Questions

[clobbered]

Glad to see we're not alone. We are currently not making payments on our cc's and plan on using that money to pay a bankruptcy attorney. The calls have started and we are not starting to get calls at work.
Can they continue to call you and harass you at work and if not how can we stop them. We disconnected our home phone and while they've been calling our cells the calls to work seem out of line.
Also we are about $100,000 in debt on the cards but haven't used them for about 3 months when should we file?

Any help is appreciated,

Clobbered in Iowa

[no_it_all]

Go to the main menu and look under the title "Collection Problems" there is a sticky there about debt collections that will answer some of your questions. If not, then post and I'm sure a ton of people will help you out...good luck

[lrprn]

Glad to see we're not alone. We are currently not making payments on our cc's and plan on using that money to pay a bankruptcy attorney. The calls have started and we are not starting to get calls at work.
Can they continue to call you and harass you at work and if not how can we stop them. We disconnected our home phone and while they've been calling our cells the calls to work seem out of line.
Also we are about $100,000 in debt on the cards but haven't used them for about 3 months when should we file?

Any help is appreciated,

Clobbered in Iowa

Welcome, Clobbered. We've all been right where you are now to one degree or another. This is a good place to come for support and questions - glad you found us! Sounds like you are doing a good job of preparing for your bankruptcy - good for you!

Can creditors call you at work? Yes, they can, but all you have to do is inform them that your employer doesn't allow personal calls at work. They have to stop calling your work after that. As far as the cell calls go, if you don't already have caller ID on your cell phones, see how much it is to add that to your cellular plan. Then you can avoid answering any numbers you don't recognize. Just because creditors call doesn't mean we have to answer.

You said you haven't used your cards for "about three months". The bk law allows a 90-day look back from the first of the month of the day you file (ex, if you file on Aug 15, the trustee can start looking at your non-secured credit charges, personal checks, etc. from May 1 on). This look back is to check for preferential payments to a creditor or charges made knowing you intended to file bk. If there's any suspicion of fraud, then your trustee can look back much farther - years, in fact. It's crucial to be honest, but also important to plan ahead as you are doing if there's no emergency to file (ex, saving your house from foreclosure).

Are you planning on filing Ch 7 or 13?

Also check the How to Find a Good Lawyer sticky here - it's full of good information. Most bk lawyers allow a half-hour to hour initial consultation, so interview at least 3-4 different bk-specialty lawyers in your area before deciding on one. Keep us posted on your progress and remember we're here for support and venting any time. Good luck!

[clobbered]

Chapter 7. I used a cc check in April when, in one week had our furnace stop and with the spring rains found our roof to be leaking. I made payments on all of our cards for the next two or three months but now we're in deep.
I'm two months ahead on the mortgage and hope to keep the house and also our leased car which we are current on.
Should we file quickly or wait a couple of months, or does it make any difference?

Thanks again,

Clobbered in Iowa

[SinkingFast]

Also, to get the Creditors to stop calling you at work, you may have to write them letters instructing them not to call you at work. Send each letter via USPS Certified Mail. Always CYA yourself. Creditors are bound by Law to not call you when they've been instructed by you to cease.

The longer you wait to file, the better. Unless, or until, you have threat of Law Suit, or Judgement, or Lien, you can wait as long as you are comfortable before you file. Take this time to Consult with attnys. Find one you're comfortable working with. Gather your docs needed to file. Get all your pre-BK prep work done.

[clobbered]

Sinking,

If you have a minute would you explain what you mean by getting the pre-BK prep work done.
Did everyone feel like your heading down a dark tunnel when you first realized that bankruptcy might be the only answer?

Thanks again,

Clobbered

[susie]

I didn't just feel like I was heading down a dark tunnel, I cried every day for the first 2 months. It gets better. I don't cry every day now.

[SinkingFast]

Sinking,

If you have a minute would you explain what you mean by getting the pre-BK prep work done.
Did everyone feel like your heading down a dark tunnel when you first realized that bankruptcy might be the only answer?

Thanks again,

Clobbered

I drug around for months. Felt like a glum chum. Dreaded every attny Consult. We did a dozen, I think. It was AWEFUL!!

Part of pre-BK prep is gathering your docs. There's some basics every attny will want. 4 yrs of income taxes + earnings statements. Last 6 months of pay stubs. From there, attnys vary on things they want. Ours wanted retirement statements, 401K statements, a copy of our lease agreement, a copy of our mortgage, copy of our life insurance, on and on and on. It will take you a bit to gather docs alone.

You'll wanna meet with several attnys. At least 3, I'd suggest. Get different perspectives. See who you're comfortable working with.

Maybe you need to get life insurance, better dental insurance, or whatever. You wanna get that done with buffer time before you file. The longer policies are in place prior to filing, the better. If your premiums are coming due soon, maybe pay them ahead. You want as many bills paid as possible and have as little cash on hand as possible. Attnys have to have an exemption to cover cash with. Plan to file when your bank acct is at it's lowest. Also think about income tax refund next year, just in case the Trustee happens to want it too.

You may need to lay off paying your CC payments for several months to get your attny's fee and filing fee collected up.

While you're not paying the CC payments, maybe you have some repair work that needs done around the house. New tires for the car? Doctor or dental visits you've been putting off because you didn't have the money for treatment.

That type of thing to get ready to file BK.

[lrprn]

Sinking,

If you have a minute would you explain what you mean by getting the pre-BK prep work done.
Did everyone feel like your heading down a dark tunnel when you first realized that bankruptcy might be the only answer?

Thanks again,

Clobbered

Here's some pre-bk prep work you can do to get ready for filing:
* Stop using credit immediately!
* Don't make any cash advances or transfers for at least 90 days before filing
* Don't withdraw money from your retirement accounts - it can't be touched by your trustee and is safe in bankruptcy. Also you'll avoid the considerable tax hit the next year for early withdrawal from an IRA or 401K.
* Stop paying all your non-secured credit cards and loans right now. If you are going to file Ch 13, then use the cash to prep for 3-5 long years of no extra money. Catch up on any mortgage or car payment arrears, buy health insurance if you don't already have it, get car and home repairs done, replace clothes, etc. If you are going to file Ch 7, do the same for the short term 6 months or so. Just be sure that on the day you file, you have very little money in your checking and savings accounts - less than a $100 in each if you can manage it.
* Know which of your debts is dischargeable and which is not, especially if you owe federal or state taxes
* Maximize your exemptions - know what you can keep and what you can't
* Don't make preferential payments to creditors, business acquaintances, or family members! In most states payments or 'gifts' that total less than $600 made in the 90 days prior to filing is acceptable. Any more and the trustee can take that money back to distribute across all your creditors.
* Don't keep assets in institutions to which you owe money. Open another checking and/or savings account elsewhere before you file in a bank or credit union that has no relationship with your current finances, then transfer any automatic deposits there. Better to be safe than sorry. Don't close the old account - just leave $5 or so in it. Trustees don't like to see accounts closed right before filing - makes them wonder where the money went.

I'm sure others here will have some good prep ideas to add to the list. Good luck - keep us posted on how you are doing getting ready to file.

[miss puff]

Welcome Clobbered-Sinking and Lrpn gave great advice. Another thing you may want to do is to find out what the median income is for your state and what the allowable exemptions are. This will help you determin if you are an asset or no asset case and whether or not you will be eligible for chapter 7 or 13. This is a great place for support and to vent and to celebrate when it's finally over. Good luck and keep us posted.