New and a little bit freaked out...

[CaroleAntsy]

Hi everyone. I've spent the past 3 hours scouring this forum. You all seem so knowledgeable and compassionate that I'm hoping to find some guidance and understanding regarding my own situation.

I'm just starting to think about filing - too many bills coupled with a great job at a pay cut doesn't work out very well financially. I'm scared and confused...my ex husband and I had to file ch7 in 2005 (I think) so I don't know what I'll be able to do if anything. I don't have credit card debt but do have a car payment that I can barely afford and numerous medical bills that have gone to collections. I also have 2 repossessed vehicles on my credit report because of the divorce and I owe taxes from having to cash in my 401K immediately after the divorce. Not a good situation and I'm really tired of the phone calls and wondering who's going to sue me next. Oh...I also received notification of a wage garnishment today. Not good but I'm hoping to pay it off before the garnishment takes effect.

Anyway...Hi and thanks for sharing your stories and advice. It really does help.

~c

[AngelinaCat]

Hi Carol:

Welcome to the forum, and here is wishing you a very Happy New Year! That sounds odd right now, I know. But you are starting on a journey that I hope will bring you and your family peace. You are frightened and stressed now, but it does get better.

To answer one of your questions, if you and your ex filed Ch7 BK in 2005, you will have to wait until eight years have passed before you can file a Ch7 again. However, you can file a Ch13. But you are in there very beginning of the thinking and planning stages. I am sure that many of the other members will chime in and offer their own suggestions and perspectives.

Good wishes to you and welcome.

[doni49]

Carol,

Have you sat down with a credit counselor (A REPUTABLE ONE that is)? There are some great non-profit ones out there. They MAY be able to negotiate with the CAs oabout the med bills.

From what I read, the only debts that a BK7 would eliminate are the med bills. The taxes most likely would not go away--although there are some scenarios where tax debts CAN be eliminated or reduced. You might consider discussing that with a BK atty on a free consult. Check first to see exactly when you filed. You can't file again until 8 yrs after the filing date of the prev BK7. Hopefully you're wrong about the year and it was 2004 or 2003.

[despritfreya]

Carole,

Welcome to the forum. Cat is correct. No possibility of a 7 discharge until 8 years has passed from the filing date of the 2005 case. You are probably looking at a Chapter 13. How much tax debt do you have and from what years? There are ways to have the taxes classified as a "general unsecured" claim just like the medical bills but there is no way to even venture a guess without knowing what tax years are involved. One of the advantages of the 13 is that interest will stop running on the "priority" tax obligation and the penalties will be deemed as a "general unsecured" claim.

Des.

[CaroleAntsy]

Hi all! Thanks for the replies...I think I'm probably looking at a 13 as well, and that's fine. I just want to get my stuff in order again and not be terrorized by my mailbox any more. You know? It's 4 years, though I believe I have overpaid in 2011 so I can offset some with that refund. I expect it's $7000 total for both state and federal. I'm trying to NOT freak out and get it together to meet with my parent's tax guy and a bk attorney. This place helps.

[mountanddo]

Welcome to the forum Carole!

I too, had to file a chapter 13 because I filed chapter 7 just 7 years ago due to a divorce and failed business. I tried to wait the 8 years but ended up getting a summons and a possible wage garnishment. It sucks to have to file again but you will be glad you did. Just not having to look over your shoulder or jump every time the phone rings will bring you peace. Are you currently paying your medical bills and taxes? You say that you can hardly afford your car so am wondering if you have other extraordinary bills besides those. In order for a chapter 13 to be sucessful you have to have something left over to pay unsecured creditors along with your regular monthly bills. If you are under the income median for your state you may be able to be in a chapter 13 for 3 years, otherwise it would be 5. Unfortunately a chapter 13 isn't a direct dismissal of your debts like a chapter 7 but if you can make it through you'll have the same new start, just a little longer. Good luck to you and read, read, read. I found it strangely comforting to get as much information as possible.

[keepsmiling]

No brilliant ideas, but a warm welcome. Just being here with friends will be calming for you. And you will arm yourself with knowledge on how best to proceed.
Happy New Year and stay calm. Clarity is forthcoming.

[CaroleAntsy]

Hi Mountanddo - I'm not paying anything above my rent, utilities, food, car and insurance. Nothing else gets paid. I haven't even filed tax returns for the past 4 years and didn't have employment taxes taken out for 2 of those 4 in addition to having income from cashing in my 401. I'm anxious and nauseated and fuh-reaking out at bit...but determined to put this all behind me. Even if it takes 5 years and a payment plan or two. Ugh...

Thanks Keepsmiling. I'm trying to stay calm but I'm in this boat alone. It's rough seas right now.

[keepsmiling]

Do double check what the laws are re garnishment in Kansas.
They have been known to garnish illegally at times. There is usually some kind of a minimum income and a limit to what they can take.

[CaroleAntsy]

Great advice. I'll check. The thing is, the amount is like $600. I'm going try to find a way to pay it off before the garnishment even starts. I owe it...I know I do and I want to pay it. Unfortunately, I defaulted on the payment arrangement with the creditor's atty and they got the garnishment. My fault. But then, this is all my fault. *sigh*

[AngelinaCat]

Check also if there is a limit to wage garnishment for someone who is 'Head of House'. You haven't yet said if you have children, but if you do, that could help you.

[mountanddo]

The reason why I ask is because you are only paying your neccesary living expenses and also have a car you say you can barely afford now. It doesn't sound like you have much, if any disposable income to put towards a chapter 13. It sounds like you may have to keep your car and you wouldn't be able to trade it in for something cheaper since you have 2 repossesions on your credit. Maybe that wouldn't matter, I don't know much about car loans. I would be careful about paying off a bill right before you file bankrupctcy though your attorney should be able to help you out with the timing of that. I filed because my garnishment was going to be $550/month vs. the $100/month I am paying in my chapter 13. Even though I could of easily qualified for a chapter 7 I couldn't file due to the previous one. My attorney helped me with my expenses so that there was at least $100 to show for DMI. The alternative was that $550 and there would be no way I could survive if that happened.

[CaroleAntsy]

Well...I checked and from what I can see Kansas does not have any garnishment limits for HOH. This is my most immediate problem so I'm trying to get some sort of plan in place.

Plan A: Contact CA and ask to make up 2 missed payments and get back on payment plan.

Plan B: If CA won't allow that, then request a hearing with the court (delays about 10 days) to meet with BK attorney.

Plan C: Suck it up at take the hit - and live in a box with my daughter because I won't be able to afford anything.

I did find out that my BK was filed in 2004 -- sometime. I can't remember the dates and the paperwork has all been lost. And by lost I mean burned in a giant bonfire along with all of my everything else by my ex husband. (He's a charmer, that one...) Anyway...could be that I can file for a ch7 sometime in 2012 for my 'regular' debt and work out some sort of payment plan with the IRS for the tax debt. If not...I'll have to consider a Plan D. I really hope the universe works with me here -- Plan D doesn't sound so great.

*sigh*

[mountanddo]

You can look up on PACER when you filed your Chapter 7. Maybe it was early in the year. That way you won't have long to wait and could be eligible for a chapter 7. If the CA already got a garnishment I fear that they aren't going to be very open to you going back on your payment plan especially since you defaulted on it.

[KAM465]

Carole,

You should be able to find your BK information on PACER (Fee Involved) or try the automated voice system 866-222-8029.