Hi from IL

[betterdays]

I found this site last night after I finally made the decision to file BK. It's been a long time coming and I've been in denial for quite some time. I wish I had made the decision sooner, but I still feel better knowing that I am one step closer to lifting the weight of debt off of me and my family.

Here's my situation- I have about 150k in unsecured debt. It originally started with a few credit cards and a line of credit for home improvements. Then the economy took a turn for the worse and our income went down (we're self employed). Then my son was diagnosed with a chronic illness this past march and we lost our childcare. I had to stop working and stay home. Our first late payments occurred soon after and before I knew it, all of our credit cards were rate jacked and we've never been able to catch up since. I tried to cut back in every place possible because I really wanted to fight it, but I finally realized that it is not realistic at all.

My home and car payment are current and I plan to keep them. I just added up our income from the past 6 months and It came to 31923.80. We are a family of four. I've looked at our budget and we've been falling about 3 to 5k short every month on living expenses and debt payments. I'm pretty sure that we will qualify for a CH 7 but I wanted to ask everyone here what you think? Anyone familiar with bankruptcy law in IL?

I am going to contact some attorneys by the end of the week. Thanks so much for any input you can give.

[liz417]

go to this site: www.legalconsumer.com and plug in your numbers, it should let you know if you qualify for a ch 7 or ch 13.

If you are "falling short 3-5k per month" are you sure BK will help at this time? Something to consider. Do not file until you can support yourself post-bk, otherwise you'll find yourself in the same situation a few years down the line.

Good Luck to you!

[betterdays]

go to this site: www.legalconsumer.com and plug in your numbers, it should let you know if you qualify for a ch 7 or ch 13.

If you are "falling short 3-5k per month" are you sure BK will help at this time? Something to consider. Do not file until you can support yourself post-bk, otherwise you'll find yourself in the same situation a few years down the line.

Good Luck to you!

Thanks Liz. Our unsecured debt payments are about $3500 per month so that's what is really killing us. We've been living on cash for the last few months to pay for everything and we're doing fine. We just have no room for credit cards and other debt payments.

[killinstinct]

Another thing to consider is if you are self-employed, my understanding is that you can endure greater scruitiny. Make sure you have clear and accurate documentation of income and expenses in case the UST becomes involved and has questions. If you have good documentation, that should resolve any concerns quickly.

[liz417]

Thanks Liz. Our unsecured debt payments are about $3500 per month so that's what is really killing us. We've been living on cash for the last few months to pay for everything and we're doing fine. We just have no room for credit cards and other debt payments.

Wow! $3500 per month on debt payments....
It's great that you've been living on a cash-only basis for a few months, it'll give you an acturate picture of your financial situation ahead.

Make sure to set up at least 3 or 4 free consults with local BK attorneys

Good Luck!

[lifelesson]

Good luck with the path you take.

[backtoschool]

Good luck with your decision. Just make sure you have a lot of receipts and documentation, since being self employed with over 100k in unsecured debt will probably trigger the US Trustee.

Your numbers sound within the range for a chap 7, but its all in the details and having documentation....

[debtmonster]

Another thing to consider is if you are self-employed, my understanding is that you can endure greater scruitiny. Make sure you have clear and accurate documentation of income and expenses in case the UST becomes involved and has questions. If you have good documentation, that should resolve any concerns quickly.

I am self-employed and they didn't say a PEEP!!

I was treated no differently than anyone else in the room. He asked me the same basic questions and since I was a no-asset case, he brushed me right out like it was nothing.

With $150k in unsecured debt, I would file (Actually, I did!). Flush that stuff away. The sooner you stop paying, the sooner things will get better. Hopefully in the next few months after we buy a car for cash or something, things will improve.

I am close to feeling better. Right now it's hard because I just laid out all of that money for the bankruptcy attorney and that wiped us out. Then I have to come up with the cash to buy a used car so that we don't have payments. That's putting a real strain on a finances right now since I've never done that before. In the next couple of weeks I will have a considerable amount to put down on a car. I just found a beautiful 2003 Honda Accord with under 45,000 miles for less than $7,000. The car is in beautiful shape. My brother-in-law just bought the same kind of car 2 months ago, but with the navigation and he paid $32,000!

[betterdays]

I am self-employed and they didn't say a PEEP!!

I was treated no differently than anyone else in the room. He asked me the same basic questions and since I was a no-asset case, he brushed me right out like it was nothing.

With $150k in unsecured debt, I would file (Actually, I did!). Flush that stuff away. The sooner you stop paying, the sooner things will get better. Hopefully in the next few months after we buy a car for cash or something, things will improve.

I am close to feeling better. Right now it's hard because I just laid out all of that money for the bankruptcy attorney and that wiped us out. Then I have to come up with the cash to buy a used car so that we don't have payments. That's putting a real strain on a finances right now since I've never done that before. In the next couple of weeks I will have a considerable amount to put down on a car. I just found a beautiful 2003 Honda Accord with under 45,000 miles for less than $7,000. The car is in beautiful shape. My brother-in-law just bought the same kind of car 2 months ago, but with the navigation and he paid $32,000!

Your post makes me feel better because I'm worried about the self employed aspect. We keep pretty good track of our commissions and expenses so that should help. I did a means test and it looks like my income is definitely in the range to qualify for a ch 7. It feels like such a relief.

By the way- my first car was a 2001 Honda Accord. Those cars are great. I never had any trouble with it at all and the gas mileage was good.

[jribe]

totally unrelated to the thread- but debtmonster: did you check if the title was salvaged? I saw some of those deals too (on accords) and every time i called -they were salvaged title. Personally- i won't buy a car like that. Just wanted to make sure you checked? I have an accord and love it- they are great cars!

I am self-employed and they didn't say a PEEP!!

I was treated no differently than anyone else in the room. He asked me the same basic questions and since I was a no-asset case, he brushed me right out like it was nothing.

With $150k in unsecured debt, I would file (Actually, I did!). Flush that stuff away. The sooner you stop paying, the sooner things will get better. Hopefully in the next few months after we buy a car for cash or something, things will improve.

I am close to feeling better. Right now it's hard because I just laid out all of that money for the bankruptcy attorney and that wiped us out. Then I have to come up with the cash to buy a used car so that we don't have payments. That's putting a real strain on a finances right now since I've never done that before. In the next couple of weeks I will have a considerable amount to put down on a car. I just found a beautiful 2003 Honda Accord with under 45,000 miles for less than $7,000. The car is in beautiful shape. My brother-in-law just bought the same kind of car 2 months ago, but with the navigation and he paid $32,000!