Trying to plan if Oct, Nov or Dec would be best month to file.

[Panacea]

Last used credit cards till the end of Aug.
No overtime anymore, but I'll get a bonus in Oct, not much, but enough to keep my income pretty much the same if I file in Oct or Nov. If I can put up with bill collectors, and don't get thrown outta my home for not paying the mortgage, I can wait till Dec.

Filing in Oct...33523.43 gross
Filing in Nov...33815.83
Filing in Dec....33214.65

ALOT of my overtime was in June and I can't wait too long to file or I may burst into flames.

So, income difference isn't that much, but in Dec, I have 3 months cc free of charges. Now these cc charges are not luxury spending, but quite a few under 100.00 charges with one cable bill paid of 300.00.

Should I be concerned about pulling the trigger too soon? My lawyer doesn't think so since the charges aren't alarming, but thought I'd ask ya'll.

And another question off this topic. Why is child support counted in chapter 7 as income, but backed out on the Chapter 13 form. I did the chapter 13 form just because, and I was negative cash flow big time.

[ccsjoe]

No, my last use of cc's was 7/31 and I filed 8/27. No luxury or big ticket items, just living expenses, nothing individually or overall over a couple hundred for the period. You're ok!!

[nc73]

Listen to your lawyer! Don't over think it.

[enuffznuff]

I'm curious on the child support too, that's interesting. Must be some logic behind it, but I'm not sure what it would be...maybe since technically the support is for the benefit of the child, it can't be used as a repayment basis for debt, but as a basis for wiping out debt, it counts as income? I dunno, lol.

I'm glad you posted this, I've been worried too because I've had to use my cards, I don't know yet if I will file or not (depends on another situation pending) but i have only used it for things like paying child care, groceries, car insurance. Nothing 'luxury'. I don't know if I'll be able to put 90 days between use and filing.

[tcreegan]

Hi all,

I've had to use my cards, I don't know yet if I will file or not...... but i have only used it for things like paying child care, groceries, car insurance
If you know you are going to file, stop paying on the cards and use the $$ to run the household on a cash basis, no credit. Needing ccs for household expenses should be a red flag.
To be serious about a Ch 7, you should be able to live on a cash basis. It is a real eye opener seeing the actual cash move out of my wallet, and when there was only so much left...hey I can't buy that until paytime. You will get into habit of making decisions, planning your spending and no impulse spending. Saved me hundreds. Going back to living on credit puts you back into the same position you were in b4 the BK, but now you can't file for 8 yrs. Going all cash for a month is a real eyeopener, highly recommend it.

Now child support is income, but some states protect it w/ an exemption. Check your states exemptions.

Just my 2 cents worth, ....or maybe just 1 cents worth, I'm tired.

Tom in Colo

[enuffznuff]

That's the problem, I don't know that I will. If my house mod doesn't work out, then I will to avoid a deficiency judgement on the 2nd mortgage. If they mod, then I don't have a problem. The money is currently going to house and utilities, but if the mod happens, then there will be more left over and cc won't be needed to pay those expenses. If I quit paying the cc (still current) I would have the money, but then credit is trashed which I don't want if I am not going to have to declare bk. *sigh* I do, however, totally see your point, Tom. Unfortunately, I really am putting NOTHING but the above type stuff on them. I don't get a choice on car insurance, and I have the minimum state mandated amount. I have to feed my son. I've applied for food stamps but haven't gotten them yet. The house isn't worth what I owe and nothing's selling. I have to pay child care, which has to be paid in one lump sum a month in advance, or else I can't work.

It's just a circular mess, all of which originates with the house, which I ended up with in a divorce, along with cc balances.

[tcreegan]

Hi enuffznuff,

not to be discouraging, but my experience w/ a loan mod was 6 months of negotiation w/ GMAC mortgage for nothing. Do a search on the forum for your lender, hopefully they are better about mods...

avoid a deficiency judgement on the 2nd mortgage. ....I didn't think they could get a deficiency judgement until a sale for less than the amount owed. Their option is to foreclose, but w/ no equity they aren't going to, the first gets paid and they get nothing.

You're in a tough situation, I hope things go better for you and your son....

Tom in Colo