Here's my situation. I have accumulated approximately $60,000 in credit card debt and have student loans that will begin to become due in August. I can't meet all the payments, so I have talked with some attorneys and decided that Chapter 13 is the way to go. (I own a home and earn too much to qualify for Chapter 7).
I'm an inveterate worrier and I'm now running through every conceivable "what if" scenario. I honestly did not plan on bankruptcy. I was living in a fog of denial up until about two weeks ago. As such, I have been using two of my four credit cards. In recent months, many of the charges have been for nonluxury items - groceries, gas, doctor's office, utilities. However, to be honest, many charges are not essential.
I have Bank of America with about $1,837 in nonessential charges in the last three months, and a card from Chase with about $2,628 in nonessentials. If I wait to file until about August 14, I can get the Chase nonessentials down to the $500 limit. I'd have to wait a month or longer to do the same with BoA.
I am currently paid up-to-date on all cards and have been making regular payments throughout my downward spiral.
Questions:
1. How likely are AP filings? I understand that any luxury charges over $500 in the past 90 days can be challenged, but I have also heard that it is expensive for creditors to do that, to the tune of about $4,000.
2. If an AP is filed, what is the likely outcome? From what I read here, settlements are the most common result. Say I agree to pay half. How is that handled? Where does that half come from when you are on a strict Chapter 13 budget?
3. Here is the part that is the most painful to admit. Some of those charges are related to online gaming. I'm incredibly ashamed of it. Are gambling debts handled differently than, say, debts incurred be overshopping? I feel so guilty about it that there's a part of me that feels I deserve punishment for it. I will be calling my Employee Assistance Plan tomorrow to initiate counseling for gambling addiction, regardless of what else happens.
What advice can you offer? Thank you!
I'm an inveterate worrier and I'm now running through every conceivable "what if" scenario. I honestly did not plan on bankruptcy. I was living in a fog of denial up until about two weeks ago. As such, I have been using two of my four credit cards. In recent months, many of the charges have been for nonluxury items - groceries, gas, doctor's office, utilities. However, to be honest, many charges are not essential.
I have Bank of America with about $1,837 in nonessential charges in the last three months, and a card from Chase with about $2,628 in nonessentials. If I wait to file until about August 14, I can get the Chase nonessentials down to the $500 limit. I'd have to wait a month or longer to do the same with BoA.
I am currently paid up-to-date on all cards and have been making regular payments throughout my downward spiral.
Questions:
1. How likely are AP filings? I understand that any luxury charges over $500 in the past 90 days can be challenged, but I have also heard that it is expensive for creditors to do that, to the tune of about $4,000.
2. If an AP is filed, what is the likely outcome? From what I read here, settlements are the most common result. Say I agree to pay half. How is that handled? Where does that half come from when you are on a strict Chapter 13 budget?
3. Here is the part that is the most painful to admit. Some of those charges are related to online gaming. I'm incredibly ashamed of it. Are gambling debts handled differently than, say, debts incurred be overshopping? I feel so guilty about it that there's a part of me that feels I deserve punishment for it. I will be calling my Employee Assistance Plan tomorrow to initiate counseling for gambling addiction, regardless of what else happens.
What advice can you offer? Thank you!
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