Pre-filing Questions

[Overdrawn08]

Hello! I am new to the forum and looking for some advice. I reside in GA. My income is $36,500/salary with no other income, so I am below the median income for my state. I have almost $50000 in credit card debt spread out over 7 accounts plus student loans, rent, car payment, ect.. I have no assets and no money left over at the end of the month and most months I end up in overdraft of my bank account.

I got my final notice from BoA today which they sent to my job and my house at the same time, stating they were sending me to collections if I don't contact them before Friday and make an arrangement. I've had all the cards, but one for two years at least and made current payments up till January '08. I am 100% sure I want to file, but I last used one card in January, so I plan to put some time between my last purchase and filing BK. What should I do till then? I honestly cant pay them. Do I let them know my plan to file, or just keep ignoring the phone calls and let it go to collections?

Also, is there anyone here who has gone through the BK process where they only had credit card debt incurred though bad choices and planning, but had a favorable outcome for their BK claim? I am worried that since I don't have family, medical bills or any special circumstances/reasons for the debt that my claim will be denied.
Thanks!

[keepmine]

Also, is there anyone here who has gone through the BK process where they only had credit card debt incurred though bad choices and planning, but had a favorable outcome for their BK claim? I am worried that since I don't have family, medical bills or any special circumstances/reasons for the debt that my claim will be denied.
Thanks!

That's about 99% of us! Nobody really cares about the circumstances. The code does not provide for qualifications based on circumstances. If you pass the means test and don't have the disposable income to fund a Chapter 13 then, you get a Chapter 7 discharge.

How much was charged in Jan.It may be best to just ignore the calls.

[Overdrawn08]

I charged about $1100 to fix a car problem in Jan/Dec. I made two payments, but then fell behind. From what I have read, I need to give it some time. There are several companies calling, but the only cc that wants to put me in collections at this time is BoA. I have till Fri. to tell them something or it goes to collections. Is it better to talk to them and let them know the situation or just ignore since I know I am going to file.

Thanks

[Teddy]

I've been told the exact same thing, they don't care why you file or what caused you to file. I don't think you need to be worried about that.

I'm not sure on the $1100 charges, since you have made 2 payments I would think if you filed sometime in April you would be ok but someone else will probably answer that.

You need to see a couple attorneys - start calling around, that's what I did - I found most of the secretaries who answered the phones were VERY helpful.

Many attorneys offer a free consult.

[keepmine]

Auto repairs aren't luxury charges. I'd stop paying the cards and wait a few months to file. Have you filed your taxes and gotten any sort of refund. Depending on your district, you may need to spend that before filing.
See a few bk lawyers and get all of your options explained.

[parsoc48]

Definitely see a couple (or more) attnys for consultations, otherwise you just keep spinning. Cash advances are more of a red flag than a charge, but each state and district and trustee are SO different...
Make a list of your questions before you go to the attny, write out your debts, and write out your living expenses.
My experience with BoA is that they will go many months beforfe any legal action is taken; "sending it to collections" is pretty routine and to be expected with 2 or more non payments...but their collections is "in house", they are still the OC. They did offer to settle a $10,000 debt for $3,000, but by that time we had already decided to file.
Definitely find about your tax return....we rushed to file it because we knew we were getting a large refund, and it's been a blessing...some is still in the bank!
Good luck...we're here for you, keep us posted

[Overdrawn08]

I am going to file this weekend and I know I will get a refund. That money is already spent on other bills though, so they wont have anything to get from me by the time I file. I have never done a cash advance on any of the cards, it was just a charge since my car wasn't running and I had to get a very expensive part. I haven't even used any of the others since December.

I made some calls today and I meet with an attorney on Saturday at 10 a.m. for a free consult. I am very nervous! They quoted me around $1200-$2200 all inclusive over the phone, $100 retainer if I file and they said they will work out payment plans for the rest. My plan is to use part of my tax refund and stimulus check to save for this. I also looked at getting processor to do the paperwork and just turn them in myself. I'm not sure yet.

Thank you everyone for your help and advise. This situation has been pressing on me for months, even before I got behind on payments and now I can see a little bit of light at the end. I'll let everyone know how it goes on Saturday.