I really don't know what to do, and I need major advice.

[debtsucks]

We are claiming Chapter 7, no asset. Everything is set to go, all we need to do is pay the filing fee and do credit counseling. My husband is up for a promotion, and he is the best guy they have but, they are pissed that he is claiming another chapter 7 and they won't promote him, pretty much ever because of this. They told him they will promote him if he works out a payment plan with his creditors and withdrawals from the bankruptcy. I really don't know what to do, and can THEY really do that to him??? We live in the state of Illinois, Dupage county if that makes a difference. We are about 13,000 in the hole for his credit cards alone, that doesn't include medical and the car. We haven't been paying on the credit cards for a little over 6 months. The car is up to date. What should we do? If we withdrawal from the BK I am sure we will lose all of the money we payed to the lawyer. I'm just worried if we try to make a payment arrangement with his creditors they will really try to pursue us and try to sue.

[ForumReader]

We are claiming Chapter 7, no asset. Everything is set to go, all we need to do is pay the filing fee and do credit counseling. My husband is up for a promotion, and he is the best guy they have but, they are pissed that he is claiming another chapter 7 and they won't promote him, pretty much ever because of this. They told him they will promote him if he works out a payment plan with his creditors and withdrawals from the bankruptcy. I really don't know what to do, and can THEY really do that to him??? We live in the state of Illinois, Dupage county if that makes a difference. We are about 13,000 in the hole for his credit cards alone, that doesn't include medical and the car. We haven't been paying on the credit cards for a little over 6 months. The car is up to date. What should we do? If we withdrawal from the BK I am sure we will lose all of the money we payed to the lawyer. I'm just worried if we try to make a payment arrangement with his creditors they will really try to pursue us and try to sue.

That is a bummer. Is any of your credit card debt associated with your husband's employer? I really don't understand why they are saying you guys should make payments to pay down your debt rather than file bk in order to promote your husband. Was his employer notified of the BK? What did your lawyer say about this? To be honest, your credit card debt is low enough to settle, but I don't know about your medical debt.

[nc73]

Unfortunately employers can do whatever they want. I do agree though that the debt is small and can be negotiated. As for medical...well as the previous poster said that depends on how much is owed.

[NewPage]

Any possibility of converting to a Ch. 13?

[LadyInTheRed]

Does a significant raise come with that promotion?

[debtsucks]

There is no big raise with the promotion. I was off on the credit card debt, it is a little over 20,000. I wasn't including mine, and that doesn't count a 19,000 car loan that we were planning in the bankruptcy.
I talked to our lawyer and explained our situation. I told them about some issues we had with the company he works for and how they used something that happened in his personal life to demote him about a year ago, and that is the reason we are claiming bankruptcy. He went from making almost 90,000 a year to 45,000. The same corporate person who demoted him, is now interfering in the promotion. Our debt has nothing to do with the company my husband works for. Our lawyer wants us to contact an employment attorney because he thinks that they are discriminating against him. So I really don't know what to do. I feel like, Why should we stop the bankruptcy, and put us even further in a hole for them? We could do as they want us to and they could still not promote him, or try to fire him. I would rather claim the bankruptcy, have no debt, start fresh, and if they were to get rid of him, at least we don't have all that debt hanging over our heads. I appreciate all of your advice.

[nerves]

I know this doesn't help your situation, but I can only foresee more bk after the health reform goes into total effect. I can only imagine what employers will do with employees that have health problems they are going to be required to cover with increased premiums. To eliminate the expense - they will eliminate the employee. More medical bankruptcies. I don't believe this was address in the magical health reform that is going to save everyone. I do believe we need some sort of reform but this bill isn't it. IMO.

I would agree with your attorney - get a free consult with an employment attorney. This action is just wrong! You would think it would be a relief for the employer - a less stressed employee can perform better which would be better for their bottom line - profit.

[olivies]

II can only imagine what employers will do with employees that have health problems they are going to be required to cover with increased premiums. To eliminate the expense - they will eliminate the employee. More medical bankruptcies. I don't believe this was address in the magical health reform that is going to save everyone. I do believe we need some sort of reform but this bill isn't it. IMO.

Well, that logic is a bit fuzzy. If they have medical problems the employer could already be paying an increased premium on them- that has nothing to do with the healthcare reform bill. Unless you're talking about the person currently being uninsurable because of their health problem and the employer doesn't offer health insurance- which in that case they are headed to medical bankruptcy already.

To the OP- I would contact a labor attorney for a consultation. Section 525 of the US Bankruptcy code provides that:

If they are telling him that they will promote him if he doesn't pursue the bankruptcy, then they are saying he is qualified for and they deem him worthy of promotion. So his lack of promotion is SOLELY because of his seeking bankruptcy protection. I think it's something worth exploring with an attorney. The only exception I can think of is what his job actually entails- for example, if he works for as a financial advisor or in the banking industry.

[debtsucks]

Olivies~ Thanks for referencing the bankruptcy code. I needed to see that. We are definitely going to contact a lawyer, and see what they say.

My husband works retail, he is a sales supervisor. It isn't like he is in a position that requires him to have a cc for travel, like when he was a district manager. The person who is interfering in this promotion told my husband last year that it would be over his dead body if my husband advanced in the company. We are documenting every text message, email, and dates of conversations.