Freaked! Questions! THANKS!

[Conna]

...and would really appreciate some help.

Thank you so much, in advance!

1. Should I ask all questions in one thread or different ones?

2. I am not yet sure if I need to declare or not. If I do I will have to wait 6-8 months... sudden loss of high paying job and severance pay will not end until December so I can not declare until, I am guessing, March?

3. I am very concerned about calls. Discover is already on me... just them. They are very aggressive! What do I tell them? Will they contact OTHER credit card companies?

4. I am VERY WORRIED about calls to family members. Can they do this and if so what can they say? Seems like harassment. How do I best handle this? I have my name clearly stated on my answering machine and indicate I will return all calls. What can I do to best ensure that creditors do NOT contact my family!?

5. I can not, currently, put a dead stop to ALL card use for another month. I can not, also, currently pay the monthly due on some accounts. What will happen here?

6. What is the BEST and most current book to read about C7 BK and how to deal with this unfortunate mess?

7. I do not have much... but some of it was bought with cards. All of those cards have had SOME paid but not all and I can not keep paying on them. I am most worried about computer gear, camera gear and TV gear. Any advice?

8. Do I REALLY need a lawyer? How do I pay for one? How do I decide if I need one or can handle this myself?

Thank you all SO MUCH! I cannot tell you what a relief it is just to be able to ask a community of folks these hard and wretched questions.

Bless y'all... two times!

[JRScott]

1. Up to you
2. Sometimes you can file with higher than median depending on your expenses you'd need to fill out the entire means test to see.
3. Get an answering machine. Put a message that clearly identifies you. They will not contact one another but each will pull your credit report periodically and generally hike up your interest rates even if you pay them but not others.
4. Use the answering machine with clear message so they know they got you and thus don't go looking for family.
5. Stop using the cards.
6. Stop paying the cards if you cannot afford it.
7. If they are bought with store cards many of those items would be considered to have a lien against them for the property. Whether or not the company comes after it is another story.
8. With hard work and study you could file pro se. However it is good to get 3-4 consults with lawyers in your area before hand to get a feel for things in your district.

[Conna]

Thanks so much JR.

1. If I can not pay Discover, who is hounding already though I am just 2 weeks late, what do I tell them?

2. Will sending even less than the minimum to some companies help to lessen the chances that a creditor will attempt to seize property?

[cool33097]

Can you avoid talking to Discover??
Sending less than the minimun payment its not good enough and you will still be considered late.

Just be careful about using credit cards. The Trustee will know that you already had he intention of filing but continue to use it anyways and did not make payments.

[AngelinaCat]

On #6, go to nolopress.com and purchase their book on C7. It is current and written in plain English. There is a downloadable PDF version as well as a traditional print version available. Buying through their website is about half the price of what the same book costs in a retail bookstore. If the company offers a freebie, take that too. It will be helpful.

Good luck to you.

[tunskit]

Thanks so much JR.

1. If I can not pay Discover, who is hounding already though I am just 2 weeks late, what do I tell them?

2. Will sending even less than the minimum to some companies help to lessen the chances that a creditor will attempt to seize property?

Under the FCRA (Fair Credit Reporting Act), you have the right to contact a creditor and demand they not call you at work or home. They are required to respect that request and will only notify you if there is a change in status--such as turning you over to a collection agency. I'd recommend drafting a letter for all the creditors you're going to stop paying and mailing it to them. You might have to send it two or three times; maybe certified

Do not mention you are going to file BK. I've heard that can make a few companies progress faster, so that they can garnish you for a few months before your BK filing.

Typically, it takes any credit card issuer 180 days to charge off your account and sell it to a collection agency. Now, if you owe thousands of dollars on one card, or had a recent cash advance or balance transfer, you might find the company is more aggressive and acts atypically.


2. I'm not sure. When we first got into trouble, we tried sending less than the minimum. HSBC still charged us off, as did Chase. A couple of store accounts accepted the payments w/o proceeding to charge-off or sending to a collections agency. It all depends on the creditor. Honestly, if you're sure you're filing w/i the next six months, just stop paying your accounts, save that money for an attorney, and screen your calls or request they don't contact you.


We're filing pro se. We didn't buy the NOLO book, but this forum has been invaluable--especially the thread about what trustees look for in the paperwork. We also had friends who filed in 2004, and they let us see their paperwork (prepared by an attorney) so that we had the proper codes. Of course, there were major changes between 2004 and 2008, so we had to research any differences. I don't know yet if we have made any major mistakes. I guess we'll find out at the 341. Our case is very simple, no asset, not retaining property or reaffirming, so we thought we could handle it. So far, so good. If you decide to go pro se, there are many knowledgeable people here to help you, and you can get free consults with local attorneys to help you know how to file, where to put different items, etc.

If you do file pro se, just make sure you take your pre-BK class within the next 180 days, but before filing. That is probably the #1 mistake pro se filers make, from what I've read.

Good luck!

[jonnarocka]

I worried about my family getting calls, too...

My financial problem took at least 15 years to grow to its present state, the last 2 of which were spent in denial, robbing Peter to pay Paul in a vain attempt to preserve my formerly high credit score. I have four CC accounts that I stopped paying in March (when reality finally set in). All of them were calling me by the beginning of April, but Bank of America and Discover were the first. BoA wasted no time in calling my parents, even though I hadn't lived there in 11 years. If I remember correctly, they called me 2-3 times a day for about a week, left perhaps one message on my VM (my greeting clearly identified with my name), then called my parents.

One thing to consider is that even if creditors do call friends or family, they CANNOT (though, unfortunately, it doesn't mean they won't) get specific about the nature of the call (i.e. revealing that it is about a debt). All they said is that they were trying to reach me "regarding a business matter". My parents asked me about the call and I brushed it off, saying that any company that I legitimately do business with would have my current contact info. I asked them for the caller's name and number and said I would look into it. That worked for a while and they didn't suspect a thing.

One thing that I didn't do, as other wise posters have advised, is call each creditor at least once a month to throw them a bone. In the last couple of months the creditors, whom I'd been successfully ignoring, started calling my sister, my brother-in-law's parents and his siblings. These are the ones I know about; they may also have called other extended family members who may be choosing not to approach me about it to prevent embarrassment. They also left a few more messages for my parents. All of this, coupled with observing that something just hadn't "been right" for a while, prompted my parents to ask me if I was in some sort of financial trouble.

I was both mortified and relieved at the same time, though the relief was more than I thought it would be. By this time I had already recently told three very close friends about my situation and my intent to file BK. It's scary to do this, but it's cathartic. My parents raised four children on one working-class income and managed to stay debt-free, own a home, and save a decent nest egg. In comparison, I felt like a gigantic failure and I absolutely did not want my family to find out my dirty little secret. I was sure that I would get nothing but admonishment (my mom was an expert at that, growing up). As it turns out, I wasn't giving them enough credit, since they have only been understanding, helpful and supportive since we had the discussion. The biggest relief is knowing that I don't have to hide it anymore, though since I told my closest friends I'd been getting nearer to telling my parents anyway.

The message I want to send is that having someone find out about your situation isn't as bad as you might think, and is likely beneficial. I have no idea of the relationship that you have with your family, but I can tell you that it is EXTREMELY helpful, even vital, to have at least one person you are close to knowing about your situation. You can't have enough love and support in this difficult time. It will make a world of difference. Trust me.

With the economy the way that it is right now more and more people are in serious financial trouble (some people you know may even be hiding it), and bankruptcy is more common than ever. Because of this, BK doesn't carry quite the stigma that it used to -- I would venture a guess that most people who genuinely care about you and might find out about your situation would be supportive. Anyone who is not, well, it'll separate the grain from the chaff, so to speak.

I second that recommendation for the Nolo Ch7 book. Strongly. Even if you don't file pro se you will still be your own best advocate with a lawyer at your side.

I also highly recommend the documentary, Maxed Out, as hearing about the predatory practices of banks and CC companies (many of their blood-sucking usury tactics I recognized in my own situation) helped me to feel a bit less like an irresponsible loser.

Hang in there, and do keep us posted on your progress. I'm new here too, but it's clear that this is truly a caring, supportive and knowledgeable community here.

BTW, I also have 50% ownership in a house with a friend. I'll be filing Ch7 pro se within the next week & I'll be posting updates about how things are going.

[epiphany]

Do not mention you are going to file BK. I've heard that can make a few companies progress faster, so that they can garnish you for a few months before your BK filing.

I completely disagree (VERY STRONGLY) but am not going to go into specifics since I have spelled out my story on this so many times recently. Nothing is written in stone. To the OP, please do some research before making up your mind.

Best of luck to you,

ep