Another newbie

[miss puff]

Hi All. I have been reading and searching everything I can on the net about bankruptcy. I found this site and wow, what a bucket of information. Me and hubby are doing the "free consultation" on Wed and I am freaking out!!!! We kinda saw this coming about 6 months ago when we started using credit cards for groceries and taking out loans to pay off other loans. It's just over our heads right now and it feels horrible. It's kinda embarresing too I don't know how I feel about it right now. Part of me is dissapointed in myself for obvious reasons, another part is thinking I might be able to go through with this and heave a huge sigh of relief that it's over. Has anyone had mixed feelings before?

Anyways, just wanted to say hello and that I think this forum is great. Everyone seems really nice and supportive which is GREAT!!!

[anonymuse]

Definitely mixed feelings. I feel I have a moral obligation to the creditors on one hand, but don't know what else I could do after job loss and medical bills. I want a fresh start, but question whether I deserve a fresh start.

With medical bills, I wish you could work out a deal where you only would have to pay the amount they charged to insured people--so at least they would get back what they normally get from insurance companies. I'm sick of excessive late fees and skyrocketing interest rates from the credit card companies--why can't they just be happy getting at least what you charged and have already paid in interest. They say they will work with you, but they never do even when you say that you'd easily qualify for Ch 7 where they would get a big fat ZERO.

There's a stigma that goes with bankruptcy whether it's earned or not. We've all made bad choices, but still the majority of BKs stem from job loss, divorce, medical bills (even for those insured), and death of a spouse. It winds up looking like people just running up huge credit card bills, but if you look what they were paying for it's groceries, medications, utilities, and the like.

This, by far, is the best forum I've seen on the net! Not only does it provide information, but it provides a support system. BK is not openly discussed with family and friends, yet it consumes us.

Welcome and make sure you let us know how the consult went.

[Minnymouth]

WELCOME TO OUR FAMILY.......................

Bankruptcy is a emotional rollercoaster ride that few want to venture thru without some help from a few friends.

Legal questions and issues are overwhelming in BK and usually an attorney is the best option for you.

If you are going to file pro se (by yourself), then you need to "get very knowledgeable" of the bankruptcy laws and how they are used and how to protect yourself..... other wise it's best to use an attorney.....

Consult with at least 3 attorneys (free) and pick one you are comfortable with and offers different options for you....

NEVER FEEL ALONE IN THIS............ MANY others are just like you, going thru the same thing, same feelings, same problems.... same wild ride!!!!
Chat with us, ask questions, talk about your fears and concerns, we are here for you.........

We will laugh with you, cry with you, and try to help make this journey in your life a little easier to deal with............

Minny

[SinkingFast]

I've had more than one brush with being in bad financial shape. And up to this point in my life, I'd always worked thru it.

The others were one misstep. Or the amounts, tho they sounded huge at the time, really weren't.

This time, it's been a series of things happening, and the whole thing has just spiraled beyond the point where we can even think that YEARS from now we'd be able to pay back the debt.

Yeah, we feel bad. Can we do anything else?? Not really. So here we are.

Once you make a decision in your mind that this is the direction your life is gonna take, you'll be relieved. You won't be battling yourself any more.

Once you file, you'll have another sense of relief.

When it's all done, you'll feel like the weight of the world has been lifted off your shoulders.

[miss puff]

Thank you all so much for your encouragement! I don't know how easy this will be for us. My husband has not lost his job, (I am a stay at home mom to three children), we don't have huge medical bills and no one has died. Honestly, we were just stupid with our spending habits. Then it started getting tight and like I said earlier, we started taking out more loans to just catch up and now-YIKES!!!! This week the creditors have started calling-I don't think I'm gonna answer the phone anymore Has anyone ever had experience with the wife being a stay at home mom? I would go to work but I really don't have much experience in anything and it would probably cost just as much for daycare.

Anyways, thank you for taking the time to make me feel welcome here. I love reading about everyones success stories and feel totally encouraged that most of you feel so much better afterwards. The before feelings really stink!!!

[LostOne0069]

Sounds like your situation is exactly like ours... except we did have our expenses go up considerably due to a move from Utah to New Jersey.

My wife is a stay at home mom, we have four kids.

The biggest thing that I would worry about is your comment:

"We kinda saw this coming about 6 months ago when we started using credit cards for groceries and taking out loans to pay off other loans."

If you're still using credit cards or otherwise borrowing money... STOP! The minimum you'll want to have between your last credit charge and filing bk is 3 months. This is just a minimum. You really want as much as possible or you risk having those creditors object to a discharge on the grounds that you knew you would never be able to pay the money back and yet took the loans/credit anyway.

As for the stay at home mom getting a job thing? Well, once again we're in the same boat. my wife doesn't have any "real world" job experience. Her last job was 13 years ago at minimum wage. With 4 kids age 11 and under the daycare costs would cost us WAY more than what she could possibly hope to make. Mind you, if she had a MBA or something like that... the bk judge would probably tell her to get a job.

[miss puff]

Thanks for the advice LostOne-I will go back and see what all I have charged in the last 90 days. It isn't much, I am sure of that. We are pretty much maxed out on everything and when you are paying only $5.00 over the minimum every month, it only leaves around $40.00 to charge.

I also have one other quick question. I am pretty sure we are gonna qualify for ch 7. If the lawyer says we could do it no problem, should we stop paying our bills that we are gonna discharge? Or should we continue to pay them up until the stay goes into place?

Okay, make that two questions. Is it gonna look bad if we have internet, cell phone and cable services?

Thanks for all your help.

[SinkingFast]

Internet and cell phone are allowable under the New Law. Here, where we live, cable is too. Because if you don't have cable here, you can't get TV at all. Attnys you consult with will tell you if cable is allowable or not for your area. But I don't recall anyone on the Forum saying they haven't been able to deduct it.

Everybody handles the CC bills in their own way. Some pay up to the day they file. Others have to quit paying to collect together the attny's fee, BK counseling and filing fees, and transition to living on cash. You do what you've gotta do for your own personal situation.

[aa06a47]

Thanks for the advice LostOne-I will go back and see what all I have charged in the last 90 days. It isn't much, I am sure of that. We are pretty much maxed out on everything and when you are paying only $5.00 over the minimum every month, it only leaves around $40.00 to charge.

I also have one other quick question. I am pretty sure we are gonna qualify for ch 7. If the lawyer says we could do it no problem, should we stop paying our bills that we are gonna discharge? Or should we continue to pay them up until the stay goes into place?

Okay, make that two questions. Is it gonna look bad if we have internet, cell phone and cable services?

Thanks for all your help.

No problem with the internet, cell phone, and cable service. Also, you should only stop paying your unsecured creditors. Make sure you keep your house, car, utilities, cable, cell phone current. If you behind on your house and car, chapter 7 will not help you save those assets.

[SinkingFast]

No problem with the internet, cell phone, and cable service. Also, you should only stop paying your unsecured creditors. Make sure you keep your house, car, utilities, cable, cell phone current. If you behind on your house and car, chapter 7 will not help you save those assets.

Good points, Aa!

You have to be current on mortgage and auto payments to keep your home and cars thru Ch 7.

Also, if you file BK against a utility, it will cost you big time down the road. Someone here recently had to pay some HUGE deposit, $1000 or $1500, to get new service in their name with the power company. So be sure to keep up your utilities as well.

Even if your attny tells you, "Oh, it's OK to include them in your BK." Think about it first. Are you gonna continue to do business with those people. Will you need their services in the future.

[miss puff]

Well, we met with the attorney today and wow! We really liked him. He went over EVERYTHING!!!! From pre-bankruptcy planning and credit counseling to post bankruptcy counseling and how to even rebuild our credit. He charges $1300 for his services and then another $299 to file. He said we qualify for a Ch 7, no asset case, which pleased me very much. We are looking to discharge $20,000 in nonsecured CC and loans and are still thinking about what to do about the Yukon. We presently owe about $15,000. I don't ever want to be struggling week to week, paycheck to paycheck again so I am wondering if it wouldn't be worth it to just let the $440 a month truck payment go back and discharge that as well. He said no problem about me being a stay at home mom and that we should wait another 30 days to file due to the fact that we charged about $48.00 less than 90 days ago.

He also talked about the trustees and what they are looking for and at and that 3 out of the 8 that are there are really nice and easy to get along with. The other 5 are more particular. So, hopefully we will get one of the nicer ones as I feel very vulnerable going through this whole thing. So, as it sits, we are filing July 1st!

[AFreshStart]

Hallo All

Well I don't know where to begin but I've been reading several posts on this site re: bankruptcy and I decided to file. Forgive me for venting but I feel ashamed, disappointed and bitter. I worked my azz off these past three years and it seems unfair. When I was single I worked two full time jobs (and you would think I had all the money in the world) but I met this lady and we have two kids. I bought (foolish mistake) a second vehicle thinking I could afford since I was working two jobs. Then I was forced to quit one of my gigs, the rent increased from $1100 to $1500 and I find myself paying all the bills in the house. My kids mum lives with me and she works, but doesn't pay any bills coz she doesnt' make that much. I'm taking loans to pay taxes and pay other loans, maxing cc's to pay and keep up the second vehicle until it got repossessed. I just feel awful and frustrated! I spoke with a bankruptcy lawyer who was good at explaining and it seems like I have no other choice. After working two jobs for 3 years, my body can't handle a second job.

But what was interesting in what my lawyer told me was to take all of my funds from the bank (which I have a secured loan with) and open a bank account with a bank that I don't owe money. He told me that during the bk proceedings the bank can seized your assets and pay toward the debts. Have any of you heard this tidbit of info before?

Thanks for letting me vent

[SinkingFast]

But what was interesting in what my lawyer told me was to take all of my funds from the bank (which I have a secured loan with) and open a bank account with a bank that I don't owe money. He told me that during the bk proceedings the bank can seized your assets and pay toward the debts. Have any of you heard this tidbit of info before?

Thanks for letting me vent

It's call "Cross Collateralization" or some such banking term. Probably somewhere in the fine print of your bank acct or your loan with the bank, when you signed you gave the Bank the right to take funds from one acct to pay the payment on the loan.

In your particular case, that may not be true, but your attny gave you good advise. It's a good CYA just in case. There are more than a few people who've posted here that have had the exact same thing happen to them. Bank withdraws money from Checking and/or Savings to pay the monthly bill.

[LostOne0069]

But what was interesting in what my lawyer told me was to take all of my funds from the bank (which I have a secured loan with) and open a bank account with a bank that I don't owe money. He told me that during the bk proceedings the bank can seized your assets and pay toward the debts. Have any of you heard this tidbit of info before?

Thanks for letting me vent

This is VERY good advice. Our credit union did this exact thing to us. We were behind on our credit card payment and so they waited until my paycheck auto deposited to my checking account and then transfered out nearly $900 to pay the credit card. No warning, no notice, nothing.

We have since opened up a new account at another bank and switched my deposits to that bank. The old credit union has since charged my old checking account for payments, fees etc. etc. and brought it's "balance" to a negative $200.

[SinkingFast]

This is VERY good advice. Our credit union did this exact thing to us. We were behind on our credit card payment and so they waited until my paycheck auto deposited to my checking account and then transfered out nearly $900 to pay the credit card. No warning, no notice, nothing.

We have since opened up a new account at another bank and switched my deposits to that bank. The old credit union has since charged my old checking account for payments, fees etc. etc. and brought it's "balance" to a negative $200.

I almost suggested not closing the acct because you have to declare all bank accts close within the last year when filing BK.

But I think Lost's experience would be good basis for closing the acct completely.

Of course, if you're gonna include the loan/CC with the bank,........ Wouldn't make much difference to include the bank acct as well, if you do leave it open, and it does incur fees and such to go negative like that.