Oh, Please help!

[drowningindebt1]

So, it is final, we have to file, we just can't stay above water here. My question is, does anyone have any good lawyer recommedations in the Chicago, Illinois or suburbs? OR any good websites with recommendations?

Also, what happens if you can't file 7 or 13, lets say you get denied for some reason, what happens? I can't sleep worrying about this, haven't even talked to a lawyer b/c I am so nervous. We never wanted to file, but because, I just lost my job (was only working for 3 months but it helped) and my husbands job has significantly slowed (owner operator/trucking). He will probably lose his truck (worth $20,000) then we will definitley be out of a house. I am so sorry but I am so ashamed and have nobody to talk to.

So again, my questions, what if we get denied to file bankruptcy? Can we go to jail for lets say being sued by creditors and we can't pay them.

And my other question, is there any good lawyers in or around chicago, Il

Thanks so much!

[TEW]

Well first of all you can not be dinied. BK is a right. chapter 7 or 13 depends on your income. chapter 7 wipes out all discharged debit
NO you will not go to jail at all unless you commit some type of fraud not being able to pay your bills is not a crime.
DO NOT be ashamed this happens to a lot of people more and more everyday. also there is a directory on the top of the forum look in there for a lawyer ask for free consults with 3 or 4 of them.
read this forum and ask all the questions you want.
Welcome the forum

[relief13035]

We are ALL here for you. Vent all you want. You are in the same boat as the rest of us. Our emotions are nothing unusual, we have all felt the despair, but I promise it gets better.

[drowningindebt1]

I am scared because in April of 2008, I got a boa loan for $40,000, I lied about my income, it was to buy my husbands truck. He was out of work and he finally got his CDL, but nobody would hire him w/ out experience. His brother said if your an owner operator you can make $10,000 a month. So I figured $800 a month would be nothing, at first he was making about $7,000 a month and we were paying everything and everything was great, now everything slowed down and we cant afford it, he has only been making $4000. I was working and making about $1000 a month but it was only seasonal and now I am scared. It was never our intent to file at all, but now it seems our only reality and I am scared I will go to jail for lying.

[TEW]

I am scared because in April of 2008, I got a boa loan for $40,000, I lied about my income, it was to buy my husbands truck. He was out of work and he finally got his CDL, but nobody would hire him w/ out experience. His brother said if your an owner operator you can make $10,000 a month. So I figured $800 a month would be nothing, at first he was making about $7,000 a month and we were paying everything and everything was great, now everything slowed down and we cant afford it, he has only been making $4000. I was working and making about $1000 a month but it was only seasonal and now I am scared. It was never our intent to file at all, but now it seems our only reality and I am scared I will go to jail for lying.

Stop worrying about it no one is going to ask about your loan application. Would you be able to keep the truck if all your other debt was wiped out?

[drowningindebt1]

Well, I used the 40,000 to pay some smaller credit cards off and the truck was $28,000. The only thing is I didn't tell BOA what it was for, I told them it was to consolidate my debt so they don't know it was for the truck. How would this even be handled, btw, thanks for answering, every answer helps, my nails are bitten bloody right now with fear.

[TEW]

How long ago did you take the loan. then it is a unsecured credit?

[drowningindebt1]

April of 2008. funny thing is, 1 year ago, I had absolutely no debt,none, except the mortgage, after husband lost job, it went out of control. Yes, it is unsecured.

[TEW]

so it can be discharged and you maybe able to keep the truck. that would depends on your exemptions. then DH can keep working.
any other debt?

[drowningindebt1]

About $20,000 in other credit cards. I would be so happy if we could keep it, then we can keep the house which has no equity whats so ever, we bought it at the wrong time (2005) but we love it, our kids love it, it is probably worth $20,000 less than what we owe. Anyways, how would I know what are exemptions are? Also, would the trustee ask us what we did with that $40,000? If so, do I have to tell them the truth, I am so scared that they will take the truck away. Again, so sorry to be ranting on, but I am literally shaking as I type. Thanks again.

[TEW]

Illinois State Bankruptcy Exemptions
http://www.creditclean.com/state_illinois.htm
Well for a loan that size it would be best if you wait a year. You are almost there. so I wouldn't worry about it. by the time you file it should be fine.
Look at the MISCELLANEOUS

[drowningindebt1]

It looks like that applies only to business partnerships, thanks though. I actually just have one more question, this last company in who my husband works for made him open up his own company, I believe LLC. Would it help if he got his truck transfered into his company name, it probably wouldn't make a difference anyway. Thanks so much for all of your help.

[TEW]

That I don't know. But put that on the list of questions to ask the lawyers when you go see them. Or someone here may know the answer to that.
but you can calm down you will be fine. you ARE NOT GOING TO JAIL

[dingdong]

Wouldn't the absolutely worst thing that could happen is BofA might file an adversary proceeding in your BK case? Even if they did, that would not affect your other dischargable debts in your BK. They would have to prove you were insolvant at the time you took out the loan to prove fraud and since you only have to provide 6 months of payment advices, wouldn't they only look back six months from the date of filing anyway in a Ch7? Worst case scenario, you might have to pay back some of the loan, but it being almost 9 months since you took out the loan they probably wouldn't be able to do anything.

I could be wrong, but from what I know, seems like you should be ok since the origination of the loan has been distanced so far from your filing date.

However, I am a rookie so I don't know tons about this stuff.

You are in no way going to jail. There are no more debtors prisons, lots of people fudge on their credit apps.

Look at the mortgage issues, if people were going to jail for fudging credit apps, all the "liar loan" mortgage applicants would be fillin up the pokeys!

Relax, and don't get worked up, the stress will just make you crazy. Talk to a lawyer and set your mind at ease..

[drowningindebt1]

Talked to a lawyer

The lawyer said since we want to keep the truck (valued under $20,000) then we would have to file chapter 13, he also advised us we can't buy a new car right now, it would raise too many flags, I am so bummed!!

I also asked him if we could just buy it back from the trustee as I read somewhere here and he said it would cause to many problems, so it looks like we have to do chapter 13.

I really wanted to keep our semitruck (its our only means) and buy it back from the trustee through chapter 7 and I really wanted to buy a vechile $15,000 or so and give up our current vehicle which we are upside down in. Denied on both, just thought I'd give an update