Paperwork/Credit Counseling requirements

[overthedebt]

How extensive is the paperwork required? I literally moved 3000 miles across the country with little more than a few boxes. All my old paperwork didn't come with other than than this year's tax return. The rest was left in a storage unit that I don't have access to being this far away. I could probably get CC statements pretty easily I guess.

Also, how extensive is the Credit Counseling? Is it online? I work 10-12 hours a day and my schedule changes by the week so it would be impossible to commit to a set schedule.

95% of this debt was incurred by using cc checks to keep our mortgage/health insurance payments current from 2008-2009 (thinking that when I sold my house it would all be paid off, obvioulsy THAT didn't happen ). The debt didn't come from tv's, clothes, etc just necessities. In the past year I've only used them for groceries, doctor visits, dentist, etc. Do they need me to completely stop using them before I can consider CH 7?

[msm859]

It is really minimal paperwork. You basically need all of your cc statements so you can write down names and addresses, your last 2 tax returns and pay stubs for 6 months. Credit counseling can be taken on line anytime, takes @ 90 minutes.

[dumpinmydebt]

Paperwork required depends on district. We only needed 60 days of paystubs and the previous year (2009) tax return. That was it.

We didn't need any credit card statements, but we hadn't used them in 3 years. You really should stop using the credit cards as soon as possible before you file.

Credit counseling is online, and you don't have to sit for 90 minutes at one time. You can do 10 minutes, come back in a few days, do another 20, and so on until it is completed.

[tcreegan]

Hi overthedebt,

Go to your local BK courts website, there will be a list of folks approved to provide the course. Lots of online courses, make sure you get an approved one.

One place to get information you need is your credit report, all the folks there go on the list of creditors. Pull Experian, Equifax, Transunion

The critical documents are the last 6 months paystubs and last years tax return, beyond that is highly variable by court/trustee.

If you know you are filing BK, stop using the credit cards immediately. Small amounts for necessities aren't going to be a problem, but technically using credit when you know you are filing BK is fraud. The problems come from cash advances, luxury items, anything over $500, those sorts of things. Once you file they all get closed anyhow, so might as well start living cc free now.

Another issue will be using your old states exemption rules if you haven't been in the new state 2yrs or more.

While you are on your BK courts website, download the forms for a Ch 7, that will give you a peek into the paperwork needed. The is also a step-by-step guide, the NOLO book, (www.nolo.com) which will lay it out for you.

And of course, keep posting here, lots of good folks to help you out!!

Tom in Colo

[overthedebt]

Thank you all so much!! You are so helpful.

I only use credit cards for gas/groceries etc. Literally 100% of my paycheck goes to carrying minimums so I need them for gas/groceries etc to get by. I guess once I stop paying I won't need to do that anymore. If only I was smarter about not using those convenience checks to carry my mortgage payments a few years ago.. I wouldn't have been in this mess. Live and learn I suppose..

Thanks again for all your information and support.

[scorpion35]

Thank you all so much!! You are so helpful.

I only use credit cards for gas/groceries etc. Literally 100% of my paycheck goes to carrying minimums so I need them for gas/groceries etc to get by. I guess once I stop paying I won't need to do that anymore. If only I was smarter about not using those convenience checks to carry my mortgage payments a few years ago.. I wouldn't have been in this mess. Live and learn I suppose..

Thanks again for all your information and support.

KEYWORDS here: LIVE AND LEARN

[tcreegan]

Hi overthedebt,

I only use credit cards for gas/groceries etc. Literally 100% of my paycheck goes to carrying minimums stop paying on debt that will be going away anyhow and use 100% of your check to buy the stuff you need.

Live on a cash basis for awhile, it will open your eyes. Seeing numbers on paper, reading a screen on a gas pump, even keeping a register of what you charge, .....none of these has the gut-level impact of watching green bills leave your wallet. Very good, very high impact on your financial habits.

You need to get used to a credit card free life since the cards go bye-bye when you file. Best to cut card use out at least 90 days before the BK filing date.

Good luck w/ your filing, hang in there!

Tom in Colo

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[Pandora]

Do they need me to completely stop using them before I can consider CH 7?

Yes stop using your cards - use the payments you have been paying to creditors to purchase the items you need (gas, groceries, etc). As Tom stated above, you have to have that 90 days before you can file