Help...complete newbie :)

[TopCat]

Well, here we are...

I'm going to have to file at some point. My income is far below the median, so passing the means test isn't a problem (I tried out the free program authored by a judge somewhere, and I passed no problem). I have some questions, but first, a brief cap:

No income at present, though support of $1000/month will begin Oct 1. I haven't been able to work (disabled, but do not qualify for disability because of immigration restrictions).

Last year separated from my husband, who was the "big earner". Relocated with no funds of my own, but planned to work immediately. I was still on the books of my contracting service, so listed them when I applied for a couple of store and credit cards which I needed to buy basics like furniture etc, and put down deposit/first month's rent on apt. I became disabled shortly thereafter, and have been without any income at all since May of this year (I've survived on food shelves and cash handouts from the odd relative).

My boyfriend was also working, and between us believed that we'd have more than enough to pay the bills.

I'm left with several thousands of dollars on credit cards (around $10k total); was unable to pay even a single payment since everything came crashing down very quickly.

I did receive support for a short time, but as this was $700/month it was barely enough to pay rent, let alone pay off credit cards. Afaik my bank account was closed, as overdraft charges kept piling up, too.

I suppose I'm panicking a little; my physical condition is already stressful enough, and if I'm able, I think ch.7 would be my best option.

Is there anything I should be aware of?

Any help?

Many thanks in advance

(and..to whoever authored the boards...thanks for being here)

[StaciMM]

Are there any issues w/ vehicle or rent payments?

Its hard for anyone to tell you whether or not $10k + the checking account deficit is worthwhile to file BK-that falls on your shoulders. If you file after 10-17, the cost to file & hire an attorney will go up, but perhaps there is some sort of legal aide that you might qualify for based on your disability & income status? On one hand, it could cost anywhere from $209 (without an attorney) to $700-1700 to file BK. On the other hand, late fees & interest will make the balances grow.

When did you last use the accounts? From your post, I gather they were used for needed items-not luxuries. If that is the case, your creditors will have a hard time objecting especially since you can document your sudden disability.

[Lightning]

If you anticipate working again in the future, then bankruptcy might be the right thing to do now. If you're permanently disabled, forget about filing. You'll never have any wages that can be garnished nor will you be able to own assets than can have liens attached.

I'm no expert in the fields of immigration law and social security, but if you don't qualify for SSD because of immigration status, I would think it's unlikely that you'll qualify for social security when you retire. That means if you cannot work again, you'll need to find someone to take care of you financially. Bankruptcy only erases your debts. It does not help your future financial situation if you have no earnings.

Hopefully someone else will chime in about how the money from your relatives will be classified in bankruptcy proceedings. The trustee is going to want to know how you pay for housing and food if you have little to no income.

[TopCat]

Thank you both for responding so quickly.

As mentioned, for the past 5 months or so I've existed on charity. As of next month however, federally-mandated support begins (similar to alimony). It's going to take a good 18 months to 2 years to become physically able to work again; but that's a best case scenario.

The credit cards were last used in August/Sept of 2004 and yes, were used to buy food and household goods for the most part.

I think I misphrased the initial post - I have nothing in the checking account, and nothing available on credit cards; the $10k figure represents the approximate balances on the credit cards from last year.

I do have an eviction hanging over my head, but that's honestly not my biggest concern as of this moment; in all likelihood I'd be moved into a new (cheaper) place by the time the slum...er..landlord got around to filing even the 3-day NTQ anyway, and I'd have a steady income (as above).

Should I perhaps wait to file? The extra cost doesn't really matter at this point, to be honest. It just adds up.