First Timer - Had consult today

[homesweethome]

Been reading threads on this site for about a week. Decided CH7 BK was an option. Had consult this morning. I would like for you to take a look at scenario & what atty told me & give me your opinion.

Scenerio-
All monthly bills are current (live in apt - do not own house)
$59,000.00 cc debt (current on all payments)
Husband unemployed for last 9 months - been living on cc's to get by
Own 3 cars - 1996 Civic (paid for), 2002 Highlander (paid for) and 2002 Tacoma (have car payment, but owe less than it's worth).

Atty told me that exemptions ($4,000 auto & $10,000 homestead/wildcard) would cover all cars and said Trustee would not object to this.

I've read on this site that others have been advised by Atty's to stop using cc's 60 days before - mine did not say so since no big cash advances, etc. Said it would be ok since just bills & living expenses being charged. Did say to cease using cc's after today.

This sounds to good to be true that I can file bk, get out from all my debt and keep my cars. What do y'all think - does it sound too good to be true?

Thank you in advance - this site has been very helpfull

[magyar123]

Wish you all the best - good luck to you

[JRScott]

As for the exemptions that is probably true for the cars since you don't have a home.

While 60 day use is a general rule, it is not absolute. If all you have is normal expenses on the cards then you could file the day after you use them last. However as the lawyer has said don't use them anymore.

Now I have a question, if he's unemployed. How will you live after bankruptcy?

[Flamingo]

Been reading threads on this site for about a week. Decided CH7 BK was an option. Had consult this morning. I would like for you to take a look at scenario & what atty told me & give me your opinion.

Scenerio-
All monthly bills are current (live in apt - do not own house)
$59,000.00 cc debt (current on all payments)
Husband unemployed for last 9 months - been living on cc's to get by
Own 3 cars - 1996 Civic (paid for), 2002 Highlander (paid for) and 2002 Tacoma (have car payment, but owe less than it's worth).

Atty told me that exemptions ($4,000 auto & $10,000 homestead/wildcard) would cover all cars and said Trustee would not object to this.

I've read on this site that others have been advised by Atty's to stop using cc's 60 days before - mine did not say so since no big cash advances, etc. Said it would be ok since just bills & living expenses being charged. Did say to cease using cc's after today.

This sounds to good to be true that I can file bk, get out from all my debt and keep my cars. What do y'all think - does it sound too good to be true?

Thank you in advance - this site has been very helpfull

It's not too good to be true - bankruptcy is there as a safety net when needed and you will benefit from it. But know that filing bankruptcy (Chapter 7) will beon your credit reports for 10 years and it will be much more difficult, but not impossible, to obtain credit/a mortgage over the coming years. It could also make it impossible/difficult to obtain a future job in several sectors and it will always be public record. Know that you will have to learn to change the way you handle finances in the future to avoid getting back into the same situation and you cannot file Chapter 7 again for 8 years after the first filing. Learn from this and once you get back on your feet, save for a possible future job loss or income loss and keep credit to a minimum. Best of luck to you!

[homesweethome]

As for the exemptions that is probably true for the cars since you don't have a home.

While 60 day use is a general rule, it is not absolute. If all you have is normal expenses on the cards then you could file the day after you use them last. However as the lawyer has said don't use them anymore.

Now I have a question, if he's unemployed. How will you live after bankruptcy?

Thank your for replying - I appreciate it. I make enough to pay the bills, but not enough to pay bills + cc's.

[homesweethome]

It's not too good to be true - bankruptcy is there as a safety net when needed and you will benefit from it. But know that filing bankruptcy (Chapter 7) will beon your credit reports for 10 years and it will be much more difficult, but not impossible, to obtain credit/a mortgage over the coming years. It could also make it impossible/difficult to obtain a future job in several sectors and it will always be public record. Know that you will have to learn to change the way you handle finances in the future to avoid getting back into the same situation and you cannot file Chapter 7 again for 8 years after the first filing. Learn from this and once you get back on your feet, save for a possible future job loss or income loss and keep credit to a minimum. Best of luck to you!

Thank you for replying to my thread. I will definitely learn from this and never get in this mess again. I don't even want credit cards after this.