Sorry about the hardball life threw you. Google Board Certified Lawyers in your area. Check online what your state has for income requirements to pass the means test. If you have no assests. You could file any day now. Nothing to be ashamed of. Life Happens. Get your fresh start. Get a couple of free consultations from BK Lawyers. I'd still pay the minimums up to file date. Otherwise. Many come out better after BK than trying to pay off the debts that would take the same amount of time not filling BK. Good Luck!
I think with a 90k salary you'll have a very tough time passing the means test in order to file Chapter 7. Definitely consult with an attorney as soon as possible.
My questions:
- If I didn't use my credit cards this year, besides using it once to pay my tax bill in April, is it safe to file in October of this year? You can file within 90 days of last use without any issues assumming you dont max your cards out on jewelery or something like that.
- What are the chances I will get approved for a Ch. 7? I mean, I can pay the credit card minimum balances each month, but mostly minimum or just above the minimum payment, and even with that, I have no money left over for living. I can't travel, buy myself anything, can't go out, can't buy healthy food, god forbid there are any emergencies. I have no family or anyone else who can help (I am a 41 y/o male). This is the part I understand the least. If I continue paying minimum or just above minimum balances until it's all paid off, I'll have to live like this for the next 10 years. I am not sure I can. It's emotionally devastating and I will not be able to remarry or have a family. This is honestly the only reason I am doing this. If I was 31 instead of 41, I would probably just try to pay it off over a 5-year period. I will be making more money over the next few years, but I am not going to get a 2nd or 3rd job because I have a dog to take care of and also, I help my grandma. Based on your income and ability to pay bills, I doubt very much that you will be approved. Chapter 7 is for people who can not pay their bills and will not be able to for a while. It is not for people who can't save a bunch of money. Realistically, your normal bills should be like $1000 more per month than you make to qualify for Chapter 7 with that income. Ch 7 is based on like 50% above poverty. You are probably looking at 3-5 year Chapter 13 payment plan. The advantage of Ch 13 is you get to keep all your property and it is on your credit report for 7 years not 10 like a Chapter 7.
- Will previous balance transfers affect the process or approval? It's been a while and will almost be a year since the last transfer when I do file. No. All debts are required to be included even loans from friends and family. Everything not secured by properly (excluding student loans and child support etc.) is discharged in a successful Ch 7.
- And this is just hypothetical and probably not the smartest thing to do, but I just want to ask anyway. I am still paying for a balance that is mine, but is on my ex-wife’s credit card, that's around $10K. If I transfer that balance to my credit card, do I have to wait 90+ days or is that going to be looked down up on by the court? I am just trying to eliminate as much debt as possible without doing anything illegal or fraudulent. I am a good person who made some stupid mistakes. I am willing to take the responsibility for everything, but I don't think I should be punished for the rest of my life. Same question for my school loan. Can I transfer it over to a credit card and then wait some time before filing for Ch. 7? Of course, if that's a big no no, then I will be paying for it even after the bankruptcy. If you took responsibility then it should be ok. Better have the documents to back it up. I would wait at least 90 days. Chapter 13 would be more accepting.
- Where do I find a “good” lawyer, or should I go through some agency? How much does the whole filing process (all fees, lawyers, etc.) cost? Even if it’s a ballpark number. $1000 - $5000. Google reviews, Avvo, etc. Take 3-5 free consultations before making a decision. Take a list of questions with you. A lot of crappy lawyers out there doing little more than using BK software and filling in the blanks.
- And this question, I am not sure what the best process is, but if I do decide to file in October, should I stop making credit card payments each month and if so then when should I stop? Also, if I do stop, and then I am not approved for Ch. 7, what happens then? I would stop at least 90 days before filing. Save CASH. You will need it for lawyer, etc.
Chances are you will not qualify for Chapter 7. I would transfer your debts to your credit cards and stop paying EVERYTHING that is not secured. Save CASH. Wait.
After being behind on your cards 90 days you will start receiving settlement offers. These offers will allow you to pay 20-60% of your balances. The older the debt, the more the discount. Negotiation is required.
If you can pay your bills, settling one card at a time might be a lot better decision. Get a Cap One card or other similar card first and keep the card for emergencies and pay it properly. Negotiate all other cards to settle. Cap One is one card that probably wont close on you while you have other issues with other cards.
GL!
