So what am I in for? update: Discharged 12/18

[Anonymous]

Just looking for advice on my sistuation.

Currently have about 65k in credit card debt.  Haven't worked since late 2014 due to mental health issues. (been living off of savings account, selling property, and mostly balance transfer/ cash advances from the CC's.  I have been getting treatment the whole time in hopes of returning to work, that's why I kept racking up my cards. Finally this past spring the monthly payments were too much and I stopped paying on most of them.  Now I'm only paying my mortgage, utiltiy bills and car payment (about $1200 left on it) I don't really have much assets I belive,  only about 3k left in the bank account. 

I figure chapter 7 is what I'll be filing for.  I don't want to keep the house (can move in with parent in another state) I'd like to keep the car since it's almost paid off.

Phone has been ringing off the hook for a few months, just got my first letter from a collection agency 2 weeks ago. 

 Figure I'll have questions, but that's my story for now. 

Filed 8/30/17

341 meeting 10/13/17 

[Anonymous]

My advice:

- Read up on pre-bankruptcy planning. I don't mean how to hide assets or anything crazy, rather read up on tips like setting up a Google Voice account and giving that number to creditors.

- Consult with a few attorneys. At minimum, if you're considering filing on your own, meet with an attorney from a bankruptcy clinic.

- Read up on filing bankruptcy. The book published by Nolo is great.

- Ensure that whatever assets you have can be protected by an applicable bankruptcy exemption (Google your state's bankruptcy exemptions).

... just for starters.

[camniamom]

Consult with a bankruptcy attorney sooner than later. Most consultations are free. It sounds like you've almost depleted your savings and retaining a lawyer could cost anywhere from $1000 - $2000 plus the filing fee.

You should also stop using your credit cards prior to filing. That can make things a tricky when filing for bankruptcy.

[Anonymous]

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@camniamom wrote:

Consult with a bankruptcy attorney sooner than later. Most consultations are free. It sounds like you've almost depleted your savings and retaining a lawyer could cost anywhere from $1000 - $2000 plus the filing fee.

You should also stop using your credit cards prior to filing. That can make things a tricky when filing for bankruptcy.

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Definitly try to stop using them, though in your case it might be hard as that is what you use to pay for things.

Not sure how this worked for me but I paid my lawyer a certain amount (never understood this, I am filing BK so where do I get this money from lol).  The rest was built into the Chapter 13 plan.

[camniamom]

With Chapter 7, you pay the lawyer fee and the filing fee upfront. The OP would probably not qualify for chapter 13 because he has no income to repay into the plan.

[Anonymous]

Thanks for words.

I live in Illinois if that helps. 

I've done a bit of research on my own and plan on using a lawyer to go through this mess.

I stopped using all of my cards by the end of June. (small purchaces.. gas for car, cat litter, some vitamens..etc) 

My biggest fear is using them the past few years while being unemployed. 

Right now I just want to pack my car with some clothes, my cat and move on.  Let the bank and who ever have the house back and anything of value that could be sold. (although a 20 year old microwave and furniture from the 2nd hand store I doubt has much value.   )

[Anonymous]

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marlin7 wrote:

Right now I just want to pack my car with some clothes, my cat and move on.  Let the bank and who ever have the house back and anything of value that could be sold. (although a 20 year old microwave and furniture from the 2nd hand store I doubt has much value.   )

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Speak with one or more lawyers,

Things will work out, all of the crap you are feeling will pass with time and resolution.

Life does get Much Better!

.

[Anonymous]

Yeah I need to muster up the confidence to make the call. 

[Anonymous]

As with most things in life, I would assume the anticipation is the worst part. By posting here, you've determined that you've made your decision. Move forward, and look into the brighter future.

Good luck!

[Anonymous]

Well finally got to talk to a lawyer today.  Should be filling a week from now.