To attorney or not to attorney?

[sivmtrohs]

I am sure this has been discussed extensively in the past, but I will greatly appreciate if anyone can enlighten me on this issue again.

My case could be very simple. All unsecured credit card debts with zero asset, no paycheck. Can I do the Chapter 7 without lawyer? I do not think I can afford to buy a lawyer.

[StaciMM]

I wouldn't recommend it...

At this point, research is your 1st step. Learn all you can about the process and what to expect. You should also start scheduling consultations w/ attorneys. Most still do a free first consult, and you'll need to discuss your debts, income, and expenses. After you have done all of that, you can determine if BK is for you. At that point, you should also have an idea of what needs to be done.

BK is not the end of the world-but it is a major event and should not be taken lightly. If you were going to skydive, would you just grab a parachute and jump out of the plane? Hopefully not!

[StaciMM]

sivmtrohs -

If you want some more specific info, let us know a little about the following:

What state do you live in?
How much do you owe (credit cards, medical, collections, unsecured loans)?
Do you have a vehicle loan and if so, is it current & do you plan to keep it?
Are there any other things that you owe-such as taxes or student loans?

What is your income, and what are your normal expenses? Do not count things like credit card payments. You can list your itemized expenses, if you would like some specific feedback about them. (To compare to IRS standards.)

[sivmtrohs]

StaciMM, about $70000 of credit card debt, not other debt, no tax owed, no student loan, no car, no house,

living in New York, no job at present, looking for a job of course,

about $7000 cash at present and diminishing.

$800 for rent which could go down to $500 if I find another room,

other expenses could be about $200 for food, clothes, transportation, etc.

Please help.

[StaciMM]

Since you are not working now, you also need to consider what income you earned over the past 6 months. An average is what will be used. (So if you made $10,000/mo up until yesterday, it doesn't matter so much that you're not working NOW. Just an example!)

When did you last use your cards for anything other than usual living expenses? (And how much?) When did you last do cash advances or balance transfers, and for how much? **If you have them recently, you will want to wait to file til more time passes!

Based on the lack of income & the balance of the debts, BK is likely a good option for you. Keep in mind I'm not an attorney, and I don't believe in saying 'yes you should' or 'no you shouldn't' to someone I don't know much about. Its something you have to choose for yourself.

Get on the phone-schedule consults. Regardless of what you decide, you'll want to have met w/ a few...

[sivmtrohs]

Last income was in Mar 2005 for $8100 (injury settlement money), and November 2004 for $30000 (another injury settlement money).

Last use of the card was in February 2004 for cash advance.

[StaciMM]

Based on that, I don't think you'd run into any problems. The requirements are more complicated now (as to paperwork, what must be submitted, etc.) but your income & expenses, and credit card usage should not pose a problem.

Meeting with a couple of attorneys will help you get a handle on specifics of your district/state. It would be good to use some of your savings for the attorney fee. From what I can find about NY's exemptions, it looks like only $2500 in cash could be exempted anyhow.

[sivmtrohs]

Thank you very mucy, StaciMM. I would like to save attorney fee, but it might worth it.

[StaciMM]

Regardless of what you decide ultimately, consulting w/ attorneys (more than 1) is a good start. They will know specifics about your district and/or state that we would not since we haven't filed there.

Thank you very mucy, StaciMM. I would like to save attorney fee, but it might worth it.