How should I time my Bankruptcy?

[Buckethead]

Let me start by giving a little information about my situation. I am roughly $32,000 in debt at the moment. All of the money owed is on credit cards, and I have never missed a payment. My debt has been in the range of 29,000-33,000 for the past year. Most of it is from playing online poker, but 90% of the charges show up as calling card purchases.

I've been unemployed for the past 2 1/2 years, and currently live with my mother. I do have some job prospects lately, and should have a job soon that won't effect my filing status. My only option for filing at the moment is Chapter 7.

The last time I used any of my credit cards was two weeks ago, and that was for gambling. I met with a lawyer about a week ago, and he said that I would have to put time in between my last charge and when I file. I was wondering how long I should wait to file to have the best chance of succeding? Any other suggestions on how to improve my chances are greatly appreciated.

[lrprn]

The last time I used any of my credit cards was two weeks ago, and that was for gambling. I met with a lawyer about a week ago, and he said that I would have to put time in between my last charge and when I file. I was wondering how long I should wait to file to have the best chance of succeding? Any other suggestions on how to improve my chances are greatly appreciated.

Typically most bk lawyers will recommend at least 90 days with no credit card use before filing. And I would be careful about assuming that any new employment won't impact your bankruptcy - it certainly will change your forms for the six-month lookback for income. Might be best to check with the lawyer to see if waiting to get a new job until after filing and your 341 meeting will ensure your desired Ch 7 can be a reality. Also if you feel like you need help for your gambling habit, seeking that out before filing helps the trustee see you are making an effort to change what got you into financial trouble. Does your mom know you are filing?

[CATCHMEIFYOUCAN]

I am roughly $32,000 in debt at the moment. All of the money owed is on credit cards, and I have never missed a payment. My debt has been in the range of 29,000-33,000 for the past year. Most of it is from playing online poker, but 90% of the charges show up as calling card purchases.
Hmmm, all I've ever used my cc's were for gambling too - in the past 2 years, one credit card I have shows my charges as "groceries."

I've been unemployed for the past 2 1/2 years, and currently live with my mother. I do have some job prospects lately, and should have a job soon that won't effect my filing status. My only option for filing at the moment is Chapter 7.
That sounds like a good option as any, if you can get everything discharged, why not! But having that prospect for a job, would probably affect you filing status, it all depends on what kind of disposable income you might have left after you take in accounts your expenses.

The last time I used any of my credit cards was two weeks ago, and that was for gambling. I met with a lawyer about a week ago, and he said that I would have to put time in between my last charge and when I file. I was wondering how long I should wait to file to have the best chance of succeding? Any other suggestions on how to improve my chances are greatly appreciated.
Distance is good but also the fact that you've kept and are keeping up with the minimums is a plus. I think I STOPPED charging about 3 months before I filed - but I've kept up with the minimus up to the day I filed. And KNOCK ON WOOD, nothing ever came up about my gambling.

Might be best to check with the lawyer to see if waiting to get a new job until after filing and your 341 meeting will ensure your desired Ch 7 can be a reality.
Thats a great suggestion by IRPN, besides it will add distance between your filing time and your charges too!

Best Wishes, Catchmeifyoucan

[SinkingFast]

Typically most bk lawyers will recommend at least 90 days with no credit card use before filing. And I would be careful about assuming that any new employment won't impact your bankruptcy - it certainly will change your forms for the six-month lookback for income. Might be best to check with the lawyer to see if waiting to get a new job until after filing and your 341 meeting will ensure your desired Ch 7 can be a reality. Also if you feel like you need help for your gambling habit, seeking that out before filing helps the trustee see you are making an effort to change what got you into financial trouble. Does your mom know you are filing?

Good words from Lrprn there. Time and patience are the BK Filer's friends. Unless you're being sued or trying to dodge some other legal action, your best bet is to Wait, Wait, Wait to file BK.

The New BK Law isn't simply about the past. The Court wants to look forward as well. You'd have to be careful that a new job would keep you below the Median AND that you'd have an increase in expenses as well. For example, you say you currently live at home. If you get a job, you'd need to move out on your own. Take on rent, utilities, and such. If you don't spend the money you make on necessary living expenses, then you'd have significant disposable income to pay into a Ch 13 payment plan. If you catch my drift.

[tradewiz50]

Seems like we have a lot of gamblers here filing for bankruptcy. Reminds me of the day trader trend back in the late 90's.

Time to start calling around for some free attorney consultants.

[anonymuse]

Is the new job under the median income for your state? That will make a difference in filing.

[Buckethead]

Thanks for all the advice so far, and here is some more information. The reason I have to get a job is because I am dead broke at the moment. It won't be a high paying job, and I have alot of expenses to cover in the next few months. I have to come up with $1,100.00 to pay an attorney to even file, $900 for car insurance by the end of the year, and my mom wishes for me to move out as soon as I file. Even while I'm staying with my mom I have to come up with money to help her out every month. My minimum payments add up to about $600-$700 a month. What income level should I stay under in order to have the best chance?

I also have a car that is probably over the exemption amount. I own it outright, and wish to keep it. I live in Washington State, and the expemption is $2500 + a $2000 wildcard. If I try to save money to cover the difference between the expemption will that hurt me in filing? I have no other property worth anything besides the car.

[treehugger1]

Good advice for you on timing and patience. My issue involves some gambling, but not gambling debt. I should have used my extra disposable income to pay down debt, but alas I did not. Come Nov 1, I expect the phone to start ringing 24/7. I still think I can hold off another month. In the meantime, sit down with a cool drink and begin hacking up those cc's.

[SinkingFast]

If you're going for a Ch 7, you want to have as little money on hand as possible the day you file. Cash in your pocket or in the bank. That's a liquid asset your attny will have to cover with an Exemption. And, cash is an easy target for the Trustee.

As long as you are below the Median for Washington State, you're eligible to file a Ch 7. Then the decision about whether you're a Ch 13 or not falls to a comparison of Schedule I to Schedule J. I is income. J is expenses. If I to J shows in excess of $100/mo in disposable income you might likely wind up in a Ch 13.

So it's not income you need to be so concerned with, but more your expenses and disposable income.

Right now, you live at home. To the BK Court, it may not look like you have much in the way of expenses. You say you give your Mom money, but can you document those payments? I'm not saying this to be rude. I believe that you help out as you can. I am more or less playing Devil's Advocate there. That's the type of questions you'd get from the Court.

[razorguns]

u need to start takning some poiker lessons.

on some other board : "Dude, i scored $30k in poker last week!"

this is why i don't gamble on the net. it could all be fixed.