Hi-I am $2000 in the hole every month. I was (and still am) considering BK as an option (looks like a really good option). I went to and actually hired a BK attorney a couple months ago (I consider this another impulse purchase, but many may disagree). He said I qualified and would benefit from the Federal version as opposed to the Washington State BK. At the time, I had made some recent impulse purchases-an air conditioner (actually 2-we had a heat wave), a couple of mattresses (doctor documented back pain), computer...some others. These all were returned to the store for cash. And I was able to keep my house (so far)...
I had also went to SE Asia, now almost 5 months ago, with my new wife, NOT on a honeymoon, with a humanitarian organization. I am the official member-wife went as my interpreter. We were reimbursed in part for our flight and expenses by the organization-but we of course kept the cash and didn't pay it directly back to my CC. And we did get married "officially" for her family in between the work we were doing there.
Anyway, the attorney didn't seem to care about these recent debts, didn't even give me the option of waiting it out for a little bit (waiting the 90 days). Just wanted me to sign the contract.
As I had the pen in my hand ready to sign, he said "Oh, I should have asked about this earlier, but do you have any debt that was accumulated during your previous marriage?" I thought I had, and after signing the contract, he basically told me that my ex could be found liable and sued by the CC company, even though she was not on any paperwork and the debt was all my own. I would not and will not file bankruptcy if they might go after my ex-wife-we have a young child together and she is a good person-I would not file if this jeopordized her, or the relationship between her, me, or my child.
He also said, even before signing, that I could not legally do anything, like balance transfers (to pay off the CC balance that had accumulated while I was married) or major purchases on my cards, and expect to have these things discharged-since I had even talked with him (BK was and still is only an option, I haven't completely made up my mind even yet). Well, getting close I guess...
My semi-financially savy friend said that the BK attorney had given me (really) bad advice, besides charging me too much. (I am considering letting him go based on this as well as I found that he had been suspended a few years ago for poor representation, as well as for not refunding clients' fees owed them-he is now again able to practice, but the previous suspension does indeed worry me).
Anyway, I read somewhere in here that they might ask in the 413 about when the plan/decision to file bankruptcy was made and when the attorney was hired. It almost seemed like I screwed myself by even going to consult this attorney (and honestly, I have screwed many times-this is not the first-I tend to shop to avoid stress-I'm probably the "I'd rather be shopping at Nordstrom" type, but I have lived beyond my means). I hadn't made the decision at this point, I just wanted legal advice and to know my options-whether I would be eligible.
Anyway, I haven't talked with the attorney for a month or so, and I am considering letting him go (and asking for my unused fees-I did sign and pay for a "flat fee" contract so I don't know if I'm out of luck here).
Well, here is:
THE MOST IMPORTANT QUESTION(s):
Since I have met with the attorney and signed the contract, I have considered doing the Obama plan (Make Home Affordable program). I was sort of hoping to avoid a bankruptcy if my loan payment dropped significantly and if my wife were able to start making more income. Well, it now appears that her income will be the highest it will be for now (less than $1000/month), but I am still considering the Obama plan. BUT, even lowering my house payment significantly through refi, etc (i.e. Obama) is not enough for me to pay my monthly CC bills (I admit that I have not been keeping track of my spending and expiring intro interest rates, and I now, very recently, realize that I just cannot afford this CC debt).
And, I also made another couple of purchases lately (I know, a bad call, but it seemed like a good idea at the time). Even though I realize that there is the very slim chance that I can handle the load, except by some miracle (like dramatic success in my new at-home business-I bought the kit, but I'm thinking it is unlikely that this business will ever get off the ground since I’m so busy with my day job). I am self-admittedly irresponsible and confused and change my mind often. Since I’m finally thinking that it’s hopeless given my situation, my tentative plan (right now) is to not make any more purchases and stopping to pay on the CCs immediately (even though I made an impulse buy yesterday-a washer/dryer which we do need as ours is failing, but the set was about 2K-it's a real nice set that I couldn't resist). And some other embarrassing purchases that might be considered luxury.
On an aside, my semi financially-savy friend "jokingly" said I should max out the CCs right away and stop paying within the next week. I would never ever even consider doing this, as I know that this would be a crime if I were caught, this would be considered fraud. I am an honest and humane person.
I just want to know what I should do-I would like to know what I should do from this point forward. I know that I need to change my ways and turn over a new leaf and stop spending beyond my means (soon).
I have not intended to commit fraud so far, as my dream is to find the pot of gold at the end of the rainbow-but I'm starting to suspect that this is not going to happen. So, I guess that I am seriously considering bankruptcy (I think that this is obvious).
I know that all of this so far is water under the bridge (I cannot make the charges from yesterday disappear). An idea has been to be more financially responsible and not make any more impulse buys and to stop spend beyond my means...
Given all this, I would like to know what to do from this point forward.
As far as a potential BK, are there any suggestions (even hypothetical ones) to my situation. I am or was eligible for CH7 a couple months ago-and nothing has changed except for a "little" more debt, with a few luxury items (total new charges on the order of 10K in the last 2 months). These purchases were not made with intent to commit fraud, but I'm still afraid of others' conceptions.
Sorry for the long post, and sorry to those that consider my spending behavior unethical, and my thoughts or actions that some may consider questionable. I would really really like to pay the CC's back-they have been like my best friend for a long time...and I would ideally like to not have this on my record. I am a good person in so many ways-why have my plastic friends stabbed me in the back ? (*Just kidding*).
Again, sorry for the long post-hopefully someone can give me some advice. If you'd rather not answer some of these questions on the board, you can send me a personal message (I think). Or you can ask for my personal email address.
But, hopefully, I share some common problems with others on this board.
I look forward to getting some feedback on this...
Thank you.
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