New here, a few questions

[jennifer87]

I'm new to the forum and totally new to the idea of filing BK. My husband met with an attorney yesterday and he is all ready to go ahead and file. I was totally against it but we really are basically a slow sinking ship over here and I am beginning to see that there is no other way out. We'll be dead before we ever pay off our debts

Anyway. A few questions if anyone could enlighten me as I start down this twisted path of soooo much information that my head feels it will explode...
(and please don't laugh at my ignorance!! )

When you file, do you have to include ALL of your debts or do you pick which ones you want to include?

If you have a line of credit with your bank, can they close your other accounts if you file BK?

We own a home that someone currently rents from us (at a loss of $200 per month). They are very interested in buying but my husband is so tempted to just walk away from it all together because of the aggravation we are already going through with our renters. Wouldn't it be better for us to just sell them the house and get rid of it that way instead of letting it go to the bank??

I am starting school 4 days a week and absolutely can NOT miss classes unless I am almost dead (it's nursing school and they are so strict about attendance). Do I have to be present for everything if my husband is there? Does it matter?

Can they actually tell you what expenses are unnecessary and make you get rid of them? How on earth does that work?

Thanks for reading if you got this far... I appreciate any advice I can get right now.

[SinkingFast]

I'm new to the forum and totally new to the idea of filing BK. My husband met with an attorney yesterday and he is all ready to go ahead and file. I was totally against it but we really are basically a slow sinking ship over here and I am beginning to see that there is no other way out. We'll be dead before we ever pay off our debts

Anyway. A few questions if anyone could enlighten me as I start down this twisted path of soooo much information that my head feels it will explode...
(and please don't laugh at my ignorance!! )

When you file, do you have to include ALL of your debts or do you pick which ones you want to include?

You'll have to include all lines of Credit that you owe money on and, back taxes, arrears on your home and/or car. You can't say you want to pay your Chase CC balance and discharge MBNA CC debt in BK. That would be considered a preferential payment.

If you wind up in a Ch 13, the Court may decide it's best that your mortgage and/or car be paid in the plan.

You won't have to include regular debts like utilities and such that you're current on.

If you have a line of credit with your bank, can they close your other accounts if you file BK?

They can. It's called Cross Collateralization. Generally in the fine print of Bank Accts or the CC you have with your Bank will be a statement regarding Default on other loans or LOC's with the Bank. There may even be a Universal Default statement. If you're late to any other Creditor, they can close or freeze your accts.

We own a home that someone currently rents from us (at a loss of $200 per month). They are very interested in buying but my husband is so tempted to just walk away from it all together because of the aggravation we are already going through with our renters. Wouldn't it be better for us to just sell them the house and get rid of it that way instead of letting it go to the bank??

If you're current on your mortgage and can sell for what you owe plus costs, that would be best. Having the property show as Sold. Paid in Full. on your CRA's will be better down the road. But if you cannot sell for the full amount owed, then you'd have to get permission from the Lender for a Short Sale. If the Lender won't grant you a Short Sale, then it might be best to let the house go in BK.

I am starting school 4 days a week and absolutely can NOT miss classes unless I am almost dead (it's nursing school and they are so strict about attendance). Do I have to be present for everything if my husband is there? Does it matter?

If you file too, you'll have to be present at the 341. The Meeting of the Creditors. Generally, that's the only meeting or Court appearance most people have. One time. That's it.

Can they actually tell you what expenses are unnecessary and make you get rid of them? How on earth does that work?

There's Schedules of Allowable expense amounts set by the IRS. Those will be the guidelines that all Courts use. From there, expenses allowed can vary somewhat from Court to Court according to where you live in the Country. Some expenses we feel are necessary the Court may consider to be "luxuries".

Say you like to get your hair highlighted and include that expense. The Court may not allow as much for personal care. Maybe you have Deluxe Cable and the Court only allows for Basic Service. That type of thing.

Thanks for reading if you got this far... I appreciate any advice I can get right now.

Here's a link for you about Means Testing, Median Income, and Schedules Allowables for expenses:

http://www.usdoj.gov/ust/

[pink_amulet]

I'm new to the forum and totally new to the idea of filing BK. My husband met with an attorney yesterday and he is all ready to go ahead and file. I was totally against it but we really are basically a slow sinking ship over here and I am beginning to see that there is no other way out. We'll be dead before we ever pay off our debts

Anyway. A few questions if anyone could enlighten me as I start down this twisted path of soooo much information that my head feels it will explode...
(and please don't laugh at my ignorance!! )

When you file, do you have to include ALL of your debts or do you pick which ones you want to include?

If you have a line of credit with your bank, can they close your other accounts if you file BK?

We own a home that someone currently rents from us (at a loss of $200 per month). They are very interested in buying but my husband is so tempted to just walk away from it all together because of the aggravation we are already going through with our renters. Wouldn't it be better for us to just sell them the house and get rid of it that way instead of letting it go to the bank??

I am starting school 4 days a week and absolutely can NOT miss classes unless I am almost dead (it's nursing school and they are so strict about attendance). Do I have to be present for everything if my husband is there? Does it matter?

Can they actually tell you what expenses are unnecessary and make you get rid of them? How on earth does that work?

Thanks for reading if you got this far... I appreciate any advice I can get right now.

HI
I can answer some of your questions.....

~ NO you can NOT pick and choose your debts..they ALL have to be included.

~ it depends if the bank chooses to close the account. So people have had them closed and some banks leave them alone.

~ house one I don't know.

~ I know we BOTH had to present at our 341..... I would think that school alone is not a good enough reason.

~our lawyer had a worksheet for us to fill out, and it listed what was allowed and not allowed and what was the cut off amounts were for our state.

hopefully others will chime in to give you further advice.

Good Luck

[jane taylor]

Hi Jennifer!

Welcome to our "forum family!" Sorry any of us have to be here, but this is a great support system.

No, we can't pick and choose the debts we put in the BK. This includes money owed to relatives. If you pay $600.00 to any one of your creditors in a given period of time this could be seen as a "preferential payment" by the Court. Ask your attorney about this.

The other folks here, as always, have done a great job answering questions. I do understand about nursing school attendance as I teach undergraduate classes and have mostly nursing students. I also know how hard it is to discuss the whole BK thing, but it is best to be upfront and honest with your professors or perhaps even the Dean of Nursing. Ask them what kind of arrangements you would need to make and let them know you will be glad to provide any documentation they require. Most people are reasonable and will do what they can to accomodate your circumstances.

Oh, and another piece of advice, ignore the Trolls. You don't need that with nursing school and BK!!

God bless and keep us posted on your BK and nursing school. You will survive both!!

Peace,
jane

[lrprn]

Hi Jennifer and welcome. I see you've already gotten excellent answers to your questions and hopefully that helps you understand a little about what bk is about.

About filing - it seems like the end of the world, but it isn't. How much worse would you feel scraping by robbing Peter to pay Paul and under constant financial stress for another few years, and THEN having to file? We tried to avoid filing for years, but ended up here anyway. If we would have just filed when things started getting bad, we'd be more than halfway done with our Ch 13 bk.

Be sure to interview at least 2-3 more bk-specialty lawyers before making a final decision one way or the other. You and your husband will learn a great deal each time.
I'm a nurse myself and understand your concern about missing class. Jane, Sinking and Pink gave you excellent advice - 99% of the time the only meeting you HAVE to be there in person for is the 341 meeting. Most nursing faculty will understand if you have a "legal event" that you must attend - you wouldn't have to say it was bankruptcy if you don't want to, but I think you'll be surprised at how understanding most people are about it.

We're here to listen and help whenever we can. Hang in there, ask questions, and be sure to keep us posted on what you decide. Good luck!

[CAB_44]

Hey Jennifer~
Welcome to a great forum you'll no doubt learn tons!
I am so new at this myself, and I really can't speak with too much
"know what to do" as my husband and I haven't filed yet, but are through with turning in the paper work and such to the attorney.... we can file at any time, but are "waiting" because we have used some CC (gas cards) and it hasn't been 90-120 days since.....so as to not raise too many flags with the trustee...
anyway~ one thing that I do know that hasen't been said yet....
if you "owe on any type of a loan to a bank that you have a checking or savings account with, you need to MOVE all of that money" and open another checking account at a different bank because it is possible that your current bank could take your money out of the account you have with them.....hope that makes sense.....
We were advised to do this...we have two vehicle loans through that particular bank and our attorney told us to MOVE THAT MONEY TO ANOTHER BANK WITH A NEW CHECKING ACCOUNT......because they could decide to take liberty over your money when they find out your filing BK. I have also decided not to use the NEW checking account to pay those CC that I am still paying on for the time being..I don't want the CC companies to know about my new account either....just a security measure I feel......
You are amongst the BEST forum possible for answers to your many many questions here~ lrprn, Jman,SF,Jane, BassBoy, Minny, and SO many others are the most qualified to give you the best answers...stay tuned sweetie....we're all in this together!!!!!
I try to give comfort support as that's all I have to offer at this time.....SO new to it myself!! Blessings~
CAB

[anonymuse]

Read, read, and read! Use the search function and read some more. And, don't be shy, ask questions--knowledge is power! Good luck!