credit counseling

[danrwe]

I have an appointment with an attorney next week to discuss BR. I am 4 months behind on mortgage and all credit cards are past due or in collections.
The new law says I have to attend CC 180 days before filing. Does this mean that I can't file for BR for 180 days? By that time my home will likely be foreclosed and liens will be placed.

Thanks

[IamOld]

Welcome!

No that just means that you have to do the credit counseling (which you can do online, by phone etc) no more than 180 days before you file. In other words, you had to have done it within 6 months of filing. Then, once you file and right after your 341 hearing, take the "part 2" the post BK counseling also online or by phone.

Also alas for a ch 7 - as I understand it - you will need to have your payments pretty much caught up for the mort to keep the house...

[danrwe]

Thanks! Just to clarify...When I meet with the attorney (1st time) and we determine BR is the best choice, will anything be "filed" to stop the phone calls/letters prior to me attending the CC?

[IamOld]

dan, that depends...normally it takes the atty a few days/week/or two to fill out all paperwork, etc., ALTHOUGH an emergency petition can be filed within days (or even less) and then atty needs to file everything else with the court within 14 days. ALso, with CH 7, you will alas (I'm in the same boat here) have to pay atty in full.

Once the filing is done, the automatic stay goes into effect - all your creditors are notified by the BK court either by mail or if they're larger creditors, electronically. Calls, etc taper off within about 2 weeks -but - once/when you file and have your case number, you can then answer your phone again, tell creditors you've filed, give them your case # and atty name/phone, and the creditor, from thereon, is not supposed to call you again. If they do, that may be a stay violation.

Now, you will have to have done the credit counseling in order for him to file.

[danrwe]

Thanks so much for the information. This is not going to be a fun process but unfortunately a necessary one.

[IamOld]

I know what you mean...it is a difficult process...as one of the wise heads here - Frogger always says - BK is not an event, it is a process.

However, I can tell you that there are MANY caring and very knowledgeable people here - please never hesitate to ask questions or vent. Without these folks I wouldn't have what sanity I have left!!!!!

Best wishes to you!

[sunshinepa]

Welcome to the forum.

IAmOld just summed it up for you. Also, there is a thread on the forum that provides information on cost/courses both pre and post filing. Your lawyer may also have some, mine did.

In response to your question on stopping the calls. There is a process for BK. First, finding an attorney once you make the decision to file BK. You should see at least 3 attorneys, most have free consults. Be sure you are comfortable with who you choose, your attorney can sometimes make a big difference in what chapter you can file and the outcome.

Generally, once you retain and pay your attorney, they will need paperwork from you, i.e. pay stubs, bank account statements and etc. Once the paperwork is ready, you review and if satisfied, your attorney files the paperwork and then you get a notice for a 341 hearing. Once you are filed, an "automatic stay" goes into effect.........that stops the calls or you can give callers your case number. Some attorneys let their clients send their calls to them rather you dealing with them.

This is just a quick general summary of the process but please note that the credit counseling really doesn't have much to do with the calls stopping. Most take the course online and the 1st must be done before your 341 meeting.

Bit of advice, read, read and read on this forum. Ask questions, there is a wealth of knowledge here and great folks who provide it along with support when going thru this process.