Newbie Questions

[Tonyy]

Greetings all, So i have 22k in cc debt and paypal buyer credit.
i had to pawn my chainsaw to make my minimum payments on time last month.
i just sold my truck for $1800 to pay a bk lawyer as soon as i can find one.
all i have left to sell is a 96 mazda truck and my mobile home worth about 15k.
i need to keep those as i live in the mobile and will need transportation.
im unemployed in a small town. they keep sending me pre approved cc apps
and raising my limits and i keep buying gas food and catfood. all my balances are maxed out.
im really wanting to make my payments with the truck money but that will only cover 3 months worth of payments.
some of my cards ive had for over 20years. im a slave to my debts and i cant keep
robbing peter to pay paul.i cant even remember what its like to be debt free.
am i going to jail over this?

[dina13]

Hi Tonyy,

No, you're not going to jail. I think ch.7 bk might be a good option for you. Familiarize yourself with the process by buying the most recent edition of Nolo "How to file for Chapter 7 Bankruptcy". It describes the process very clearly, and it has exemption tables for all states. I'm looking in the book now, and see that in Colorado you have a homestead exemption for up to $60,000, and motor vehicle exemption for up to $5,000. It sounds like you can exempt all your stuff. Read about the process first, and then you can go to some free consults with lawyers.

[Tonyy]

Thank you so very much for taking the time to answer this for me and pointing me in the right direction.
I'll get the book now. Thanks again times ten.

[Drazil65]

Hi, no jail BUT if you file and do not make serious life changes to avoid credit card usage you will be no better off (and in some ways worse off) during and after filing. If you do not have employment now do you plan on getting something (anything at point) to bring in some cash? You must have a plan in place and it seems like nothing will change for you even if you file (aside from wiping that debt off but you will soon be back in same boat).

Map out your plan and throw away the cards, get 2 jobs if need be but please realize that this is not a temporary solution it needs to be thought out and executed carefully to get yourself righted around. Good Luck...

[LadyInTheRed]

Drazil is right. Without a plan of how to support yourself, BK will be of little help. I suggest you not use that cash to make credit card payments unless you have a reliable plan for paying them after the 3 months and avoiding BK altogether without selling assets that would be exempt in BK and probably also exempt from collection by a judgement creditor if one of your creditors ever sues you. You will just be throwing good money after bad. Hold on to that money and make appointments for free consultations with a couple of bk attorneys.

If you have heard of people going to jail for being in debt, it is probably because they ignored a summons to appear personally, likely for a debtors exam. You won't go to jail for not paying your debt. But you might if you ignore a cout order. If you get sued, pay attention to notices you get and make sure you don't ignore any orders to personally appear.

[Tonyy]

Roger That, Drazil65 and Lady in the Red. After reading my first post I can fully understand it sounded like I'm a bit of a deadbeat.
I'm 51 and have been making my payment on time every time since I was 18 even until this very day. I do have a plan for prosperity.
After taking the advice of you good people I will file bk and sell my mobile home and move to a place where I can start over with a
small business and a new lease on life. Since I live in colorado I'll see if I can carve out a little market share in the MMJ industry.
It's a bit ironic that had I done this sooner I wouldnt even have this problem. Hindsight is 20/20 right. Anyway, from now on If
I cant pay cash, I dont need it. Thank you good folks again for helping me. I cant even express how ya'll have helped my spirit in
this time and you dont even know me. I will fix this problem and my attitude about money. "a smart man learns from his own mistakes...
but wise man learns from others" Thanks again.

[LadyInTheRed]

No, you didn't sound a like a deadbeat. You sound like somebody willing to sacrifice everything to pay credit card debt. Selling all of your assets to pay debt make no sense if you will eventually end up in BK anyway. Don't sell anything else before you talk to a couple of attorneys.

[Tonyy]

I took your advice and I meet with the attorney in the morning.
Thanks again.