Taking new job with dramatically lower pay

[Salcero]

This is all a little overwhelming to me and I'm not really sure where to start. I have been hovering near BK for more than a year now. I've got a very small amount in savings (about $1,500) and I have generally been ending each month by taking a couple hundred from savings to cover expenses. Some months I can put a little back in. But in general it has been slowly declining, and that's with only paying the minimum amounts on my CC debt.

I live in Washington State (King County) and I make $23.60 per hour. I briefly looked at the means test and it appears I am just under the qualifying income for Chapter 7. I currently have $20,000 in CC debt and $15,000 in a car loan (car is only worth $9,000). I rent an apartment for $750 per month.

I have been accepted into the electrician's apprenticeship program. This would be something I would normally be very excited about because it will provide a great future. But the impending immediate changes are creating an extreme amount of stress. Most notably, my starting pay will be $18.36 per hour, and I will only be working 32 hours per week with 8 hours for schooling.

So my gross pay will be going from $944 per week to $587.52, nearly a 40% drop in pay.

There is no way I'm going to be able to continue making my debt payments.

As I said initially, I'm a little overwhelmed by all of this and I'm not really sure how to proceed next. Should I contact a lawyer now and immediately start the BK process? Should I wait until I've been working 6 months at the new job at the lower rate of pay? If I do that, do I just stop making my CC and car payments for that 6 months? I absolutely can not lose my car because I'm required to have one working in construction.

And how do you pay for a BK lawyer when you have no savings? Do they have payment plans after your debt is discharged? It's going to be impossible for me to save up several thousand dollars before the filing.

Any help would be greatly appreciated.

[keepsmiling]

Hi and a warm welcome to the forum. You have come to the right place and are actually in a better position than many here. At least you have a job and a bright future!

Put in a few days of reading reading reading here on the forum. And since you do plan on filing, you might want to consider immediately ceasing payment on your cc's. That is how you will pay your attorney. They will probably work out some kind of plan for you but will not file til you are paid if you are doing a 7. (actually, one we interviewed said final payment was due before the 341)

Do NOT stop paying on your car or you will lose it.

Before you miss a payment, do your research on Google Voice, which will save your sanity when the calls start a-comin' (immediately, like within an hour of your first missed payment!) and print all your statements out while you have access. Change your phone numbers on all accounts including FB etc to the GV one.

Make a few appts with local atty's to discuss your situation. They should be free. Read up here FIRST so you know what kinds of Q's to ask.

You can probably exempt some or all of your car's value. OR you may want to consider buying a new one before your credit is trashed. Others will be along to chime in with ideas.

Relax, deep breath, you have some time to make decisions still. You'll be fine.