HELP! Find the best way2 handle Chapter 7

[JOBK]

Hi, newbie here please take it easy on me! First, I want to thank you all in advance for your prompt attention regarding my situation, for sharing your insights & contributing to my few questions below:

1. I know filing a bankruptcy should be a last resort but please try to help me if I need to file for Chapter 7 now?
2. Is it a difficult process nowadays? Can you do the BK process online? As I don't even have a transportation to seek out for help/free consultation.
3. How much it will cost nowadays? In 2001, when I filed my chapter err 7/13 (I guess 13 since I had a condo back then which I sold in 2002) it was only for less than $500.00 using a paralegal.
4. Is there a link/guide for processing chapter 7? Step-by-step procedure for doing it yourself?
5. Should I file myself as it is a straight forward chapter 7 credit card bills for $18K (from 4 cards total all in my name only) and no assets (not even a car?) Is it doable? Especially, that I can't afford a lawyer at this time?

Am I a candidate for BK7 ? I am worried what will happen after I start not paying my minimum payments this coming weeks... I am so close to maxing out on all four credit cards but until now, I never had any late payments so far. With less than $300.00 in checking now it will be really difficult to pay them now and no savings.

A brief background, I am unemployed the the last 4 years and recently on medical therapy (expensive stuff) health care for the state and can't afford to work until I take care of my illness (duration 1 year treatment.) My doctor even suggested to even apply for a disability now. I have no income whatsoever at this time and I am living with my sister who said to apply for food stamps too or she will kick me out!

In addition, my wife is starting a new life with me who's coming as an immigrant within the next month and I'm afraid how will the BK affect her financially, especially when she finds a job and garnish her wages at the same time any future rental properties? With that said, I have never applied for disability, welfare and food stamps before but it's looking like I have to do it. At the same time, I couldn't even afford to pay the attorney fees or paralegal to begin anything? Can I get all these paperwork online so I can file it myself. How much money I will require to pay for court and filing fees?

I am trying to find the best way to handle my current situation and I would really appreciate any help from all of you – my new family now! Thank you again and God bless!

JOBK

[JOBK]

Wow! After 118 views no reply whatsoever? No question or advice? Is this the correct forum for my situation? Jeez... common my new family, anything?!

[jai]

I am new here myself. Everyone I talked to (on here and off) suggested NOLO Chapter 7 book. You may be able to get it at your local library, just make sure it is the most current one.

The forms are available on line. Your local district may have location specific ones as well, you would definitely want to look into that.

Good luck with your journey. Sorry I wasn't more helpful.

[LadyInTheRed]

JOBK,

Yes, the nolo book is a good reasource. Also spend some more time reading the board, especially the stickies.

You can't file bankruptcy online. Attorneys can file your petition electronically. But, if you file without an attorney you would need to file by mail or in person. Either way, you have to personally appear at the meeting of the creditors (commonly referred to as the "341 meeting") approximately 30 to 60 days after you file.

There were significant changes to bankruptcy laws in 2005 that make Chapter 7 harder to qualify for than it used to be. But, if you have no income, or only unemployment or disability income, you will probably qualify. If you can find an attorney for $500, I'd stay away! Fees will vary based on your case, the attorney's experience and the area you live in. From what I've seen here, you should expect to pay at least $1,500 for a Chap 7. The paralegal you hired before should not have given you any legal advice unless he/she was supervised by an attorney. The laws are now very specific about document preparers (i.e., anyone other than an attorney who prepares your BK petiton). If they follow the law, they are no more than typists and their fees are limited to something like $150.

A creditor cannot go after your spouse for debts you incurred before marriage. But, if you are married when you file, your spouse's income will be taken into account when determining elgibility for Chapter 7. Income is not the only factor. If you read more on this board, you will get a better understanding of how income and the means test help determine your eligibility for Chapter 7.

I highly recommend you schedule appointments for free consultations with at least 3 bankruptcy attorneys. Meeting in person is preferred, but some will do the consultation over the phone.

It sounds like filing bankruptcy may be premature at this time. Even if you get rid of all of your debt, you will still have an income problem and will probably continue to incur medical debt you can't pay. It's better to wait until you complete your current medical treatment and have income and/or assets to protect before you file BK. If you file too soon, you'll find yourself back where you are now without the option to file BK. There is nothing of consequence the creditors can do to you if you have no income or assets. Stop using your credit cards and stop making payments. Yes, your phone will ring of the hook as soon as you stop making payments. The following thread has good suggestions for dealing with that: http://www.bkforum.com/showthread.ph...ep-your-sanity!

You are lucky to have a sister who will let you stay with her. Go apply for food stamps and any other aid you qualify for! There is no shame in taking advantage of resources that are meant for people in your situation. Some of the taxes you paid in the past haved helped people in your situation. It's your turn to get the benefits you have helped provide for others. Hopefully, you'll help provide those benefits to others again in the future. Also, if you aren't already, help around the house as much as you are phyisically able to.

I can't stress enough: READ as much as you can on this forum. Then post again with questions about anything you are still confused about.

P.S. One more piece of personal advice: If you haven't already, please make sure your fiance completely understands your financial situation before she arrives in the US. She should come into this situation with her eyes wide open! ETA: I just reread your post and see that she is you new wife, not your fiance. Congratulations! I still suggest you tell her everything. Anthing you hide about your finances will be worse later if she discovers you haven't been honest.

[JOBK]

at-jai Don't say you're sorry. Thank you so much for your reply. I really do appreciated it!


at-LadyInTheRed Awesome reply, thank you very much!!! You're insights and expert opinions are well-received! You have given me hope and answered all my questions to perfection! Not to mention, explaining all the different aspects regarding Chapter 7 and the new laws and changes in them. You're instinct about me filing a BK might be premature is probably -- dead-on! I must use that move as a last resort only!

However, what will happen with the credit card bills it will start accumulating so much interest that it will go over the limits for sure? If there's any way that I can tell them to wait awhile before I can repay them again? Should I give them a call and let them know my current situation or is that a bad idea? I'm afraid to get sued and then come after my wife later on?

On a side note, is it wrong for me to apply for food stamps and disability due to the fact that my sister and I sponsored my wife thus making her become a public charge upon signing the contract agreement between us and the US government? Because, if I sign up for certain types of aid then my wife might become a public charge if I apply for a family, but since I'm not applying for a family but for myself only - I think it should be OK? Would my sister and I be held liable to repay the government? I don't know... I'm getting confuse now and still have to get up early dr appt.

At any rate, I really do appreciate your expertise and your terrific advice! I look forward to your reply and thank you so much for your kindness and understanding! JOBK

P.S. I spoke with my wife again regarding my financial situation and she understood 100%. And, you're right again that I'm lucky to have a sister who's willing to help out her brother again... once she gave me her bone marrow already.

[yarnball]

Hi

I'm no expert, but My husband and I just went through the whole process ( closed in Feb!!). I understand your confusion. It is scary and seems very complicated!
Yet there are no quick fix, unfortunately.
As LadyInTheRed said, best thing you can do right now is, first apply for any kind of aid you can get qualified for, and then read this forum top to bottom. Arm yourself with knowledge! It will help you when it's time to pick up a lawyer.
It helped me a lot to write down everything on a piece of paper including all kinds of questions. Go ahead and start looking for lawyers, explain your situations see what they recommend. Don't be afraid to ask about the fees, but be wary of the one who cannot or will not give you a clear #.
As far as both you and your sister sponsoring a wife, I'm bit confused. When you marry a foreigner, you, the citizen, have to become a sponsor to your spouse to be so She ( or He) can become a legal alien( immigrant). I'm just curious why your sister is also a sponsor. If it's just simply a matter that you got married, then I don't think you need to worry too much. I would still ask the lawyer for his or her opinions, though.
Since you have one more year of treatment left, I'm afraid there's really not much else you can do, but concentrate on your treatment and GET BETTER!! Find out how much you might qualify for the disability benefit and food stamp.
One step at the time...
Good Luck with you ! and Keep in touch. Ask away any questions. People here are terrific and you can find great wealth of information.

P.S. Congratulation!!

[JOBK]

I'm no expert, but My husband and I just went through the whole process ( closed in Feb!!). I understand your confusion. It is scary and seems very complicated! Yet there are no quick fix, unfortunately. As LadyInTheRed said, best thing you can do right now is, first apply for any kind of aid you can get qualified for, and then read this forum top to bottom. Arm yourself with knowledge! It will help you when it's time to pick up a lawyer. It helped me a lot to write down everything on a piece of paper including all kinds of questions. Go ahead and start looking for lawyers, explain your situations see what they recommend. Don't be afraid to ask about the fees, but be wary of the one who cannot or will not give you a clear #. As far as both you and your sister sponsoring a wife, I'm bit confused. When you marry a foreigner, you, the citizen, have to become a sponsor to your spouse to be so She ( or He) can become a legal alien( immigrant). I'm just curious why your sister is also a sponsor. If it's just simply a matter that you got married, then I don't think you need to worry too much. I would still ask the lawyer for his or her opinions, though. Since you have one more year of treatment left, I'm afraid there's really not much else you can do, but concentrate on your treatment and GET BETTER!! Find out how much you might qualify for the disability benefit and food stamp. One step at the time... Good Luck with you ! and Keep in touch. Ask away any questions. People here are terrific and you can find great wealth of information.
P.S. Congratulation!!

Thank you yarnball for not being an expert but in my book you're much more skillful and knowledgeable when it comes to helping a family! I like your style, very smooth and succinct indeed! I will surely do all of your excellent suggestions, except for finding and searching for a lawyer – I am just not ready and ill equip to handle that task at the moment. I just can't believe I let myself be in this situation - basically, I just let the credit cards went around in circles into dead end – what a big mistake, grrrr! But I will keep your opinion of course about the lawyers.

At the beginning of my thread I mentioned that I was unemployed or didn't make enough to file for an Income Tax Return. Thus, I asked my sister to be my joint-sponsor and file an affidavit of support on behalf of my wife also. Yes, getting better... is on top of the lists right now but at the same time my major foe is stress as you can see, oh boy! I just hate to neglect my bills eventhough there's only four cc.... it's making me crazzzy and putting me on a vegetative state! Don't worry, I’m OK, I got the Lord on my side!

Do you guys think I should call my creditors or just wait till next month? How about opening a new checking or savings account for the incoming disability direct deposit for bus fares? Or the old/current Wells Fargo checking account is OK?

In the meantime, I have to work on getting the disability benefit as my doctor said “they don't do transplant at their clinic!” So, just in case I need a transplant in the future having the disability will take care of that issue!? Oh, my God! Well, thanks again for taking the time to reply, sharing your experiences and for your undying concern into my wellness. God bless you and your family! JOBK
P.S. You too for lifting my spirits up! Keep it up and tell your husband you have a “heart of gold,”
sez me!

[jacko]

Will your second BK solve your issues? 18K in CC debt is to low a balance to get worked up about. Your poor with no assets, so why bother. You live in a debtor friendly state. Disability dough can't be garnished.

Hi, newbie here please take it easy on me! First, I want to thank you all in advance for your prompt attention regarding my situation, for sharing your insights & contributing to my few questions below:

1. I know filing a bankruptcy should be a last resort but please try to help me if I need to file for Chapter 7 now?
2. Is it a difficult process nowadays? Can you do the BK process online? As I don't even have a transportation to seek out for help/free consultation.
3. How much it will cost nowadays? In 2001, when I filed my chapter err 7/13 (I guess 13 since I had a condo back then which I sold in 2002) it was only for less than $500.00 using a paralegal.
4. Is there a link/guide for processing chapter 7? Step-by-step procedure for doing it yourself?
5. Should I file myself as it is a straight forward chapter 7 credit card bills for $18K (from 4 cards total all in my name only) and no assets (not even a car?) Is it doable? Especially, that I can't afford a lawyer at this time?

Am I a candidate for BK7 ? I am worried what will happen after I start not paying my minimum payments this coming weeks... I am so close to maxing out on all four credit cards but until now, I never had any late payments so far. With less than $300.00 in checking now it will be really difficult to pay them now and no savings.

A brief background, I am unemployed the the last 4 years and recently on medical therapy (expensive stuff) health care for the state and can't afford to work until I take care of my illness (duration 1 year treatment.) My doctor even suggested to even apply for a disability now. I have no income whatsoever at this time and I am living with my sister who said to apply for food stamps too or she will kick me out!

In addition, my wife is starting a new life with me who's coming as an immigrant within the next month and I'm afraid how will the BK affect her financially, especially when she finds a job and garnish her wages at the same time any future rental properties? With that said, I have never applied for disability, welfare and food stamps before but it's looking like I have to do it. At the same time, I couldn't even afford to pay the attorney fees or paralegal to begin anything? Can I get all these paperwork online so I can file it myself. How much money I will require to pay for court and filing fees?

I am trying to find the best way to handle my current situation and I would really appreciate any help from all of you – my new family now! Thank you again and God bless!

JOBK

[JOBK]

Will your second BK solve your issues? 18K in CC debt is to low a balance to get worked up about. Your poor with no assets, so why bother. You live in a debtor friendly state. Disability dough can't be garnished.

Thank you jacko for your reply. No, I don't think filing a second BK will solve my terminal issues but it will surely help me cope in terms of the stresses that comes with the territory. Also, I have no money to pay lawyers fee, so this question is moot, I think?! It just bothers me at this time that I will be missing monthly payments for the first time since I got these cc. I do have one question for you though, do you think I can continue paying my monthly minimum charge on one cc, just to keep it for emergency? But they probably close that one to as soon as my other 3 cards starts taking action to collect down the road. Like I said, I haven't default on anything yet (but this one card is due the on the 22nd.) Thank you in advance for your reply! God bless you!

[jacko]

You need to cut the chord and walk away. Pocket the min payments and open up a Wal-Mart prepaid debit Visa or Master Card account. If you stop paying on the three, it will show up on the credit report and the fourth one will most likely cut you off.

I walked away from my CC debt which has now has a default balance over $60K. I sleep fine. My cash flow has improved and moved on. Its been three years and only have 2 worthless judgments. A BK today would not solve my current financial issues.

Thank you jacko for your reply. No, I don't think filing a second BK will solve my terminal issues but it will surely help me cope in terms of the stresses that comes with the territory. Also, I have no money to pay lawyers fee, so this question is moot, I think?! It just bothers me at this time that I will be missing monthly payments for the first time since I got these cc. I do have one question for you though, do you think I can continue paying my monthly minimum charge on one cc, just to keep it for emergency? But they probably close that one to as soon as my other 3 cards starts taking action to collect down the road. Like I said, I haven't default on anything yet (but this one card is due the on the 22nd.) Thank you in advance for your reply! God bless you!

[yarnball]

At the beginning of my thread I mentioned that I was unemployed or didn't make enough to file for an Income Tax Return. Thus, I asked my sister to be my joint-sponsor and file an affidavit of support on behalf of my wife also.

Thank you for clearing that for me. I hope I wasn't being too nosy.
Yes, go get that disability benefit as soon as you are able. You will feel better to know that you'll have some money coming in.
It's true 18k isn't much of a debt compare to some of us here. but considering that you still have a year of expensive treatment left with a possibility of transplant, it's so understandable how stressed you are. I feel for you.

As for CC, sorry I'm not much of a help. Hopefully, some of the gurus or some one who' been there can give you some advise? ( I stayed current till the very month of the filing, stupid, I know, but scary nonetheless when I finally stopped)
Try going through other topic in this forum, I bet you can find loads of similar questions already posted. After all, CC debt is huge part of why we are all here...

P.S.
Talking to a lawyer isn't a bad thing, though. that dose not mean that you have to commit to file. You only gain more information, that's all.
When I was looking for one, lot of them would correspond with me via email, they didn't charge me.
Yet I understand how you feel. It is daunting and very stressful!
Don't beat yourself up too much, though, stuff happens.

I'm praying for your health !!

[JOBK]

You need to cut the chord and walk away. Pocket the min payments and open up a Wal-Mart prepaid debit Visa or Master Card account. If you stop paying on the three, it will show up on the credit report and the fourth one will most likely cut you off.
I walked away from my CC debt which has now has a default balance over $60K. I sleep fine. My cash flow has improved and moved on. Its been three years and only have 2 worthless judgments. A BK today would not solve my current financial issues.

Thanks jacko for your input. So opening up a Walmart prepaid cc account is working alright for you? They (creditors/collectors) can't touch that account at all? By the way, do you think I should call them up and explain my situation or that is not a good idea?

So, sorry to hear about your $60K that's a lot compare to mine. How did you handle the late fees, over the limit, the phone calls from cc and/or creditors during the first 3 months of defaulting on them? I would like to know if you don't mind!? It's more than likely that I might have to go your route of termination but I still would like to pay for what I owe someday! I hope for the best for you and thank you again for your time... Have a good day and God bless!

[JOBK]

Thank you for clearing that for me. I hope I wasn't being too nosy.
Yes, go get that disability benefit as soon as you are able. You will feel better to know that you'll have some money coming in. It's true 18k isn't much of a debt compare to some of us here. but considering that you still have a year of expensive treatment left with a possibility of transplant, it's so understandable how stressed you are. I feel for you. As for CC, sorry I'm not much of a help. Hopefully, some of the gurus or some one who' been there can give you some advise? ( I stayed current till the very month of the filing, stupid, I know, but scary nonetheless when I finally stopped) Try going through other topic in this forum, I bet you can find loads of similar questions already posted. After all, CC debt is huge part of why we are all here... P.S. Talking to a lawyer isn't a bad thing, though. that dose not mean that you have to commit to file. You only gain more information, that's all. When I was looking for one, lot of them would correspond with me via email, they didn't charge me. Yet I understand how you feel. It is daunting and very stressful! Don't beat yourself up too much, though, stuff happens. I'm praying for your health !!

Oh thank you yarnball – of course you're NOT being too nosy at all. I will go ahead and apply for disability tomorrow either online or via snail mail. I just hope they will approve my request.

Oh boy, a bit of bad news last Friday?! The nurse practitioner at my clinic informed me that my treatment will not be starting till she comes back from maternity leave at the end of May, 2012??? So, instead of starting sometime in January 2012 I have to wait for her till then because she is going on maternity leave starting in Janaury ??? She said, “she's the only one that handles my case and no one else to replace her???” I was dumbfounded as this clinic/hospital is huge, OMG??? I just don't know? Maybe my immune system is not ready for this treatment yet till June of next year, says the Lord?

Anyway, back to reality of CC lol... (had so many questions marks above but they're actually bad words : ) I don't know where to start as far as the stickies with my case – can you please refer me a link or two? Also, you if you have any input with some of my questions to "jacko!" As far as the lawyers, I will look into them especially the ones via email. Thank you so much for your input, time, kindness, compassion and understanding regarding my plight. Now, I must take care of some of the side-effects of my medicine I am taking at the moment – V omit!

[jacko]

The Walmart debit account is not a checking acct. They(creditors) will only know if you only divulge it. I would not put all my dough in one place, spread it around. Besides the Wal-Mart one, there is the Green Dot one which can load the Amex, Paypal debit cards etc. Purchase some Amazon, Target and Wal-Mart gift cards for essentials such as for groceries.

I would not bother calling. They don't care about your sob story. Pull the plug and learn to live credit free. As for handling the late fees and over the limit became material to me with no meaning. Its just a number. I will never feel obligated in paying them back if my current financial situation improves. With all the interest I paid and them profiting from my transactions with their vendors, I doubt they lost at all. And since they sold off to the junk debt buyers and wrote off the amount, who would I pay and plus incurring a tax liability. No thanks.

I pulled the phone chord and went off the grid. I now only communicate via skype.

Thanks jacko for your input. So opening up a Walmart prepaid cc account is working alright for you? They (creditors/collectors) can't touch that account at all? By the way, do you think I should call them up and explain my situation or that is not a good idea?

So, sorry to hear about your $60K that's a lot compare to mine. How did you handle the late fees, over the limit, the phone calls from cc and/or creditors during the first 3 months of defaulting on them? I would like to know if you don't mind!? It's more than likely that I might have to go your route of termination but I still would like to pay for what I owe someday! I hope for the best for you and thank you again for your time... Have a good day and God bless!

[HHM]

Why go to all the hassle of playing cat and mouse, just file BK and get it over with.

But collection proof takes work and you will NOT rebuild your credit or financial life. They can still get judgments, and those judgments just sit there.

File BK, and get back peace of mind and at least the opportunity to rebuild...don't take up permanent residence in loser-ville.