Do i qualify????

[Leopard]

HI

KUDOs to whoever dreamed up this forum

I have questions to determine if I even qualify for Chap 7?

My wife & I have a over 120k income...a large 401k, are in our mis 50s early 60s,w retirement just around the corner.

I had a chap 7 20 yrs ago after surgery and a nasty divorce. I remarried during the process and my new wife than was ll for my chap 7...

IN the mid 90s CC companies flocked to me after 7 yrs...During that time. my wife never got a raise-shes in academia-not even along w her peers. so we began to accumulate CC debt... To forego child care, I quit my business and became stay at home dad..

Around 1993.I misrepresented my income as a consultant for cards, and they came my way, each more seductive than the other..I made some bad decisions, and accunulated 6 cards..

Then in04 i was injured and spent a terrible yr in diagnosis before I had surgery in o5.. Insurance paid those bills, but the plastic debt began to rise..

Situation now: I have 6 cards, all maxxed, wife has 3 all maxed. recently she was recruited for a bigger gig w 40K raise and relo..we jumped at it but since our former digs were in foreclosureland we lost 50K on old home price and had to borrow vs 401K to DP for new home.. Credit wise all that was a slam dunk in her name..

Now what tearing us apart is how to ELIMINATE our CC debt?

Since each of my CC companies, continued to jack up the interst to unsustainable levles..I believe thta Ive probably paid for the actuall stuff I bought 5 yrs ago and am now payin interest on interest..

Wife is scared about what other people will think if I chap7, so that the cash inflow can fund the elimination of her debt altogether. Now will she agree to defund our 401K by 100 or 200/mo to get the seed $$$ to begin snowballin down mt plastic..hers are atill at relatively low interest rates

So were at a quandry... she still has her old masn tapes playin thru her head with old line thinking motivated by fear.. Her opinion: The CC companies can do anything they want to us and we just have to take it..even jackin up our rates althought hers havent been

Her pops a nice guy, but its the same guy who told me 1n 1994 that my 401K stock accounts could NEVER yield 20% /yr even though I showed him on paper that they were... I think his $$$ acumen is mixed..spot on on some things and and Depression era thinking on others.. Those same" stock accounts' propleed our 401 from the time he saw it to over 600k... but on my plan not his...but wife thinks his advice is the financial GOD

so were stuck.. I feel the CC companies ripped me off the GAME CHANGER being the doubling of my interest rates.. Ive spoken with em & mentioned Chap 7 as leverage..they could care less

even though theyve gotten a GOVT bailout...

so any ideas fols..Im tempted to rush off from out tiny college town to get a big city suit to Chap 7

shes worried about what will the neighbors think

Why do women. even smart ones ..live their lives based on this fear?

IF IM WRONG..and I might be....Id like to figur eout a way to eliminate my debt then eliminate hers

Im 61, partially disabled..have no career since I became stay at home dad in 99 to forego child care..and this new gig was supposed to be a way to rid us of our debts


I feel like IM treading water..Im usually decisive but dont EVER want to hurt my wife..but do want to do whats best for both of us

any thoughts

Id be indebted to a real planner on this one

[JRScott]

Okay first off don't dip into your 401k, it is exempt in most bk proceedings anyway and at your age you'll never replenish them before you reach retirement age.

You don't mention your household size or what state you live in. That would be helpful.

Assuming only 2 people in a household and income of 120k a year is probably to high to get a Chapter 7, unless some of that income is exempt (such as disability, etc) from being included. However a Chapter 13 might be something you could explore in that case. Now if you still have kids at home it might be far more likely for a Chapter 7 just need more info from you .

[Leopard]

Thanks

thanks for caring enough to reply

we live in AR and have a teenager....I misrepresented my income to obtain plastic..and couldve paid the stuff off if I hadnt gotten injured & had surgery prompting a 2yr recovery period...

I had no idea that HH income was a determinant in a Chap7..we only have my wifes job...

my plastic debts in my name only. no card held jointly, house in wifes name for credit, but both of us are on title...

Im not sure if that helped....

I wasnt going to dip into the 401, just not continue to add as much each month.During the 08 meltdown, we lost maybe 36k on 588K..made all of that back already plus some..so using it to pay this off was never ever considered..

Last yr, we got an 8K IRS refund..planned to kepp 4k as emergency & chunk out plasti w rest.. never happened..I became mentally ill for 6 months, counseling bills and several K of car repairs..presto...gone..

IM better this yr and on top of my game and determined to fight back against these plastic compaines and thier bait n switch crap..I'M really pissed

thank you for caring..off my soapbox

[OhioFiler]

My first suggestion is to take an online means test such as this one to determine whether you are most likely a C7 or C13 candidate.

Online Means Test

[JRScott]

Arkansas is not a community property state, so it might be possible for you to file singly even though married. That would dump your credit card debt.

Would largely depend on your share of the equity in the home I suppose.

You will probably need legal council. Ohio is right fill out the means test, do the whole thing if you have particularly high medical expenses due to your disability it may be possible to still get a chapter 7 but you will have to deal with the UST in all probability which can be intimidating but so long as you can back up your figures you can pass that hurdle, you'll need a lawyer that will fight for you.

I'd suggest calling 3-4 in your area and set up a free consultation. Tell them also about the misrepresentation, depending how long ago you did that they may have no record of it anymore and thus it could be a mote point but if you did it like within the last couple of years it could be an issue and best the lawyer know up front.

[Leopard]

Thank YOU Both

Thanks to both of you steering me in the right direction...

I did have a lawyer in my 1989 Chap 7, and he went to court with me and overall did little else but to encourage me to file, even though, unlike now..I was employed w only 10K of bebt on a 33K income thne

Today my numbers are higher..

The misrepresentations... each were over 5 yrs ago at the beginning of this nightmare, n before I was injured..our whole financial pic was different..

I never shouldve seduced myself with the array of easy offers that flooded in..at the time and at the int rate, I could fit all the pmts in the budget..

barely able to do that now, eveb w higher net income..as the intro rates have more than tripled..

It seems as if the CC companies are poised to exploit fine print miscues w rates hikes that are unsustainable..my fault though, never anticiaped bein hurt, bein operated on, takin 2 yrs to recover..you never expect being in & out of bed for over a yr

jeez shoulda woulda coulda...still my fault

I swear never even want anything but a debit card again..

Thanks you guys ,n God Bless

all else is in wifeys lily white credit score..which has to stay that way