@tmoney2099 wrote:
So I was off of work last year for medical reasons and racked up a bunch of credit card debt. I'm guessing around 30 k so I went to a lawyer to see about bankruptcy. He suggested I do chapter 7 but since then I got a new job with a substantial pay raise. I doubled my income. So now they are saying I have too much money left over each month. So the question I have would it be better for me to let them go to collections and negotiate them all individually rather than file the bankruptcy? How do the companies that negotiate for you work? Looking for the best possible solution.
I am sorry you have to deal with all this. I can relate to a very similar situation. I had the same conditions, and when I finally had to file it was a very difficult decision. My lawyer told me that after he did the calculations, we were just SLIGHTLY over the limit into Ch13. He said he had seen this many times before and that he was willing to try to get it through by claiming an additional vehicle or something similar to that a certain way that made us qualify by just a few dollars. He admitted that was a red flag, but that he seen these go through this way 100 times before and it would only be an issue if we got flagged for an audit.
We made it through the 341 hearing without issue as I recall and we all thought we qualified for Ch7 and was in the clear. A week or so later he notified me that we got audited and he had to convert the filing from Ch7 to Ch13. I went from paying 0 per month to paying around $900 per month in a Ch13 for 5 years! Talk about a roller coaster of emotions that hits you in the gut!
Long story made short, it's been the best thing that has happened to me financially as crazy as that sounds. Now, I didn't say its not difficult at times, but we managed. I firmly belive that not being able to wipe my slate clean and having to manage my money to make those payments and give me several good years to not even have the option of having credit has done me extremely well. It's been a tough lession, but I needed it!
I said all that to say, if you have to do Ch13, I highly recommend you just face it. Look at your debt an if you feel overwhelmed and likley won't be able to negotiate with all the creditors in a timely mannor, just face the music and file. It will force you into a financial structure and, for me, decipline that I needed. (Keep in mind, when I was where you are at the last thing I wanted was someone telling me what I've told you, I get it)
That's my advice. Be honest with yourself and know that you didn't get into this mess overnight (even if it wasn't all your fault due to medical issues) and you won't get out overnight. We make too much and the government says....I'll give you tools to help you fix your situation, but I won't do all the heavy lifting for you (a.k.a wipe it all clean with a Ch7).
I'm sorry I don't have easier advice.
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