I'm very confused... please be gentle

[amynrich]

My husband and I are planning on filing chpt 7 bankruptcy... we are planning on speaking with several lawyers (at least for a consultation), but I'd really like to know as much as possible prior to going in... I like to be prepared.

I have been reading lots of books about bankruptcy and I am getting more and more confused... so please bear with me... I have several questions, and am bound to come up with more... I'll do my best to post them in the right places ~smiles~

Anyway... a little about us for background:
My husband and I both had very bad credit before we got married (a month ago)... a lot of it came from being young and stupid in the past, medical expenses that weren't covered by insurance (and times of no insurance), and just plain bad luck currently (car repairs put on an auto shop card fully expected to pay back, and then was hit with MORE unexpected stuff, etc)... my husband works a good job that he's been at for 11 years, but I'm currently unemployeed (fired in November) and pregnant, plus I have an 8 year old already. After paying our immediate expenses each month (rent, car payment, car insurance, utilities, phone, etc... just the basics) we are left with about $125 to feed us all for a month... needless to say I'm pretty sure we qualify for chpt 7.

Here are a couple questions:
1. We were very lax in keeping collections notices and keeping track of everything we owe... how do we find that out? Is that something the lawyer does or do we have to provide everything? I'm pretty sure I can only name about 10% of what I know we owe.

2. In Arizona we're required to use the state list of exemptions, right?

3. What does this mean? I've read it (and similar statements in several bankruptcy books)
"You can pay regular monthly bills right up until you file for bankruptcy."
Does that mean we're not allowed to pay our monthly bills while going through bankruptcy???

Okay... I think that's it for now... I have a couple of exemptions questions too, but I see there's a seperate forum for that... so I'll wander over there now.

Thanks for being patient with me!

[HRx]

Hi,

1). You're going to wind up doin the majority of the leg work. For starters you'll want to order a copy of your credit report from all three CRA's. This will help you in identify all the bad debts that you have, and approximate amount owed. Start looking for all your past collection letters and start keeping all the incoming ones! You'll need the account numbers, and addresses of each creditor/collection agency. If you want your bankruptcy to go right the "first" time around, start getting yourself organized. Because your attorney gets paid either way.

2). Correct. Just look up your states allowable exemptions.

3). If you're certain that you're going to file Chp 7, they just stop paying your bad debts, and just pay everything else. You might as well start putting some of your money back into your pockets now.

Good Luck!

-Todd

[tinroofrusted]

First of all, never call yourself "young and stupid." That is an insult to yourself, and to other young people who aren't stupid, but just make mistakes! There is a difference!

Go to your local library and check out some books on bankruptcy.... they are chock full of information, and can tell you what you need to know; including some things that your lawyer may not tell you.

From there, choose your lawyer wisely. Ask for references from family or friends, and go from there.

Good luck!

[amynrich]

Thanks Todd... we've already not been paying the debts since we literally don't have the money to do it... it takes everything we have right now to pay our regular bills... so it doesn't mean we have to stop paying regular monthly bills during bankruptcy, right?

Thanks tinroof... we have a bunch of books from the library right now, and unfortunately that's where most oif my confusion is coming from... I just can't get a grasp of anything finacially related... the only people we know who've filed bankruptcy all did it themselves unfortunately... we'd like to do it that way too, but we're so confused I don't see how we can.

And although not all young people are stupid, and not all stupid people are young, I still maintain I was both

Thanks!

[tinroofrusted]

Amynrich- The book that I used was "How to File for Chapter 7 Bankruptcy" (http://www.amazon.com/exec/obidos/tg...books&n=507846)

Very "idiot" proof and VERY self-explanatory! Or try a "Bankruptcy for Dummies" book.

[amynrich]

Oh lordy... I must be worse than an idiot! ~laughs~ That book you linked is one of the ones we have from the library and it just confuses me more.

Give me a book on genetic engineering and I'm golden... talk to me about money or anything related to money and it's like you're talking chinese to me.

Guess I'll try and Bankruptcy for Dummies book... hopefully I'll be able to follow that one! ~laughs~

[HRx]

Keep in mind that a lot of attorneys will allow you to make monthly payments to them, in order for them to file your petition for you. Once you're paid in full, they will file the petition.

-Todd

[amynrich]

We'll check into that... we don't have a lot of time though and my husband's wages are going to be garnished probably within a month or so.

Filing the petition is when the stay is put into effect, right?

[HRx]

We'll check into that... we don't have a lot of time though and my husband's wages are going to be garnished probably within a month or so.

Filing the petition is when the stay is put into effect, right?

It goes into affect once it's stamped by the Federal court. You'll have to fax/mail the stamp/dated petition to each creditor/collection agency yourself if you want the stay to go into faster. But you'd be better off just faxing this info to the creditor who's trying to garnish your spouses wages.

Good Luck!