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Meeting with an attorney tomorrow for Chapter 7

Frequent Contributor

Meeting with an attorney tomorrow for Chapter 7

I bit the bullet and decided to file for Chapter 7. According to my Credit Report I just pulled I owe 70K in Credit Card debt. When I applied for these I used household income and I will be the only one filing for Bankruptcy. Will this be a problem? 

 

Also on our taxes we filed jointly and made 107K

Will they count my income or both? 

 

Any other words of wisdom? 

 

I already feel relief at making the decision and telling hubby about it. 


Last App 05/04/2016
Message 1 of 7
6 REPLIES
Frequent Contributor

Re: Meeting with an attorney tomorrow for Chapter 7

Also we bank with B of A and I have a small card with them with a CL of $600. Should we change banks? Can they take our checking and savings accounts? Not much in them at the moment. 


Last App 05/04/2016
Message 2 of 7
New Visitor

Re: Meeting with an attorney tomorrow for Chapter 7

I was told to change/close bank account that are associated with my cc. The bank has a right to Offset. so they can hold the money that are in the accts.
Notably known for doing this is Wells Fargo.

Message 3 of 7
Frequent Contributor

Re: Meeting with an attorney tomorrow for Chapter 7

When I was contemplating BK, I was told as well to close the accounts. Any bank that I had checking or savings (even if it was in trust for my daughter), I was told to take the money out little by little and close the account. I winded up just settling with the creditors. I still have repo on my report, balance 12,000 but had appr 60 grand in credit card debt. Some were like 5 years old that I settled for 10 percent of total with some (like CHASE). I figured I only had 2 more years till it was off report rather than starting BK now and having the BK on for 10 years.

"As only New Yorkers know, if you can get through the twilight, you’ll live through the night"
Message 4 of 7
Frequent Contributor

Re: Meeting with an attorney tomorrow for Chapter 7

Met with the attorney on Friday. He said to stop payments on cards and don't use them anymore. He said our best bet is to file in July since my child support stops then and i wont get any more checks from my job for 3 month's ( I dont get paid during the summer) That means 4 months of harassment from the card companies. 😣

He said I could give him $100 retainer and when anyone calls to say I'm filing for bankruptcy, call my attorney and give his name and number.

I've never missed a payment before and am struggling to reconcile with myself this concept. On the other side I will feel so much relief because I'll actually have money to pay for stuff instead of charging it all and struggling to make the payments.

He also said we should add a car payment under my husband's name as he's not filing, we were planning on getting one in the summer anyway and I can use that amount as outgoing money on my bankruptcy application.

So on Friday I will pay the retainer, print out copies of cc statements, and not pay. I also need to remove hubby as authorized user from 4 cards just in case and change bank accounts.

Any other advise out there for someone starting this scary journey?

Last App 05/04/2016
Message 5 of 7
Frequent Contributor

Re: Meeting with an attorney tomorrow for Chapter 7

Yes. Don't panic! You are on the right path so far. Make sure you save all your cc statements if you are the type of person who likes having those records. I have looked back on mine more than once - when did I make x purchase, what kind of spending was I doing y month, etc. (I save mine digitally) 

 

You will survive the calls. I promise. The atty says you can answer the calls and give them his info but when it was me, I just didn't answer. I was scared telling lenders I was planning for BK would cause them to start process of wage garnishment, or court proceedings. How likely or unlikely that was didn't matter, I was just a very scared person during that time. That's why I tell you now, not to panic :-) However you decide to handle things, you will survive and probably come out the better for it. Just keep a positive attitude and a fighting spirit. 

 

Bright side: sometime mid-fall to winter, you'll have income again, BK will hopefully be discharged and you will be in the rebuilding process! Find a healthy hobby/habit in the meantime, you will need it to sustain you. 

Ch7 discharged 10/2017. Pre-file FICOs high 400s.
04/2018 EX 644; EQ 670; TU 648
Message 6 of 7
Member

Re: Meeting with an attorney tomorrow for Chapter 7

It is definitely a scary process when you first start! I met with a bankruptcy attorney in October of last year. I too had never been late on any of my bills and when my attorney told me to stop paying on everything, I was so nervous. To deliberately not make a monthly payment seemed so wrong. I filed on January 23rd and had my 341 meeting on February 21st. I didn't answer any calls from my creditors and eventually the BK updated on my credit (only took a few weeks after filing) and everyone stopped calling. I'm now awaiting discharge which is to happen the week of April 23rd. This is my first (and last) time filing BK and has been more of a learning experience for me than anything. I racked up a lot of credit card debt in my late teens. I think the 341 meeting was what I was most nervous about. But it seriously took no more than 5 minutes of a series of questions and I was done. Everyone has different factors and scenarios going into a bankruptcy, but there's nothing to be nervous about as long as you disclose absolutely everything. Although I haven't finished treatment and started the lawsuit, I disclosed my plan to sue another driver who caused me to total my car pre-filing. They asked how much I plan to be awarded and for my attorney's information. I read somewhere AFTER disclosing this information that if you're not forthcoming with any kind of lawsuits that you started before filing, then the courts can collect everything you're awarded, even years after your discharge - IF the lawsuit was in process before you filed. But if you're honest about it, then that money is exempt up to a certain amount. That's what made me a nervous wreck before my meeting. Sounds like your attorney is giving you sound advice. It's a more easygoing process than I thought it would be. Just disclose everything with your attorney and everything should go smoothly!

Message 7 of 7