Substantial Abuse

[eileen]

My husband and I have about 150,000$ in credit card debt. Most was incured over the past few years after he was let go at work, making 80grand a year. He was unsuccessful in starting 2 businesses also. We used cash advances to make mortgage payments and other living expenses, not trips, furs, etc. He's now been working for a little over 2 months, making $3,000 a month with the promise of commissions in the near future. I work nights and weekends as I only make a couple of dollars an hour after daycare costs. I've looked at the numbers and we are barely making it now - I can't see how we could afford to be successful in filing chapter 13. We haven't used our credit card in over 6 months (but they grow due to interest charges, late charges and over the limit charges). My questions are: will the judge allow that high of unsecured debt be discharged? Could we face criminal charges if we file chapter 7? should we file chapter 7 or wait and see if his income increases and file 13? At this point - I am willing to give up one of our 2 cars and face the possibility that we could lose our house (we are about $7,000 over the exemption limit on it's equity). Is filing pro se a big mistake?

Thank you for any advice! - Eileen

[HRx]

My husband and I have about 150,000$ in credit card debt. Most was incured over the past few years after he was let go at work, making 80grand a year. He was unsuccessful in starting 2 businesses also. We used cash advances to make mortgage payments and other living expenses, not trips, furs, etc. He's now been working for a little over 2 months, making $3,000 a month with the promise of commissions in the near future. I work nights and weekends as I only make a couple of dollars an hour after daycare costs. I've looked at the numbers and we are barely making it now - I can't see how we could afford to be successful in filing chapter 13. We haven't used our credit card in over 6 months (but they grow due to interest charges, late charges and over the limit charges). My questions are: will the judge allow that high of unsecured debt be discharged? Could we face criminal charges if we file chapter 7? should we file chapter 7 or wait and see if his income increases and file 13? At this point - I am willing to give up one of our 2 cars and face the possibility that we could lose our house (we are about $7,000 over the exemption limit on it's equity). Is filing pro se a big mistake?

Thank you for any advice! - Eileen

Hi Eileen,

With the amount of unsecured debt the two of your accured, your best bet is to hire an attorney to file your BK 7 petition. You're going to want to aggregate as many credit card reciepts/statements as possible, to help plead your case.

Good Luck!

[Dawn1970]

Could we face criminal charges if we file chapter 7? should we file chapter 7 or wait and see if his income increases and file 13?

I am no legal expert but I do not see how you could face any criminal charges here. You incurred the debts when you had a better income and felt you could afford to pay them off. Your income situation changed and now suddenly you can't keep up the payments. Sounds like a typical bankruptcy to me. There is nothing criminal here.

If you honestly believe your hubby's income is going to increase to the level it was before you got into trouble, then you could hold out to see if you can do a #13. That's entirely a personal decision. But yes, if you file, be certain that you list ALL your creditors. Get a credit report and see who says you owe what just to be certain you cover all bases.