I am considering bankruptcy...

[bkcyquestions]

Hello,

I was laid off last week and I am considering filing for bankruptcy since my debt is more that an unemployment salary can handle (my regular salary barely could not cover the debt too.) I have not missed a payment and was wondering if I can petition for bankruptcy despite not being in collections.

[justplaintired]

Yes you can file BK even if your not late. We are. We had never missed a payment, not until we decided to file, once we made this decision, we stopped charging, and stopped paying. You can do a free consultation with a few attorney's to find out your options. If you stop paying, you then need to stop charging. Best bet is meet with a couple different attorneys, find out what exemptions your state allows....

Good luck!

[Stilltheone]

I just wanted to reiterate what the PP said....

We hadn't been late ever on our credit card payments. Once we found out about our salary decrease, we knew there were no other options BUT to file.

I think at the time we filed, we were current on almost all of our bills.

Good luck to you!

[Phillymanhere]

Just to add on, I would ask if you have met with any attorneys yet? You want to do that because depending on any credit card cash advances or recent major charges, you may want to allow some time to pass before you file.
Read up on the forum about the timing of filing. You don't, for example, want to file after making any big "luxury" purchases within 90 days or so. And you don't want to file after recently taking a big cash advance. You want to allow some time to lapse. By the way, a transfer to another credit card (as in transferring old debt to a card with intro 0 percent interest) is considered a cash advance. Filing soon after a cash advance can result in you being forced to pay that money back.
I was current on all my debts until recently. But when I met with the attorneys, they all told me to stop paying on debts and use that money to save up to pay them. That's actually standard procedure.
But to directly answer you, yes you can file even are current on payments. A lot of us have kept up on payments by charging living expenses on one card and using the cash to pay the monthly credit card bills.
It's actually part of the foolishness of the condition of facing bankruptcy. Because frankly, if you're using one card to pay another, then you're really not current on payments in anything except for the most technical sense.
Anyway, good luck.

[bkcyquestions]

Just to add on, I would ask if you have met with any attorneys yet? You want to do that because depending on any credit card cash advances or recent major charges, you may want to allow some time to pass before you file.
Read up on the forum about the timing of filing. You don't, for example, want to file after making any big "luxury" purchases within 90 days or so. And you don't want to file after recently taking a big cash advance. You want to allow some time to lapse. By the way, a transfer to another credit card (as in transferring old debt to a card with intro 0 percent interest) is considered a cash advance. Filing soon after a cash advance can result in you being forced to pay that money back.
I was current on all my debts until recently. But when I met with the attorneys, they all told me to stop paying on debts and use that money to save up to pay them. That's actually standard procedure.
But to directly answer you, yes you can file even are current on payments. A lot of us have kept up on payments by charging living expenses on one card and using the cash to pay the monthly credit card bills.
It's actually part of the foolishness of the condition of facing bankruptcy. Because frankly, if you're using one card to pay another, then you're really not current on payments in anything except for the most technical sense.
Anyway, good luck.

Thank you for the quick response. I have not spoken to any attorneys but I will this week. After I was laid off I made a balance transfer to acredit card with a regular interest rate. I was hoping to to then transfer the amount to a card that had a special rate. This was all an attempt to consolidate for fewer payments. Unfortunately I received a letter from unemployment stating how I was going to get and it is not enough.

Also, I have another question if anyone could answer. I have some credit cards at zero and would like to keep them or do I have to close them.

Thanks all!

[lrprn]

Also, I have another question if anyone could answer. I have some credit cards at zero and would like to keep them or do I have to close them.

You do not have to include credit cards with a zero balance when you file. However, if the cards are from the major cc companies (Visa, MC, etc) your chances of the cards surviving your bankruptcy is about zero. The cc companies share information through a common database. Once they find out you filed bankruptcy, even your zero balance cards will most likely be cancelled.

Some smaller retail cards or local store credit cards sometimes do survive, but there's no guarantee.

Best to count on having no credit cards after you file. If cc's were one of the reasons you have to file, that's not a bad thing at all. You get a chance to live a "cash and carry"/debit card lifestyle for awhile to get rid of old bad cc habits because you will have no other choice.

[bkcyquestions]

Again Thank you so much for all the info. This FORUM is A God send. I had leased a car before I knew I was getting fired. I plan on trying to keeping the lease and making my payments on time (god willing). Is this possible? Do i have to include it in the BK? Which I do not want to do.

[lrprn]

I plan on trying to keeping the lease and making my payments on time (god willing). Is this possible? Do i have to include it in the BK? Which I do not want to do.

You have to list it as a debt when you file. The law states very clearly that all of your debts have to be listed - you don't get to pick and choose.

However, as long as you continue to make the payments on time after filing you should be ok. The lender may force you to sign a reaffirmation agreement. Discuss whether that makes sense in your situation with your lawyer.

[bkcyquestions]

Does anybody know if bk7 affects employers decision to hire when they perform background checks? I am looking for work in the financial sector and I am not sure if this will affect my chances of getting hired.

Thank you.

[justplaintired]

Unsure on employment, that's something someone else can answer. I know we were told that most cc will cancel once they see you filed BK, which is probably best since we are here over cc debt.

Best bet is to talk to a few attorney and find out what they have to say. They will know all the laws in your area. Most will do a free consultation.

[epiphany]

I would think that BK from a prosective employee would cause great alarm to an employer in the financial sector. Not sure what the laws are, but even if the law is on your side, there is probably no way you could ever prove you were discriminated on that fact unless they came right out and told you...and you had witnesses...and you had it on tape..and and and...

Can you get a new job BEFORE you file?

ep