Need Advice Regarding Chapter 7 - WA State

[lillywa1]

I am new to the whole BK thing and was just looking for some advice on what to possibly expect BEFORE I file. My husband and I are looking for an attorney right now etc. A little History :

-Husband was laid off from job, though I work. He's getting unemployment but will run out in a few months.
- We have been keeping up on mortgage, credit card payments and auto payments and have not missed any at all. We currently have credit scores in the low 800

But I feel all that is coming to an end soon as he cannot find a job and unemployment will be running out. Though unemployment was always temporary to begin with ( I get that )

- We have two auto loans. ( one upside down ) and one motorcycle loan ( also a little upside down by about a $1,000 or 2 ) So nothing is obviously paid off and I have no equity in any of these veichles except our truck.

-$38,000 in credit card debt. Will take 22 yrs to pay off at the min payments I can only afford right now. I would love to pay extra into them but am strapped for cash with mortgage payment/.auto's/ and utilities/ every day living etc.
Due to money being tight with his job loss we have had to live on credit cards for food/ gas / or even if we want a little entertainment here and there.

Was told to do a HAMP Loan Mod -to get payments lowered. But if husband can't get a job is there a point to get this re-structured now if I may have to walk away from the house in a year ? I have no idea what to do...I feel like Im killing myself here with all this TRYING AND TRYING to keep up my good credit score.
What are the right steps here ? Anyone that has been in this situation, would love some feedback. Thank You !!!

[Pandora]

Welcome to the forum Keep reading all you can to learn about the BK process - before, during and after.

In the meantime - you should be able to call your lender(s) that have your auto loans and ask them to defer the payment. In most instances they wont have an issue and can do it, but you have to pay a fee to do so - most offer a 1 to 3 month deferral - do NOT mention you are considering filing BK. If you manage to get the deferment, set that money aside in case you decide to file BK, that way you have monies to pay the lawyer.

Once you decide to file for certain - you stop using and paying on your credit cards - setting that money aside as well. You must have 90 days between your last charge amount and filing for BK, so if you are considering filing, its best to stop using them now.

The first thing you need to do is take a long hard look at the reality of your situation. You state you cannot afford the essentials and must put them on credit cards. It may be time to let some vehicles or the house go. Filing BK will not solve a lack of money issue with trying to keep everything you have.

Good luck to you!

[Memphisbelle]

Hi, I am kinda in the same situation. Circumstances are different but the same in that I have been keeping current with debt all the while my income is shrinking and my financial future looking very scary. I am in WA too and just beginning the process. I am seeing an attorney later today for a free consult. I'll let you know what I think of them and what I learn in general.

As far as HAMP goes, I though about trying that too, but go to the website loansafe dot org to find out why I didn't. That is an excellent blog to learn about the modification....nightmare....process. After learning all about it and reading the heartbreaking posts of people going thru it, I now consider HAMP yet another scam by the banks.

I decided to not even try to go for a HAMP mod and risk going into foreclosure and think going bankrupt is a better option for me to move forward. Making this decision, as hard as it is, is way better than getting involved with HAMP. And, it's a bit amusing to think that the bank that is holding my mortgage, one that is notorious for stringing people along in the HAMP process and then foreclosing, will actually LOSE MORE when I default on the CC I have them than they would if they gave me a mortgage modification. They lose NOTHING with a modification, just a bit of the profit they make with the interest. Helps me with the guilt I struggle with going bankrupt and I get to keep my home.

I'll be posting what I learn along the way filing in WA. I think I am going to file in Feb. but we'll what the lawyers suggest.

[lillywa1]

Thank You for your reply ... I also checked out loansafe blog too.

[Chowder]

I am new to the whole BK thing and was just looking for some advice on what to possibly expect BEFORE I file. My husband and I are looking for an attorney right now etc. A little History :

-Husband was laid off from job, though I work. He's getting unemployment but will run out in a few months.
- We have been keeping up on mortgage, credit card payments and auto payments and have not missed any at all. We currently have credit scores in the low 800

But I feel all that is coming to an end soon as he cannot find a job and unemployment will be running out. Though unemployment was always temporary to begin with ( I get that )

- We have two auto loans. ( one upside down ) and one motorcycle loan ( also a little upside down by about a $1,000 or 2 ) So nothing is obviously paid off and I have no equity in any of these veichles except our truck.

-$38,000 in credit card debt. Will take 22 yrs to pay off at the min payments I can only afford right now. I would love to pay extra into them but am strapped for cash with mortgage payment/.auto's/ and utilities/ every day living etc.
Due to money being tight with his job loss we have had to live on credit cards for food/ gas / or even if we want a little entertainment here and there.

Was told to do a HAMP Loan Mod -to get payments lowered. But if husband can't get a job is there a point to get this re-structured now if I may have to walk away from the house in a year ? I have no idea what to do...I feel like Im killing myself here with all this TRYING AND TRYING to keep up my good credit score.
What are the right steps here ? Anyone that has been in this situation, would love some feedback. Thank You !!!

WA here too. My 7 closed a little over a year ago. Don't know what area you are in, but if you're near Bainbridge Island, I know a super Attorney.
I wish you luck in your mod search. I've spent the last year trying to do that. The BK is a day at the beach compared to that.

You've come to the right place. Planning is everything and the info here will help you do that very well.

[mike22]

If you are near Olympia I can recommend a good firm. They know what they are doing and are very fair from a fee point of view. They are nice enough but VERY to the point so not a great bedside manner with helping you feel comforted.

I met with four total attorneys and have the most confidence in these guys, they have been around a long time.

Good Luck.

[ValleYum]

Outside Vancouver, WA here. I, too, am very pleased with my attorneys & their staff.

We will all be cheering you on!!

[tcreegan]

Hi lillywa,

Couple ideas if you are in the 'can't see the light at the end of the tunnel' phase...

There is a book that goes over a BK filing step-by-step, it is called NOLO www.nolo.com

The median income for a two person household in WA is $5184/month Take your last 6 months income (all sources) and divide by 6. Are you close?

When looking for lawyers, these are the areas that seem to cause the most problems (at least around here)

Communication; email/phone/face-to-face, secretary/paralegal/attorney, turnaround time on responses
Work ethic/organization; dot all the i's, cross the t's or 'good enough,' file documents ASAP or 'before the deadline
Retainer/Fee; what exactly is covered, what is extra, what can you anticipate as possible extras
Competence; many BK cases like ours, do they know the local judges and trustees,
Some folks report interviewing/consulting with 6 or more attorneys till they found a good 'fit'

Remember that a BK is a long-term solution for your financial future; what are the long-term prospects for income? mortgage: what is the long-term forecast for real estate vaules, how fast do you build equity vs depreciation, given these factors, what would the modified terms need to be to make it worthwhile; auto loans: how fast is equity building vs depreciation, what will the interest cost vs the value of the auto at the end of the loan;

feel like Im killing myself here with all this TRYING AND TRYING to keep up my good credit score ....wanna feel worse? Add up all the $$ spent keeping your score high, heck just add up the monthly interest you are paying...that amazes most people, the common phrase is "for what?!"

Well, that certainly is more than a 'couple' ideas, more like rambling on and on.....

Welcome aboard! Lots of good and knowledgeable folks here to help out!

Tom in Colo

[freeseattle]

i am in Seattle, and happy for all of you in WA with great attorney!! i am in Seattle and mine sucks. nothing that was discussed going according to the plan, but when it's happens no alternitive suggestions at all. the best advice -go with the attorney recommended by someone who accually used his/her services before and were sutisfied.