Can't File 7, but can't pay Credit Cards...

[BD33]

Hi All,

I have posted several times here before and on Chapter 7. I have basically hit a brick wall. I spoke with a few attorneys about Chapter 7, both said I "Should be Fine", but neither ran a actual means test, I have ran my own on legalconsumers, several times with every possible scenario. I failed every time. I am barely over the median on my own, my girlfriend lives with and has paid half the rent up until this month, when her job took a nose dive. I now half ot pay all utilities and rent, which puts me in the negative in the real world.
I can't pass the means and basically know I will get thrown into a chapter 13, which does not help at all.
As of next month, I will have to stop paying on my unsecured debt. My two credit cards, wont be bad, since I am at my limit anyway. The other is with a credit union, its a signature loan, in which I am only using half of the limit. Which in turn means to me that if I quit paying, they will use all of the remaining limit for fees and late charges, I will then owe double what i do now. I do not have a checking with them, only savings and I keep $100.00 in there to keep my account open. If I get garnished, they will take more than what I am paying.

Make to much to File.
Dont make enough to pay...

[Flamingo]

BD33 - your situation is what it is...either you do something about it or let it spiral continually further downward. It will not resolve itself. Do yourself a favor and put the guessing game to an end...call your State Bar Association (in your phone book under your "State" section). Ask them for some references to BK attorneys (ask for the top) attorneys in your area, that you are considering filing BK and don't have a clue where to start as to finding a good attorney. Almost all BK attorneys give free initial consults. It would help you to get some top notch opinions on your situation so you can get it resolved and everything back on track....

[soleprop]

i think it's pretty clear what you should do: quit paying on your cards, use your available funds to pay for your living expenses, and wait a few months to file CH7. basically your expenses just doubled due to your gf's job loss, right? so after a few months you can take a new 6 month snapshot that takes this change into account and you should pass the means test at that point.

i could be wrong, but i could be right, too :P

[BD33]

The one that scares me the most is the signature loan. Since I am using only half of the limit. I was thinking of paying on it and not the other two. I can make the minimum on it. Any thoughts.

[treehugger1]

I can only share my own experience with credit unions. They can be ruthless. But, they can also be gracious when it comes to seeking alternative payment arrangements. The thing I experienced with credit unions is that THEY ARE LOCAL. They generally have access to your local small claims court and have experience in such matters. You might call them and explain your situation and see if they can get you some type of alternative payment plan on a temporary basis. This might buy you a bit of additional time while you consider your options. Best to you. TH

[Frogge]

I'm going to agree about the credit union, they are more ruthless and locally inept than other creditors, but I don't know if it's good advice for you to make their payments and no one elses.. couldn't that be preferential? Someone?

[treehugger1]

It's only preferential under BK laws. If you intend to file and pay more than the $600 (or whatever it is) to any one creditor over a 90 day period, then the trustee can take this back.

If you ae not intending to file, you can pay who you want. I'm sure that other creditors will see you paying some creditors and not them, and I would guess this might jack up the intensity of some creditors to sue.

On the other hand, I would think most creditors/CAs would look at your cerdit report and if it is bleeding 90 - 180 day lates and charge-offs, and collections, and judgments, they might deem it a waste of time to engage in present collections efforts. Who knows?

[ready2puke]

didnt someone on the board post about the median being raised in Oct...would that help you out??