New to forum and going to be filing

[tmkats]

Hello,

Decided to file and already contacted a lawyer to get the ball rolling.

I'm in NY. I'm not including the house or cars, just the CC debt. I read somewhere that only 90% of wages are exempt for the 60 days before filing. What exactly does that mean? Also, can we continue to use our checking account along with our debit card?

Is there anything else I should expect along the way and be prepared for?

Thanks for the advice and help.

[newbie2]

Hello,

Decided to file and already contacted a lawyer to get the ball rolling.

I'm in NY. I'm not including the house or cars, just the CC debt. I read somewhere that only 90% of wages are exempt for the 60 days before filing. What exactly does that mean? Also, can we continue to use our checking account along with our debit card?

Is there anything else I should expect along the way and be prepared for?

Thanks for the advice and help.

First, you have to include all your debt in your filing (the house and cars). No way around that. What you probably mean by that statement is that you are not surrendering your house or cars. (Please don't reaffirm. Read here about reaffirming and the risks involved with it.)

Yes, you can continue to use your checking account and your debit card. Filing for bankruptcy does not mean that you can't continue to pay your normal bills or eat or live. I don't know what you are referring to in your other question about 90% of income, perhaps others from your state will chime in.

Read, read and read more here on these forums. You'll get a very good idea of how the process works and what you should and shouldn't be doing. Good luck to you.

[debee]

I read somewhere that only 90% of wages are exempt for the 60 days before filing. What exactly does that mean?

It doesn't refer to ALL your wages earned during the 60 day period, only the unpaid wages. Your creditors can go after 10% of your unpaid wages. So the bankruptcy trustee can go after that money on their behalf.

There are a few things you can do: file in between pay-checks on the first day of a new pay period. If you file on that first day, then only 10% of a day's pay would need to be exempted (using a wildcard exemption) or surrendered (if the trustee wants it).

Often times the trustee doesn't bother with small amounts because they'd spend more (in effort/hours/etc) than they would make for the estate.

Of course if you have more wildcard exemption available than you need, you can file on any day and just exempt the 10% earned/unpaid up to that point.

As for what to watch for, newbie2 gave you the best advice: read, read, read.

If your income is above the median for your household size/state, you will need to take the Means Test in order to file chapter 7.

If you pass the Means Test, then you'll need to get your Schedules I/J (Form B6I & B6J) together in order to get a discharge.

There's a list of things not-to-do before filing bankruptcy. You'll want to read it so you know what not to do. You can find it in various forms at a million legal websites. Just google "Things to avoid before filing bankruptcy".

There are special threads here at bkforum called "stickies". You can look for them at the top of each forum section. Read through those. And then come back and post your questions.

Welcome to the forum!

[tmkats]

Thanks for the replies. I have another question that I can't seem to find the answer on around here (either that or my eyes hurt so much from reading, I missed it.)

My wife and I have a joint checking account, the only one we have. She is not filing with me, but has credit cards in her name that are current and have some small balances on them. Is it OK if we pay those charges since they are hers and hers alone and we can make the argument that since it is a joint account, she has equal right to it and is paying for just her charges?

Thanks again for all the help.

[debee]

I would continue to make the usual payments on her cards. If you normally paid minimums on them, fine. If you normally pay the balance in full each month, great.

What I wouldn't do without discussing it with your attorney is pay her cards off lump-sum (unless this has always been your practice).

Alot will depend on the balances (small for some is big for others), the circumstances of your case, how closely the tt ends up looking at your records, which records, when you file, etc.

[tmkats]

Thanks debee, I'll ask him and see what he says.

I usually pay about $400 - 500 a month on her cards, so I'll ask her if that is OK to keep doing. By small, I meant compared to mine...LOL

Her cards have about $2,000 total on them which could be paid off in a few months with my usual payment method, I just didn't want to have it seem like I was being prefernetial to her creditors and not mine.

[debee]

Since her expenses are ongoing and will continue through your filing and after, some people leave the spouse's unsecured debts/expenses deliberately in place because it's an allowed expense that helps reduce DMI.

Keep us posted.

[sunshinepa]

Welcome to the forum.

Since it is her debt and only you are filing, I would continue to pay just like you have in the past.

[tmkats]

Since her expenses are ongoing and will continue through your filing and after, some people leave the spouse's unsecured debts/expenses deliberately in place because it's an allowed expense that helps reduce DMI.

Keep us posted.

After reading, that is what I was thinking also. Assuming the trustee was to look at our statements, I didn't want them to say anything. I'll still ask my lawyer though and see what he says.

You have been a great help so far, apprciate it.

[tmkats]

Welcome to the forum.

Since it is her debt and only you are filing, I would continue to pay just like you have in the past.

Thanks. I thought so, but since this is all new to me, I just wanted to make sure.

You know, it's scary. I went and added up all of the CC's that I'm filing on and it's a staggering amount. Thankfully though once this is behind me, we will be better off and paying cash will be a good thing.