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**AngelinaCat** · 09-15-2012, 03:39 PM

Hi and welcome to the forum.

First, if you have about decided to file BK, you should stop paying on the credit cards now. Save that money for a BK attorney, and start an emergency fund. If you keep paying on the cards, as you say in several months you won't be able to anyway, so continuing to pay from this point on is to basically throw perfectly good money that can be used elsewhere, and flushing it down the toilet.

We have several active and knowledgeable members from New Jersey, and I am sure they will be along shortly to help with your questions.

**keepsmiling** · 09-15-2012, 03:55 PM

Hey dox,
Welcome from a fellow NJ-an.
Stop paying those cc's yesterday!!!!
So sorry to hear you have been paying all this time, wish you had found us sooner.

You are collection-proof. You may very well be over-valuing your equipment. There is a chance they could come repo it-- how old is it? From whom did you purchase? Sometimes places do make attempts to repo-- mostly it's threats-- but there is a chance they will follow thru. If you tell us who, others may be able to talk about their experience with that company.

You should be able to use federal exemptions to cover pretty much everything you actually own. (NJ has the WORST exemptions, but we get to use Federal- check them both out just in case)
Keep reading, keep asking q's, and hang in there. Once you have a few more posts, feel free to pm me. Happy to help if I can.

**pamkev** · 09-16-2012, 04:10 AM

Yes I agree with above posters stop paying those cc now you will need the money for a lawyer.

Pam

**kornellred** · 09-16-2012, 07:24 AM

dox - you are past the point of no return as far as the ability to pay your unsecured debt is concerned, so there is no point in giving what money you do have away. Bankruptcy is your sole recourse, so you might as well prepare for it. Let go of the electronics if you have to - it can be replaced once you are in a better financial position. You will be keeping your vehicle - it is nearly impossible to get along without one, although New Jersey does have a mass transit system.
If, after you consult a bankruptcy attorney, you find the terms unacceptable at present, you can get along for quite some time without paying your unsecured debt before push comes to shove. You have got a lot of company.

**AngelinaCat** · 09-16-2012, 07:47 AM

While I agree with the above post very much, schedule free consultations with several different attorneys. It should be at least three, before you settle on one, as every attorney can have a different understanding of what the same set of words in a patch of legalese actually means. You and a prospective attorney may also have a personality conflict. You need to find one that is knowledgeable, but that you also feel comfortable working with.

Most importantly, find out out they handle answering questions. An attorney will have many clients, but you should be able to get an answer with 24-48 hours from a paralegal or assistant in the office. The main complaint lodged here about attorneys, is the lack of response to questions a client may have, especially after the filing.

Good luck to you.

**keepsmiling** · 09-16-2012, 09:06 AM

Actually dox should be saving his money so he can live. He's in no position yet to worry about paying for a lawyer.
Although some free consults couldn't hurt any and could help to inform him.
Dox, since you aren't working, you might want to consider filing pro se. You can also see about pro bono filing thru Legal Aid- apparently there is a long waiting list here in NJ but you have plenty of time.
Meanwhile, your energies should be focused on getting yourself into a better position, one in which you can at least keep a roof over your head and figure out how to get yourself out to interviews.

**Pjmax** · 09-16-2012, 09:50 AM

Originally posted by keepsmiling View Post

Dox, since you aren't working, you might want to consider filing pro se. You can also see about pro bono filing thru Legal Aid- apparently there is a long waiting list here in NJ but you have plenty of time.

The legal aid assistance for BK in NJ is only done in person through the law school at Rutgers, Camden. The NJ legal aid hotline will say the wait is 6-8 mos. I interviewed a lawyer who mentors the program. She said the wait time is more like a year and a half.

I would make a few appointments for free consults with BK lawyers near you. Some have payment plans, but even if you aren't in a position to pay and retain a lawyer now, you can get some valuable advice for your particular situation. Be sure and read as much as you can on this forum before you go, so you'll have a good idea about what to ask. Also, I would mention to an attorney, or do it yourself if pro se, that you want to file an application to waive the filing fee ($306.)

It does sound like right now the money you do have is needed for survival. Stop paying those cards and figure out a way to get some income, whether it's in your field or not. I know a minimum wage job is hard to mentally deal with, but things are different now and many of us have to live with a new reality.

You are not alone. Ask questions, or just vent if you need to. I'm still a newbie here, not an expert, but there are lots of experts and just plain good people on this forum.

**doxology** · 09-16-2012, 12:26 PM

wow...!!!...

thank you all so very much...!!!

it's funny...but before I logged back on today I spoke w/ a good friend of mine who was in the same boat (about two years ago)...& she sed the following:

1) i predict that every knowledgeable participant in your thread will come back & advise u to stop paying on your credit cards immediately!

2) tell them your total debt is spread out over four (4) cards (10 grand each...which is true). that way...since they're financial types...they'll know that cc co.'s won't spend legal fees to collect the lesser amounts.

3) please DO NOT consider bankruptcy...instead...stop paying on your credit cards immediately...& those companies (after extended harrassment) will offer to settle for far less than the balance, since credit card default is now a nationwide (indeed worldwide) epidemic.

then I logged on & read the responses here & flipped out!

anyway...that's the long aand the short of it...still weighing my options but very much better informed as a result of coming here.

thanx again,

dox

btw - i do want you all to know that i actually do not like doing this, at all...i'm old school & have paid all my debts for my entire life...it even bothers me when i'm late on a bill. but i can't see myself paying off anything if i go back to work for today's meanial wage scale...& nobody is hiring me for my chosen lifelong trade.

**Pjmax** · 09-16-2012, 01:37 PM

Originally posted by doxology View Post

wow...!!!...

thank you all so very much...!!!

it's funny...but before I logged back on today I spoke w/ a good friend of mine who was in the same boat (about two years ago)...& she sed the following:

1) i predict that every knowledgeable participant in your thread will come back & advise u to stop paying on your credit cards immediately!

2) tell them your total debt is spread out over four (4) cards (10 grand each...which is true). that way...since they're financial types...they'll know that cc co.'s won't spend legal fees to collect the lesser amounts.

Based on my experience, not exactly true. Most (not all) of the cc companies will charge off the debt eventually, and sell it to the junk debt buyers (I have several that have changed hands 3 or 4 times) who will harass you and do whatever they can to collect including sue you, for small as well as larger amounts.

3) please DO NOT consider bankruptcy...instead...stop paying on your credit cards immediately...& those companies (after extended harrassment) will offer to settle for far less than the balance, since credit card default is now a nationwide (indeed worldwide) epidemic.

Again, based on my experience, the offers to settle for less came after the debt was sold off. By the time interest and penalties have accumulated, often, the offer amount is greater than the original charged off amount.

Something else to consider, you are $40,000 in debt, have no income at present, and even if you could negotiate a settlement with the CC company, it appears you don't have it, and will only take away from the money you need to feed your family, and you'll be nickel and diming for years and may not be any better off. I understand you are trying to do the right thing and pay your bills and don't want to consider BK, dealing with the emotional aspect is the first hurdle. As you read further through this forum you should notice one very common comment: 'I should have done it sooner.'

then I logged on & read the responses here & flipped out!

anyway...that's the long aand the short of it...still weighing my options but very much better informed as a result of coming here.

thanx again,

dox

btw - i do want you all to know that i actually do not like doing this, at all...i'm old school & have paid all my debts for my entire life...it even bothers me when i'm late on a bill. but i can't see myself paying off anything if i go back to work for today's meanial wage scale...& nobody is hiring me for my chosen lifelong trade.

I do totally understand. There are many 'displaced workers' here. Personally, I'm 62, unemployed for a year and a half, partially for two yrs before that, and back in college. I'm re-training myself for something where I won't be competing with those willing to work at 'unpaid (or very low pay) intern' jobs. I still need at least a part-time job until I finish. Even though I know it's only temporary, I'm having a hard time imagining myself working for min. wage. Think about what you can do in the future, that can use the skills you have. The jobs as we knew them won't be back.

Please keep us posted. My heart goes out to you.

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