Planning on filing, scared to death

[Lee123]

I am worried about how this process will turn out. I am recently divorced, no assets. I did a quick claim on the house for my ex so that it is no longer in my name. I also told him a while back to be sure to remove my name from a boat and truck loan. I also changed my checking account over to a bank that I have no debts with. Anyway, I spoke with an attorney a few months back, and they told me I would be eligible for Chp 7, but to stop using credit cards. Unfortunately, due to circumstances, credit cards were pretty much what I was having to live on. I did stop using them all, except for one, which I used up until this last month. As it is, I have about about $35,000 in debt total. Since I am a student and working part time this is overwhelming to me. I am looking to start grad school fall of next year, and would love to go in without all this stuff hanging over my head.

I am meeting with another attorney on Thursday and I have a strong feeling they are going to tell me to wait at least 90 days before filing, but what do I do with my creditors until then? Honestly, this December/January is the first time I have ever missed a payment, and the collection calls have just started. I almost feel an obligation to go ahead and pay these debtors until I file, but I know that would be a waste, and do no good.

I tried consolidation, but the payments would still be too high, and the woman said BK is my only option at this point. I am very discouraged, as I didn't want it to happen this way.

How painful of a process is this, and how long before my credit recovers? Between the divorce, school, my job, and now this I am feeling so overwhelmed. How long before my creditors try to sue me? I have so many questions and concerns, and don't even know where to start.

[LimpDisc]

Welcomes to the forum.

The process isn't painful at all. Read the stickys on this forum to learn as much as you can. Don't be affraid to ask questions. Everyone here is so helpful with answering questions.

Waiting 90 days to file won't be a big deal with your creditors. Once you find your attorney you can pay the retainer and tell the creditors to contact your attorney. At that point all the phone calls stopped for us. We didn't pay for 4 months and we never worried about getting sued. Some members on this forum haven't payed in 1-2 years.

Good luck!

[frogger]

Don't be doing any consolidating if you're thinking about filing for bk. As to the creditors, if you need to wait 90 days, there is most likely not going to be a problem.

They're not coming to eat you.......

Good luck.

[deepend]

If you know you are going to file bk, then don't waste another dime paying creditors. Can you make it without using the credit card(s) if you are not paying them? If you can't that's a much bigger problem.

I stopped paying all credit cards 10 months before I filed. I simply did not answer the phone and though it was nerve wracking and just about gave me panic attacks not to pay them at first, the time really did fly by.

Try not worry yourself sick, save your money, interview attorneys to find the best one for you, and read read read to educate yourself. You'll feel so much better. Good luck and hang in there!

[shabam]

There is lots of information on here so don't be afraid. The first thing you need to do is stop using your credit cards and start getting ready to file. Start thinking about things like are you going to keep a vehicle or try to buy another before you file, before your credit tanks.

I would ask your ex to make sure he has taken you off his loans as for safeties sake, you would list them in your petition. The 90 day rule is looking for big item purchases over $500, as well as cash advances. If you used your cards to simply pay for everyday living expenses, and made payments, you will not have much of an issue.

[Lee123]

Thank you, everybody, for your responses and advice! Honestly, it FEELS like the creditors are coming to gobble me up. :P I have made two $550 cash advances to pay my rent, repaid the amount once, but did not the second time. Will that make a difference? The rest of my charges are living expenses, and yes, some luxury because of the Holidays.

I can live without credit, though it is a tight squeeze. I spent most of the afternoon going through these forums, and while some threads helped to answer my questions, some left me in a state of panic. For example, the idea of any of my creditors accessing my checking account is frightening!

I did not like the previous attorney I talked to. She said: "So you accrued all this debt and now you decided you don't want to pay it, so you are looking to file bk?" It was offensive because I feel like I've done so much to prevent this all from happening.
Since I live in a small town my choice of lawyers are limited, but I am meeting with another one on Thursday. Hopefully it will go well.

As it is I am trying to move on with my life, but my financial situation makes me feel like I am caught up in limbo. I do find relief in knowing I am not alone when it comes to this situation because it feels so much like I am.

[shabam]

Second word of advice. Divert all of your calls to voicemail, where you clearly state your name and phone number. I would not waste a second trying to reason, negotiate or promise them anything. I managed to avoid them for 6 months but was prepared to file if I received any sort of summons.

Last but not least, stop all unnecessary payments to be discharged and save up for a lawyer. Though, I would keep on paying your rent, utilities, student, and car loan.

If that is the lawyers attitude, time for another lawyer.

[pa308]

Thank you, everybody, for your responses and advice! Honestly, it FEELS like the creditors are coming to gobble me up. :P I have made two $550 cash advances to pay my rent, repaid the amount once, but did not the second time. Will that make a difference? The rest of my charges are living expenses, and yes, some luxury because of the Holidays.

I can live without credit, though it is a tight squeeze. I spent most of the afternoon going through these forums, and while some threads helped to answer my questions, some left me in a state of panic. For example, the idea of any of my creditors accessing my checking account is frightening!

I did not like the previous attorney I talked to. She said: "So you accrued all this debt and now you decided you don't want to pay it, so you are looking to file bk?" It was offensive because I feel like I've done so much to prevent this all from happening.
Since I live in a small town my choice of lawyers are limited, but I am meeting with another one on Thursday. Hopefully it will go well.

As it is I am trying to move on with my life, but my financial situation makes me feel like I am caught up in limbo. I do find relief in knowing I am not alone when it comes to this situation because it feels so much like I am.

You are not alone, many of us here who have been through it will tell you it will be stressful, but if you've done the analysis, and it is the best business decision for you (and it is a business decision), it may be the best thing for you. Key now is to get a good lawyer who is on your side (unlike the one you mention above). A year after you've been discharged you will have peace I believe..

[frogger]

Thank you, everybody, for your responses and advice! Honestly, it FEELS like the creditors are coming to gobble me up. :P I have made two $550 cash advances to pay my rent, repaid the amount once, but did not the second time.

Stop using the credit cards......

[Lee123]

Well, I went and spoke with the attorney today, and I feel better and yet overwhelmed at the same time. He was very impersonal, but what I liked about him was that he did not ask me questions about the circumstances that led me to BK. The first attorney I saw grilled me on my spending habits prior to the divorce, the divorce itself, and then made their rude remark. This attorney just wanted to know the facts that would be surrounding the BK.

Also, the previous attorney was pushing for me to file a Chp 13, but they DID NOT tell me that a 13 could take anywhere from 3-5 years (that is what this new attorney said). He also said I easily qualify for a 7 and that my BK should be a very easy one, and could go through very quickly, all depending on me.

I asked him about the 70/90 day thing, and told him about my cash advances. He said to not worry so much about it. As he put it "If you took a cash advance on 10,000 then yeah, that would be an issue. But the creditors are not going to waste their time, money, or resources on a couple $500 advances." As to my other purchases that are within 90 days he said the fact that I had been making payments is in my favor, but he also added to STOP paying now.

I paid $100 today and am looking through the paperwork. Very daunting!! I am feeling bogged down by it already, and I haven't even started. I think it should be fairly straightforward, but I am still a nervous wreck about it.
The attorney said the paperwork will be the hardest part for me, so I am going to fill out as much as I can this weekend and turn it in hopefully by next week.

What shall I be expecting after that? And should I take his advice and not let the 70/90 thing stress me?