Ok, we're going to file

[Humonese]

My wife and I met with the lawyer last night and he said we qualify for a Ch. 7 or a 13. We're going to file together to get a clean slate.

We want to go 7 even though he said that since we have $92k in unsecured debt it might open up a fraud investigation. To be honest, we're ok with that because we haven't done anything fraudulent (just years of bad breaks and dumb choices.) We bought a laptop on a credit card 2 weeks ago but went back last night and returned it/got it off the CC and paid cash for it. That's the only time we used a CC in the last 8 months.

He was pushing for 13 but I just don't like the idea of 13 and having to deal with this for 5 years. It's cheaper at first but he'd keep getting paid for the next 5 years so I can understand why he'd want it.

He wants us to extend our car loans out to 5 years with the 13 but we'll have them both paid off in 3, especially if we're out from under this mountain of credit card debt.

We're not late on ANYTHING right now....but that'll change, he said to stop spinning our wheels paying minimums. Works out, because we need the money right now to pay the $2500 for Ch. 7.

Wish me luck as my story moves to the next chapter!

[ShouldWeFile]

We bought a laptop on a credit card 2 weeks ago but went back last night and returned it/got it off the CC and paid cash for it.

Good Idea - probably unnecessary, but a good idea still.

Good Luck with the ch7, I am sure that you will come out better in the long run.

[phigment]

Best of luck as you take the next steps. We have our first bk attorney consult this evening and everything I've read makes me believe CH7 is an option for us too. I hope our discussion doesn't show him to have a bias towards CH13 since he came recommended.

May I ask you and any other readers if $2,500 is the ballpark for a CH7? Is that an "all-in" fee for a standard case? I imagine if your case gets complicated costs will increase.

[Humonese]

On costs, I have no idea, hopefully someone else will pipe up. He said $2500 for Ch . 7 and $1500 up front for Ch. 13 because ongoing costs for his services get rolled into your monthly payments for 5 years in Ch. 13. Sounded like he'd make a heck of a lot more than $2500 in the long run which made me feel like he was biasing toward Ch. 13.

[Trixie007]

We want to go 7 even though he said that since we have $92k in unsecured debt it might open up a fraud investigation.

This seems very odd - we have 180k + in unsecured, not including two second mortgages that will be unsecured by the time we file, that add's another 170k maybe. Our attorney said filing when you have such high numbers just plain makes sense to the Trustee. Have you already hired this guy? Did you do more than one consult? I would probably keep talking to a few more attorneys.

[Humonese]

We haven't hired him yet. He said sometimes when it's near $100k in unsecured debt (credit cards, lines of credit) they'll want to check it out to make sure you weren't siphoning money out systematically and shoving it under your mattress or giving it to anyone. There aren't a whole lot of lawyer options where I live, small town - I'm having trouble just finding another free-consult lawyer.

[phigment]

There aren't a whole lot of lawyer options where I live, small town - I'm having trouble just finding another free-consult lawyer.

For what's it worth; Based on a recommendation in another thread on this forum I asked my local bar association for a few referrals. I got three names and they even had an arrangement with the association that I got a free or reduced fee consult when I mentioned I came through the associations referral program. I live in Central NJ so I am sure I have more options but it may be worth a shot for you.

[gogetter76]

Hello,

I am paying $2000 for mine. The ballpark figures i got were from $850 to $3000. After talking with my lawyer friend, i went with a little higher figure than the norm and his experience and i got it through a referral.

Just what i did.

When are you looking to file?

[Humonese]

I'm probably filing in the next 2-3 weeks, I need to come up with the cash to pay the lawyer.

[Overmylimit]

Mine was 3300.00 up front for Chp 7. I have business and personal. Also 440k in unsecured. Just because you have 100k in unsecured that doesn't mean you will be put under the microscope, did he make it sound like if you went with a 13 their wouldn't be any possible fraud investigation? If so you might want to find another Attorney.