I don't have a sob story.

[gymbo]

I overspent. That's really how I got myself into this mess - or I should say we. My husband and I bought the house we thought we would live in forever last year - and did all kinds of work to it (too much obviously) then, since he works in construction, his income dropped drastically over the winter - and the next thing I know we are strapped with a mountain of credit card bills that we cannot pay. (approx $45k)

At this point we are not behind on any bills - but thats only because I am robbing Peter to pay Paul ( borrowing $ from cc's - digging deeper into debt).

Alot of people who post on this forum seem to have real, legitimate reasons for being in this predicament - divorce, job loss, illness, etc.

I am wondering - if we do decide to file BK, will it count against us that the only reason we are in this situation is overspending?

Right now our bills (bills, not expenses) total $500 more than our income per month.
We are a family of three, I am guessing we are about $30k over the median. We have a house with little equity and two older cars. No toys.
Any advice, or suggestions? Am I jumping the gun to consider bankruptcy?
Any idea how much we will have to pay per month in Ch 13? Do we have any chance at all at a Ch 7? I'm just so confused. I want to do the "right thing" and pay my debts... I just don't see how.

[lrprn]

I am wondering - if we do decide to file BK, will it count against us that the only reason we are in this situation is overspending?

The trustee and courts don't care why you are in debt. A few trustees may ask during the 341 - if that happens, keep it simple and say money mismanagement. That will be the end of it.

Any advice, or suggestions? Am I jumping the gun to consider bankruptcy?

Hard to say without knowing all the details, but if you are already seeing the downward spiral, chances are unless you win the lottery tomorrow or a rich relative leaves you a pile of cash, the downward spiral will continue.

The best thing to do now is set up free or low-cost initial consultations with 3-4 experienced bankruptcy lawyers in your area. After talking with them, you'll have a much better idea of how filing bankruptcy is going to play out for you and your family.

Any idea how much we will have to pay per month in Ch 13? Do we have any chance at all at a Ch 7?

There's no way to tell with any reliability until an experienced bk lawyer fills out the Means Test and Schedules to see how much (if any) disposable income you show. That's what determines which chapter you can file.

If you show more than $160/month disposable income on the Means Test and Schedules, then you'll be filing Ch 13. The size of your payments will be determined by how much disposable income you show on the Means Test and Schedules.

Hang in there. The first steps of this journey are the very hardest. You are starting out the right way by finding out as much as you can about bankruptcy, We'll help you sort things out as best as we can.

[2confused]

Yes, we also have no other reason then stupidity and over-spending but, thus far have been okay through process. ( 1 week t o go) The trustee did ask how we spent so much money but because my husband is self employed, we do have quite a big overhead. Good Luck.

[rfassett]

It certainly sounds like you would be looking at a seven if you are borrowing $500 per month just to get by. I would bet that the $45,000 credit card debt is accounting for most, if not all, of the $500 deficit. And if that went away in the bk, you would be able to make ends meet. I agree, though, with lrprn, that we do not have enough info, that you should seek out legal advice and also do a great deal of studying to educate yourself about the process.

As an aside, and this is just a thought out loud, if you will, with bankruptcies on the rise, significantly I might add, I wonder how long the free consultation with the attorney is going to be available. Attorneys, like any other professional, are in business to make money. I would bet that you are going to see the better (more experienced) attorneys stop offering free consultations in the near future. And/or the appointments are going to be getting harder and harder to get. That said, I would start calling those attorneys very soon. You are committing to nothing during those appointments, you are only gathering needed information.

[gymbo]

Thanks

Thanks so much to everyone... I was bracing for a blasting - "How could you ring up so much debt???"

I can only say we ask ourselves that everyday.
Thanks.

[Stilltheone]

Thanks so much to everyone... I was bracing for a blasting - "How could you ring up so much debt???"

I can only say we ask ourselves that everyday.
Thanks.

HA!

When we originally met with our lawyer, we thought we had *about* 50K in credit card debt.....

After listing every single debt we had, the total came to a little over $60K.... That didn't include our home or car.

Trust me, you're not the only one!

[JollyGG]

There is a sticky in the general bankrutpcy section that ask why everyone filed.

http://www.bkforum.com/poll.php?do=showresults&pollid=2

Credit card debt / aka- money mismanagement seems to be the number one reason.

Most members of this site manage to file and get discharged without incident. So don't think that you really need a sob story in order to file a sucessful bankrutpcy.

[Phillymanhere]

gymbo,
I am sorry, but I had to chuckle at your giving the rest of us so much credit for having "legitimate" reasons for filing for bk. Is being foolish a legitimate reason? Is fantasizing about some big payoff a legitimate reason?

Join the club--thank God, bankruptcy is pretty neutral on the reason for our troubles.
Anyway, welcome and good luck .....

[treehugger1]

Don't worry about any sob stories. For some, they do offer a mending of the conscious and that is fine also. Me, I'm $135K in unsecured debt between unsecured accounts and stundet loans. My own doing, of course. It is time for you to make a decision, consider a BK a serious option, walk away from your unsecured debt and accept any consequences, or ??? This is a great board. You'll get lots of responses based on experience; the most important factor when considering "advice." Best to you.

[petej]

On the business worksheet that the trustee sent me there is a large space that asks "List what circumstances caused you to file a Chapter 13 Bankruptcy?" Boy that could open a can of worms

[justplaintired]

gymbo, overspending got us here. Among other things. Sounds like a slow down in DH work also sent you here, not just overspending. I am sure you thought you could make those payments, but like most of us, you found out too late you couldn't. Money mismanagement like us. That is our biggest problem. You'll do fine, not sure, but just because you're over the median doesn't mean you won't qualify for a C7. Talk to some attorneys (more then one don't forget) see what they say.

[morallyBR2]

If it makes you feel any better, I am simply a chronic spender as well. I need a 12 step program for buying s**t I guess.

[southernbelle]

Gambling, divorce, businesses that went south, overspending, medical, you name it I think we've got it. Think of BK as a business decision. At your 341, your Trustee "might" ask you why you are filing, but keep the answers short and sweet. Trust me, I'll bet the Trustee has heard it all.

Just focus on how to correct the problem and make sure your BK goes smoothly with submitting correct and complete information to the court and telling your atty everything to make sure you don't leave anything to chance. You'll be fine. Good luck.

[JRScott]

Dave Ramsey calls it Spenditis. You are not alone .

Just work to fix the budgeting problems so that after the bk you'll be in good shape .

[nomoretogive]

That is the beauty of this board. It really helps mentally to know you are not alone. It happens to lots of us for many reasons. And it seems to run the gamut as far as folks from all walks of life. I have found myself quoting this board to various family members that act as if I just told them I had a communicable disease when I mention BK. We all make mistakes. The main thing is we learn from them.