Hi. 24 year old newbie. Please help!!!

[Beeheery]

Hi everyone,
I recently found this forum because I have gotten myself in a huge financial mess. To make a long story short, I ended up having multiple unexpected surgeries and have been unemployed for a little over a year. I am $30,000 in debt and have defaulted on my credit cards for the first time ever. I am only 14 days late on my cards and I already started receiving multiple calls a day on my cell phone from my creditors. I changed my cell phone this evening as they called 23 times in a span of 5 hours. My question is, how long do I have before they can sue me? I have no income as of yet but I was recently offered a job for 10.00 an hour for 25 hours a week. So that is 1000.00 a month before taxes. Should I wait to start this job for a few months? Back in July of 07 I transferred over 10k to my moms account to pay her back for money I owed her when I transferred some of my debt onto one of her cards a few years prior. I received a cash advance (balance transfer) from my cc and used that cash and transferred it from my account right to my moms. I have paid the minimum every month since then but no longer have the money to pay anything further. Will they object to this when I file? I do not want them to think that I tried to hide away money or give it away. I transferred it to pay her back because it was at 0.0% and I was paying 6.9% on her card. Also, I do not have ANY assets. I do not own a car or home. I do however pay my mom money to use a car she bought for me in 2004. It is in her name. I am only an authorized driver. Can they take my (her) car away? I think I should file without an attorney since I do not have anything to lose. I havent used any of my credit cards that I plan on adding to my bk papers. I currently have 1000.00 in debt on two cards that I plan on paying off within the next 30 days. How long after paying them should I wait to file? I heard something about preferential payment and how that can be bad. I am so sorry this is so long but I am so confused and scared!! ANY AND ALL help would be appreciated. Thank you so much and congrats to everyone who was able to escape the hells of debt. Thank you!!!!

[MomIcantFindmy]

Welcome, glad you found us!!

You did not say what state you are in. If you have no assets you can sit judgement proof for quite some time unless, of course, they can garnish your wages (depending on what state you are in).

The $10,000 will be a problem for you as that is a asset transfer. They will want it back.
It is unlikely they can take the car if it is not secured in your name. If the payments fall into default then they can come take it. Why are you making the payments to her and not to the car loan company? That would look better.
If you pay more than $600 to one credit card company in 6 months they can come back and take the money and place that card into your BK just like all the others.

Seriously, because you have some extenuating circumstances, I would go to 3-4 free consultations and ask these as well as other hard questions of a experienced lawyer. I don't think this is something you want to try on your own. Especially with the 10K transfer (huge red flag).

Take care and best of luck to you!!

[yoyoma51]

MomIcantFindmy is right.

They are not going to sue you anytime soon, so turn your phone ringer off and ignore the calls.

If you paid your mom back in July 07, are going to have to wait until July 08 to file. If you don't, the trustee WILL go after that money.

Even if you are sued by the credit card companies BEFORE you file bankruptcy, I believe the bankruptcy will void those judgments anyway, so you will not have to pay.

Take a deep breath - It will be OK!

PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is totally useless. Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[Beeheery]

Thank you for writing me back. I live in Florida. I make the payments for my car to my mom instead of the car company because the car is in her name and she writes the check to them every month. So if it shows that I am transferring money to her every month they will say that I am transferring over assets even though it is to pay for the car and insurance?? Could I pay someone else the money and then have them send her a money order in their name? I have been sending her payments for several months now but that was only to cover the cost of the car and insurance. Do you think if I hold out until july of 08' I will be OK? What happens if they sue me before then? WOuld I just have to do an emergency filing? Also, should I not work until then? I will only be making 1,000.00 a month before taxes are taken out but that would be for 7 months if I filed in july 2008. I am just so scared and I don't want them saying I committed fraud as I had no idea my multiple surgeries were going to happen. Thanks again for all of your help!!!

[Beeheery]

ALso, would it be in m best interest if I took them up on their payent arrangement plan? What if they close my two credit card accounts I have with them (one being with the 10k balance transfer) and then I make 25.00 per month payments or each card until july of 08'. Could I then file bankruptcy even though those two cards have been cancelled and I agreed to a payment arrangement? This whole thing is so scary and the idea of being sued and then charged with transferring over assets or money is freaking me out! Argh!

[yoyoma51]

First, you should stop making the payments to your mom and make them directly to the insurance and car loan company. They will take the check from you. They do not care who pays, as long as someone pays.

Second, you should get a few free consultations from local, experienced BK attorneys.

You may be fine with the money you have transferred to your mom for the payments AS LONG AS YOU CAN PROVE THEY WENT FOR THE CAR & INSURANCE. This is why you need to talk to an attorney ASAP.

You will still need to wait to file, however, because of the $10k you paid her in July 07.

Based on the information you provided, I don't believe you're committing any type of fraud.

Finally, it will take a while for any credit card companies to sue you. And even if they do and WIN, you can then file bankruptcy and have those judgments VACATED because of the bankruptcy.

Before you go any farther, get to an attorney who knows what they are doing!

PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is totally useless. Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[Beeheery]

Hi thank you again for the response. I have consulted with a lawyer who stated that I should NOT make the car payments and insurance in my name since the trustee or whomever will take my car stating that I technically own it since I am paying for it although it is in my mom's name. Is this true? He said whoever has paid more for it since the purchase in 2004, that person owns it. And I can not have them take my (her) car since I need it for work and school. And lets say she did sell the car, would that be considered transfer of assets if they consider it my car if I have paid for the majority of it? This is sooooo frustrating and confusing. I changed my number and I was thinking maybe this was bad because it will make the process even faster if they know I changed my number on purpose. SO STRESSFUL!!! I am so glad I am not the only one with this problem. I will pray for us all!!!

[yoyoma51]

Your situation is unique.

You should really consult an attorney who is ALSO a trustee for your area. He will know exactly what your trustee would be looking for (because he is one, too).

Click below to see a list of all the trustees in your area. Most are also private practice bankruptcy attorneys. Set up a free consultation with one of them and explain your concerns.

http://www.usdoj.gov/ust/eo/private_trustee/locator/index.htm

It is free and it can't hurt to get their opinion since they are often the ones going after the assets.

PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is totally useless. Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[Beeheery]

Hi again,

Do you know if setting up a private payment arrangement with them keeps me from filing in the near future?

[yoyoma51]

It may. That is one of the questions you'll ask and attorney/trustee during your free consultation.

I will say that I was very surprised when we met with the attorney (who is also a trustee) we eventually went with. My wife and I had many concerns about preferential payments, checking account deposits, etc. that according to our attorney didn't really matter, so we could file right away.

PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is totally useless. Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[Beeheery]

Thanks yoyo,
I just clicked on the link for trustees in my district and there are only 5 listed for northern florida???? I live in gainesville and none of those offices are close. Is it possible that there are only 5 in N. FL???? Thanks!

[yoyoma51]

I believe that list is complete, so you may want to try to schedule a free phone consultation if it is too far to travel.

We interviewed four attorneys, including one by phone.

PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is totally useless. Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[Beeheery]

Oh OK, thank you. DO you happen to know it I did like them and they said it was OK to file, that I could do this whole thing long distance? Is there any face to face meeting required? I assume that I would have to travel for the 341 meeting at least correct? Sorry for all the questions but I have heard so many things from so many different people.

[yoyoma51]

You probably have to meet with the attorney at least once as you need to sign all the paperwork they do for your petition.

Although you could perhaps do it by mail, you will want to be able to ask them any questions you have about the paperwork BEFORE you sign it.

Typically, your attorney fills out the petition paperwork for you, but you swear it is correct and truthful when you sign it. You want to be with them to ask any specific questions you may have about it BEFORE you sign. This would be difficult by mail.

PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is totally useless. Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[keepmine]

The car situation is convoluted. Could your mother just keep making the payments until after your bk is discharged and then, you pay her back post bk?
I agree with the others. Put as much time as possible between that BT and filing. And no, just because you enter a repayment arrangement that does not prevent the debt from being discharged.
IMO, your first course of action is to start making some money ASAP. If you an get a better paying job-go for it. You have to be able to support yourself post bk. Also, does your new job have insurance benefits? Do you need ongoing care from your surgeries? {I'm thinking more bills coming in}.