New to the world of potential BK and some questions

[allavdj]

Well, never thought I would end up in a situation like this, but I suppose it can happen to anyone.

My credit/debt was probably salvageable until a business venture flopped and left me with an AMEX bill of around $27,000. AMEX refuses to really work with me on payments other than, "We can give you 9 months to pay it off", which boils down to about 3 grand a month that I don't have. With the help of the person that bought out the business, about half of that debt has been paid off, but a balance of about $13,000 remains and I am going to have to "deal" with it.

Other debt includes:

-3 Credit cards with about $4,600 total between the three. I've been able to stay relatively current on the three cards.
-1 Car worth about $18,000 that 1 have around $23,000 left to pay on, I'd like to keep this car and I've always been on time with the payments.
-1 Car worth about $5,000 that I still owe around $9,000 on. I'd be happy to let this car go as it was a major burden before the AMEX got dropped back into my lap. I'm about 2 months behind on this car.

Other stuff
-I do not own my own house
-I have no other property or assests of interest other than your basics (clothes, a computer, TV, etc)
-I am married but will be filing single.
-I make about $24,000 a year.
-I will be loosing my job in about 3 weeks


I've meet with one attorney and she said I needed to file 13 because I wanted to keep one of the cars, but that doesn't correlate with what I've researched. I'm not opposed to doing it myself unless it will throw up red flags or whatever.

Any tips, suggestions, or words of wisdom would be appreciated.

[Boscoe]

Hi there. You say something about a business. If more than 50% of your debt is business related, you can definitely file a ch 7. I did exactly that. Even if you can't, your income is so low that you can.

His advise on the car is completely wrong, and others will be posting to say the same. Just be sure to continue making all payments - cannot be late, even a single payment - and you can reaffirm and keep the car.

Just start getting all your receipts, statements, etc. together and continue to do so from now until when you file. There will be other posts to tell you many of the items you will need, like tax returns, bank statements, pay stubs, etc.

But you can definitely do a ch 7 and keep just about everything.

[JollyGG]

Just because you met with one bad lawyer don't throw in the towel yet. Schedule appointments with 3 or 4. You'll learn alot and hopelfuly find a great lawyer.

[danaf]

you say you are married but filing single.

does your wife work?

are you in a community property state?

does she have any assets?

[inhocknow]

Hi there. You say something about a business. If more than 50% of your debt is business related, you can definitely file a ch 7. I did exactly that. Even if you can't, your income is so low that you can.

His advise on the car is completely wrong, and others will be posting to say the same. Just be sure to continue making all payments - cannot be late, even a single payment - and you can reaffirm and keep the car.


Just start getting all your receipts, statements, etc. together and continue to do so from now until when you file. There will be other posts to tell you many of the items you will need, like tax returns, bank statements, pay stubs, etc.

But you can definitely do a ch 7 and keep just about everything.

I was late 20 days on my payment. But I paid it. Does this count as being late?

[allavdj]

My wife babysits a couple of kids during the day. As soon as myself and my parents finish some work on a house that they (my parents) own; we will be renting that house and she will be starting a home daycare. That will probably be 2 - 3 weeks out before we finally finish up.

I do not believe we live in a community proper state. (Arkansas)

My wife has no assets asside from the basics (Clothes, Computer, TV, some nic-nacks, etc). The only debt she has is from student loans.

[lrprn]

I was late 20 days on my payment. But I paid it. Does this count as being late?

You didn't say which payment, but if the payment is made more than 15 days after the due date, most creditors will count that as a late payment.

[qwertysue]

-I make about $24,000 a year.
-I will be loosing my job in about 3 weeks


I've meet with one attorney and she said I needed to file 13 because I wanted to keep one of the cars, but that doesn't correlate with what I've researched. I'm not opposed to doing it myself unless it will throw up red flags or whatever.

Any tips, suggestions, or words of wisdom would be appreciated.

Do you have another job or employment lined up?

The reason I ask is that you would be asked by a ch 13 trustee about your ability to pay the plan for its duration. If you file while unemployed, you really won't be able to guarantee that you'd be able to keep up with the payment plan. Chapter 13 is the *wage earner's plan*, if unemployed you may not be able to do a 13.

[cathywhite4495]

I agree with JollyGG about seeing a couple more lawyers. It sounds like the one you talked to wasn't up to speed. You can get some more questions answered during your consultations too.
Good luck!

[Boscoe]

I highly doubt this would be a chapter 13 case - median income is low, and likely below the median income for his state.

[veloguy]

Seriously, meet with more than one Attorney...

I've met with four over the past two weeks and found the Attorney we're going to use on my last consultation. First two attorneys had me convinced that I had no other options other than Ch. 13, and that advise was completely false.

[Boscoe]

Again, with income of $24k and no real large, signficant assets, no way that a ch 13 should be filed.........