Looking a Chapter 7 as a way to eliminate credit card debt, many questions...

[tobee43]

oh...yes we do everything with debit cards...i'm not walking around with cash in my pocket.

and the question should be can you for the rest of your life or at least 10 live without cc's.

our society has made us believe that the only way to live is with cc...yet...doc you 1k a month....now if you had that CASH in your pocket what could you buy...in let say...3 months??? a new flat screen...a down payment on a car....a vaca...actually PAID for???

[tcreegan]

Maybe time to talk to credit consolidation people as well?

Be VERY careful, this field is full of predatory crooks...

[tcreegan]

....if you have never done it before, living on cash alone is an eyeopener. Yes, you have to go inside and pay for gas, can't buy stuff over the phone or internet, but grocery stores, restaurants, doctors, mechanics, all sorts of folks take cash. When you use a debit card, it is kinda abstract, when you see the actual $$ leaving your wallet, that is very, very real...made me question all sorts of purchases, probably saved hundreds of $$ I added back a debit card on a small account at another bank, so if I want to use it, I get cash out of the main bank and deposit it into the debit bank. A pain you say? Absolutely, but I don't make any unplanned purchases, again, probably saved hundreds....

It can be done!

Tom in Colo

[DoctorPC]

I been using a debit card exclusively for many years, and only use the credit cards for those high dollar items that are needed now and I don't have cash for. Which luckily is seldom used.
House repairs for example are spendy, usually unavoidable and have to dealth with sooner than later.

I'll try to schedule a free advisor meeting with a local atty and see what they have to say. I'll be sure to mention my unusual situation.

[tobee43]

tom...interesting and eye opening money approach. we do the same thing. it was a learning experience for us.

it is indeed an amazing eye opener once you start dishing out those dollars. and, for us...debit card usage was a "new" concept in our banking style...although my kids started years ago in college they thought it funny we just couldn't "get" it...jokes on mom and dad...since both our kids were taught to manage money carefully and both they and their families are fairing out this economical crisis quite well...because of their money skills and never believing in credit cards...(easy for them to say!! LOL!! who pd undergrad and for their grad schools?...but they both always worked from the time they were both 16) .

when one has to pull out the greens...it really really makes you think about parting with it. we also use the debit cards, for larger purchases ect...since we just don't like carry cash around...but when we pull out the card it is discussed in advance and all purchased are "planned" ahead of time...with a "limit". not that we buy much anymore!

however, i need to point out...our debt was NOT because of over spending...it was over 200k worth of medical expenses and job loss...never ever purchased a "luxury" item on a card..ever. o ....NOT true...i did get some ice cream!!!

[DoctorPC]

Economists are complaining that Americians are saving more and spending less and until Americians start spending more the recession will continue, Well, I've and many others have done our part with high cc debt. Maybe it's time for others to step up to the plate and together we can spend our way out of the recession. At least that's what the economists say.

[DoctorPC]

.... 1k a month....now if you had that CASH in your pocket what could you buy...in let say...3 months??? a new flat screen...a down payment on a car....a vaca...actually PAID for???

Nice concept but in reality I'm not buying much of anything until I complete the degree program and return to work. At my age new stuff means little, I'd rather pump up my 401K and brokerage balances so I can retire before SS is available.
I'm 55 now and the sooner I can retire all my debit the sooner I can pack up the rv and head south for the winter. Once I eliminate the almost 1000/mth cc debt, the 1100 /mth mortgage & the 600/mth rv payment the only thing left is food, utilities, insurance & property taxes, so in reality I could get by on 500 to 1000 a month.
Being on unemployment is like treading water, you don't go anywhere, as long as I make the monthly minimum payments I'm ok with watching the balances drop slowly until things improve. But the idea of all the cc debt painlessly going away is appealing, But it's sounds like I need to draw down my brokerage account before I can proceed. I wonder how not having any income will effect the proceedings, as far as I know, u i benefits will end for me sometime in November.

[tobee43]

doc...i'm not giving up a dime.....ever...i don't even trust the banks anymore. i let my auto deposits go in and only leave in what we use to live off of.

apparently, since we are all in such debt we shouldn't need a darn thing!! LOL!! after all everyone is max'd out on their cc...because they purchased everything they ever wanted...so what's left to spend it on.

the ONLY thing that will get us out of this recession...NO depression...are a better balance of jobs and a reevaluation of our entire over inflation of housing for food cost, utility cost etc. remember penny candy anyone!!!

[tobee43]

Nice concept but in reality I'm not buying much of anything until I complete the degree program and return to work. At my age new stuff means little, I'd rather pump up my 401K balances so I can retire before SS is available.
I'm 55 now and the sooner I can retire all my debit the sooner I can pack up the rv and head south for the winter.

your plan was ours...and we did it...now we R south. us also....new things mean absolutely nothing to us and i'm about the same age...and we have done it all, been there, done that...just want to sail into the sunset about now!! oh...and with some pd by cash grey goose!

[DoctorPC]

I just need to figure or find out which way to jump.
I want to get the best bang for the buck and regardless of which direction I take, liquidating physical assets is not an option and I won't play that game.
I see 6 possible avenues... Cha 7, Cha 13, debt consolidation, debt settlement, default, or do nothing and just continue to make payments.

[tobee43]

well...just a reminder of sorts, and don't be offended...but we work hard our entire lives...how can we make up what we lost? if we are 25...it's possible.

proceed carefully, plan well....take your time. the worse time to make a decision is when you are undergoing stress....

it took us over 2 years to execute our plan effectively to be able to file a chapter 7. we wanted everything completely absolutely legal and solid as a rock. it took time but it can be done.

[blockhead]

The Problem with a debit card tied to your bank account is that if subject to fraud/identity theft as mine was some months ago - someone racked up a $760 charge on it - the money comes out of your bank acct and stays out while they investigate it - which can take a week. So that can cause regular checks to bounce.

I now use a credit card with a low limit ($3K) and use it for online purchases

Probably a debit card NOT used online would be relatively safe

[tcreegan]

Hey Doc, from what you have posted, the only problem is the brokerage acct. The essential question for your attorney is what do with that acct.

The cars and RV, not a problem. You have plenty of exemption to cover the value.
The library thing; no one is going to care
Don't do any business stuff, probably not going to work. Here is where your attorney earns his pay. Same question: what can you do the protect the brokerage acct.

Hope you have a good start to school,

Tom in Colo

[DoctorPC]

School is just a distraction, remember it doesn't matter how good your Underwater Basket Weaving skills are, if no one is hiring, it doesn't matter how many years of college you have.

[DoctorPC]

it took us over 2 years to execute our plan effectively to be able to file a chapter 7. we wanted everything completely absolutely legal and solid as a rock. it took time but it can be done.

Wow, 2 years!!! Why did it take so long? Did you have a lot of assets to deal with ? My list is rather short and my former atty said we can have this all wrapped up in under 90 days...
2 years, well, I couldn't wait that long, that's almost 24K I'd give away to the credit companies alone. I'd like to get something in place in the next few months, or at least before Jan or Feb 2011
Beside that if by some miracle I return to work near my former salary, I'd fail the means test