Another question....

[sjp444]

Ok, like most of you who have been thru this my head is SPINNING!! I am thinking about just contacting creditors and trying to work something out, or to stop paying and use the 1900 that I have to pay attorney to pay down debt and then wait for others debts to be written off and or a settlement offered. Either way my credit is crap and the thought of BK staying on file for 10 years, not being able to rent, get a car etc. is OVERWHELMING!!

All total, my debts are about 25-30K dollars with CC and other bills. I just started working on a per diem basis so my salary has increased from when I first submitted my 6 months of paystubs..I asked if the higher salary will hurt me during means test but have not heard anything from attorney..they said if I didn't hear from them then all is ok. I just don't want any suprises after paying fees etc.

Do I go ahead and file and if it gets denied, then hope for settlement with creditors? Also, kids will possibly be heading to college in a few years, how does BK effect financial aid eligibility for them?

[Help!]

The means test takes into account income from the six month period ending on the last day of the month prior to filing (assuming your income is over the median for your state). If you recalculate this based on your projected date of filing and your increased salary, does the result on the means test put you over the threshold where the presumption of abuse arises?

Recalculate schedules I and J using your new salary. If there is a positive net income ($100+) there is a chance you could be "encouraged" to convert to Ch. 13. Unless there's fraud or misrepresentation, you aren't going to be denied relief altogether. Creditor settlements are bad news in my opinion as creditors can change the rules. In bankruptcy, the court makes the rules and the creditors are forced to accept them.

Someone else should answer the financial aid question - not familiar with effects of BK on eligibility.

[JRScott]

Keep in mind that if you do settle with the credit card companies you will receive a 1099 the next January. You will then be responsible for income taxes on the forgiven amount as though it were income.

Given the financial crisis we have today it is very likely the easy student loans of the past are in the past. Most likely your children will have to work their way through school which means it will take them longer but really in the end be more rewarding.

The same is true of car and home loans really. In the past though you can qualify for an FHA backed home loan within 2 years of bk. I get several offers a month for a car usually from the high interest places.

I drive a car that is 18 years old. I hope to drive it for another 5 years. The important thing is to make an emergency fund after filing. It is essential to making it through tough times and has helped me replace the brakes, the fuel lines, water pump, and several other problems the car has had, but has also helped in other areas such as home repair.

[TEW]

Ok, like most of you who have been thru this my head is SPINNING!! I am thinking about just contacting creditors and trying to work something out, or to stop paying and use the 1900 that I have to pay attorney to pay down debt and then wait for others debts to be written off and or a settlement offered. Either way my credit is crap and the thought of BK staying on file for 10 years, not being able to rent, get a car etc. is OVERWHELMING!!

All total, my debts are about 25-30K dollars with CC and other bills. I just started working on a per diem basis so my salary has increased from when I first submitted my 6 months of paystubs..I asked if the higher salary will hurt me during means test but have not heard anything from attorney..they said if I didn't hear from them then all is ok. I just don't want any suprises after paying fees etc.

Do I go ahead and file and if it gets denied, then hope for settlement with creditors? Also, kids will possibly be heading to college in a few years, how does BK effect financial aid eligibility for them?

Step back and take a deep breath
BK is not a killer. If you do a settlement with the CC company they may send you a 1099 and you will get hit with a hug tax bill.
Have you seen an attorney yet? it is hard for us to give you all the answers you are asking because we do not have all the facts. each case is vastly different.

above all filing is a business dissension and as hard as that maybe mixed in with all of the emotions that is the way it has to be.

You have come to a good place. I think that if you have a question there is someone on this board that can give you the answer. We have all been to the point of the should I or shouldn't I.
Just look at the people that are having their 341s and the ones that get their discharge. do you see a single one saying one oh no I shouldn't have done this.
today in the mail I got 4 offers for car loans!!!! NO i am not going back into debt....
your credit score will come back. and guess what you will not OWE anything.
let us know how your doing