New here--and just have so many questions.

[JEM]

Hopefully this doesn't get too long winded.

I've been reading non-stop the last couple of weeks. My husband and I have talked and we know this is what we NEED to do. We just don't know how to time this. There are so many variables it seems and I think I'm replacing one worry (of drowning in debt), with the worry of "how" we are supposed to do this.

We have approx. $70K in CC debt. I don't even know HOW it got to this point. But it did. Probably needing things for the house, some expensive dental work for me (necessary work), using CC's to get by when dh's work was slow, and some stupid impulse spending.

I *think* we should be able to qualify for a Ch. 7. But I think we may have to wait a few months for dh's income to "level out". His company has been short on drivers and he's been working more hours the last couple months (however NOT enough to dig us out). It won't last. As soon as they hire--his hours will go back to what's typical.

Plus,he got a referral bonus in Sept. of $1000 for getting one driver hired. That is not typical. It's the only one he's ever received.

We passed the mean's test, but when I did Schedule J (is that right?), it shows we have about $200ish a month left over.


We've had some fairly recent cc use--used to pay some monthly necessities--like the utility bills, some groceries, gas, etc...I've been trying to continue paying everything and NOT use the CC's. But I can't make the minimums AND have money left over for food, gas, water etc...It's a HORRIBLE cycle.

We talked and figured we'd use our tax return to come up with lawyer fees, so we need to wait at least until March most likely.

I'm afraid if I stop paying on the CC's NOW, we'll most certainly get sued before then. So here I sit, feeling like I'm stuck between a rock and a hard place.

If I make only payment on the cards we've used recently--we should be able to squeek by each month.

Oh, some other info. We are in TX. We own a home--we ARE current and wish to keep the house. We ARE NOT upside down, but have very little equity as we've only been here for 4 yrs. The payment is doable, we couldn't rent for much cheaper.

We have one car payment of $250 that we bought about 2 wks ago AFTER we talked about this possibility of filing. Dh's truck is 13 yrs old and needing lots of work lately. My van is a 2003 and needing more work lately too. We bought a 2008 Pontiac for $12500 from our CU at 3.4%. Now I'm wondering if we goofed in doing that? (We DO plan on keeping the car--and we DON'T owe the CU any other money. We only have a checking account and the required CU token savings with them)

I'm sorry for making this so long. Sometimes I can be a rambler.

[liz417]

Hi there and welcome to this forum

You've made the hardest decision already...to file for BK. If you know that you are going to file, stop paying your creditors now and save for your attorney fees. Don't worry about "being sued", there are many on this board that have gone 1+ plus (including myself) not paying the creditors. If you stop paying the creditors and save to retain your attorney now, you could refer all collection calls to his/her office (I was able to do that for a whole year). Make a couple of appts. for a free consultation with local BK attorneys, that will really ease your mind

[AngelinaCatHub]

Hopefully this doesn't get too long winded.

I've been reading non-stop the last couple of weeks. My husband and I have talked and we know this is what we NEED to do. We just don't know how to time this. There are so many variables it seems and I think I'm replacing one worry (of drowning in debt), with the worry of "how" we are supposed to do this. Worry accomplishes nothing except physical illness.

We have approx. $70K in CC debt. I don't even know HOW it got to this point. But it did. Probably needing things for the house, some expensive dental work for me (necessary work), using CC's to get by when dh's work was slow, and some stupid impulse spending. We all fall into this trap, that is why we are all here. Don't feel like the Lone Stranger.

I *think* we should be able to qualify for a Ch. 7. But I think we may have to wait a few months for dh's income to "level out". His company has been short on drivers and he's been working more hours the last couple months (however NOT enough to dig us out). It won't last. As soon as they hire--his hours will go back to what's typical. How long is a few months? Wait until your lawyer or doctor tells you not to. (see above)

Plus,he got a referral bonus in Sept. of $1000 for getting one driver hired. That is not typical. It's the only one he's ever received. Spend it only on exempt stuff such as a lawyer, stockpile food, supplies.

We passed the mean's test, but when I did Schedule J (is that right?), it shows we have about $200ish a month left over. That soon will be adjusted by the job situation. Look further at your exemption of your state.


We've had some fairly recent cc use--used to pay some monthly necessities--like the utility bills, some groceries, gas, etc...I've been trying to continue paying everything and NOT use the CC's. But I can't make the minimums AND have money left over for food, gas, water etc...It's a HORRIBLE cycle. YOU MUST stop using these, like NOW. No excuses. Stop paying them it takes months before legal action.

We talked and figured we'd use our tax return to come up with lawyer fees, so we need to wait at least until March most likely. From what you imply, I don't think your nerves will hold out and everyday is a worry for you. Get your lawyer with that $1000 and get the ball rolling. You can file at any time, just get your act in progress.

I'm afraid if I stop paying on the CC's NOW, we'll most certainly get sued before then. So here I sit, feeling like I'm stuck between a rock and a hard place. Yes, you are still in the "I can't believe it" stage. Action will feel so good.

If I make only payment on the cards we've used recently--we should be able to squeek by each month. DON'T do that. That is preferential payments. Use your last purchase for the C7 book in pdf download from Nolo press nolopress.com.

Oh, some other info. We are in TX. We own a home--we ARE current and wish to keep the house. We ARE NOT upside down, but have very little equity as we've only been here for 4 yrs. The payment is doable, we couldn't rent for much cheaper. Good for you. TX is a "Homestead" state. No one can come after it for unsecured debt.

We have one car payment of $250 that we bought about 2 wks ago AFTER we talked about this possibility of filing. Dh's truck is 13 yrs old and needing lots of work lately. My van is a 2003 and needing more work lately too. We bought a 2008 Pontiac for $12500 from our CU at 3.4%. Now I'm wondering if we goofed in doing that? (We DO plan on keeping the car--and we DON'T owe the CU any other money. We only have a checking account and the required CU token savings with them) Not a good time for that, but so, you did it. It may be stickie on that one. CU's don't usually allow ride throughs and will insist on a reaffirmation. They have different rules than banks.

I'm sorry for making this so long. Sometimes I can be a rambler. You are addressing the number one rambler on this forum. LOL

The Nolo book is your best bet as well as read all the "stickies' referring to your situation. I would advise you to visit a few lawyer for interviews and pick and hire a good one. With the bonus or at least a small retainer, he can guide you. The Nolo book will give you some insight. 'Hub

[HakunaMatata]

It appears you have a solid understanding of your finances and a good grasp on the BK process. Have you met with any consult attorneys? You may want to set up a few consultations as they may aid in bridging some of the possible gaps you're seeing, eliminate some of your fears, and provide a workable timeline.

Like you, I passed the Means Test (I was only a few hundred dollars below median income); and, I really struggled with Schedule J. My initial DMI was $400. My attorney assisted in legitimately reducing this.

I had three consultations. Each attorney advised me to secure reliable transportation. I purchased a car two months prior to filing. This hasn't presented an issue. I intend to reaffirm provided my CU consents.

I was also using a credit card for basic living expenses. Prior to contemplating BK, this card was paid in full monthly. My charges weren't the recommended 90 day aged prior to filing. Thus far, this hasn't been an issue. I had no luxury charges and if the creditors want the gas back, I suppose I can siphon it for them!

[LimpDisc]

My guess is that $70,000 in CC debt puts you at about $1400\month in minimum payments. Stop paying and use that money to pay for your attorney.

[Mi Bankruptcy]

1) print or download all copies of your CC statements online
2) Get a copy of credit report
3) meet with atleast 3 attorneys
4) Once you meet with an attorney stop paying on your credit cards
5) keep paying on anything you want to keep or reaffirm like your home.

[JEM]

Thank you everyone.

I think getting it off my chest helped a little bit.

I know this sounds silly, but I after I posted it. I went to the bank took out enough cash for groceries and gas today. Got a weeks worth of groceries and filled the gas tank. Eating and transportation comes first. Cards are put away--in the shredder. No more temptation to use them on necessities.

I forgot something pretty important in my post above. When we bought the car, dh's truck wasn't running at all, so we didn't trade it in. However, he did manage to get it running and it has a For Sale sign on it. Best we could hope for would be $2000 (Edmunds and KBB value) IF it sells, can we use the money for a lawyer--and some day to day living expenses?

Once we make the decision NOT to pay all these CC's, I think I will feel much better. I think THAT'S where my nerves are coming from...the not knowing WHAT to do.

Dh has a fax machine for work hooked up to our home phone, so if we don't answer, it goes to the fax. That will keep us from having to get nasty msgs on the answering machine--or having to listen to the phone ring for long.

I am a *little* worried about phone calls at work for me. (I work VERY VERY PT, like 6 hrs a wk) But they may try calling to get ahold of me.

Dh is in his truck all day for work, so all calls would go to his cell and he could just NOT answer.

[JEM]

1) print or download all copies of your CC statements online
2) Get a copy of credit report
3) meet with atleast 3 attorneys
4) Once you meet with an attorney stop paying on your credit cards
5) keep paying on anything you want to keep or reaffirm like your home.

Can we stop paying NOW before we get an attorney? It will be awhile before we can pay an attorney in full, and honestly, with dh's work schedule, it might be after the holidays before they let him take any time off to get this handled. However, I don't think we can continue paying the CC's. We may have to let them go late next month in order to keep current on the house, car (which we plan to reaffirm) and necessities.

[JEM]

My guess is that $70,000 in CC debt puts you at about $1400\month in minimum payments. Stop paying and use that money to pay for your attorney.

Pretty darn close. Some of them still have decent interest rates, because they were "for life" Balance transfers done about 2 yrs ago. (We don't have any recent balance transfers or cash advances--recent being--it's been AT LEAST a year)

A lot of the cards have been rate jacked in the last year, thus making the payments go up quit a bit. We were "hanging on" until that happened, and it just seemed to snowball really fast after that.

[LimpDisc]

Like it was suggested earlier, try to see at least 3 Attorneys. We retained our attorney for only $400 and he started to take the phones calls from our creditors at that point.

The first month without paying the phone rang about 25-30 times a day. At first I answered to verify my contact info for each creditor. I did that hoping that they wouldn't call anyone else knowing that they had my correct information. They didn't contact anyone else that I know of at this point.

[LimpDisc]

If you definately plan on filing in the next 6 months I wouldn't continue to pay you unsecured debt. You're just wasting that money! If you plan on reaffirming the house & car I think you will need to be current, so it's far more important to pay them.

Research this forum and you'll find people that haven't paid for over a year without getting sued.

[JEM]

If you definately plan on filing in the next 6 months I wouldn't continue to pay you unsecured debt. You're just wasting that money! If you plan on reaffirming the house & car I think you will need to be current, so it's far more important to pay them.

Research this forum and you'll find people that haven't paid for over a year without getting sued.

I guess that brings me to another question, would it be best to go as long as possible without paying to "take care of" other things first? Like house repairs, auto repairs, dental exams, new eye glasses.

OR just file ASAP and get it over with?

Ideally I'd like to wait until after we get our tax refund so that some of that money can go to an attorney. We'll probably only get $2500.
But dh and ds both need their eye exams and new glasses. My van needs some work done (dh can do it, but the parts still cost money. )...and then use whatever we still need to pay an attorney in full.

[LimpDisc]

I guess that brings me to another question, would it be best to go as long as possible without paying to "take care of" other things first? Like house repairs, auto repairs, dental exams, new eye glasses.

OR just file ASAP and get it over with?

Ideally I'd like to wait until after we get our tax refund so that some of that money can go to an attorney. We'll probably only get $2500.
But dh and ds both need their eye exams and new glasses. My van needs some work done (dh can do it, but the parts still cost money. )...and then use whatever we still need to pay an attorney in full.

Our first payment missed was on August 14, 2009. Were waiting 4 months to file so some income can drop off. We used our funds from not paying to do exactly what you asked about. The house needed some repairs and one car needed some work. We also purchased a new car to pass the means test.

We were very nervous about not paying our cards because our credit history was very good and we thought getting sued or garnishments. Our attorney assured us that we had nothing to worry about being we would file within 6 months.

My credit score has dropped a lot over the past 3 months, but it's just a number.

[calgirl67]

Once we make the decision NOT to pay all these CC's, I think I will feel much better. I think THAT'S where my nerves are coming from...the not knowing WHAT to do.

Dh has a fax machine for work hooked up to our home phone, so if we don't answer, it goes to the fax. That will keep us from having to get nasty msgs on the answering machine--or having to listen to the phone ring for long.

I am a *little* worried about phone calls at work for me. (I work VERY VERY PT, like 6 hrs a wk) But they may try calling to get ahold of me.

Dh is in his truck all day for work, so all calls would go to his cell and he could just NOT answer.

DO NOT IGNORE THE CALLS. Believe me, they will start calling your boss, your mother and your friends, looking for you.

Answer the phone and tell them you have encountered extreme financial hardship and cannot make your payments right now. Do NOT go into detail.

Stop paying, don't use your CCs anymore at all and file in 90 days. Retain an attorney ASAP - as soon as you can pay the retainer fee. Then call all your creditors back and tell them my stock line: "I need to inform you I have now retained an attorney and have commenced Chapter 7 bankruptcy proceedings. Please refer all calls to him from now on" and give them his/her contact details. Do not discuss anything further - they will try and draw you into a discussion...

Hang up and you will probably never hear from them again.

[StartingOver08]

Just to add a little to MI BANKRUPTCY's post: Make sure to download the copies of your bank statements and cc statements from the website NOW. Do it before you stop paying on the cc's. Once you stop paying all of your access is cut off from the websites.

Download as far back as you can (because its easy). Don't print anything unless your attorney or the Trustee asks for it (saves a lot of ink that way).

In a case like yours, reaffirming the recent auto purchase sounds fine. You got a good rate and did not go crazy with the payment.

Yes you can take that $2000 or whatever you get for the old vehicle and pay your attorney. It is perfectly allowed - no questions asked!

Make sure you get the right attorney. There is one you should stay away from in Tx, PM me and I will tell you who it is.....