What can they do to me?

[music12]

the only upside to keeping your payments current until you file is that your credit recovers a little faster. but that's it.

i was current until i filed. then stopped paying after i filed. one cc company hadn't gotten wind of the bk yet, and the next bill they sent me they actually forgave the missed month! they didn't deem me late or anything, just skipped it. of course they also raised the interest rate (which was 0% until then).

my credit score was pretty high soon after my discharge (690 i think). but it doesn't really matter.

it's better to file and then get a job from which you can actually keep what you earn than pay cc bills. you can always pay anyway even after discharge if you feel guilty, but it would be kind of stupid to do that. take your feelings out of this decision - bk is a totally legal thing to do, and if that's best for you financially then that's what you should do.

[doron]

I forgot that in Feb I bought two luxury electronic items, each 500 dollars. One was a camera and there was some thought of earning with it (hasn't happened). It was a BD gift anyway, and at the time I still had money from my last job...so...

[btbeme]

According to law, any significant purchases, especially "luxury" items, made within 90 days of filing will be scrutinized. A Feb purchase that is on a March statement means that your April, May, and June statements need to be clean.

As you look around in here, realize a few things. One, BK law is not applied evenly across districts, or even between trustees. Local attorneys can tell you about the local "flavor" of what the trustees expect and how they work their cases.

Second, be honest with your attorney from the first moment. Nothing can sink your file faster than a surprise for the trustee that your attorney does not know about.

Third - rather than borrow money from friends to pay bills, ask for monetary gifts to pay for a BK attorney. Should you choose to repay those gifts (which turns them into loans, as discussed above), keep it to yourself and do nothing of the sort until your file is discharged.

Last, know that you have time to get this planned out right. In fact, that is how I chose my attorney - he was the best at helping me plan the entry point. I stopped paying in November and December. It wasn't until I notified my card companies last week of my intention to file a BK that one collection agency decided to waste their time and sue.

[doron]

For clarification, when you say 'statement' do you mean credit card or bank also? I used my bank account (or debit card).

[btbeme]

Be prepared to discuss anything purchased, sold, paid, borrowed, or transferred in the last three months before filing for sure, and possibly as far back as a year. Chances are you will not have to do more than explain your last three months, but be prepared. Your attorney can tell you more about what the local trustees generally ask for.

So if you start the clock today, stop purchasing anything but necessities, stop paying credit cards, stop using the cards, and so forth your BK will get easier by the day.

[doron]

Thank you. I stopped TV services and don't have a cellphone, though I kept Netflix and gym. I paid for one night at a hotel last month, with a credit card, which is on my current statement. Other than that I just pay rent, utilities, food, gas, pharmacy stuff.

[Exployer1234]

I would not stress. I did not file until April of this year. The last time I paid on a CC was in 11/08. I was not sued by any of the CC's. The only reason I filed is because I had a garnishment go through on a car loan. I knew that when I lost my job in 1/09 that I had to start saving money and therefore I stopped paying my CC's a little bit prior to the company closing. I figured it would be at least a year before any lawsuits came about, and when they did I would go ahead and file then.

I know it sucks when you can not pay your bills, but this day and age it is a different time. People are losing their houses and can not buy food. Save your money, instead of trying to pay the CC's. If you plan on filing BK it is pointless to waste your money on you CC's. It will not save your credit rating, because honestly if you have to much debt it hurts your credit score.

Think of it in this terms. If you have a card that you owe 40k on and are paying around 20% interest. Then you are paying 20 cents on every dollar you owe. Alone you would owe 8000 dollars in interest. That is insane to say the least. Even if you give them 180 dollars per month it is not even making a dent in the balance on the card. So I would save your money. Nothing is going to happen to you, and the worse case is that they take you to court in a year or so. Heck who knows maybe you will get some settlement offers in a year or so that you can pay and not have to file BK.

[Depressed]

Don't send another penny to the banks. Not one penny.

Start saving your money for an attorney and put this behind you.

[ladyjenn]

oops..replied int he wrong place

[doron]

It's done, in a way. Just don't have money to pay. I won't be able to afford a lawyer, so I'll have to do it on my own. It will take me a long time to figure this out since I'm not savvy in financial and legal matters.

My main worry would be my car. It's over 10 years old, has 150,000 miles, but according to the blue book is worth far more than what's allowed. I've poured a ton of money into maintaining it. There is no way that I could find a car as well maintained that has what I need (4wd for rural roads) for the sum they allow.

Other than the car, I'm thinking...let's just say worse case scenario I don't file and people come and take away my things. So what? Apart from a few items (camping gear, camera, radio, books), I don't care that much. My laptop is my most important asset along with the car and I know that can't be taken.

And if they come around here I'll call the police. It's a private road (dirt and with potholes, but still private). I don't think they have the right.

Three of the CCs were nasty, so I don't feel that guilty about them. I mean, they did everything possible to make it harder for me to pay. The one on which I owe the most, I feel bad about. I gather that even if I did have some money it would be wrong to pay one and not the others. Or am I wrong about that?

That's where I'm at.

[music12]

they can't come and take your camera, radio, laptop, or books unless there is a lien on them. even then, they'd need a court order specifying that they can get into your home to take these items. this is very very very unlikely and not worth the trouble for them. about the the car - if there is a lien on it, they can get it (but it sounds to me like you own it outright). what they would do first is get judgments against you and then garnish your wages and/or take money out of your bank accounts.

if you plan on bk, then indeed you shouldn't choose to pay some creditors over others.

you'll have to try to find exemptions for your car. consult with some lawyers (you won't tell them you are going to go pro se, you'll just go get a free consultation and you will learn if it's possible to keep your car)

[gmk]

I could be wrong but I don't believe "gifts" are treated as income for the means test. It may be looked as as an asset. I had a few thousand gift from my sister and my attorney didn't list it as income even though we discussed it. It was spent down prior to our 341 on necessities and some taxes.

[doron]

about the the car - if there is a lien on it, they can get it (but it sounds to me like you own it outright). what they would do first is get judgments against you and then garnish your wages and/or take money out of your bank accounts.

You're right, I own the car.

Come to think of it - why bother to file? The truth is I have no energy. Why do anything? What if I do nothing? Say they do sue me and I don't even go to court. How is filing BK better?

[music12]

as long as you have no assets, you may as well not file. however, the moment you get a job or get some inheritance or anything, all your debt comes back to haunt you.

in my case, i filed to get a crazy "creditor" off my back (i didn't actually owe anything, but there is corruption in the courts so they got a huge judgment). i filed while unemployed (those corrupt judges actually seized my unemployment benefits which as you may know are exempt; that stopped when i went to bk court, thank heavens). now i found a job and let me tell you, the fact that they won't get a dime of my earnings makes me so happy. absolutely everything is mine to keep.

[doron]

as long as you have no assets, you may as well not file. however, the moment you get a job or get some inheritance or anything, all your debt comes back to haunt you.

That makes sense. Thanks!