Uggh, having to put off BK

[eventsdj]

Hubby and I both work, 2 jobs. One of his is our small business, and we made more "seasonal" income this summer than we thought. Even with the extra weddings over the summer, (the busiest time of year, where he can make an extra $2-3000 a month), we are below yearly median income.
Now of coures, wedding season is over, hence the BK. We were able to just pay our bills with all that extra money, now that the shows aren't there, there is no way.
Plus, he is getting his pay restructured at work, lowering his base (by almost half) and adding commission, which we have yet to know if he'll make.

When we made a list of the shows over May-July, I almost cried. Of course the money was put to bills, but it looked like we were rolling in it.
I made him immediately call our atty, who assured us many people have seasonal income, and the fact that it is ending will just help us with needing BK.
I am scared to file in November now, how on earth though do I put off creditors until early January? Won't they start the court process to get their money??
I want to put more time between our lookback period, and the lower income starting now.

ANy insight? THanks!

[nc73]

I wouldn't worry about debt collectors and people wanting their money. They can take you to court to get a judgement but I doubt they will do so in the time period you have. Even if they did you can get the judgement taken care of in bankruptcy. Just don't worry so much!

[LuciluS]

We went 11 months without anyone suing us. We met with our BK Attorney late last Sept. and we just filed 9/30/09. Had to wait until a lawsuit was settled in Feb. and some income to drop off in that month too.

We were under the median by about $5,000 & unsecured debt was just over $100,000. We did voluntarily surrender our motohome in Nov. of last year. They auctioned it in Dec. & we had a deficiency balance of $14,000.

All of our credit cards had been turned over to collection agencies. Because we paid our Attorney, in the beginning, a retainer fee we told all the credit card cos. his name & phone # & then we were told not to answer the phone, nor return any messages.

Bankruptcies are at an all time high. Our attorney told me if we did get sued, he could file a motion to delay the suit until we could get our BK filed. Thank goodness that didn't happen.

Will your Attorney take the phone calls for you? If so, I would make sure each credit card company is notified you are filing BK & give them your Attorney's name & phone number. Some will try to get other information from you. When they tried it on me, I just told them call our Attorney.

If you file in January, that will only be 3-4 months. I don't think you will have any lawsuits filed against you. I would recommend getting your Attorney paid off & if he gave you a packet, begin working on the information needed.

Because I'm disabled and it is hard for me to use a pen, it was easier for me to take his packet and use Microsoft Word and Excel to answer the questions. I also have documentation for all of our Assets including furniture. Most of it came from Ebay or Craigslist. Google was my best friend, also, as I would type in an asset like Old Mahogany twin beds for sale.

Hope this helps.

[LimpDisc]

Were in the same boat as far as income in concerned. Hoping to file on December 08, 2009, but we know that it could be as late as February 01, 2010. We did everything we could to keep our heads above water. Cashing out extra paid time off at work to cover our bills. Little did we know that we were hurting ourselves when it came to bankruptcy. Who would have thought that struggling to survive would hurt your chances of qualifying for chapter 7?

We stopped paying our CC's on August 12, 2009 and I have no worries about the 6 months it could take to file. We have retained our Attorney and so far we have given out his information to 5 creditors. Haven't heard from any of them since. He said 6 months will not be an issue when it comes to them tryingto sue us.

[liz417]

I would file for BK when the time is right for you...don't worry about the creditors calling (refer them to your attorney's office) and/or getting judgements against you. If putting off BK until Jan is better for your case, then do it. I stopped paying my creditors 1 year before I filed, no one sued.

Good Luck!

[eventsdj]

Thank you all for putting my mind at ease. After another 11 hour day at work, I am going to rest easier knowing that nobody at the credit card company is staying up all night worrying about ME!

[aljohnson007]

I had over 100k in unsecured debt and no one sued for over one year. Don't worry and don't answer the phone. Either let it go to an answering machine or to your attorney. Best wishes and relax - thw holidays are almost here.

[damooster]

I hate to be the bearer of bad news, but you do have to be careful. Capital One sued me for a $1k balance for being 4 months behind. Their suit pushed my filing schedule up by a few months.

I just mention this because the answers here are mostly correct; most creditors are going to wait a while to sue. But there are those creditors that are ready to sue in a heartbeat.

[eventsdj]

no, hearing the good and bad is what I need. Cap.one has already started calling, but they call my cellphone, and never leave a message.
Our atty. is will take any calls, and she said if one gets particularly nasty before we file, to send them $10 to put them off.

[DeadManCrawling]

Cap One is the only issue for us too. We have not paid any CC debt in nearly THREE YEARS now.

Cap One sued my wife for a very small balance last September. Now an attorney for them is threatening to file (but has not), a motion to compel disclosure. They want to get at our bank account information, of course. If they actually file this motion, we will file our BK just before the hearing.

Of all the debts we owed, this was one of the smallest, and 800 bucks or so. I have a 60k balance on one card. Not a peep.

[mami2four]

I wonder how Capital One decides? I havent paid on a 6k loan in over a year and never got sued?

[eventsdj]

Its is reassuring to hear everyones stories. I can't believe how simple life has gotten in the last few weeks with paying only the bills I need to pay. No stress, no crying (hey, I'm a girl!) no fighting with husband...
Not that I am "proud" to default on my cc's, but I can not live like that anymore. I can't be a slave to the cc companies for the next 7 years.
ahhh, its Saturday. I think I'll have a drink!

[liz417]

In another thread a Moderater here (I believe it was HHM) stated that credit card companies tend to sue (if they even do) the smaller balances (less than 4k) because those are easier to collect (don't know why), but that's what he said.

[Chowder]

In another thread a Moderater here (I believe it was HHM) stated that credit card companies tend to sue (if they even do) the smaller balances (less than 4k) because those are easier to collect (don't know why), but that's what he said.

Probably small claims. Quicker court dates, less expensive.

[Chowder]

Hubby and I both work, 2 jobs. One of his is our small business, and we made more "seasonal" income this summer than we thought. Even with the extra weddings over the summer, (the busiest time of year, where he can make an extra $2-3000 a month), we are below yearly median income.
Now of coures, wedding season is over, hence the BK. We were able to just pay our bills with all that extra money, now that the shows aren't there, there is no way.
Plus, he is getting his pay restructured at work, lowering his base (by almost half) and adding commission, which we have yet to know if he'll make.

When we made a list of the shows over May-July, I almost cried. Of course the money was put to bills, but it looked like we were rolling in it.
I made him immediately call our atty, who assured us many people have seasonal income, and the fact that it is ending will just help us with needing BK.
I am scared to file in November now, how on earth though do I put off creditors until early January? Won't they start the court process to get their money??
I want to put more time between our lookback period, and the lower income starting now.

ANy insight? THanks!

Follow your Attorney's advice and you will be fine.