Newbie with a couple of questions...

[goblue]

I just found these boards and read for a few hours, but I have a few questions that I'm hoping you can answer for me.

We are seriously considering filing Chapter 7 due to my husband's sudden decrease in income. We're to the point where we cannot pay our credit card minimums any longer. So a few general questions--

I'm hoping to file in August. If I stop paying my credit cards this month, do you think they will take any immediate actions before I can file? Also, do they start bothering me at work? leaving messages with coworkers? I really don't want my coworkers to know what's going on -- if at all possible. (My two credit card companies are Capital one and Chase)

We want to keep both cars and my house. Is there a formula they will follow to determine if we can afford to keep them? (Ie - 30% debt to income ratio) So (as example), if I make 3000 per month and my mortgage is 1100 and cars are 400 -- would they not allow me to keep the cars or house because we would be over the typical accepted norms in debt to income if we were purchasing our house now? Does that make sense?

I have a balance with Kohls. Is there any chance to reaffirm with them so I can pay down the debt and keep that card open? Or will they just close it down as soon as its paid off?

Final question - will they keep my tax refund if I get one next year? Does it matter whether or not it has officially been discharged or if it's still in the process? Will they keep my refunds for years to come? Does it matter the size of the return?

I will be spending a lot of time in these forums this weekend -- but I can't view them from work and really hoped to get answers to these questions asap.

I would appreciate any input you can provide. I hope to meet with the attorney the beginning of next month.

Thank you.

[liz417]

I just found these boards and read for a few hours, but I have a few questions that I'm hoping you can answer for me.

We are seriously considering filing Chapter 7 due to my husband's sudden decrease in income. We're to the point where we cannot pay our credit card minimums any longer. So a few general questions--

I'm hoping to file in August. If I stop paying my credit cards this month, do you think they will take any immediate actions before I can file? Also, do they start bothering me at work? leaving messages with coworkers? I really don't want my coworkers to know what's going on -- if at all possible. (My two credit card companies are Capital one and Chase) No, I stopped paying my creditors 1 year before I filed. Yes, you will get collection calls, but if you pick up your phone every once in awhile and let them know "you are working on your situation, but you are unable to make a payment at this time (don't promise them ANYTHING!), they will have no reason to call family, friend, neighbors, etc.

We want to keep both cars and my house. Is there a formula they will follow to determine if we can afford to keep them? (Ie - 30% debt to income ratio) So (as example), if I make 3000 per month and my mortgage is 1100 and cars are 400 -- would they not allow me to keep the cars or house because we would be over the typical accepted norms in debt to income if we were purchasing our house now? Does that make sense? Go to this website and see which BK chapter you can file: www.legalconsumer.com It has nothing to do with your debt to income ratio, also, google the IRS Living Standards and check out what is allowed in your county. Does your home/cars have any equity in them? What State are you in?

I have a balance with Kohls. Is there any chance to reaffirm with them so I can pay down the debt and keep that card open? Or will they just close it down as soon as its paid off? There is no need to reaffirm, most likely your Kohl's card will be cancelled once they find out you filed for BK.

Final question - will they keep my tax refund if I get one next year? Does it matter whether or not it has officially been discharged or if it's still in the process? Will they keep my refunds for years to come? Does it matter the size of the return? This varies by district/trustee, your attorney would know what the Trustee expects. Maybe you could exempt your refund...

I will be spending a lot of time in these forums this weekend -- but I can't view them from work and really hoped to get answers to these questions asap.

I would appreciate any input you can provide. I hope to meet with the attorney the beginning of next month. I would recommend that you set up free consults with at least 3-4 attorneys in your area.

Thank you.

Good Luck!