doubling of minimum payments

[brokeone]

good morning,
after reading about the pending doubling of payments I realize I'm in serious trouble.help me here if you can.I don't qualify for chapter 7,& can't possibly make a doubling of payments on my cards.Do I stand to lose everything I own now?I.ve never missed payments on anything,but I can't pay more than I do now..Is ther anyway to protect my home?This is more than scary.Thanks for any help offered.
brokeone

[Just Lue]

Yes, the doubling of minimum payments is what pushed me into BR consideration. I was paying close to $1200 a month in payments, and running a negative flow, with them doubling I had no choice. We would need to know more about your situation to give you general advice what you might lose. If you don't qualify for 7, 13 really under the old laws is a viable, and good thing. You can keep most of your property, cram down cars that are upside down to market value, and only have to pay unsecured what disposable income you have. But do not wait for the old law for Chapter 13. They are taking the cram down away, and your expenses will not be based upon your real expenses, but allowed expense limitations in certain categorys established by the IRS in your area. You might be surprised that you might still qualify for a 7 under the old laws. I was borderline, then received a pay cut, and a restriction on our bonus abilities and it pushed me into a 7. But I make more than the state median and under the new laws would probably not qualify for a 7 regardless of negative cash flow. So go see a BR attorney soon, discuss your situation, and determine if you should file BR. But do it before October 17. Especially higher income individuals who have to much debt, you would be forced into a 5 year pay off, and lose so much more. The Chapter 13 under the old law should get you back on your feet within 3 years with a plan that will give you a chance to live reasonably and get out of debt in a reasonable period of time. I would gladly take either chapter with the doubling of payments coming up this fall. It is amazing what Congress is doing to us. I know our nation carries a much too high debt load, but many of us are waking up and trying to take care of it. But they have thrown several curveballs forcing people like you and I into BR, when if they would leave the BR laws alone, and not require doubling of payments that we might have been able to get out of this hole on our own without BR. Now many of us have no choice.

Good luck to you.

[brokeone]

Thanks Just Lue,
I too,am paying over $1000.00 monthly.Stupidly,I had no problem deciding to pay for the things I wanted.I didn't want to just sit around and wait to die.I am a retired senior citizen & drawing social security.I was okay until this doubling started & believe it or not I always paid more than the minimum payment.When I learned about the "doubling" I thought about selling the house & hopefully clearing about $40,000.My plan was to completly pay off my C.C. debts & then I'd be okay,now I'm worried about how much tax I would have to pay on any money made by selling the house,and also how capital gains plays into this scenario.Another thought is if we sold our house,paid the taxes, rented a house,and didn't have enough to pay off all our credit card debt would our retirement & social security be attached/garnished.This is a huge mess,And of course no one is to blame but me.Our retirement is more than the state median.I don't understand the term "cram down".Thanks for helping me.
brokeone

[Just Lue]

If you keep your funds in retirement regardless of BR or judgments they will be protected. Cram down means that if you are upside down and owe more than a car is worth, in the old Chapter 13 you can have the car amount owed brought down to market value and pay it over time in the plan. Thus, saving thousands if it you owe more than it is worth. I am sorry to hear about your difficulties, and good luck to you. Speak with a BR attorney and determine if filing is your best option.

[brokeone]

Thanks again Just Lue,
I appreciate your help & thoughts.As I've been telling myself,"I got myself into this mess,and I'm going to have to find a way get myself out of it."I know there are people worse off than me and I don't know how they keep functioning.I hope everything works out for you.
brokeone