Need some advice

[LeahJS]

Hi Everyone!

My name is Leah and I'm a 27 year old homemaker. I am married and have a one and a half month old daughter who is the light of my life. I have $10,000 in credit card debt - mostly left over from college (graduated four years ago). I was trying my best to pay it, but I haven't made payments consistently for about a year. My husband and I are just getting by. I have been in touch with a lawyer to file chapter seven backruptcy. It costs $1100, including the credit counseling, and after my daughter was born I wasn't able to proceed further until my husband saves up the money to help me do it. He's very supportive. I will be able to file before the end of the year, though. I have retained my lawyer and am just so nervous about everything. I worked part-time 20 hours a week when I was pregnant, but I was a teacher's aide at a local elementary school, so that ended before the summer and then my daughter was recently born so I didn't return to work and I'm a SAHM now. I'm just sick to my stomach every day because a friend told me that her brother-in-law is a lawyer and he said that I'm going to be forced to get a job and repay all of my debt, leaving my daughter in daycare. I'm getting really depressed about this, even though my lawyer's assistant previously told me that is not going to be the case. My husband makes $39,000 a year and we are a family of three.

I'm looking for other experiences similar to mine, and I guess I"m also looking for some reassurance, information or advice. Is it possible to file bankruptcy without a lawyer so that I could get this done ASAP...cheaper? This lawyer is the cheapest that we have in the area. We're in an extremely rural part of Pennsylvania. Even if I got a job, there aren't places for jobs or childcare within about 20 miles. It makes me ill to my stomach to think about leaving my daughter in childcare, for both personal and religious reasons.

I'm really glad to have found this site. Thanks in advance for all of your replies everyone. Finding this place has been an answer to prayers today.


** Edited because I just wanted to add that I have absolutely no property to my name. I have no vehicle, our house is in my husband's name, I have no bank accounts, etc.

[SinkingFast]

No disrespect to your friend's BIL, but,............ Attnys are much like doctors. There are specialty areas. Would you go to a Family Practice Physician if you needed brain surgery or cancer treatment?? No. You'd consult with a specialist. Same thing with Law. BK is a whole specialty branch of the Law all unto its own.

Many of us here are SAHM's and so far, to the best of my knowledge, no one's had the Court say anything to any of those Moms.

Personally, I'd strongly suggest you wait to file until you could afford to pay the attny. With the Mandate of the New Law, the Court is being particularly hard on Pro Se filers.

[brainless twit]

Hi Leah,

First, take a huge deep breath. No one is going to make you work, especially when you have a child younger than school age. I am in a similar situation except my son is 8. I accumulated a lot of CC debt in college, and since graduating in May I haven't been able to find a job. Our attorney did ask, in a very nice way, if I was planning to work. I told him that I was and he said it didn't matter either way - it would just be easier for us to manage our regular bills after BK if we had more income. Now, I could go apply at Wal-Mart right this minute, but it's worth it to me to hold out until something comes along in my field. No one has questioned that whatsoever.

Best of luck; I hope this helps!

[LeahJS]

Thank you guys, so much. I feel so much better. Thank you!

My husband isn't included in the bankruptcy, which is why I was concerned that I'd be made to work. After reading a lot of threads here and hearing your responses, I'm very calmed. I just feel so bad all the time for getting myself into this situation and beat myself up constantly over it. I have friends who don't know that I'm filing but know another friend who recently filed (jointly with her husband) and they think that she's skipping out on her responsibilties and needs to repay her debt. They're over $100,000 in debt and there was no way that they'd ever be able to pay it back. These friends don't understand that a bankruptcy really does right the wrong in terms of affecting credit, STRESS, etc. Man, the stress!

I was telling my husband about this site last night, and he said that he's not comfortable with me filing pro se...he said that we'll have the money before the end of the year for the attorney. That's relieving. I began looking yesterday for information on filing pro se...I'd never be able to do it! LOL!

Thanks again, guys.

[Minnymouth]

You might consult an attorney or two (free consultation) now and see what options are open to you and possible outcome....... then start gathering up what you need to file with (money and papers)..... then you'll be ready when the time comes......

And if you decide to use an attorney you will have a good choice in mind from the consultations.....

[HHM]

First, does you husband have any debt?

Objectively speaking, $10K is not a lot of debt to be filing a chapter 7 over. Granted, your debt load is 25% of your gross yearly income...but you and your husband might actually be good candidates for Credit Counseling...have you done the Pre-BK credit counseling course?

I almost never recommend credit counseling, but in your case, you may want to look into it. However, since you said you have a spotty repayment history, BK may be your only viable option. Note, I don't view BK as a last resort, I view it more as part of your total tool kit of financial planning (BK fits into the what if scenarios). But it is a limited tool, you can only file so often (I think its now every 8 years), so it should be reserved for when you really, really need it.
For example, what would you do if your husband lost his job in the next year? Or, God forbid, if your child became very ill?

You probably went over this with the attorney you retained, but remember, in the back of the attorney's mind...they only get paid if you file BK, so even though good attorney's will discuss your best interests...the advice is somewhat slanted toward Bankruptcy.

Your friend's "lawyer friend" is in idiot. Like what was already said, most lawyers who do not practice in BK, know squat about BK. No one is ever forced to get a job (that is called slavery or indentured servitude, its illegal).

[LeahJS]

Thanks for all of the info.

All of the debt was accrued by me and is in my name. My husband has debt, but he owns our home, cars, and has a lot of assets. His is manageable CC debt, though (a couple of thousand dollars that he pays off and will be gone by about February).

But, we don't have enough money to pay for my stuff and it's so far into collection that my lawyer said that BK is my best option.

[emoney]

I would urge you not to file BK for only $10,000. It may mark you for life, jobs and who knows what else. CCC may help with interest reduction or elimination.
Thanks,
emoney

[HHM]

BK DOESN'T MARK YOU FOR LIFE, come-on emoney, you know better than to post crap like that.

Your right Leah, after seeing your other posts, your debt is further into collection than you indicated initially in this thread. Still, if you have no assets, then your really not at any risk of losing anything...sure, you have to put up with collection efforts, but overtime, your ability to settle this debt for a fraction of what it is today will increase.

I would seriously consider simply waiting out the collectors until you are in a position to make an offer to settle...if you wait long enough, you could settle for about $3000-$5000.

Anyway, its an alternative.