Ok, so, I get an email from my attorney

[hedgecat]

I just want to say that waiting until you find new employment to file sounds like a very strange idea to me. Most people can't find new employment in this economy (and that's why I'm eeking by but not very well on self-employment). Second, it leaves people looking for work that pays less than they are probably worth, just so they can file Ch.7/13 or whatever.

I know the assumption is that you don't have to file - particularly if you are pretty much insolvent (the lawsuits would have little effect on you at that point) but piece of mind counts for something too. Am I wrong about this?

[OhioFiler]

I just want to say that waiting until you find new employment to file sounds like a very strange idea to me. Most people can't find new employment in this economy (and that's why I'm eeking by but not very well on self-employment). Second, it leaves people looking for work that pays less than they are probably worth, just so they can file Ch.7/13 or whatever.

I know the assumption is that you don't have to file - particularly if you are pretty much insolvent (the lawsuits would have little effect on you at that point) but piece of mind counts for something too. Am I wrong about this?

Not wrong in your case. I just have a different perspective.

[BCA2009]

Ok, So the theory to wait is based on the possibility that you might incur more debt due to being unemployed), so you want to wait so that you can also discharge that debt when you actually file for BK. To be the Devil's advocate, if you incur more debt when unemployed (especially after consulting a BY lawyer), wouldn't this fraudulent?

[OhioFiler]

Ok, So the theory to wait is based on the possibility that you might incur more debt due to being unemployed), so you want to wait so that you can also discharge that debt when you actually file for BK. To be the Devil's advocate, if you incur more debt when unemployed (especially after consulting a BY lawyer), wouldn't this fraudulent?

What if that debt is say....medical or you're involved in an accident and are sued?

[music12]

thing is, if you are unemployed and file for bk, then the second you file you will have no credit cards to fall back on. if an emergency happens or the unemployment becomes long-term, you will be dependent on friends/family to bail you out. if you have not yet filed, you can still use those credit cards to keep you afloat.

and yes, technically it's fraud to be charging credit cards knowing that you will be filing bk, but it would be totally impossible to prove such a thing (most people keep using their cc's trying to stay afloat up until they finally realize they need to file, plus you might end up changing your mind if circumstances change), and seriously, i would feel no guilt doing that given how these banks have been behaving.

[BCA2009]

Ok, I do agree that if you anticipate future indebtness that you should wait to file so that you could include that. I was assuming that the credit cards were pretty much maxed out. I know, I shouldn't assume.

I also would be worried that by the grace of god I would get a good job offer, somehere near what I was making. In the OP's case it was well over the median. If you hadn't already filed, you could possibly have problems then with too much income.

Everthing in life is a tradeoff. So the OP needs to weigh all of the options and make the best decision for him/her.

In my case I'm worried about my income edging up, just too high to file, but not high enough to really pay my debts. So I look at everything from that perspective. Other people have different issues and look at it from a different viewpoint. That's the great thing about this forum. You get lots of opinions and good information so that you can make a good informed decision about your situation.

[OhioFiler]

Ok, I do agree that if you anticipate future indebtness that you should wait to file so that you could include that. I was assuming that the credit cards were pretty much maxed out. I know, I shouldn't assume.

I also would be worried that by the grace of god I would get a good job offer, somehere near what I was making. In the OP's case it was well over the median. If you hadn't already filed, you could possibly have problems then with too much income.

Everthing in life is a tradeoff. So the OP needs to weigh all of the options and make the best decision for him/her.

In my case I'm worried about my income edging up, just too high to file, but not high enough to really pay my debts. So I look at everything from that perspective. Other people have different issues and look at it from a different viewpoint. That's the great thing about this forum. You get lots of opinions and good information so that you can make a good informed decision about your situation.

After we decided to file but before we filed we had significant medical issues with one of our children. Even though we have insurance the deductible and out of pocket expenses were significant. I'm glad we waited.

I agree, your perspective suits your situation perfectly.

Generally, I hold that filing BK while unemployed is a poor decision. That a BK plan MUST include a post-BK budget that is livable and beyond the length of time government assistance might cover.

[bktek]

I think everyone's case is different. I have been unemployed since November 2008. I filed CH7 in September 2009 and was just discharged this month. In my circumstance, I couldn't wait any longer to file. I couldn't meet my monthly bills anyway and the credit card companies were lawyering up. I had already had one bank account emptied by a law firm representing CAP 1.

I'm single with no dependents, so that made the decision to proceed with the BK much easier. Since my discharge, I'm basically debt free. I'm paying through on my mortgage and meeting the household bills with unemployment comp. If the economy keeps tanking I may have to walk away from the mortgage and bunk up with relatives for a while. But even that prospect is less painful than the constant harassment from credit card companies and collection agencies.

[mtbc]

It partly depends how employable you are, of course. Unemployment benefits tend to last quite a while these days -- if you can survive on them, then it depends how sure you are you'll find a reasonable enough job before they run out -- though, of course, a bunking-with-relatives option may make even a failure there tolerable.

[LizardTail]

Quoting from a poster above ...

"thing is, if you are unemployed and file for bk, then the second you file you will have no credit cards to fall back on."

I'm single, with no dependents, and received 2 weeks severance, plus a week of pay I had coming, plus a little vacation time I had left will be paid. I will start getting unemployment benefits beginning Feb. 7, had some $$ in the bank, have tax refund coming and can cash in a small 401K. The unemployment will cover my mortgage and car note with a whopping $7.00 left over. I'll use the other money to get by for a few months. I think I'll be ok for a little bit.

Even if I had a credit card that was still active, I would't use it. I actually do have Exxon and Firestone, but not gonna use them.