Why do people make plans to file in 6 months?

[ohantonio]

I'm aware of the 6 month look back, but what are some other reasons? I just stopped going into further debt and stopped paying my cc bills last month and i'd file today if I could. Ten or so cc companies calling all day long, so I unplugged my home phone because I was sick of cringing everytime it rang.

[SMinGA]

Can be various reasons.

Personally there are some things I need to resolve first. I don't have a magic date to file, but would like to get the process started sooner rather than later. Hence my plan of filing by end of Dec., so that my plan can be complete by end of '13. (Mine has nothing to do with the lookback, I'm under median no matter which months you use.)

In other situations, it might mean having more time to save up money - such as to pay attorney's fees or to have some cash on hand for emergencies. (Which would also depend on the state exemptions to protect cash on hand.) Or similarly, to spend non-exempt cash in an allowed manner before filing.

[helpmeout]

Timing. Maybe they had a bonus that they need to fall off of the look back. I know that I filed in less than 4 months from the decision to file. I had to file before I got my bonus or I would have had to wait. As it is, I had to file earlier than planned by 4 days because I got my bonus early. Because of the way the means test is done, I might have been over. If they had looked at the whole year instead of just 6 months, there would have been no problem as I am under the annual median even with the bonus.

[nokia123]

For me it was not having the full amount of money to pay the lawyer.

[ryan]

Many reasons for me:

- Put more time between last CC use and BK
- Save for lawyer
- Save in general for life without credit
- Learn from others who have gone thru BK first
- Spend non-exempt monies for necessities
- Finish up filing back tax/refund
- Continue to investigate alternatives as well

[StartingOver08]

Another reason someone would wait 6 months is if they have insider payments that need to get beyond the 12 month mark. Many people are simply not aware of the various "rules" that BK has and have done things, like repay a loan to Mom and Dad, prior to checking out the Bk info.

Some people want to complete their mortgage modifications prior to filing BK.

Most of the reasons involve BK planning so the debtor can get through the BK process much more smoothly.

[DeadManCrawling]

I waited three years. A combination of all of the above.

Biggest for me: I was injured and continued to incur medical expenses that I wanted to include.

My income was triple the median, but I knew it would drop gradually as a result of the injury. In the end, it did drop to below median, and we were able to file. Shortly thereafter, it began rising again. I had to wait for a "perfect" 6 month lookback or would have been pushed into a 13.

[sunshinepa]

dmc...........how did you manage to hold creditors off that long.........amazing......LOL

[AngelinaCatHub]

Looking back in wisdom, I can state with experience: It is prudent to carefully plan your bk.

No not to make a creative attempt to protect assets. That is a grand mistake that will bite you. It is to educate yourself with the process, the law, and take note of what got you where you are today.

If I had wisdom then as I do now, I would advise myself to take note of how many toys, went by the wayside. Junk, just junk, that I purchased yesterdays ago and today I must pay for.

Credit and easy credit has never been an issue in our lives. If I wanted it, I got it. Never asking the price or the need, just the want.

Now that I have been tutored in the school of hard knocks, I see all of that was vanity. Just lust for things that rust.

I would plan my six month budget, find out what is the minimal that my family needs, what essentials I can stock pile and what frills I can turn off without regret.

I never stopped paying my credit cards as always advised here to do. All of a sudden, by fact of my errors, I COULD NOT pay them. Blam, it happened. We filed for 13 originally, no not filed but addressed the lawyer then Mrs. lost her job, and me, my health. 7 was my ONLY option.

Yes planning for six months is recommended. Just to reevaluate what your real values are. Family, love, memories, and heritage. Things are of no value. Things as toys just get stored and later thrown. Values are Character and family. This is my rambling opinion.

As convoluted as it is, I hope some Newbie sees what I am poorly trying to say. It is not shameful to face the realization that you must go bankrupt and start over. We had it all and NOW after bankruptcy, we have MORE. Not in things but in value of the things we have. Health, peace, and happiness.

'Hub

[sunshinepa]

Hub Could not agree more with your statement on what's important. Some of my debt was incurred to help my son/kids keep cars and food on the table.......and nursed father with brain cancer....lost him anyway....put me is despair which helped me raise the debt...no excuse, just what happened.

Truth is........I would help son again.......I am planning, waiting and searching all threads just for info. You have been very helpful.

I never had cc debt before and boy you are right.......gets out of hand for no real good reasons in some cases.

[frogger]

I studied, I planned, I read this forum up one side and down the other. I also thought that I had pretty much everything in place and ready to file.

"Pretty much" is about all I can say, for if I knew then what I know now, I could have came out thousands of dollars better.

You can't study too much. You can't learn too much.

You can't plan too well.........

[AngelinaCatHub]

Hub Could not agree more with your statement on what's important. Some of my debt was incurred to help my son/kids keep cars and food on the table.......and nursed father with brain cancer....lost him anyway....put me is despair which helped me raise the debt...no excuse, just what happened.

Truth is........I would help son again.......I am planning, waiting and searching all threads just for info. You have been very helpful.

I never had cc debt before and boy you are right.......gets out of hand for no real good reasons in some cases.

Thank you for your response to my post. Actually, I was in a bit of melancholy when I wrote this. It is not that I have not found happiness in my bk. I have learned. It is that we contributed to others so much and had that wealth. I love the bk Forum and wished we could help others as we have done. The great thing about bk Forum is that we still can do this and it cost us nothing but time in our lives. But it is Oh so rewarding.

I agree with your post and in the same state, I would give my shirt and shoes to help another. But when you are naked and no longer have those resources, it is time to think of what really is important.

First is; YOU. You are important as only YOU can make a difference. If YOU were gone, nothing would happen by YOUR hands. So take care of YOU first.

Second; Your spouse. If you have a significant other, they are important as they give you strength, encouragement, comfort and peace.

Third; Family. You must have first and second in hand to handle the third your family. Without both of you, you don't have the strength to help a child or a parent. You must instruct them first to give them aid but not charity. Give them what you have to afford but no more than that. As if you do, then the First and the Second shall suffer and fail.

Fourth; Values. Our World is spinning too fast. This is what we have come to. The bare basics are what is important. Those you see running around in panic when the stock market goes down, have no values except paper. Once you come to the realization that bankruptcy was caused by YOU and the values YOU chose, then you can re-evaluate what is really important.

We are in strange times now. It is prudent to live below our means and wait it out. Things will always change in time.

This is a link to a Johnny Cash song that I have put here before. It kind of tells a tale of life. Make sure you look at the video as it is his life rise fall and success. You are on the success part of your now just by realization of what true values are.

http://www.youtube.com/watch?v=KlShSNc2dMA

'Hub

[feelingnutsy]

You wait at least six months---if possible---to take stock---
have a good talk with yourself about what happened---then
put on your big girl/big boy pants---and plan-plan-plan-plan.

[oregonpilot]

Thank you....Hub.
Your insight has helped me from crawling into a hole.

[bkinparadise]

Thank you....Hub.
Your insight has helped me from crawling into a hole.

Aloha ACH and I also thank you for your insightful posts. I've been very arrogant and vain over the years and never thought what my financial actions would have now brought me. Spend now, pay later was my mantra never thinking of the future. Now the future is here and I am drowning in debt for toys and wants that are now gone and I have practically nothing to show. I wanted to cry after reading your posts but I know that all the crying and being pissed at myself will not help me now. Planning for positive action now and for the future is what I know I have to do. That's why I'm here in this forum and working toward fixing what is broken.

I didn't want to wait any longer after I came to the realization that I was totally broke and stressed out. I lied to myself and my wife about my situation but now I came clean about my financial situation. Less than a week after talking about my situation to my wife, I called a couple BK attorneys and scheduled a consultation. I could have lost what really was important to me (my health - physical and mental, my loving wife and daughter) but now I am on my road to recovery and a fresh start. I've planned and did what I needed to file and I hope to file this month as all docs have been submitted to my attorney.

I'm glad I have found this forum as I know I am not alone in my quest for relief from the crushing weight of debt. I am hoping the best for me and the rest of the members that is on same journey that I am on. Good luck to all and thanks again 'hub.