Attorney is recommending quick filing of Ch 7

[MrsM]

We haven't missed any payments yet, and just bought a car last week to ensure that we have reliable transportation before our credit goes south. We sat down with our lawyer, and after looking at all paperwork and discussing everything with us, he recommended filing right away. He said that we passed the means test no problem, and that it's better to just get it done and over, but that we would need a waiver (I think waiver was the term). This is the second lawyer we've interviewed, and while he seemed very professional and knowledgeable, I don't get the rush and he didn't explain it beyond saying there is no reason to wait.

Everything I've read on here says to miss a few months' payments and to wait a few months after buying a vehicle. He said several times that our case was perfect for chapter 7, and he doesn't see any obstacles in filing. I'd like to think I can trust his advice since he's the professional, but I'd appreciate any insights you can share.

[TomTea31]

waiver for what?

[kathy09]

If theres no reason to wait you will be glad when its over. We also just bought a new car before our credit went bad too and we waited till we paid taxes and got it titled, so now we are ready to file as soon as the last papers are signed which should be today. I think he Will file our ch 7 by Monday or Tuesday. I would rather get it over with so we can get past all this worry I'm so ready to get it over with. I hope everything goes well for you.

Kathy

[despritfreya]

Exactly, as Tom said, "waiver for what"? The only reason I can think of for filing before June 1 (meaning "now") is if by not filing now and waiting till next month (or the month thereafter) you won't pass means testing. (Of course, if there is a garnishment or some other emergency then filing now makes sense).

You should not jump in to anything unless you are 100% comfortable. Your attny may just be voicing an opinion that it does not make sense to wait - don't put off for tomorrow what you can do today. Sometimes I will tell my client that filing sooner is better as no one knows what may pop up next month (new job, better income comes to mind). Go back to the attny and find out specifically why he wants you to rush into filing.

Des.

[btbeme]

While I trust the professional and learned opinions of many people every day, I do not do so blindly. I make sure that I understand, if even on a simplistic level, the necessity for doing what they suggest.

Sounds like you have two reasons to hesitate - the "waiver" question, and your gut instinct that speeding up the process feels...uncomfortable, maybe?

Get your answers and your comfort first. One benefit of this forum is a "sanity check" for the answers you get from the attorneys. Most times they are right. Sometimes they are very questionable. A few times they are dead wrong. But you are the one with your name on the petition, which means it is your butt on the line, and you will be the one to suffer any consequences from mistakes or misunderstandings that are made in the process.

Last thing - make sure that your new car loan is perfected before you file. Real sure.

[keepsmiling]

The lawyer may be trying to tell you that your credit will rebound more quickly if you file before missing payments. While that is true, it shouldn't be your priority. File when you have all your ducks in a row and are ready. Especially make sure that the car loan is perfected.

[frogger]

File when you have all your ducks in a row and are ready. .

That's the best quacking advice that you're going to get.

Unless there is a hurry, there is no hurry. When you do it, do it right.

[Pandora]

only waiver I can think of is one for filing fees.... ?? Do you qualify for that by chance?

[BilboBaggins]

If you wait to file and get a bonus or get a raise, or get a new job.... you may not pass the means test. You want to file at your worst, not when your getting better. If you get some good luck (which is bound to happen after a spell of bad luck) then you'll be able to REPAY all that debt right?

My X wife waited to file and got a big raise unexpectedly a few months later. Now she can't pass the means test. She should of filed.

I filed with 4 credit cards all used within 60 days of me filing. All my debt was discharged (about 350k). If she would of filed when I did(which the lawyer recommended) she wouldn't be in the bind she is.

[ksgirl38]

One of the lawyers I talked to recommended filing immediately too. I think it's called the surprise bankruptcy and reasoning behind it that I walked away with was that it doesn't give the credit card companies time to see it coming. In most cases you have about 90 days of non payment on your credit cards before the credit cards will do anything. If you have the money and you are ready to file then there's really no reason to wait. From what I've seen and heard the main reason that most people wait is that they take that money that they would have paid the credit card companies to use toward attorney fees so it gives you time to save that money. I've got some stocks and CDs that I'm trying to get rid of before filing so that's my delay, but if you don't have anything like that then there's no reason to wait. Just a preference really.

[btbeme]

I think it's called the surprise bankruptcy and reasoning behind it that I walked away with was that it doesn't give the credit card companies time to see it coming. In most cases you have about 90 days of non payment on your credit cards before the credit cards will do anything.

By law, a credit card company can't do anything except call you and beg for money until after you are 120 past due. Even then, few move very quickly; the worst thing that might happen is a judgement which can also get scraped off in BK. On the other hand, charges within 90 days of filing will almost certainly get "special attention" and a presumption of abuse.

I think that, with the proliferation of bankruptcy filings, many more attorneys are "willing" to assist. As those filing slow - and they are starting to slow - there might be a sense of urgency from those attorneys to "lock in" their clients before they have the opportunity to speak with others. Just a guess.

I can say that many more mistakes and oversights happen - most of them bad for the petitioner - in immediate filings. Having time to sort through and shape the filing will almost always deliver a more satisfactory result.

[HHM]

By law, a credit card company can't do anything except call you and beg for money until after you are 120 past due.

Okay, that statement needs some support. I for one have never heard of that. (maybe it is a state specific thing), but a default in payment is a breach of contract. Once the contract is breached, all remedies, including lawsuits are on the table.

Now, as a matter of practice, most CC's don't initiate law suits until a person is several months in default (if ever).

[ksgirl38]

I've heard of this. One of the reasons I'm trying to file before that time is up. I'm only a few weeks past due on the first credit card payments so I'm already getting calls. I just keep adding the numbers to the blocked callers list on my Verizon account.

[despritfreya]

Okay, that statement needs some support. I for one have never heard of that. (maybe it is a state specific thing). . .

No such requirement in AZ. A creditor has the absolute right to sue upon default. Will it the moment one falls behind. . . probably not. . . but that is the creditor's choice. I once had a client tell me that her mother told her "a mortgage company has to work with you once you fall seven months behind". I asked her "what law school did your mother go to"? It is amazing what people think creditors can and cannot do.

Des.

[HHM]

I've heard of this. One of the reasons I'm trying to file before that time is up. I'm only a few weeks past due on the first credit card payments so I'm already getting calls. I just keep adding the numbers to the blocked callers list on my Verizon account.

How about finding the statute that says it :-)