still unclear

[jeb]

I have spent hours on this forum and really appreciate all the great info that you good people have taken your time to provide.

However, I am still not sure if I qualify for Chp 7 or not - this from another post -

Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is a debt repayment plan. A person must be employed to be granted a Chapter 13 bankruptcy so they can make regular payments to the Bankruptcy Court. The payments they make to the court are then distributed among the creditors.

I am not employed - have my Real Estate Lic still active but no longer can afford the expenses involved with it - but receive SS, a small VA disability payment and some $460.00 from company retirement - some $1,842.40 is my total income.

After cutting everything back to the bone my total expenses are some -$1,963.55 - - this is just the basics - rent, ele, auto payment and insurance, but does NOT include food and any other "normal" living expenses. (At this point, I don't have any.

My minimum monthly payments on unsecured debt - CCards - is -$878.00 with about $55,000.00 outstanding to 5 CC companies.

As you can see, even cut to where I am now I am still several hundred in the hole every month.

What I am not understanding about Chp 7 is that I CAN pay some of the CC debt if I continue living the way I am. The problem is I don't know how much longer I can continue living this way.

I guess my questions are -

Can I file Chp 7 with the above?

If I have to pay part of the CC bills, would I be better off going for a debt settlement?

Can I discharge any secured debt - car being the only one?

Again, tks for the help - jb

PS - I have seen here about a required credit consulting - can/should I go do that consulting now and, if so, is there a charge for it and how do I find out where these are helded?

[bkchap7filer]

If you file a chapter 7, all debt included is discharged (with the normal exceptions of student loans, etc). So, ALL of your credit card debt. You don't have to pay any of it back. I don't understand what you are confused about. If you don't have anything outside of the chapter 7 exemptions to worry about (and it doesn't sound like you do) and you are under the means test (which you likely are), then you shouldn't do a chapter 13.

[jeb]

Filer - I guess it is the fact that if I quit paying the Ccards then I have an extra $800.00 in my bank account that could go to pay them.

Somehow I am not understanding that if I could pay, say $400.00 of the $800.00 owed, how can I file chp 7?

I can't pay all of them but could pay some of them.

But I can still discharge all of them?

Tks - jb

[bkchap7filer]

Well, you can pay MINIMUM payments on them, but nothing on the balance. No, if you file chapter 7, you do not pay part of them. How long could you continue this $800 minimum payment before they raise your interest rate and payments so you can't afford them? What happens if something happens and you have to use them for emergencies because you haven't been able to save any money? Guess what, your minimum payment goes up. If you do the income and expense schedules based on your income for normal and reasonable living expenses (minus the cc payments) then you aren't going to have an "extra" 800 in the bank every month. You said that you don't spend as much money as is reasonable for groceries, clothing, savings, gifts, etc because this $800/month is such a weight. So, do the schedules including expenses at a reasonable level and I think you will see the $800 extra disappear for the most part...make sense?

Have you done any free consultations with any attorneys? Sounds like you could make good use of one.

[jeb]

Tks filer, makes a little more sense the way you put it.

I had a telephone conversation with an Attorney to just get some background info but have not filled out any of the paperwork or schedules - sounds like that should be my next step.

Again, tks - jb

[ready2puke]

My suggestion is stop paying your cc's and stop cutting back on essentials..to make up some of the differenece so you dont have much left over...hope Im making some sense to you but Im not sure if this will work but it should
Basically after you add your food, cleaning supplies, laundry detergent, gas, clothes....they do give you expenses to live on, you should be just fine....

[jeb]

Tks all - I appreciate it. - jb

[PoorGrammyinBK7]

You say you have an extra $800 not paying CC's, but what about the "several hundred in the hole"?

You have not included regular living expenses like FOOD, CLOTHING, GAS, MEDICAL EXPENSES, HOUSEHOLD SUPPLIES, so wouldn't the "extra $800" go to those?

You don't want to go CH13 unless you have to and you seem like a perfect candidate for a Ch7!

Ch7 wipes out all the CC debt! You do NOT have to pay that in a Ch7.

It can wipe out secured debt, if you are willing to give up the secured asset. You must be talking about your car?

Duh - now that I re-read it I see it was your car. Sorry -- its late!

[jeb]

Tks Grammy - I understand about "it's late".

And you are correct about the $800.00.

I run about $400.00 in the hole paying the extra $800.00+ and living like a prisoner with absolutely NOTHING but the essentials.

So some $400.00 plus or minus would be left after stopping the CCard payments and very little or nothing after living a somewhat "normal" life.

I appreciate all the good advise you guys and gals have supplied - tks much - jb

[ready2puke]

Granny had the same advice that I gave you..Im glad

You say you have an extra $800 not paying CC's, but what about the "several hundred in the hole"?

You have not included regular living expenses like FOOD, CLOTHING, GAS, MEDICAL EXPENSES, HOUSEHOLD SUPPLIES, so wouldn't the "extra $800" go to those?

You don't want to go CH13 unless you have to and you seem like a perfect candidate for a Ch7!

Ch7 wipes out all the CC debt! You do NOT have to pay that in a Ch7.

It can wipe out secured debt, if you are willing to give up the secured asset. You must be talking about your car?

Duh - now that I re-read it I see it was your car. Sorry -- its late!

I wasnt off the mark...It just makes sense to me that your totally going to be
ok..