Any advice is welcomed

[ataka]

Hi, Not sure where to start so will just give the facts...

- 165K in cc debt
- husband retired from military August 08
- now has a great job making 85k plus retirement plus VA disability
- wife self-employed child care provider took huge hit due to many parents losing jobs
- have never missed a payment on anything, however as of Oct 1st that will probably change
- family of 6
- have house and 4 cars - only one paid off

We have an appointment for credit counseling on 8/26. I have been reading this forum for days now. Here's what I kinda understand...

- may not have to take means test due to husband VA disability and debt was incurred while in the service.
- if means test is required, probably can not file chapter 7 due to income and will have to file chapter 13

Questions...
- how helpful are most lawyers about walking you through the process?
- we know we probably have to wait an additional 90 days to file as we have recently charged on our cards. Do we stop making cc payments now or wait until we file?
- can wages be garnished?
- we have opened up a new checking account that is not affiliated with any of our cc companies. Should we start moving our direct deposits to that account?

We know the lawyers will give us information but I am looking for real life advice. We really have no idea where to start, so any advice is appreciated.

Thank you

[OhioFiler]

You will not be required to complete the Means Test if he is a disabled vet. You'll still need to complete Schedules I and J to determine if you have income to support a Chapter 13.

Shop for an attorney you are comfortable with. Any good one will explain everything in layman's terms for you.

Don't be in a rush to file. 90 days isn't that far into the distant.

If you are going to file BK don't worry about wage garnishment.

You can use whatever checking account you desire so long as you don't have a loan with them that has a cross-collateralization clause.

What I see for you is you are a good candidate for US Trustee to scrutinize since you have high income and high unsecured debt. I think you should be looking at both Chapter 7 and Chapter 13 as possible solutions.

[justbroke]

may not have to take means test due to husband VA disability and debt was incurred while in the service.

You are more than likely not required to take the Means Test for a Chapter 7 since your husband is disabled and the debt was incurred while in Service. Let's just make that a given.

if means test is required, probably can not file chapter 7 due to income and will have to file chapter 13

Income has absolutely nothing to do with receiving a discharge in a Chapter 7. What counts is your disposable monthly income calculated based on your current monthly income (a six-month lookback period) less your allowed expenses. Should you choose and go for a Chapter 7, you will receive more scrutiny from the U.S. Trustee (UST) because of your income and your very high unsecured debt level.

- how helpful are most lawyers about walking you through the process?

You really need to "shop" your attorney. You need to consult with 3, 4 maybe even 5 attorneys to find the right one for you. Many will just look at your income figure and immediately push you to a Chapter 13, where income is not the primary factor in determining eligibility for a Chapter 7.

we know we probably have to wait an additional 90 days to file as we have recently charged on our cards. Do we stop making cc payments now or wait until we file?
- can wages be garnished?
- we have opened up a new checking account that is not affiliated with any of our cc companies. Should we start moving our direct deposits to that account?

Speak with a few attorneys first. Then stop making CC payments if you're sure that you will file. It would be some time after stopping payment before any judgment and subsequent wage garnishment would occur (if it could). If you do move your direct deposits, make sure you don't pay ANY of those credit card companies using that new account, ever.

We know the lawyers will give us information but I am looking for real life advice. We really have no idea where to start, so any advice is appreciated.

Start by gathering all your financial documents. Collect about 6 months in bank statements. Collect a few months of credit card statements. Find your copies of the last 3 years of tax returns. Gather your last 6 months of payroll advices (stubs). Get a copy of yoru Husbands DD-214 and any VA related paperwork together.

Go to LegalConsumer.COM and take the free Means Test calculator and determine if you qualify for a chapter 7. Again, while you may not need to take the Means Test, you still need to perform the mathematical "disposable income" calculation to see where you are. I'd do this first if you have a good understanding of your debts, income, and expenses.

Please let your husband know that we thank him for his service and the sacrifice that he made for Country.

[LSUTiger32]

Sounds to me like you need to pursue this, at least meet with some lawyers and see what your options are. No offense, but I think you also need to amputate some vehicles, that's gotta be killing you.