Newbie, Ch. 7, possible 13, a few Q's
Hi all! I am new to the forum and hubby and I are trying to get some more info about BK before we go forward. We feel kinda stuck in a limbo at the moment.
We are no-asset, single income, with 5 kids. However, hubby has steady employment that predictably will always be there. The bulk of our debt is students loans which mostly we haven't paid on in quite some time besides a few, but we have unsecured debt (including very old credit cards, none current), some back taxes, an upcoming wage garnishment, one car loan, and constant creditor phone calls. The primary reason for us to look into BK at this time is to stop the wage garnishment. We had considered BK a few years ago, but one horrible fast talking lawyer experience, and family who thought it was awful, convinced us not to. But now we would like for all of that old stuff to finally go away so we can move on with our lives and plan for our future, instead of just getting through the month.
I talked to an attorney this morning for an initial consultation. It seems that we are about $1,000 a month over the means test for a 7, but he didn't say we should go for a 13 right away. He was more like "Go ahead and file for 7, maybe no one says anything, and then you're good." Of course, we would prefer this, because if we did a 7 and it was fine, then it's short and sweet and when it's over we move on our way. However, according to the attorney and the info I was able to give him this morning, 13 would give us a likely payment that would be less than our current car payment, and then when done with 13 our car and taxes and likely some of the student loans would be done with. 13 sounds like probably a better option for us long term, but short term 7 is so immediate and final. Also, a lot of my husband's income comes from overtime, which he works voluntarily, and we considered that he could just work less overtime for a while to lower his monthly average, but then we would be going three months with less money while trying to still pay the bills we pay that cause us to need the overtime. Catch 22.
Also, another reason I am considering pro se, is we live in a very rural area. There is ONE BK attorney in our town, and the next town, 1.5 hours away, I believe only has a couple. I already spoke with one of them, and the local one I am acquainted with personally and don't think I am comfortable going to him. Small town.
So here's the issue at the moment, what I'm wondering and I'm not sure where to find an answer. I think we need to file by the end of the month, the sooner the better, to stop the wage garnishment. But we can't afford attorney's fees until after the 1st, and then because of how much the wage garnishment would devastate us for next month if we wait to pay an attorney, which is going to be a lean month as it is, I don't think we could really afford an attorney until February, but that won't help us with the garnishment at that point. So I'm considering filing pro se in Ch 7 to get the benefit of the automatic stay, but I'm worried about the possibility of later having to convert to a 13. Would I need an attorney for that? Would an attorney take us if we initially filed pro se? What happens if you file for 7, then withdraw, then within a few months get an attorney and re-file? Is that a bad thing? Can you do that? I just don't know, and would like to know.
I hope I posted this in the right place. Thank you so much in advance!
We are no-asset, single income, with 5 kids. However, hubby has steady employment that predictably will always be there. The bulk of our debt is students loans which mostly we haven't paid on in quite some time besides a few, but we have unsecured debt (including very old credit cards, none current), some back taxes, an upcoming wage garnishment, one car loan, and constant creditor phone calls. The primary reason for us to look into BK at this time is to stop the wage garnishment. We had considered BK a few years ago, but one horrible fast talking lawyer experience, and family who thought it was awful, convinced us not to. But now we would like for all of that old stuff to finally go away so we can move on with our lives and plan for our future, instead of just getting through the month.
I talked to an attorney this morning for an initial consultation. It seems that we are about $1,000 a month over the means test for a 7, but he didn't say we should go for a 13 right away. He was more like "Go ahead and file for 7, maybe no one says anything, and then you're good." Of course, we would prefer this, because if we did a 7 and it was fine, then it's short and sweet and when it's over we move on our way. However, according to the attorney and the info I was able to give him this morning, 13 would give us a likely payment that would be less than our current car payment, and then when done with 13 our car and taxes and likely some of the student loans would be done with. 13 sounds like probably a better option for us long term, but short term 7 is so immediate and final. Also, a lot of my husband's income comes from overtime, which he works voluntarily, and we considered that he could just work less overtime for a while to lower his monthly average, but then we would be going three months with less money while trying to still pay the bills we pay that cause us to need the overtime. Catch 22.
Also, another reason I am considering pro se, is we live in a very rural area. There is ONE BK attorney in our town, and the next town, 1.5 hours away, I believe only has a couple. I already spoke with one of them, and the local one I am acquainted with personally and don't think I am comfortable going to him. Small town.
So here's the issue at the moment, what I'm wondering and I'm not sure where to find an answer. I think we need to file by the end of the month, the sooner the better, to stop the wage garnishment. But we can't afford attorney's fees until after the 1st, and then because of how much the wage garnishment would devastate us for next month if we wait to pay an attorney, which is going to be a lean month as it is, I don't think we could really afford an attorney until February, but that won't help us with the garnishment at that point. So I'm considering filing pro se in Ch 7 to get the benefit of the automatic stay, but I'm worried about the possibility of later having to convert to a 13. Would I need an attorney for that? Would an attorney take us if we initially filed pro se? What happens if you file for 7, then withdraw, then within a few months get an attorney and re-file? Is that a bad thing? Can you do that? I just don't know, and would like to know.
I hope I posted this in the right place. Thank you so much in advance!
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