Not Sure.....

[Michigan42]

Hello,

My wife, 2 kids & I live in Michigan & I work for an auto dealer. Over the last 3 years things have been bad financially & have got myself into trouble with CC debt. I found myself charging gas, groceries, & utility bills all the time. I have 6 cards with a total of 20k or so on them & about $800.00/mo in payments. I thought I could dig myself out, but realize it may be impossible. I talked with a reputable credit counseling company & they couldnt help me because I had no disposable income & underwater $500.00/mo. So, now I'm looking into BK. I have a mortgage, 2 cars (1 paid off),2 computers, along with furniture etc. I am still employed & so is my wife so I believe CH 13 is the only way to go?

Now, where do I go to find a good BK attorney? How much is it to file? How can I find out what my payments might be with a BK? I'm really struggling with this & not sure where to turn. Thanks in advance for any info you could provide.

M42

[car67]

Dont beat yourself up to bad. As most will tell you here.
Open your local phone book look for bankruptcy attornies
in your area that offer free consultations and schedule
several then pick the attorney that works for you....

Dont stress there is lots of people in the same boat!
If you was in Oregon I could tell you who to use
Hope it works out for you. Lots of good people and advice on this website.

[Michigan42]

Thanks. I'm just a bit confused as to how to go about it. I want to keep my home & cars/things, but have no problem trying to work out a payment plan. How much does it normally cost & how is it paid? Like, upfront fee, payments, lump sum?

[MJJ3767]

Every state and attorney are different. I paid $500 upfront plus $299 for the filing fee. The rest of the attorney fees were rolled into my plan. Start making some calls. Some might tell you their charges over the phone while others won't tell you a thing until you are in their office. One attorney even emailed me the paperwork before my appointment but noted to "bring in $100." I cancelled that appointment and found another attorney who would answer questions without any money upfront.

[Michigan42]

Thanks for the info. How soon should I do this? We wanted to wait until after we got our tax return back. I borrowed $$$ from both in-laws and wanted to pay them back & maybe knock off some cc debt?

[MJJ3767]

Thanks for the info. How soon should I do this? We wanted to wait until after we got our tax return back. I borrowed $$$ from both in-laws and wanted to pay them back & maybe knock off some cc debt?

Why are you going to knock off some credit card debt if you are planning to file? Stop paying on the cards and hang on to that money.

[Michigan42]

I hear ya, just wanted to lessen the load, ya know? OK, let me ask this: I've contacted 4 of my 6 CC's that I'm delinquent on. I worked out payment plans with 2, I've havent made those payments yet (lots of calls & I dont answer) because I simply dont have the $$$. Should I not make any CC payments? Should I file my tax ret before talking to an attorney? Sorry so many Q's.

[Trixie007]

Thanks for the info. How soon should I do this? We wanted to wait until after we got our tax return back. I borrowed $$$ from both in-laws and wanted to pay them back & maybe knock off some cc debt?

I agree with the above poster, if you're filing BK, stop paying those cc's! Also, be very careful about paying money back to the in-laws, that's usually a big no-no.

[getmeouttahere]

Hello Michigan42! I'm also from Michigan and new at this also. The credit counseling company you originally went to can recommend some attorney's in your area. Go to a couple of free consults. I agree with the other posters, stop paying those CC's (my attorney told me the same thing), that would be like throwing money away. It actually feels good to just pay cash for gas & groceries, instead of relying on those CC's to get you through the week.

Good Luck!

[rrockinggramma]

I am also in Michigan. If you file a chapter 13, then wait until you receive your refund. In Michigan, it will ALL go to the trustee. You will also have to submit your tax returns every year to the trustee.

Stop paying all of your credit cards. You need to find out if you qualify for a chapter 7 or a chapter 13 so schedule several attorney appointments and find one you are comfortable with.

My experience has been that once filed, your attorney is non exsistent so be sure to find out if they will be in this with you for the long haul.

Also be sure both of your cars are in good working order, newer with less likelyhood of needing major repairs etc.

DO NOT pay back your inlaws. Put them into your chapter 13 filing and let the trustee pay them. If you pay them back prior to filing, the trustee can go after that money.

In fact, put EVERYTHING into your filing. If you are up to date on your mortgage then keep paying that and the insurances and the utilities. Keep your cupboard full of food and let everything else go in your filing.

GL

[Michigan42]

Wow, some good info here, startling, but good.

So, I should wait until I receive my refund to file? What should I do with it, just bank it? Pay utilities & household stuff? As far as my vehicles, I have two: My car - 2000 Focus 190k miles in decent shape (I paid $300.00 for it) but not sure how much longer it will go (I commute 120 miles/day). My second veh is a 2001 Windstar (wifes car) 55k miles & in good shape (loan - $182.00/mo). I think I owe $6500.00 on it. I work in a Service Dept & get my car fixed for free or very little labor, just parts cost. Not sure what I should do about my car. It could last awhile or blow up any day.

My mortgage? Well, I fell behind in October. I called my Mrt Co. (Homecomings) & set up a repayment plan to cover the missed payment & I'm currently half way through that plan of 4 payments. I was late on my second mrt pymt this month, but only a week or so.

Mortgage #'s:
1st (int only) Homecomings: payment $1165.00 owe $130k
2nd (8.5%) Flagstar: payment $265.00 owe $35k

Btw, looked up my home value on CyberHomes.com & it said its worth $122K
I can believe it because nobody is selling around me & if they do its for peanuts.

Here's one thing thats bothering me. In 2006 I made 46k in 2007 44K & 2008 55k. Those 2 lean years put me where I am today. I know I jumped up 10k over 2008, but it was too late by then to repair my maxed out cc's. How is this going to look for a BK? Also, should I change my deductions so they take less out of my check every week?

Thanks in advance for all of the help!

[rrockinggramma]

your chapter 13 filing, if you end up in a chapter 13 will be based on your last 6 months of income, so your money of 55,000 is what will be used to base your pay back on. If your wife works, then her income will factor in as well. Total household income.

With your refund do not pay back creditors with it. Use it to be sure your car tires are good to go, pay ahead on consumers or DTE etc or use it to pay on your mortgage to bring it more current before filing. Do not use it for luxuries but basics to live on are good.

It sounds like your vehicles would be ok since you can fix them for free. Many here file and the first thing that goes down is their car. But look around your house. If there is any major issue that needs repairing get it done before you file (like your roof etc) use your refund for that. If you file chapter 13, it will be the last refund you will get for a while.

And see an attorney. You might qualify for a chapter 7. You need to find out where you stand and then plan for it.

[jobGONE]

I'm going back to Michigan. I have to find a job and file 13. All my debt is in my name, my husband refied the house last year in his name only, I am on the deed. I want to make sure they cant take my house, he is current on all payments. I owe the irs 16K and 40K in cc. Will I be able to do this on my own?

[Michigan42]

Ok, makes sense. I'm almost done with our 2008 return, just waiting for wifes 2nd & 3rd W2's which are just little pt jobs that wont add up to much. I believe when its all said & done about 62k combined for 2008. Btw, we have 2 kids elem school age. Can I use the refund for going out to dinner or baseball registration for my son? ($50.00), or dont sweat the small stuff?

Also, can you give me examples of how life is after you file & what role the trustee plays in your life? Are they constantly monitoring your expenses, reviewing bank statements for 5 years?

[Mi Bankruptcy]

Hello Michigan42. Do a search for threads and posts by my name. I stopped paying in July. I had my 341(meeting of the creditors) a couple of weeks ago. I want to warn you not to pay anyone if you are filing. You don't want to get nailed for preferential treatment( family or creditors). I went with a firm that the Western Michigan BK Trustee belonged to.

Remember this is a business decision. TRY not to beat yourself up.