I need you're advice please.(Long)

[JustOverBroke]

Hi All,

I've been a reader on these forums for quite some time now.
The DW and I have finally hit rock bottom.
We are a little better than $84,000.00 in debt all unsecured.
Of that $78,000.00 is credit cards and $6000.00 is medical.
I found out this past Tuesday that I'm losing my job of 25 years due to our unit closing.

Last month Chase raised my promotional rate of 5.84% to 19.99% on a balance of $24,600.00 I now pay $617.00 from $446.00 I didn't get my payment in before the 3:00pm deadline on the due date,they chose to show me no mercy when I called.
They told me if I make my payments on time for 6 months to call back and they will evaluate my account.

And now Citi has done the same from 16% to 26%
The payment has doubled from $150.00 to a bit under $300.00.

We also have 2 cards with BoA, 2 with capitol one,and one with Barclay.
as of right now we are current on all our cards but we will be defaulting on them in February.

We can't do this anymore we'll be needing the cash for food,lights and heat.
We plan to stay current on our house payment and car payment.
We want to reaffirm them both when we file.

We had some large purchases and cash advances, my DW was ill in August and missed the month of work with no sick time left so I had to take out a $1600.00 cash advance to cover her missing income,so we could keep up with the CC payments.

And in April and May when things were going ok for us we had our backyard fenced in and in May we bought a flat screen television for our house.

But we plan on trying to hold out till July before we file BK I'm hoping with my drop in income we will qualify for a Ch7 as I will be on unemployment by about the middle of April.

Does anyone see any problems with objections or trustee problems with those purchases and cash advances that far out.
They will be over a year old by the time we file.

I'm stressed out right now,we stopped using the CC in January.
We will be using nothing but cash for everything from here until we file.

How do I handle the calls when they start coming in?
I do plan on talking to them not real often but I will talk to them.
I went to all there websites and made sure they had my home phone number correct.

I need everyones advice tell me if i'm doing things right or of I should be doing something different.
How would you handle this mess?

We will be starting soon to find an Attorney.

Thank You to all,
J.O.B.

[ready2puke]

I think your golden..you'll have plenty of time by the time you file. As long as your at least 6 months out, I wouldnt sweat it..I personally dont talk to anyone ever. No reason to, it will just aggrivate me and make me sad. I've gotten a few letters and a ton of calls. I just put the phone on vibrate or at work the ringer is on off. Right now Avanta is calling non stop from India asking me where Im located..lol...they have sent me several letters so they know my address. They are just baiting me and Im not going for it..DELETE!!!!!
Good luck but it sounds to me like you have nothing at all to worry about

[rockyroad]

OH NO say it aint true - bill collectors from India??? Which script are they reading? HA!
And dang it...wouldn't you know I have an account with Advanta!!

[Trixie007]

No one can say for certain, but you are unlikely to have problems with that much time before filing. I hope that now the decision is made that things start to look up for you - remember, this is a business decision, it just makes sense!

Since you are planning to talk to your creditors, the biggest piece of advice I can give you is don't let them get you emotional. If you feel your heart rate going up, or that you're getting upset - get off the phone! Good luck to you, I'm sure some of the more experienced people will be along with advice shortly!

[Never_Again]

I doubt that you will have a problem with the time period. But now is the time to stop using credit cards for a couple of reasons. First is the fact that using the cards too close to bankruptcy is fraud, but second is that you need to live within your means, because the cards will not be there once you file.

Also, keep in mind that bankruptcy will not fix an income issue, and you need to work to fix that as well, or else it doesn't get any better. Getting rid of the debt is fine, but what will you do to pay your other bills?

Third, begin to keep financial records, and get on a written budget. These are good habits to have, and they will help keep you out of trouble in the future. They are also a good way to address how you accumulated that much debt in the first place. Nothing will keep you within your means better than a written budget!

Good luck to you!

[StartingOver08]

Also, use the time while you are looking for employement to get together your paperwork for the attorney. If you can still get on the websites (hurry before the end of this month) download your statements to your hard drive for the past 2 yrs. That way if 2 yrs is needed you have it (the attorney may only ask for one year or even 6 months, but better to have it then to be stuck like JessieGirl is now trying to get statements to prevent a dismissal.

Remember to remove your checking account information from each of the websites too.

If you owe money to your bank, this is the time to move your checking and savings account to a neutral bank/CU (while your credit is still good).

Your timeframe sounds right.
I'm sorry you lost your jobt after 25 years at the same place. That is very difficult.

[JustOverBroke]

I doubt that you will have a problem with the time period. But now is the time to stop using credit cards for a couple of reasons. First is the fact that using the cards too close to bankruptcy is fraud, but second is that you need to live within your means, because the cards will not be there once you file.

Also, keep in mind that bankruptcy will not fix an income issue, and you need to work to fix that as well, or else it doesn't get any better. Getting rid of the debt is fine, but what will you do to pay your other bills?

Third, begin to keep financial records, and get on a written budget. These are good habits to have, and they will help keep you out of trouble in the future. They are also a good way to address how you accumulated that much debt in the first place. Nothing will keep you within your means better than a written budget!

Good luck to you!

Never Again,

All of our credit cards have been put away the last transaction one of them was on or about the 15th of the month.
All we're using now is just a debit card linked to our checking account.

As for the budget that is currently a work in progress.

Thanks for the great advice.

[JustOverBroke]

Also, use the time while you are looking for employement to get together your paperwork for the attorney. If you can still get on the websites (hurry before the end of this month) download your statements to your hard drive for the past 2 yrs. That way if 2 yrs is needed you have it (the attorney may only ask for one year or even 6 months, but better to have it then to be stuck like JessieGirl is now trying to get statements to prevent a dismissal.

Remember to remove your checking account information from each of the websites too.

If you owe money to your bank, this is the time to move your checking and savings account to a neutral bank/CU (while your credit is still good).

Your timeframe sounds right.
I'm sorry you lost your jobt after 25 years at the same place. That is very difficult.

StartingOver08,

I'm a "packrat" by nature I save everything I have bank statements,credit card statements and copies of all medical bills.

I just about completed a package for Attorney review I have just about everything he asks for on his website.

Thanks for you're suggestions.

[StartingOver08]

StartingOver08,

I'm a "packrat" by nature I save everything I have bank statements,credit card statements and copies of all medical bills.

I just about completed a package for Attorney review I have just about everything he asks for on his website.

Thanks for you're suggestions.

LOL. Me too! Glad you have everything already!