Where Do I Start?

[maxwellv8670]

I am new to this. I am just now coming to the realization that I'm going to file bankruptcy. I'm pretty scared and I really don't know where to start. I assume I need a lawyer? How do I know who is good and who isn't? My brother has filed before and I have to much pride because I am embarrassed to ask him who he retained. Can anyone here push me in the right direction? Thanks for any advice given.

Also a little bit about my situation.

I am not married and have no children.
I do live with my fiance though, for quite sometime.
I don't have a car in my name or a house.
I have about 21K in unsecured credit card debt.
Haven't worked since August.

I know I put myself in this situation and it is my fault.

[LimpDisc]

You need to set up some free consults with several attorneys. I would actually talk to your brother about your plans. He's going to be a great source of information for you.

[backtoschool]

Nobody is judging you, and "fault" is irrelevant to filing for bankruptcy. Here are some initial things to consider:

1. If you live with your fiance, your fiance's income and contribution to expenses will be considered in regards to the means test. If you do not want to include your fiance's income and contribution to expenses, then expect to be heavily questioned about why your fiance is not contributing to expenses.

2. 21k is not a lot of debt to file on, but that all depends on your circumstances. It sounds like you are judgement proof at the moment. What is triggering your desire to file now?

[maxwellv8670]

Thanks for your responses. I know you are right about my brother being a good source of information. I just have to let go of this pride I have in order to do that. That will be very hard to do.

Well truthfully he (fiance) has been making my payments on the cards. But he can no longer do that. And I have been looking for a job to no avail. I thought I had a cocktail serving job 2 weeks ago but they never called. I have had some rummage sales to help and sold stuff on Craigslist but it just isn't enough. I am very discouraged about the employment situation. Fiance has his own situation and bills but I do admit he makes pretty good. But his employer has been laying off left and right. And I hate to say it but it is just a matter of time before he gets the axe.

So the catalyst for me wanting to file is the inability to find a job and pay my bills. I know it maybe lame but it is true. The only place I haven't tried is McDonalds. I want the year to be a fresh new start. And I don't ever want to be in this situation again. And quite frankly I don't know how to get out of this.

[Feelbad]

If the 21k is your only debt, you may want to just stop paying and see what happens. You may find that after 90-120 days of not paying the cc debt you will start to receive settlement offers for as low as 40% of your balance. Some of these offers might also allow a payment plan as well.

[maxwellv8670]

Feelbad, dumb question but why should I go that route versus bankruptcy? If you are going to tell me because Bankruptcy goes on your credit for 10 years the way your proposing goes against me as well. I couldn't even get a car loan at my credit union in March. I almost felt like I may as well file bankruptcy.

[OhioFiler]

I don't see bankruptcy as the best path for you right now. Assigning fault or blame solves nothing.

Forget about your debts for now. Put more effort into finding a decent job. You'll succeed with the right attitude.

I assume you are receiving unemployment income so you have enough money to meet your needs without paying your credit cards. Stop paying the cards and focus on getting a job. Ignore the phone calls or change your phone number.

I think if you get a job you'll see your situation completely different.

Best wishes to you.

[maxwellv8670]

You do assume wrong about the unemployment income. I quit my job I didn't get fired or laid off. I will say it once only. I was in the medical field and I had an accidental needle stick. For those who don't know what that means it means I came in contact with a dirty needle on someone I was drawing blood in where the needle went in me on attempting to dispose of. I freaked out and quit. I was fortunate in all my tests have come back good and if I could get past that fear I probably could get a job. I just don't think I can at least not yet.

[OhioFiler]

You do assume wrong about the unemployment income. I quit my job I didn't get fired or laid off. I will say it once only. I was in the medical field and I had an accidental needle stick. For those who don't know what that means it means I came in contact with a dirty needle on someone I was drawing blood in where the needle went in me on attempting to dispose of. I freaked out and quit. I was fortunate in all my tests have come back good and if I could get past that fear I probably could get a job. I just don't think I can at least not yet.

You should apply for unemployment benefits. You may still get them.

[maxwellv8670]

I think I am going to take some advice from limpdisc and call my brother. I don't know I would think that too much time has elapsed for me to file umemployment. You could be right though.

I'll be back.

[OhioFiler]

I think I am going to take some advice from limpdisc and call my brother. I don't know I would think that too much time has elapsed for me to file umemployment. You could be right though.

I'll be back.

Until you file you'll never know. There is no penalty for trying.

[maxwellv8670]

Thanks for everyone's help yesterday. I did talk to my brother and he doesn't think I should file bankruptcy either. I just don't get it though. Who exactly is bankruptcy for if it isn't for people like me? I have taken the means test. I passed but that isn't too hard to figure out because I haven't had a paycheck since August. Has anyone here filed and than regretted it later? If so, then why? Secretly I think my family is hoping I will change my mind on going back in the medical field. They don't understand. I have a lot to overcome before I can do that.

[Feelbad]

Feelbad, dumb question but why should I go that route versus bankruptcy? If you are going to tell me because Bankruptcy goes on your credit for 10 years the way your proposing goes against me as well. I couldn't even get a car loan at my credit union in March. I almost felt like I may as well file bankruptcy.

I may not have explained myself very well. I was not telling you not to file, just maybe not right now. Your level of debt makes no difference (it is in the eye of the beholder) however as you explained your current circumstances there is not really any risk in not filing right now. Even if a creditor got a judgment there's really not any way for them to enforce it. Unless I'm missing something you don't have anything to lose with a "wait and see" approach. Stop paying on the credit cards and any other unsecured debt. The collections forum can help you manage the collection calls in the meantime.

This will lead to one of two things -

- You will find a great job and be in a position to negotiate the debt down and pay it off. If this happens research the best way to handle it regarding documentation and tax implications.

- You find an average job or not, but still earn below the median and have had some time to save some money for an attorney to then file at that point.

This may help you feel a little more calm knowing that you have a plan and there is a solution. You just may not know which solution is best yet so wait and see. You've got some time. If you can refocus your energy somewhere else while you wait, something great may come out of it as well.

[maxwellv8670]

Thank you feelbad and I will check out the collections forum because I have no idea how to handle that because I have never had to deal with this issue of being late and not paying my bills and having bill collectors call.