Questions about Federal Credit Union and stuff

[jayte184]

Hello All,
New to the site and all the information is priceless!!!! The short version of my issues is I spoke to an attorney in november due to the overwhelming amount of credit card debt.
First, the issue is I got divorced in 2008 and was stuck with a ton of debt mine as well as some of hers. Chase 2 cards 4500 and 4600, pnc 6500 and 5100 Citi line of credit 6100 and a personal loan thru a federal credit 3200. Dell 700 and a discover card 2700 in which I took out in august 2010 and transferred a balance to one of the pnc cards to lower payment (never put anything on discover except balance transfer of 2900). My first question is the federal credit union will not stop deducting the loan payment from my checks despite me sending a letter stating that I have retained an attorney and I am filing backruptcy? The attorney advised me that he would contact them on monday to inquirer about why they haven't stopped taking it from my check. When I got the unsecured loan I had no intention on filing backruptcy and have been paying since June of 2010. I was wondering is there a difference with them being that they have the FEDERAL attached to there title.

Also, attorney advised me to stop making payments to all other cards. I told him that I just used the chase cards for 2250 due to both my vehicles going down at the same time. I work a job were I drive all day and the need for 2 vehicles is to sustain my current job. One vehicle I am still making payments on 334/month and the other is paid for and it is my main work vehicle with 172000 miles on it. The beater went down and I took it to a local garage and was advised that I was having engine issue and it was fixed for 1700 (b4 u guy jump on me for fixing it and not getting another used car was I weighed my options with this due to the fact that I know everything about this vehicle and if I try to get another beater for the same price I have no idea what i'm getting).
After the beater went down and I was using my other vehicle for work it went down and I had to put 1100 in it to get it fixed at the dealer and that went on the chase card as well so within a 4 week period I put about 3500 on chase cards for vehicle repairs. The attorney also advised me to quit second job due to making to much money, I have been working 7-days a week for since the divorce in 2008 and I am further behind now then I was before, and my quality of life really sucks working 2 jobs 7 days a week to pay these credit cards. So I cant file until june 2011, so I am trying to hold it together and make it til June 2011. He advised me to make 3 payments on credit cards that I used to fix vehicles and let the rest go, does that sound right?

I know this is alot of information but any insight on my situation would be greatly appreciated. Thanks

[despritfreya]

In response to:

"My first question is the federal credit union will not stop deducting the loan payment from my checks despite me sending a letter stating that I have retained an attorney and I am filing backruptcy? The attorney advised me that he would contact them on monday to inquirer about why they haven't stopped taking it from my check."

What do you mean "not stop deducting. . . from my checks"? Did you do a wage assignment or do you work for the CU? Or, is the CU taking money from your CU account?

"I got divorced in 2008 and was stuck with a ton of debt mine as well as some of hers."

Are you going to file a Chapter 13 or a Chapter 7? The the rules for debts arising out of a divorce decree that are not "in the nature of support" are different.

"I just used the chase cards for 2250. . . so within a 4 week period I put about 3500 on chase cards for vehicle repairs. . .(The attorney) advised me to make 3 payments on credit cards that I used to fix vehicles. . ."

The vehicle repairs are not luxury goods or services incurred within 90 days prior to filing and therefore will not be "presumed" fraudulent. However, any creditor has the right to object to a discharge. You will just have to wait to see what happens but some "good faith" payments as suggested by your attny are not a bad idea.

"The attorney also advised me to quit second job due to making to much money. . ."

This advice is usually give if you are trying to qualify for a 7 or you are trying to keep your income low so that your Plan payment is within reason if a 13.

Des.

[jayte184]

Thanks for the response. As far as the federal credit union it is a personal loan with them, like any other non secured loan. I signed up for payroll deduction with them for $100 bi-monthly and $47.32 goes to the loan and 53.32 goes to my saving in which I've been taking out every pay. I spoke to my jobs human resources dept to stop payroll deduction and was advised that I would have to go through them to get it stopped. I keep getting the run around from them when I call and my attorney suggested writing a letter and still no resolve. Attorney said he will contact them on monday, I was just trying to get a heads up prior to. As far as I know it is just a standard non-sucured loan but the credit union is not apart of my employer, its just one of those credit unions that's affiliated with my employer and you are asked in the beginning when you are signing all those human resources paperwork when first hired.

I am planing on filing chapter 7.

I was making to much money to file for chapte7 and he suggested me quitting the second job in which I have already done. So, June 2011 is the anticipated filing date due to the 6-month income verification. Like I said I was working the second job to basically try to get out of debt and I have made alittle headway but when both vehicles went down and it cost me 3500 to get fixed that just broke my spirit. Once again thanks for the responses.

[despritfreya]

In response to:

"As far as the federal credit union it is a personal loan with them. . .I signed up for payroll deduction. . .I spoke to my jobs human resources dept to stop payroll deduction and was advised that I would have to go through them to get it stopped. I keep getting the run around from them. . ."

Getting the runaround. . . Now you know why folks who sign up for any direct pay of any kind are making a mistake. Send a certified letter to your payroll department and the CU demanding the ceasing of the deduction and warning that you will seek payment of your legal fees and any other damages if they fail to comply within five days. . .or just let the attny handle it.

"I am planing on filing chapter 7."

Then you need to be aware that any obligation that arises out of a divorce decree is non dischargeable under 11 USC 523(a)(15). If you agreed to pay a debt thus holding your ex "harmless" and the ex is called upon to pay the debt by the creditor, your ex will have a claim against you for recoupment. Of course, if your ex files a bk that ends the issue but you need to be aware of the potential liability. I trust your attny has explained this to you.

"I was making to much money to file for chapte7 and he suggested me quitting the second job in which I have already done. So, June 2011 is the anticipated filing date due to the 6-month income verification."

Yup, that's a plan.

Des.

[catleg]

Des you are brilliant and a tremendous resource here.