Boy did I screw up

[opiegonebad]

Hi all,

Never thought that I would be at this point in my life but it sure seems the train is a coming to pick me up and I need advice.

So here is the story - sorry that it is a bit long winded but then again I did not get here overnight.

Back in December 07 friends, family and work started noticing I was acting different than my usual self - in a bad way of course.

In January 08 the doctors diagnosed me with Bipolar 1 and I of course fought it, etc.

At the same time I filed for medical leave here in CA and because I made 103,000.00 in 2007 they have awarded me approx. 5000.00 per month in benefits.

When they started talking about having me involuntarily commited I ran.

One of the things of Bipolar 1 is being manic - which looking back I was - well while I was on my manic binge I ran up 72,000.00 on the credit cards and also signed a 6 month lease on an apartment for 3,500.00 per month.

Never in my right mind would I have ever done either of these things.

Anyways here I am - the wife filed for divorce in January, my cc minimums are 2200.00 per month and my rent is 3500.00 per month and I only have 5000.00 coming in.

I have also been told that when I go back to work in July I will loose my job due to down sizing.

I have no 401k, no nothing except a mountain of debt.

I have looked at the online tests for both chapter 7 and 13 and am not sure if my state benefits count, etc.

Also lets say that I do file and then say in 3 months I get a ood paying job again - does the judge look at that and say well now you can pay.

Any and all advice short of robbing a bank would be helpful.

Thanks

[FreshLikeADaisy]

Hi, Opie. Please know that you are not -- by FAR -- the first person to post here because they reached this point via bipolar manic states. So relax, because it can and will get better.

My first suggestion: Many times benefits income is exempt from bankruptcy -- SSI is a good example -- but you really need to see an attorney before you can count on that, because, like you, I don't know if your state benefits, in particular, count. Most bk attys offer free consultations: please don't hesitate to avail yourself of three or four. Not only to get your questions answered and price them out, but just to see whether you like them or not. But don't sign up just yet.

Also, if you were to file a Chapter 7 and got a better job three months after filing, the chances are incredibly slim that it would affect your discharge, which you would be very close to at that point assuming no other complexities were in the mix. Chapter 13 may be a different story; I hope someone else can speak to that better than I can.

My second suggestion would be for you to read up more on bk -- both Chapter 7 and Chapter 13 -- because it sounds like you are eligible for one or the other. Keep in mind that if you file a 13 now, you can convert to a 7 down the road: for instance, when you get laid off, your income will decrease, and sometime after that you would very likely be able to qualify for a 7. But reading up on it *now* is a great way to get a bird's eye overview of the whole process. The book I like is linked in my sig, but there are others too; please do avail yourself of them.

Also, if you are thinking of bk, if you find after visiting an atty or three that you are in fact eligible for a Chapter 7, you need to STOP using your credit cards, STOP paying them, and use that cash instead for atty's fee and regular living (like rent). In other words, don't keep using them after you've quit paying them so that you don't have a creditor object to the discharge of that debt. But to stop paying them prior to bk is common and fairly safe, assuming you have no recent cash advances or obvious luxury purchases.

But if you linger around here while you're busy studying bk, you will NO doubt see posts by people with questions and problems identical to your own, so feel free to ask whatever you like!

I wish you every success, and I'm glad you found this board. Good luck to you!!!

[JRScott]

I'm not sure if your medical benefit counts either.

I do see the major problem though in that your rent is so much of your income. What is the penalty for ending the lease early?

It might make sense if you file to include the lease in the filing, and just find a cheaper place to live. Ideally housing should be less than a third of your income. 3500 would have been a lot even if you still made the 103k.

Anyway I'd check with 3-4 bk lawyers in your area for a free consultation. I am sorry to hear your spouse has left you.

Your bk filing date sets your account. So long as the new job is taken after the 341 meeting and you did not expect to have it before the 341 then it will not affect discharge. I do know that.

[Phillymanhere]

Hey, I second the recommendation to get to several attorneys as soon as you can. You can meet with them for initial consultations for free. Just meeting with them and showing up will help you think, slow down your mind, know that there are options, etc.

Also, as someone who has had ADHD and all the impulsiveness and distraction (and tendency to get lost in foolish tasks) that adhd entails, I can feel for you about the bipolar disorder.

One thing I'm doing is getting good help for my adhd, therapy and medication. If I do not take care of that, I'm gonna end up in the same financial situation again--or it's very likely I will.

So make sure you are getting the best possible care for your bipolar condition. Set that as a priority and try to avoid "fantasy" thinking that "this can never happen again." .... Well, people with various disorders can experience relapses when they become too complacent or start to think they don't have the disorder anymore (because it is in remission due to treatment).

You can do it. Great step to come here.