should I be worried?

[losingit]

My husband and I are retaining our bankruptcy lawyer first thing next week. to keep it brief:

~we are in foreclosure on a home that we were upside down on. we were laid off when the economy tanked so we moved here (to MA from ME) for more job opportunities
~our home has been on the market as a short sale for 7 months with no bites
~we have a second mortgage as well so obviously we are even more upside down
~we have $8000 in medical bills that we can't pay
~we are both unemployed at the moment (we work at a golf course and collect for 3 months a year)
~we have about 16,000 in credit card debt but have not purchased anything in the past 3 years using credit
~we have NO assets other than a 1999 buick that is paid in full
~we rent an apartment that is very average

So, we basically have nothing. We almost break even at the end of the month with basic stuff- rent, food, gas, and medicine and clothing for our children. Nothing exorbitant. BUT, we use our debit card for everything. I am afraid the trustee is going to see our bank account having money in it and it is then drained by us using our debit cards- gas station, grocery store, consignment shop, walmart (for essentials only)... I just want to be prepared for anything. Can they garnish our tax refund? We owe my mother some money she lent us for first, last, and security on our apartment. Is there a way around this? Or do you think any creditors will come after us? You can't get blood from a stone...

Thanks. I am probably being ridiculous but I am so nervous and stressed. I just want this over with.

[mtbc]

Spending your money on necessities seems entirely reasonable to me. It doesn't sound at all abusive.

In your place I'd be careful not to repay your mother before filing unless you properly understand the issues surrounding avoiding preferential payments to insiders. You don't want the trustee snatching most of the money back from her and giving it to other creditors. Once the bankruptcy dust settles it's okay to repay people even if the debt was discharged.