Looking for advice

[jit]

I know this has been covered A LOT, however, I guess I'm looking for a little advice...

My situation is that I've decided to file for bankruptyc, however, I need to hold off until January, at which time our household size will increase, thus allowing us to file Chapter 7 instead of Chapter 13. The thing is, I stopped paying my credit cards at this point, and by the time we file, it will have been about 6 months. I know the time a credit card will sue varies greatly, and I've seen some getting sued as soon as 1 month after they quit paying, and some go as long as a couple of years.

Where I need a little help is, if by chance between now and January, if I am serverd to show up in court (judgement), should I be prepared to file Chapter 13 and try to conver to Chapter 7 after January? Should I try to talk with the credit card companies (I've just been ignoring them altogether at this point)?

Further, will the court consider the fact that we are expecting a baby in January, and allow us to go Chapter 7? We're very close to Chapter 7 right now, but at this point, I think we would be forced into Chapter 13.

Any advice would be much appreciated.

Thanks!

[FilingOnMyOwn]

Once the baby is coming, you can put all those expenses onto your filing, so the court would have to consider that. I would doubt that you will get sued between now and then. But it has happened, it really just matters on who you owe it to and how much.

I don't know that I'd rush into a 13 just yet with the hopes of converting. If ignoring your creditors has worked so far, at least you have bought yourself some time.

[jit]

Thanks for the response.

You say, once the baby is coming, I can put those expenses on our filing, you mean in terms of the hospital, doctor, etc. costs?

[no_it_all]

I believe the court is interested in your financial situation on the day you file, not necessarily what it might look like in five months.

Have you actually completed the Means Test Calculations to see if you qualify for a Chapter 7 now? Or did you just look at the Median Income for your state?

There is a thread over in "Collection Problems" about Judgments and Liens that you may find informative....

Being prepared in case a creditor starts a judgment against you is a very smart strategy....good luck

[SinkingFast]

Many folks here have gotten a year or more. Some have gone years. Most others see Collection activity start at about the 6 month mark of missed payments.

You are right to go ahead and plan. Call attnys and set up Consults. Get your attny picked out. Start gathering your docs and such. Get prepped in case you need to file on a moment's notice.

If you think you'd be a Ch 13 just based on Median Income, that may not be the case. You can include your excess Secured Debts on the Means Test. If your Housing allowance is $900/mo and your house payment is $1500/mo, that's an additional $600 you can deduct. Just an example for you.

[jit]

Yes - I think we'll definitely be prepared if the time comes.

We've met with one attorney so far. We really liked him, he was very much on the side of the debtor, and was really willing to take time with us (a Friday evening, at 5:30 for example). He said we would be better off waiting until January, for the reason that we would have no problem with Chapter 7. He said it might be possible now, but if we can wait, to wait. He pretty much said to fend off the creditors' for now.

Thanks for the advice, much appreciated!