I have to ask

[toomuch]

I'll probably get blasted for this, but I am serious about it. Has anyone ever *planned* their BK??

DH and I have been waiting for the right time to file. I really want to file a Chapter 7 and be done with it. If I can't, then I'll do the 13.

Our situation keeps getting more complicated. I can't even keep up with it myself. We haven't used our cc since last September. No credit..loans, nothing. We have been served 2 summons but I just tossed them to the side because I knew I couldn't file BK until I file 2005 and 06 taxes so I can get a vehicle. I let mine go back months ago because I couldnt' afford it and I was upsidedown on it too.

We are down to one vehicle. Not a huge problem except I have cancer and heart issues and am running back and forth to the doctors. We live out in the country, so it's not easy to hitch a ride.

The cancer has really thrown a wrench in the plans for many reasons. We have a cancer policy that will pay a nice sum of benefits, but only a fraction of our unsecured debt. I haven't even begun chemo or radiation so it will be awhile before I fax in all of the receipts from all that and get the checks from the insurance company.

I then have to wait a certain amount of time to file. I just don't want to get in trouble and am doing everything I can to stay and appear legit. No transferring stuff into someone else's name or hiding things.

Meanwhile, I know, any minute, someone is going to do more than badger us with phone calls, letters and summons. 25% is quite a bit to be taken from a paycheck.

Again, I know we were stupid, chasing a dream (I started two business that went belly up because I am just not a business person but lots of great ideas ).

The only vehicle we have is DH gas guzzling Ford truck that he is upsidedown on. It's getting 13.8 mpg. Big payments. We have to let that go.

My plan (if anyone is still reading this long post) is to get through one more surgery, have treatment, recover and then save all the money from the cancer policy and tax returns......buy two used vehicles, fix our plumbing, let DH truck go back and put aside enough money for an attorney.

Just not sure how long to wait to file after all of that. I just want this all over with. Mainly the cancer treatment (thank you for all of your prayers.....I do believe in them), but just get these people off of our backs.

I had an original question....if anyone plans their BK. Just go easy on me please, but tell me what is on your mind.

Thanks,

Toomuch

[whatamess]

I personally dont se anything wrong with what your are waiting for. You need cars in the rural areas and 99% of suburbs in the US. You didnt ask to get sick. Your tried hard to make more money by following the American dream. No crime in that. Most people wont even try to get off thier duff and take a risk. If nobody did, we wouldnt even have people like Donald Trump! He had declared BR several times to save and reorganize. So have most airlines.
Its a BUSINESS decision.
I wish you all the best, you deserve a break.
WAM

[SinkingFast]

When you have an ongoing medical condition,......... You definitely do not wanna pull the BK trigger too soon.

BK is a like a "magic bullet" you can only use once in a long while. So make the best use possible you can when you can.

[Boscoe]

Yes, true, because if you are going to incur mega medical bills, the bk will discharge them, but only if the bills occur BEFORE you file. If you file now, any medical bills after the filing date will not be dischargeable.

Now, if you have really good health insurance and this out of pocket amount will not be too much, then you might be able to move the date up.

What does your attorney say?

[toomuch]

Yes, true, because if you are going to incur mega medical bills, the bk will discharge them, but only if the bills occur BEFORE you file. If you file now, any medical bills after the filing date will not be dischargeable.

Now, if you have really good health insurance and this out of pocket amount will not be too much, then you might be able to move the date up.

What does your attorney say?

I called the office Friday and the paralegal, who I always talk to (I haven't paid a retainer yet) told me since I will be getting cancer benefits, to wait until they all come in....then wait a couple of months after that to file.

Yeah, if we are going to suffer for 5 years, then I don't want ANYONE calling ever again demanding I call them back!

Toomuch

[Cassiopeia]

Good luck, toomuch. My prayers are with you for your treatments.

Sounds like you have a good game plan for the BK filing and the timing of it.

[lrprn]

Planning your bankruptcy so when you file works in your favor is smart, TM. No one here who is knowledgeable about bankruptcy is going to blast you in any way.

We planned our filing down to the day so that we would have as little in our checking account as possible and we didn't pay our non-secured creditors for five months to save up enough to pay our lawyer. Swince we both get paid every two weeks, we even looked ahead to figure out three paycheck months to ensure we weren't going to hit two of those months in the six month look-back when we filed.

Pre-planning is what everyone who files bankruptcy does if they're smart. The only exception is if the filing must done in a true emergency such as stopping an unexpected home foreclosure. Good for you that you're going down the pre-planning path - your bk is going to be a lot more successful and have less problems because you're getting good advice from your lawyer and his staff.

[B12]

Totally agree.

[treehugger1]

Absolutely great responses. I've been putting off a BK 13 for nearly 14 months. Now, I do have the means to make "love you" payments to those who I believe are getting to the limit of their patience. Just about the time I think I'm ready to pull the trigger and file, something new pops up. The most recent is I learned I will need $1900 after insurance to protect several of my teeth and maybe even have a gum scrapping done to remove what appear to be cancerous cells in my gums.

I have sat down and constructed spreadsheets that account for my monthly "must-pay" bills after considering a 25% garnishment of after-taxes wages. I can survive for a long time on a 25% wage garnishment. In fact, this is much less than I would have to pay monthly in BK 13 were I to file.

I am probably not your run-of-the-mill debtor-in-a-crisis. I make very good money, I'm in my 50's, I have solid pension and optional retirement moneys, I'm upside down on two cars, AND I do not own any real property. Worst case scenario is that I could take early retirement, hang low for 6 - 12 months and file for a chapter 7. Wait a year, and them return to full-time work until I'm in my mid 60's (Well, maybe until I die.)

My advice is to sit down and determine the various scenerios that could play out in the near and long term future, with and without a garnishment. Above all, protect your health! I doubt that any BK trustee or judge will look down on you for such actions.

[leftyf]

It seems to be a lot like the tax law, avoid but don't evade. I'm trying to file a 7 myself and I'm doing things that I could probably not do to increase my expenses pre-filing. For example, I haven't lowered my 401K contributions, I still have two cars, but I have lowered my lifestyle and I'm still having trouble making ends meet. I make $80K for a family of 5, actually 4 now since my oldest moved out, but I'm still paying the car insurance and phone bill for the kid...this "move out" will probably actually increase my expenses...ha ha. Just spent $500.00 on stuff for the new place out of my pocket.
Fortunately, right now, I am what one attorney called a "stable filer" in that I have a steady, decent paycheck and no major health issues. $80K seems like good money to me, but somehow it is all gone at the end of the month. I've been keeping a close watch on it and it's amazing how quickly it goes...must be out of touch with what a person needs to get by these days. I retained an attorney who is going to try to get me through a 7, but I'm skeptical that the trustee will ok it. We have about $100K in debt when I finally tallied it all up...and I thought it was only $85K. Talk about a "reverse" snowball. Sorry for the babbling...I think, yes, people do plan their bankruptcies and it is a smart thing to do, like any financial planning. I had a buddy who filed back in the old days (Pre 2005) and I watched him run through about 25 credit cards one night until he found one that would spit money out of the ATM...he knew he was filing and he bled them all dry. He's probably a part of the reason I have to worry now about being forced into a 13 over "honest" debt. Good luck.
Lefty

[MajorMike]

I didn't have to pre-plan. My lawyer took the last 2 months of paystubs and already figured out my payment that he will give to the trustee. I had one 3 paycheck month in there but he said it wouldn't matter. He said although I need the last 6 months at the 341, he won't even consider that when confirming as he confirms right at the 341 unless it's extenuating circumstances.
I guess he doesn't look at any charges or opened credit at all made within 90 days prior either. Sometimes you get a cool trustee and sometimes you get ripped.

Planning your bankruptcy so when you file works in your favor is smart, TM. No one here who is knowledgeable about bankruptcy is going to blast you in any way.

We planned our filing down to the day so that we would have as little in our checking account as possible and we didn't pay our non-secured creditors for five months to save up enough to pay our lawyer. Swince we both get paid every two weeks, we even looked ahead to figure out three paycheck months to ensure we weren't going to hit two of those months in the six month look-back when we filed.

Pre-planning is what everyone who files bankruptcy does if they're smart. The only exception is if the filing must done in a true emergency such as stopping an unexpected home foreclosure. Good for you that you're going down the pre-planning path - your bk is going to be a lot more successful and have less problems because you're getting good advice from your lawyer and his staff.

[keepmine]

Back in the bad old days {prior to bk reform}we called preplanning "a tactical bk".
Not a thing wrong in ordering your affairs in a way that will be advantegous to you as long as it's within the letter of the law.

[MajorMike]

I agree!

Back in the bad old days {prior to bk reform}we called preplanning "a tactical bk".
Not a thing wrong in ordering your affairs in a way that will be advantegous to you as long as it's within the letter of the law.

[CindyLou]

But you are pre-planning if you are looking at whether you are going to keep your car or not. We all do pre-planning at different levels. Some of us wait a few years to file and do lots of planning and some of us file quickly, but like the previous poster stated, unless you are doing an emergency filing then you are probably planning on some level.

W.B.

[copperarab]

Yeah... I am guilty of this pre-planning and have to admit that it is probably borderline fraud!

I havent worked a job in 7 yrs, have custody of my developmentally challenged 4 yr old granddaughter, and am filing my divorce papers FINALLY next week. AWESOME lawyer who also does BK's...

I have a little cash (not marital $$, small payoff on old child support arrears, children not husbands) I set up in a seperate bank to help pay a few months of rent on my new apt.(cheap $450 per mth) I got a week ago. I have been using up the little amount left on my nearly maxed CC to buy food/cleaning supplies/bedding/towels/ etc for my new place.

I told my attorney I was taking ALL debt in my name (62K) and he flipped out. I told him I was doing it for 2 reasons.. 1, Hubby wont pay them anyways, 2, I am going to file BK after the divorce. He even laughed when I said that my retainer to him (1k) was going to be put on a cc that I am filing on. I am signed up to start college and will be poor for the next 18 mths.

So basically, I am using and maxing my cards KNOWING I am going to file the BK. Makes me bad, I know, but I cannot deal with the drinking, abuse and rape any longer.

I am letting my husband stay in the house until it sells, I am not touching his small 401k. His bills come to 33K, and he makes about 70k per yr.

So yes I am evil, but I am so backed into a corner I dont know what to do anymore.