paying their CC's.

Luci

PS It's better to be Safe than Sorry

[bkmaggster]

First off - I never stated I believe the OP should file bankruptcy.

Never said you did. I was reiterating my opinion, not commenting on yours.

Take the time to read some of the posts In the Collection Sections.

I'm halfway through my 60 days and don't have any need or desire to read anything about collections ever again. This is great advice for the OP, though.

Thank you for taking the time to answer my question.

[eddiep]

In addition to surprise judgements there is also the issue of cross collateralization. In my case I owed money to a cu and had money in a savings account, only $25 but they took it without notice. Another issue that seems to apply to wells fargo, there was another member here "planetary" who had money in a checking account that they exempted when they filed, they did not owe money to WF but took it upon themselves to freeze the account until the trustee contacted them. So for somebody who is in the middle of the waiting game, you should move accounts in some situations.

[LuciluS]

Never said you did. I was reiterating my opinion, not commenting on yours.



I'm halfway through my 60 days and don't have any need or desire to read anything about collections ever again. This is great advice for the OP, though.

Thank you for taking the time to answer my question.

You are quite welcome and I hope you didn't think I was being tacky (not the right word, but can't think of the correct one) because I didn't mean for it to sound like that. Was in a hurry this morning as I had a scheduled medical procedure and was running late. Dh says I'm going to be late to my own funeral

Wow! 60 days through! Will be praying you receive your discharge on time and don't have to wait too long on closing. I'm reading where the US Bankruptcy Courts are swamped.

Dh is an over the road truck driver and his miles have not been so great the last couple of weeks. He said warehouses are full & companies like International Paper (a large account for his trucking company) are hauling by rail car because it takes longer to get there.

We, will I'll just say Me as dh is always working LOL! have been planning our BK since late last Sept. & hopefully will be filed this Sept.

Have a Good Day!

Luci

[LuciluS]

In addition to surprise judgements there is also the issue of cross collateralization. In my case I owed money to a cu and had money in a savings account, only $25 but they took it without notice. Another issue that seems to apply to wells fargo, there was another member here "planetary" who had money in a checking account that they exempted when they filed, they did not owe money to WF but took it upon themselves to freeze the account until the trustee contacted them. So for somebody who is in the middle of the waiting game, you should move accounts in some situations.

As usual eddiep - Very good advise. I don't like to hear of people losing their money when it can be avoided and not all Attornies inform their clients to change banks. Mine never mentioned it all. I found it out right here on this wonderful Forum.

LuciLuci

[bkmaggster]

You too, Luci!

I hope you appt. went well. (I misread that at first and thought you said you had to go to a funeral - glad I was wrong!)

Thanks for your knowledge and support!

[LuciluS]

You too, Luci!

I hope you appt. went well. (I misread that at first and thought you said you had to go to a funeral - glad I was wrong!)

Thanks for your knowledge and support!

ROFLOL! Well, it was just about as bad as going to a funeral - Dang Mammogram and Ultrasound. I see my Onocologist Tuesday for the results. I'm pretty sure I'm okay for another 3 months.

Just found out last week, my twin sister has breast cancer. Our mom had a double mascetomy at 40 yrs old and her sister had a single at 70 yrs. old. Our onocologist is on vacation this week. Sis is supposed to know today when she sees her this next week, also.

I reread what I wrote and to me it sounded tacky. But I'm kinna Stressed for my twin sis, yet trying to stay calm so I can get our figures finished so we can get filed.

[bkmaggster]

ROFLOL! Well, it was just about as bad as going to a funeral - Dang Mammogram and Ultrasound. I see my Onocologist Tuesday for the results. I'm pretty sure I'm okay for another 3 months.

Just found out last week, my twin sister has breast cancer. Our mom had a double mascetomy at 40 yrs old and her sister had a single at 70 yrs. old. Our onocologist is on vacation this week. Sis is supposed to know today when she sees her this next week, also.

I reread what I wrote and to me it sounded tacky. But I'm kinna Stressed for my twin sis, yet trying to stay calm so I can get our figures finished so we can get filed.

You weren't tacky at all. We are all stressed out here, it's a Bk forum!

My thoughts are with you and your sister, for good news and good health!