HELP! Find the best way2 handle Chapter 7

[JOBK]

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.

Thank you so much jacko for your candid and thorough explanations regarding my queries! I really do appreciated the information! I just have one more question, you mentioned “incurring a tax liability” is this from the creditors or from the government itself?
Thanks again, take care and have a great turkey day!

[keepsmiling]

The tax liability refers to settlements for less than the full amount owed. It would be paid to the gov't. It doesn't apply if you are insolvent- which you, OP, almost surely are. But you'd need some cash to settle, and it's generally not recommended for a bunch of reasons.

[JOBK]

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.

Thank you for your input HHM! Well, there's a lot of reasons why I don't file BK right now: No money to pay for lawyer fees ($3K minimum?) I don't have much of a debt at the moment ($18K too low?)
I would like to have a chance to pay these off in the future (2 years from my timeline now?) And, I really don't like to file another BK in my name (unless to protect my family?)

I agree with you all heartedly about the work involved about dodging the creditors in the future; the fact that my credit life will be shut and the impending judgments that may occur in the future! That's a lot to handle? But with my reasons above, what can I do at this point? Is there a third option perhaps, anyone???

For the moment I'd like to take care of my health issues first, then be able to get back some peace of mind and eventually have the opportunity to rebuild in the future! Thanks again for your time and if there's anything you would like to add – I'm All Ears... Have a nice day and God bless you!

[HHM]

Here is the thing, in two years time that debt will be $30,000.

AND $18,000 is NOT TOO LOW, people file bankruptcy at all levels, $5K to $5MM+.

If you can't pay you can't pay. The creditors, and your financial rebuilding are not going to wait 2 years and then put you on a payment plan.

Bankruptcy EXISTS for people who can no longer pay their bills.

[JOBK]

The tax liability refers to settlements for less than the full amount owed. It would be paid to the gov't. It doesn't apply if you are insolvent- which you, OP, almost surely are. But you'd need some cash to settle, and it's generally not recommended for a bunch of reasons.

Thank you for your explanation and advice keepsmiling!!! Your name made my day If there's anything else I need to know as far as my issues above ... please do share it! Have a nice day!

[JOBK]

Here is the thing, in two years time that debt will be $30,000.
AND $18,000 is NOT TOO LOW, people file bankruptcy at all levels, $5K to $5MM+.
If you can't pay you can't pay. The creditors, and your financial rebuilding are not going to wait 2 years and then put you on a payment plan.
Bankruptcy EXISTS for people who can no longer pay their bills.

Well, like you said, If I can't pay, I can't really pay! Okay, so there is really no difference between $18K or $30K if I file for BK except the time involve (2 years of rebuilding lost?) Well, if that is the case then I will let time heal itself and go from there? Besides, at this time again, I do not have the money to pay for lawyers fees, etc. and If I do have that money I will continue to pay my cc instead! In the meantime, I will keep finding ways to get out of this dilemma. Thanks again HHM!

[HHM]

and If I do have that money I will continue to pay my cc instead!

huh, that makes not sense. So, you are saying that you are unwilling to save up the cost for an attorney (by the way, keep shopping around, $3K is very much on the high end), yet you will try to keep paying on the credit card even though you have no money.

Well, As Thomas Pain said

"To argue with a person who had renounced the use of reason is like administering medicine to the dead"

[lotsahats]

I'm going to chime in and agree with Lady in the Red that you should wait until you're finished with treatment, so that all of your medical bills are discharged in bankruptcy. Concentrate on getting better. Get on Food Stamps, and any other aid you qualify for. To he-- with the credit cards!

[JOBK]

I'm going to chime in and agree with Lady in the Red that you should wait until you're finished with treatment, so that all of your medical bills are discharged in bankruptcy. Concentrate on getting better. Get on Food Stamps, and any other aid you qualify for. To he-- with the credit cards!

Thank you lotsahats for chiming in and giving your thoughts and advice! Yes, LadyInTheRed made a believer out of me, her insights and point by point answers to my questions – was RIGHT ON the money!!! Your type of comments will truly help me get to the next level of my journey through financial freedom and good health! God willing! Sorry took awhile to reply did the site crash?
Thanks again and God bless you!

[JOBK]

huh, that makes not sense. So, you are saying that you are unwilling to save up the cost for an attorney (by the way, keep shopping around, $3K is very much on the high end), yet you will try to keep paying on the credit card even though you have no money.

Well, As Thomas Pain said

"To argue with a person who had renounced the use of reason is like administering medicine to the dead"

Well, let me explain further... IF I have $3K now, then I can pay my minimum monthly payments for my 4 cc which is less than $400 per month, so that should last for at least 7 months and still without defaulting yet! And yet, I wouldn't be needing immediate advice with my daunting challenges in life now. In addition, I gave four reasons above why I try NOT to side with BK at this time. There is no rush to file for BK especially with my pending petition for my wife with the help of my sister as joint-sponsor.

I Love your quote from Pain... But for me being the perfectionist I am... It's just too difficult to admit that ones self can be destroyed by this financial fallout without administering medical treatment first and thus reasoning being thrown out to die. I hope you do understand my situations from the beginning, I have so much going on all at once and I am just trying my best to prioritize my problems.

Still the same, I sincerely appreciate your help and input now and at any time!
Thanks again and Happy Thanksgiving!

[HHM]

How about this

The risk of the wrong decision is preferable to the terror of indecision (Maimonides).

Since you claim to be a perfectionist, that is all I need to know. You won't do anything until after the --it hits the fan, regardless.

[keepsmiling]

How about this

The risk of the wrong decision is preferable to the terror of indecision (Maimonides).

Since you claim to be a perfectionist, that is all I need to know. You won't do anything until after the --it hits the fan, regardless.

I am confused by this advice.
Isn't the general consensus here that it makes no sense to file until you are on firmer ground vis a vis income, health insurance, etc?
This is why we are in no hurry. We will NOT be in a better position post filing at this time-- ie, no fresh start.

[LadyInTheRed]

I agree with everything HHM says, except for her opinion that you should file now. You have no assets or income to protect and will continue to incur medical expenses you have no way of paying.

I wouldn't say one of us is right and one is wrong. It's just different ways of approaching the situation. If you are definitely going to file eventually, the fact that credit card debt will multiply while you delay is irrelevant. It is true that your fresh start will be delayed if you delay filing and that in the mean time you will be hounded by creditors who may get judgements. Does the stress of prolonging the situation and having the negative credit history follow you for longer into the future outweigh the risk of incurring more debt after your discharge without a way to pay it? If so, HHM's approach may be a better one for you. This is a call only you can make. I highly recommend you discuss your situation with several experienced BK attorneys and get their perspectives. Their opinions will probably differ as well.

But, don't delay filing because you think you are going to figure out a way to pay off your debt and avoid BK. You have no income or assets with which pay your debt. $18k debt to you is as big a deal as $180k debt is to somebody else. You are bankrupt NOW. The sooner you accept that fact and make a decision on how to proceed, the better off you are. There are many members of this board who spent a year or 2 trying to avoid BK and later regretted it. The point in delaying filing is not hope that you will some how avoid BK.

... IF I have $3K now, then I can pay my minimum monthly payments for my 4 cc which is less than $400 per month, so that should last for at least 7 months and still without defaulting yet!

If you had $3,000 now and used it to try to avoid BK when you have no certainty that your situation will improve in the foreseable future, you would be throwing away $3,000. Based on what you've said about the expected length of your treatment, you would still be in the same situation 7 months later, but without $3,000 to pay for an expensive lawyer (yes, $3K is high). Once you know you need to file, whether it will be in 2 months or 2 years, you need to stop paying all unsecured debt and save that money for attorney fees. Spending your last remaining cash on minimum payments would be throwing money away and prolonging the inevitable.

But, you don't have $3,000 anyway. If decide you want to file now, try looking for attorneys or organizations that offer pro-bono bankruptcy filing. It's not available everywhere, but check with your local court and/or bar association to find out what is available in your area.

[JOBK]

How about this The risk of the wrong decision is preferable to the terror of indecision (Maimonides).
Since you claim to be a perfectionist, that is all I need to know. You won't do anything until after the --it hits the fan, regardless.

Well, another wonderful quote this time from Maimonides, thank you very much! I was just trying to get some information in regards to my problems and then gather up all these evidence before continuing to tackle my situations. Thus, in turn not taking unnecessary risk of making an erratic and faulty decision of any kind, at the same time by accumulating all these information without further stresses, I hope, in the future! I know this, by not doing anything wrong with my decisions at this time, at the end I will be cheering with joy and gladness, regardless.

Although, I must attend to one thing at a time and the “one thing” henceforth would be my health. Now, if there is anything else you would like to add but before you do please do keep in mind that my problems are not limited to financial crisis but I'm also quite ill, sick at heart and other personal issues. So, with that said, I would like to hear your input from those subjects, otherwise let the divine authorization interject now.

Your point is well taken... Thanks for your input as always and God bless you!

[JOBK]

I am confused by this advice.
Isn't the general consensus here that it makes no sense to file until you are on firmer ground vis a vis income, health insurance, etc?
This is why we are in no hurry. We will NOT be in a better position post filing at this time-- ie, no fresh start.

I agree, especially I don't know whether I will have more medical bills in the future. At the same time, I don't even have money to pay for a simple co-pay and definitely not have the money to burn for all the fees that will incur for processing the BK !? Thanks for the help again and have a wonderful Thanksgiving!