Question on high unsecured debt for Ch 7

[shamed]

New person here with a 341 fastly approaching. We have high(over 100k) of unsecured credit card debt and were wondering will we be scrutinized more than others? No fraud here, just a single income fighting to survive with high medical costs. All CC are well over a decade old, and only used to help pay some bills along the way. I should have known sooner that paying bills with CC spells a problem we could no longer handle. Also 2 kids with less than normals births have hit us hard over the past 8yrs medically. Finally saw the light that we can no longer survive like this and need to file unfortunately. Our lawyer said he might scrutinize due to the high debt but we answered his questions and he said that is more than a satisfactory explanation for a trustee.

Just worried like all of the rest. Any thoughts are greatly appreciated.

[justbroke]

New person here with a 341 fastly approaching. We have high(over 100k) of unsecured credit card debt and were wondering will we be scrutinized more than others?

It is highly likely that your high unsecured debt will peak the curiosity and interest of the United States Trustee (UST).

Also 2 kids with less than normals births have hit us hard over the past 8yrs medically.

This is a mitigating fact.

Finally saw the light that we can no longer survive like this and need to file unfortunately. Our lawyer said he might scrutinize due to the high debt but we answered his questions and he said that is more than a satisfactory explanation for a trustee.

Yep

Just worried like all of the rest. Any thoughts are greatly appreciated.

If your attorney is fine, then you should be fine. I would, however, expect that there will some inquiry into the high unsecured debt. However, it is overcome in the majority of cases. They are usually just looking for "recent" (last year or so) charges and especially luxury purchases. It reads as though this is not the case with you.

Best of luck.

[shamed]

Thanks for your reply.

I guess our debt was always kind of high but since our 1st child was born, we went down to 1 income. Couldnt afford day care and all of the illnesses there that could affect our childs condition. Last luxury item purchased was over 2 years ago when we got a new tv.

Also, I forgot to mention that we will be re-affirming our house, 2nd mortgage and car loan. Dont know if this really matters but we are not totally liquidating. If our house had appraised for less than we owe, we could have stripped the 2nd with a chapt. 13 I guess. Not our case though.

[albacore44]

Thanks for your reply.

I guess our debt was always kind of high but since our 1st child was born, we went down to 1 income. Couldnt afford day care and all of the illnesses there that could affect our childs condition. Last luxury item purchased was over 2 years ago when we got a new tv.

Also, I forgot to mention that we will be re-affirming our house, 2nd mortgage and car loan. Dont know if this really matters but we are not totally liquidating. If our house had appraised for less than we owe, we could have stripped the 2nd with a chapt. 13 I guess. Not our case though.

you might want to think twice about re-affirming those mortgages, i see your in AZ, high forclosures and falling home values, and we are nowhere close to being out of this Economic crisis. not re-affirming leaves your options open, should you fall on hard times and need to abandon ship.

[shamed]

you might want to think twice about re-affirming those mortgages, i see your in AZ, high forclosures and falling home values, and we are nowhere close to being out of this Economic crisis. not re-affirming leaves your options open, should you fall on hard times and need to abandon ship.

Thought about it but we didnt buy when the market was its highest and we are not one of those that pulled all of the equity out and are way upside down now. Our 1st is like $100k and it values somewhere around $130-140k. Out of curiousity, what do people when they abandon ship? Just find a rental?

[frogger]

Out of curiousity, what do people when they abandon ship? Just find a rental?

Yes, and it might be the best route for you. Study it very carefully before reaffirming.

And by the way, over 500K in unsecured debt discharged here. No one flinched.

[mamaluv]

I discharged about 125k in unsecured...no questions asked. And pretty much all of that 125k was unnecessary purchases-living beyond my means. I was surprised I didn't have any AP's filed because I made some pretty hefty purchases not that long before filing.

[justbroke]

Mine was apparently $416K. No questions. Although I am a non-consumer case.

[shamed]

Thanks for everyones input. It helps to settle our nerves. I keep hearing about Pacer, when is a good time to sign up on that sight?