What to Expect with New Laws?

[Sunshine]

I am so mad at myself for not gettiing my stuff in order sooner. I had two free consultations with attorneys earlier this year and knew about the changes coming in October. I just kept putting things off thinking I would have time . . . and now here I am with pretty much no time left. I called one of the attorneys today and was told that I would need to bring $100 to their office today to retain them in order to get my paperwork filed on Friday. And, I would need to come up with the filing fee. I can't get there today before they close.

So now here I am trying to figure out what is going to happen under the new law. I already am pretty certain I'd have to file a 13 anyway. My husband and I combined make over $80,000/year. I have Schedule J filled out in rough draft form and according to my figures, we should have around $800 per month left over after paying rent, utilities, car notes, daycare, etc. I can't for the life of me figure out where that money is going right now because we haven't made payments on any credit cards since March.

I guess I am starting to think that maybe we don't need to file and that's why I've put it off this long. Almost all of the debt is in my name only so my husband wants me to file solely. We rent our home right now and he is in the process of getting financing to buy it so he doesn't want to be involved in the bankruptcy if I do file. I am getting so stressed because I know these credit companies are all about to file lawsuits against me any day now. Some of them have been calling me at work and I don't even take their calls. I let it go to voice mail and never call them back.

I'm sorry this got so long . . . I really just want to know what opinions you all have as to how bad it is going to be filing under the new law? Like I said, I'm pretty sure I'd have to file a 13 anyway so I'm prepared for the repayment plan part of it.

And one other question . . . I am currently repaying two 401 K loans, which are taken directly from my check, totalling around $200 per month. Will I be able to continue repaying those loans or does filing bk force me to default on them? I think I already know the answer but if someone can please comment I'd appreciate it.

Thanks in advance to anyone who can respond after reading this long post!

[StaciMM]

I have heard that 401k payments can't be considered in your monthly budget for filing bk, but beyond that I don't know how it works.

Regarding your budget-think about all the little things & occasional things... Hair cuts, school lunches & school supplies, cleaning supplies, dry cleaning, postage, oil changes, pet vacinnations. Just some ideas-it is is easy to overlook things you spend money on. Also, you can count something reasonable for entertainment, though I don't know that there is a set rule on what 'reasonable' is.

[Peevee]

Don't forget tithes and offerings to charities. Pest Control and general household repairs.

[Lightning]

Charitable contributions (to churches or other non-profit organizations) cannot exceed 10% of your gross income, and some trustees may demand proof you've been contributing this amount. Don't consider it a financial "cushion". If you've been giving to church or charity, you might seriously consider stopping for a while until you get your personal finances in order. Churches usually offer help to those in need, and charities don't expect people in bankruptcy to contribute. You can always double your contributions after you've gotten back on your financial feet.

[sunshine08]

You need to be honest and realistic in filling out your expenses and be able to back them up. Trustess do look at the expenses etc and flag the questionable areas. Don't create waves espeecially when you don't have a lot of water.