To File Chapter 13 or 7 or ride it out?
I'm probably making this more complicated than it really is but I'll make this as concise as possible.
A Collection agency obtained a judgement and a writ of garnishment for 25% of my wages recently. I'm thinking about filing Chapter 7. I'm afraid I make too much money to file 7 but I have a high car payment... without the car payment and insurance I'd have about $650 left over each month... if I keep the car and I inflate my living expenses a bit there isn't much if anything left over at the end of the month.
The other issue... After struggling to keep current on my credit cards with minimum payments I simply stopped making payments about 18 months ago. I tried to get back on payments with two of the accounts 15 months ago... the accounts were re-aged. I made a couple more payments then had to stop again and the accounts were charged off. Is a BK trustee going to consider it fraud because I stopped making payments and dismiss my BK Petition? or make me file 13? All my cards were maxed out. I've had no other credit cards since. I pay cash for everything now.
I have approx $34,000 in charged off credit card debt. $17,000 auto loan on a vehicle worth maybe $14000. $1800 Student loan.
I took out a $3000 loan from my 401K in November and spent it on car repairs, utility bills, air fare to visit family at Thanksgiving and Christmas, gifts etc... all spent. Monthly payments are automatically deducted by my employer every two weeks. I've also been regularly selling off my movie DVD's and music cd's on ebay.
I received $1200 Federal tax refund and $299 State tax refund in February. It's all spent already. upgrades for my computer and a desk and a couple book cases.
Is the fact that I stopped paying my credit cards and spent my refunds and the 401k loan proceeds going to trip me up if I file Chapter7?? I don't own a house I rent an apartment; and all my personal property doesn't add up to much... within the allowable exemptions I think...
I guess these are pretty broad questions for an attorney but if anybody has any insight I'd appreciate it. I have to do something soon because of the garnishment. I'll have about $200 a month left for food after my monthly bills plus garnishment if I let it happen.
My other thought was moving to Washington where the statute of limitations is only 2 years...(oregon statute of limitations is 6yrs) and just tighten my belt till the current garnishment is satisfied. Am I right in thinking there can be no judgement or garnishments if the statute of limitations is up? Its not a big deal for me to move because I live in Portland, OR and Vancouver, WA is just accross the bridge.
The 2 yrs will be up for most of my debts in July... I can deal with no credit for 5 more years until everything falls off my credit report. I don't plan on ever getting caught up in credit cards again if I can help it. I'm just having trouble deciding what I should do. File CH 7 BK... if I can even... 13 or go into exile in Washington and pretend my debts don't exist....
A Collection agency obtained a judgement and a writ of garnishment for 25% of my wages recently. I'm thinking about filing Chapter 7. I'm afraid I make too much money to file 7 but I have a high car payment... without the car payment and insurance I'd have about $650 left over each month... if I keep the car and I inflate my living expenses a bit there isn't much if anything left over at the end of the month.
The other issue... After struggling to keep current on my credit cards with minimum payments I simply stopped making payments about 18 months ago. I tried to get back on payments with two of the accounts 15 months ago... the accounts were re-aged. I made a couple more payments then had to stop again and the accounts were charged off. Is a BK trustee going to consider it fraud because I stopped making payments and dismiss my BK Petition? or make me file 13? All my cards were maxed out. I've had no other credit cards since. I pay cash for everything now.
I have approx $34,000 in charged off credit card debt. $17,000 auto loan on a vehicle worth maybe $14000. $1800 Student loan.
I took out a $3000 loan from my 401K in November and spent it on car repairs, utility bills, air fare to visit family at Thanksgiving and Christmas, gifts etc... all spent. Monthly payments are automatically deducted by my employer every two weeks. I've also been regularly selling off my movie DVD's and music cd's on ebay.
I received $1200 Federal tax refund and $299 State tax refund in February. It's all spent already. upgrades for my computer and a desk and a couple book cases.
Is the fact that I stopped paying my credit cards and spent my refunds and the 401k loan proceeds going to trip me up if I file Chapter7?? I don't own a house I rent an apartment; and all my personal property doesn't add up to much... within the allowable exemptions I think...
I guess these are pretty broad questions for an attorney but if anybody has any insight I'd appreciate it. I have to do something soon because of the garnishment. I'll have about $200 a month left for food after my monthly bills plus garnishment if I let it happen.
My other thought was moving to Washington where the statute of limitations is only 2 years...(oregon statute of limitations is 6yrs) and just tighten my belt till the current garnishment is satisfied. Am I right in thinking there can be no judgement or garnishments if the statute of limitations is up? Its not a big deal for me to move because I live in Portland, OR and Vancouver, WA is just accross the bridge.
The 2 yrs will be up for most of my debts in July... I can deal with no credit for 5 more years until everything falls off my credit report. I don't plan on ever getting caught up in credit cards again if I can help it. I'm just having trouble deciding what I should do. File CH 7 BK... if I can even... 13 or go into exile in Washington and pretend my debts don't exist....