Chapter 7 - Here I Come

[kiwink]

First I am so grateful for finding this forum, thank you all for sharing.

I have a few questions but first, I am a 62 year old female, not enough credits to get social security, have some pension funds and $18,000 in credit card debt which I can not pay. Mainly the result of a home based business which died halfway through the year and I no longer have the money to support it.

I am an "asset free" case here, no house, car below $2,500 and technically no income other than money I take out of my retirement fund.

Have a lawyer which I will scrape up the money for, I considered doing it myself but my stress level is way up there, rather pay the lawyer $899.00 and have it all done for me (I hope I've made the right decision here).

First I have to take the pre-hearing test - my lawyer says there are places which will do it for nothing - is this true? Anyone know of one ? I have found one who charges $25.00 each per test. What type of "test" is this, do I have to get anything ready or just go and be nice.

Any help you can give me, I would appreciate.

Thanks in advance
Kiwink

[lrprn]

First I am so grateful for finding this forum, thank you all for sharing.

I have a few questions but first, I am a 62 year old female, not enough credits to get social security, have some pension funds and $18,000 in credit card debt which I can not pay. Mainly the result of a home based business which died halfway through the year and I no longer have the money to support it.

I am an "asset free" case here, no house, car below $2,500 and technically no income other than money I take out of my retirement fund.

Have a lawyer which I will scrape up the money for, I considered doing it myself but my stress level is way up there, rather pay the lawyer $899.00 and have it all done for me (I hope I've made the right decision here).

First I have to take the pre-hearing test - my lawyer says there are places which will do it for nothing - is this true? Anyone know of one ? I have found one who charges $25.00 each per test. What type of "test" is this, do I have to get anything ready or just go and be nice.

Any help you can give me, I would appreciate.

Thanks in advance
Kiwink

Welcome, Kiwink! Glad you found us!

The "test" you have to take is called pre-bankruptcy credit counseling. Most of us chose to do it online or in a class - it typically takes a couple of hours. It isn't a test - it's designed to be educational to help you understand your finances and why you are in financial trouble (too little, too late....but I digress....) Be sure whatever you sign up for is one that is approved by the U.S. Trustee Program for your state - you can check that here - http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm

The pre-filing credit counseling class isn't free unless you are so destitute you can't afford even the $50/person it typically costs. If that's the case, then you have to request a fee waiver when you sign up for your course. Some agencies have a sliding scale to pay, some don't.

Check out the approved agencies for your state - each will have the fee you'll be asked to pay and how to sign up. A lot of folks here did their class online - CCCS and Hummingbird are frequently mentioned as good ones to take.

Hope this helps! Let us know what you decide to do and be sure to come back if you have more questions or just need to be among others who understand just what you're going through.

[BKTango]

I am not sure about your area, but check to see if the local CCCS (Consumer Credit Counseling Services) is available in your area and certified for doing the pre-bankruptcy counseling. Make sure they are certified by the Trustee program. That's where our lawyer told us to go and it was free, they don't charge for the counseling there. The first one you attend (pre-bankruptcy) is just a you and a counselor type of setting, ours took about an hour. Good Luck.

[SinkingFast]

Basically the pre BK Cert process is a rubber stamp thing saying "Yep! This Debtor has no alternatives to their financial issues than to file BK."

A counselor will look over you bills and income and evaluate your situation.

You must get and file that Pre BK Credit Counseling Cert as part of your Petition. You cannot be a Debtor, by BK Code definition, without the Pre BK Credit Counseling Cert on file.