Hello all. I found this forum through frantic Googling and have been reading some of the topics here. I am considering filing Ch. 7 over my CC debt and had a few questions.
I was laid off a few years ago and started racking up my CC debt. I had access to quite a bit but barely used it and always paid on time. I have continued to pay on time even through my unemployment (using cash advances to pay on my charges, etc.) but the balances continued to increase, despite my best efforts. I've found it very hard to save anything due to the minimum payments increasing on top of my living expenses and kept having to reach for the cards in an emergency. I'd like to start a technical school program that would put me in a good position for a career and much better future earnings, but I can't see myself being able to go to school and making all of these payments at the same time, since I wouldn't be able to work as much. The debt is basically a millstone around my neck and I feel like I'm drowning.
I make about 25K a year right now and owe about 20K between four cards (the largest is 15K). All the cards are maxed out, and I've had to basically "eat my payments" (make payment, then immediately charge things I needed with the available credit until interest hit) for the past year. I have had a 100% on-time payment rate until this month. I had to miss a few payments this month because of some unexpected expenses that could not wait. I still have a little time to make the payments before they hit 30 days past due. But this, to me, is just a sign that I cannot continue doing this anymore.
Two things have me concerned about talking to a BK attorney right now:
1) I recently was approved for a CLI on one of the cards, from 1K to 2K. I've been using this card to pay for my gas. I work as a 1099 courier/delivery driver, so if I can't get gas, I can't work. If I start the BK process in a few months, will this appear fraudulent?
2) At the beginning of this year, my roommate abruptly moved out with only a few days' notice. I was basically just renting a room and had no furniture, dishes, appliances, etc. of my own. I had little money to get the things I needed to have a home. He and I made an agreement that he would sell me the majority of his household goods in exchange for me paying him very little ($1100) with payments of at least $100/mo until it was paid. I've read that paying money to family and friends in excess of $600 within a year of filing for BK will result in the trustee suing that family member or friend. Should I wait until it's been a year since he's been paid off to file? I have barely been able to pay him the $100/mo. and might not have this paid off until the end of the year. So that would put my filing date around December 2020? I fear I might have to keep juggling payments, or even will be in collections, by then.
Thank you in advance for any advice.
