Nu Member...Hello

[BKORNOBK]

I spent hours reading messages here and now would like to say: hi and thank you.

My intention is to make a good faith effort to avoid BK but I still would like to know the best way to proceed if I am forced to file Chapter 7.

I have 100K in CC debt. I am actively searching for new employment capable of affording me the ability to meet my payments of about $2K a month.

I can only hold out so long.

I just decided to stop using the cards since I suddenly realized I might not be able to pay it back (Before I Was Optimistic I Had A Way Out).

If I hold out four-six months making my payments on time and then I avoid filing BK for- say- another few months while I am not making payments does that benefit me?

I am the typical new worried and highly stressed member. Any help is soooo appreciated.

[Flameout]

If you have 100K in credit card charges, I would be willing to bet that your interest is between 19% & 32%. If this is the case, it will be extremely difficult to get them paid off. You may be fighting a loosing battle. It took me almost two years to realize it was totally futile to continue.

[AngelinaCat]

Welcome to this wonderful Forum. I agree with Flameout, you are in over your head already. What about car payments?, housing?, etc.?

My recommendation is to go to the nolopress.com site and buy their handbook on BK Ch. 7. They list a print version and online version that is about half the price of what it would cost at your local bookseller. Also, you can be sure it is up to date with the latest info on law changes. This will become your textbook, as your best bet is to get yourself as educated as much as possible in Ch7 matters. Then, when the time comes, you will be ready.

Good luck~~~

[BKORNOBK]

Most are around 10% because I have yet to miss a payment.

I'm interested in how creating time from when I stop paying on the cards to when I file has a benefit- even if the extra time involves no further payments.

Thanks.

[BKORNOBK]

It is wonderful. Thanks for the help. Nice Kitty.

Welcome to this wonderful Forum. I agree with Flameout, you are in over your head already. What about car payments?, housing?, etc.?

My recommendation is to go to the nolopress.com site and buy their handbook on BK Ch. 7. They list a print version and online version that is about half the price of what it would cost at your local bookseller. Also, you can be sure it is up to date with the latest info on law changes. This will become your textbook, as your best bet is to get yourself as educated as much as possible in Ch7 matters. Then, when the time comes, you will be ready.

Good luck~~~

[AngelinaCat]

For one thing, you would be saving toward having the money on hand to hire an attorney, should you decide to do so. Also, it might be wise to have an emergency fund set aside in case of illness, or a major car repair, etc. Also, it would be wise to purchase and have storable food and commodities on hand and rotate them. Then, you wouldn't be to the point where some of are, that when the last of the paycheck goes, there's nothing left for food to eat for the next week or two until the next paycheck.

[Help!]

If you have 100K in credit card charges, I would be willing to bet that your interest is between 19% & 32%. If this is the case, it will be extremely difficult to get them paid off. You may be fighting a loosing battle. It took me almost two years to realize it was totally futile to continue.

Same here. We did everything we could to try to keep making those payments, but sunk deeper and deeper until $100K became $150K. As far as timing your filing, current monthly income (CMI) on the Ch. 7 means test is actually income from all sources over the six month period ending the last day of the month before you file expressed as an average. If you are above the median income for your state, it is to your advantage to time your filing to reflect the lowest six month average income you can. If you don't, you can wind up in my unenviable position - likely to be dismissed because income we no longer have was counted against us on the means test.

[BKORNOBK]

If someone could please read my original question and help I'd appreciate it.

The reason for the question is to reduce the possibility of a creditor discharge action.

[AngelinaCatHub]

It is honorable to attempt to avoid bk. If you can do it, give yourself a time limit and continue your good record. However, the other posters are correct, timing is everything. If you get that job, shred or freeze in ice your CC cards and diligently pay them off. If you just go under and cannot continue with your present job, stop paying and stall them until you can pay your bk attorney. SHOP WELL for a good one. Watch this place and that C7 book wife told you about is good. I wish you well and I hope I understood your question. Rephrase it if I have not. ‘Hub

[BKORNOBK]

Does the stalling part reduce the possibility of a creditor action?

Maybe My Query Is Explained Better This Way:

All things being equal.

Choice One:

Stop Using The Cards
Pay In Good Faith As Long As Possible- Say 6 Months
File Chap 7 after payments can no longer be made.

Choice Two:

Stop Using The Cards
Stop Paying At The Same 6 Months
Stall
File Chapter 7 As Many Months From Last Card Usage As Possible

Thanks again...

[AngelinaCatHub]

On the stalling--actually, it is the PURCHASE of big ticket items, or the use of a card for a large sum of money, within 6 months of filing, that is most likely to trigger an objection. If you pay as long as possible, w/o using the cards, then when you no longer can pay, delay filing as long as possible, save your money as you are going to zap your credit anyway, but do not take advantage of the cards. Your first choice is to try and avoid bk, right?, so the wait is to see if you can handle it. The second choice is to distance yourself from last use of cards and make payments until it hurts too much, while also saving for the lawyer.

MAKE NO big object purchases, and also if you have funds that could possibly be over your nonexempt like money in the bank, convert it to exempt items. Food, clothing, fuel if you can store it safely (don't store gasoline, one did and booooom). I admire you for seeing your situation at your young age and attempting to right it. This too will be looked upon in favor if you make this effort, but for reasons beyond control have to bk. Lot's of good fortune to you from me, 'Hub and wife, 'Cat.

[Help!]

If someone could please read my original question and help I'd appreciate it.

The reason for the question is to reduce the possibility of a creditor discharge action.

If your income has gone down in the past six months and is not going to go back up, you should wait until the higher income drops off the back end of the six month period. I don't think creditor objections are likely unless you really partied with your CC's in the last 90 days.

[BKORNOBK]

Angelenawiththegreatscreenname...

All the points you hit are relevant to me (and of course many other people).

Recent Cash Advances And Bigger Purchases. I just recently stopped using the cards and can hold out at least "X" number of months.

During those months I will be making every effort to find substantial enough employment to avoid BK.

It's nice to know the stalling part creates positive distance from the last usage of the card- even if it is just stalling.

Unfortunately, I used credit card checks for months to make payments. I didn't know any better until I found this site.

BTW I'm not that young, I'm middle aged and hopefully not fading fast.

I appreciate all of your help.... thanks everybody.

[rrockinggramma]

the longer you hold out and the more distance between use and filing, the better. good luck with your job search. Many are finding themselves in your situation.

[AngelinaCatHub]

Angelenawiththegreatscreenname...

All the points you hit are relevant to me (and of course many other people).

Recent Cash Advances And Bigger Purchases. I just recently stopped using the cards and can hold out at least "X" number of months.

During those months I will be making every effort to find substantial enough employment to avoid BK.

It's nice to know the stalling part creates positive distance from the last usage of the card- even if it is just stalling.

Unfortunately, I used credit card checks for months to make payments. I didn't know any better until I found this site.

BTW I'm not that young, I'm middle aged and hopefully not fading fast.

I appreciate all of your help.... thanks everybody.

I just said to Ms. 'Cat, I'm going to respond to 'her'; she said 'him'; are you a 'he' or 'she'?

NO, it does not matter. Let's put it this way Mr./Ms. Middle Aged, you are no older than what is in your heart. I am late 64, feeling 20, acting like 70 (with health probs) had credit score 820 all my life; was a millionaire on paper; gave 266 acres, 22 on river away for preservation; attempted to right a wrong against a Devil. And now, we are fortunate to have our life estate forever, and no money, no support, but we have God and our Faith.

That is all that matters. We do for others to our determent, but cannot stop. We are proud, but humble at the same time. This is our story. We are hurting and have lived in both worlds of comfort without concern, and now in "dire straights".

You being errrrr "middle aged", means nothing for the fact that life is a journey. It is NOT the destination. We will all reach the Destination; how many of us will enjoy the "trip"? Live every day as a gift. Time will heal all things as Faith will too. 'Hub and Ms. 'Cat