What to do, and what to expect?

[CTRN]

I have a consult with an attorney Thursday, and I'm not sure what to bring or what to expect.

At the beginning of nursing school (2005) I found out I was pregnant. My husband had been recently laid off. We were had about $15,000 in c.c. debt, with some small medical bills. I stopped paying the cc's around that time, as we had to pay for a baby.

Fast forward to today. One of the credit cards are suing, with others likely to follow. I graduated nursing school and make decent money now (@50,000). My husband never found a steady job, and is in school full-time. Besides the original, approximate $15,000 in cc debt, we have about $6,000 in medical debt, and $30,000 in student loan debt.

I have a few issues. First, I don't know how much I owe. I no longer have any statements, and I haven't been keeping every bill sent. The only way I have a general idea is from my credit report.

Second, I don't know if I should file Ch 7 or 13, or if I even have a choice. If all the late payments and lawyers fees were removed from the original debt, I could probably swing paying them off within 3-5 years. I really don't know, because I'm really not sure how much I owe exactly.

How many tax returns do I need? I have the last 2 years. 2008 tax return shows income of $11,000 and 2009 $28,000. Take home this year with be about $35,000 but that's because I now pay for insurances and have a 401K. Gross is close to $50,000.

We do not own a home. We each have a car that is paid off. We have lived off cash and not credit for awhile now. Owning a home and getting a newer vehicle is a long term goal, but not an immediate need. Our monthly living expenses, including my stuent loan payment is about $1500. There isn't much more to squeeze out of there right now, but there is some wiggle room.

I have been stashing emergency $$$, including having cash to pay for the lawyer.

I really just don't know what to do or expect. By the looks of my credit report I don't owe that much, because some have been written off and don't include all the extra fees. Yet, I just don't have the money to pay them all off at once.

What can I do to prepare?

[SMinGA]

Its not important that you know exact balances. More important to make sure you include all creditors - even if they don't report to the credit bureaus. (In my experience, misc. collections and medical don't always report.)

I believe 2 years of tax returns are standard.

Some beginning steps that I can think of: since you are now at a higher income than you were before, check the IRS website for a calculator to determine if you are on track for proper withholding. You want to aim for close to $0 - no major refund, but no $ owed at tax time either. Adjust withholdings if necessary.

Whether or not you should file 7 vs. 13 is largely a matter of disposable income. That is, net income less bills & expenses. By bills, you would not count the debts to be discharged. So rent, utilities, insurance, etc. And expenses would cover groceries, household needs, personal care items, clothing, vehicle maintenance, etc. etc. etc. If there is very little left, you can probably file ch. 7. If you have money remaining to allow for a plan payment, you'll probably be a ch. 13 candidate.

Meeting with a few local attorneys should give you a good starting point.

[skweakalee]

I think an important step in preparation is negotiating with the CC companies and doctor's office. You don't really owe that much. See how receptive they are to a modified payment plan on a smaller amount. CC companies are usually happy to collect >40% on a debt because they usually get a lot less if the person declares bankruptcy.

I must be lost though, because I believe you said you are NETTING ~$3,000/month, have expenses of $1,500/month and you could "probably" pay off the debts in 3-5 years? 1.5 years sounds about right based on those numbers.

[CTRN]

I think an important step in preparation is negotiating with the CC companies and doctor's office. You don't really owe that much. See how receptive they are to a modified payment plan on a smaller amount. CC companies are usually happy to collect >40% on a debt because they usually get a lot less if the person declares bankruptcy.

I must be lost though, because I believe you said you are NETTING ~$3,000/month, have expenses of $1,500/month and you could "probably" pay off the debts in 3-5 years? 1.5 years sounds about right based on those numbers.

Those are approximate amounts, and I'm being conservative. The net depends on if I work all my scheduled hours, which there has been a lot of on-call lately. $2,500 is more fair. And $1,500 is rent, utilities, and student loans. If food, and other incidentals are included it is probably closer to $2,000.

Hence my issue, I really need a budget. I really don't know how much I have coming and going, but I have managed to save over $5,000 in the last year without tightening too much.

So maybe I can afford it. The biggest issue I have is talking to creditors. I hate confrontation. However, if they were willing to settle for less (even just removing the extra fees) and take a payment plan I probably could get it paid off within a few years. Some I could pay upfront with my savings. I just don't know how willing they are to work with me.

I guess there's only one way to find out....start picking up the phone when it rings.

I have my first consult with an attorney Thursday, I think I'll see what he says also.

[UghUghUgh]

You have come to the right place for words of encouragement and some good 'information' (never advice.) on your troubles. You need to speak to an attorney only they can really tell you how it will go in your area based on your numbers. I wish you the best.

I was told for my first visit, which I just scheduled this morning for September 10th, to bring 2008 and 2009 tax returns. The last 6 months of paystubs. My current car loan statement and the latest statement for all credit cards. I would take what you can out of that so they have as many of the numbers as they need. I am not sure what to tell you about the cards that you do not have statements on. I am certain though that the attorney will now how to procure that information. Congratulations on your RN and the baby!

[drowning123]

I actually called up my card companies and asked them to send me the last statement they ever sent me. One statement was 2 years ago. You can try that. I assume that you've been contacted by collection agencies, correct? You can use their statements, too.

[scorpion35]

I have a consult with an attorney Thursday, and I'm not sure what to bring or what to expect.

At the beginning of nursing school (2005) I found out I was pregnant. My husband had been recently laid off. We were had about $15,000 in c.c. debt, with some small medical bills. I stopped paying the cc's around that time, as we had to pay for a baby.

Fast forward to today. One of the credit cards are suing, with others likely to follow. I graduated nursing school and make decent money now (@50,000). My husband never found a steady job, and is in school full-time. Besides the original, approximate $15,000 in cc debt, we have about $6,000 in medical debt, and $30,000 in student loan debt.

I have a few issues. First, I don't know how much I owe. I no longer have any statements, and I haven't been keeping every bill sent. The only way I have a general idea is from my credit report.

Second, I don't know if I should file Ch 7 or 13, or if I even have a choice. If all the late payments and lawyers fees were removed from the original debt, I could probably swing paying them off within 3-5 years. I really don't know, because I'm really not sure how much I owe exactly.

How many tax returns do I need? I have the last 2 years. 2008 tax return shows income of $11,000 and 2009 $28,000. Take home this year with be about $35,000 but that's because I now pay for insurances and have a 401K. Gross is close to $50,000.

We do not own a home. We each have a car that is paid off. We have lived off cash and not credit for awhile now. Owning a home and getting a newer vehicle is a long term goal, but not an immediate need. Our monthly living expenses, including my stuent loan payment is about $1500. There isn't much more to squeeze out of there right now, but there is some wiggle room.

I have been stashing emergency $$$, including having cash to pay for the lawyer.

I really just don't know what to do or expect. By the looks of my credit report I don't owe that much, because some have been written off and don't include all the extra fees. Yet, I just don't have the money to pay them all off at once.

What can I do to prepare?

in your case i would not file BK
i would call and negociate settlements