New to process - throwing out some questions

[2005brokebozo]

I will give some background. I am filing Chap 13 because the law firm we contacted in our free consultation says our income is too high. My wife and I have a combined income of $85K a year. Our unsecured debt is becoming unmanageable. At least three cards have jacked the rate to 29.99%, effectively raising the "minimum" payments to amounts we cannot afford, and which do not even put a dent in the actual balance. I have between 55-65K in these type accounts. I also have 2 mortgages, 2 car payments, and about 5-6K in debt to HRS which is Best Buy and Rhodes. I am planning on keeping my cars, house, furniture, and TV. Am I right to assume that the furniture and TV are secured debts, since they could conceivably be taken back by Best Buy/Rhodes upon nonpayment? As it stands now, I am current on the mortgages, cars, and furniture, as well as all other expenses. I have begun to withhold payment on all other unsecured creditors, based on several law firms advice on not incurring debt or paying down unsecured debtors for 60-90 days before the actual filing date. The phone calls are starting to come fast and furious, they are all screened by caller ID/answering machine for the time being. Should I pay a law firm a small retainer immediately and instruct all future creditors who call to contact the law firm? My last charge was on May 30th. I have made a payment since then on that card yesterday. The other cards have not been used to charge anything for quite some time.

I could still be "current" on everything right now, I would just have to get cash advances on the one card left with credit on it to keep my bank balance in the black. My only concern now is I have had to do exactly that for the last 2 months. That being said, I feel I need to wait at least 60 days from today to actually file, so the creditor will not hold the cash advances against me. Will there be any detrimental overall consequences to waiting until mid-late August to file? By then some of the other unsecured cards will have gone unpaid since early May.

I realize this is lot to throw out in a forum like this. Any help I could get with these questions will be greatly appreciated.

[mark]

Is this a trick question?

[2005brokebozo]

Wow, 56 views and only one reply. And a smart-aleck reply at that. No, this not a trick question. I was hoping to get some answers here before I retain an attorney. If I try to ask a bankruptcy firm all of these questions, they will most likely not answer without being officially "hired" and put on retainer.


Thanks

[HHM]

I think the smart-aleck remark is that you really didn't ask anything specific...you merely presented your situation. Not a big deal, but most people ask some specific questions.

Since you have stopped paying your unsecured debt, you should probably retain a law firm.

As for the 60 day rule, that only gets you outside the "presumed" fraudulent category, the creditors may still object to the cash advances.

Its hard for any of us here to say what you should do, If you have all that stuff, you must have a decent income so your probably right to post this in the Chapter 13 forum and not the Chapter 7 forum. You may want to consider consumer credit counseling but with that level of unsecured debt, your payment would be really high, so Chapter 13 might be the only option for you to try and get out from your unsecured debt.

[2005brokebozo]

Thanks, HHM. I will be calling back the bankruptcy firm I had the phone consultation with and proceed. I was ready to pull the trigger a few weeks ago, trying to beat the October deadline for Bankruptcy law changes. I only delayed because I saw the 60 day "fraudulent use" discussed on many law firm sites. The firm did not mention anything about the 60 days in the phone conversation. I don't want to have to pay extra legal fees for them fighting the dispute on recent charges or have them not included in the plan, if I can help it at all.