Plz Help--Questions about Ch7 in TX

[JEM]

Yes, that's a big help

With the reduced income we've been on since Oct, we are below the "magic" number for income for our family size. When it does go back to normal, we are over it....still qualify if we do the means test, but I'm sure that makes the whole process considerably more difficult (and maybe more expensive, with the atty?) We just quit using CCs and are waiting until April/May to A) Have a few months of no CC use and B) Have our income tax refund to hire atty and buy all household necessities. But don't want to wait longer than we have to because of the stress of it all and also in case the salary goes back up and makes the process more difficult.

Thx for the help, again!

I will say, as far as the stress--it seems the more I learn about the process from reading here...the less stressed I get. And the less urgent it seems to file NOW. I know we have a little time to do things right vs. right away.

[Overmihead]

Many people wait longer to file to let extra income "fall off"--as one reason or Extra time between larger charges on CC's.

I know for us, we stopped paying CC's mid November I guess it was--and we probably won't be filing until late March-April. My husband has been working lots of OT because they've been short on employees---this kind of OT won't last--so it's not "typical" of our income. We're going to give it a little extra time for his income to go "back to normal".

Does that help? Sometimes I ramble.

Yes, that's a big help

With the reduced income we've been on since Oct, we are below the "magic" number for income for our family size. When it does go back to normal, we are over it....still qualify if we do the means test, but I'm sure that makes the whole process considerably more difficult (and maybe more expensive, with the atty?) We just quit using CCs and are waiting until April/May to A) Have a few months of no CC use and B) Have our income tax refund to hire atty and buy all household necessities. But don't want to wait longer than we have to because of the stress of it all and also in case the salary goes back up and makes the process more difficult.

Thx for the help, again!

[JEM]

Do you mind me asking why you waited so long to file?

Many people wait longer to file to let extra income "fall off"--as one reason or Extra time between larger charges on CC's.

I know for us, we stopped paying CC's mid November I guess it was--and we probably won't be filing until late March-April. My husband has been working lots of OT because they've been short on employees---this kind of OT won't last--so it's not "typical" of our income. We're going to give it a little extra time for his income to go "back to normal".

Does that help? Sometimes I ramble.

[Overmihead]

I am by no means an expert, but had similar experience.

My husband got laid off in February and we went and saw BK attny end of May to free consult. He advised us of the following:

90 days before you file DO NOT USE CREDIT CARDS FOR ANYTHING other wise the credit cards companies could claim fraud.

We had made minimum payments on cards already for 90 days with no use, so we were advised to immeditately stop making payments on all credit cards and anything we did not intend to keep after BK, (In our case we had 3 vehichles and we knew we could not afford 1 of them after BK so we quit making that payment). Dr's bills etc.

The money we would pay credit cards and Truck payments instead went to gas and groceries etc.

We did not file until October.

Do you mind me asking why you waited so long to file?

[tlcabk]

I am by no means an expert, but had similar experience.

My husband got laid off in February and we went and saw BK attny end of May to free consult. He advised us of the following:

90 days before you file DO NOT USE CREDIT CARDS FOR ANYTHING other wise the credit cards companies could claim fraud.

We had made minimum payments on cards already for 90 days with no use, so we were advised to immeditately stop making payments on all credit cards and anything we did not intend to keep after BK, (In our case we had 3 vehichles and we knew we could not afford 1 of them after BK so we quit making that payment). Dr's bills etc.

The money we would pay credit cards and Truck payments instead went to gas and groceries etc.

We did not file until October.

[JEM]

Hi nickifan,
Thx for the insight! I was under the impression your vehicle would be exempt...since most people need a vehicle for their livelihood. ??
Is it financed or do you own it outright?

I'm trying to take deep breaths and actually get more than 4 hours of sleep at night. We have all of our available CCs about maxed anyway, due to having to rely on them so much these past 5 months for our household bills. So we won't be using them anymore. Will try to make what payments we can this month, perhaps next...but we have nothing in savings and our checking account is completely depleted at the end of each pay period. So if (when) it comes down to making a CC payment or paying the electric bill, gas, etc....the matter is going to be out of my hands. We will do what we have to do. If my hubby's salary is not restored within the next couple of months, then we will have to use inc tax refund to hire an attorney and file BK. Best of luck to you..this is so stressful. I really wonder what toll it will take on me & my DH.

[Overmihead]

Hi nickifan,
Thx for the insight! I was under the impression your vehicle would be exempt...since most people need a vehicle for their livelihood. ??
Is it financed or do you own it outright?

I'm trying to take deep breaths and actually get more than 4 hours of sleep at night. We have all of our available CCs about maxed anyway, due to having to rely on them so much these past 5 months for our household bills. So we won't be using them anymore. Will try to make what payments we can this month, perhaps next...but we have nothing in savings and our checking account is completely depleted at the end of each pay period. So if (when) it comes down to making a CC payment or paying the electric bill, gas, etc....the matter is going to be out of my hands. We will do what we have to do. If my hubby's salary is not restored within the next couple of months, then we will have to use inc tax refund to hire an attorney and file BK. Best of luck to you..this is so stressful. I really wonder what toll it will take on me & my DH.

[nickifan]

//One more general question that popped into my head:
If we do an initial consultation in the next couple of weeks, but wait a few months before actually retaining attorney & filing, will the date of our initial consultation ever be brought up/scrutinized?//

I asked this exact question during one of my consults. Attorney said that the creditor would have to "bring an action" to get the date...in other words, by contesting at an adversary proceeding.

As others suggested, stop using the cards as well as, stop paying the cards. Use the money you were sending to the cc companies for your normal living expenses. If you still can't make ends meet, you have a problem bk can't fix.
You need to figure out a budget going forward. After all, you still have to support yourself post bk.

I also asked, what if I simply HAVE to keep using CCs? Attorneys all cited the usual preference that I "stop using for 90 days", but if the expenses are for normal, critical expenses -- food, gasoline, health insurance premium -- they felt it would be okay. Still, I was advised to try to make minimum payments to the CC's I still used. I'm trying to keep those cards to 3which are just about maxed out (the result of severe cuts by the CC to my credit line, of course.)
[I]]Yes, when you're still unemployed...you have a "problem BK can't fix." I get that. I'm trying desperately to find a job, preferably before filing...I've been fortunate to have a few dear friends helping me keep a roof on my head. But that can't go on forever of course. I still wrestle with the timing (not using CCs/filing)...but it may be out of my control with NO income[/B][/B][/I]

P.S. I'm in TX too but not Austin. Still need to fine-tune with an attorney whether to go for state or fed exemptions...I'm thinking now that if there is little cash in my CU account I don't need to protect it...the state exemps otherwise are very friendly. My main concern is protecting my 2002 Toyota, worth at least $7K, it appears.

[Overmihead]

As others suggested, stop using the cards as well as, stop paying the cards. Use the money you were sending to the cc companies for your normal living expenses. If you still can't make ends meet, you have a problem bk can't fix.
You need to figure out a budget going forward. After all, you still have to support yourself post bk.

Thx, keepmine. Hubby's salary cut should end at some point this year, we're pretty sure...hopefully by mid-year. With full salary, we can make it, but not with all of the CC payments we have now. So I know, if we can survive the BK, that we can come through this okay. I hate the CCs (though it is our own fault for using them), I hate how our whole way of thinking has taught us not to wait & save up, but to buy now and pay later. I never want to go that route again, and I want to make sure our kids don't either.

[keepmine]

As others suggested, stop using the cards as well as, stop paying the cards. Use the money you were sending to the cc companies for your normal living expenses. If you still can't make ends meet, you have a problem bk can't fix.
You need to figure out a budget going forward. After all, you still have to support yourself post bk.

[Overmihead]

If you continue to use CC's after that...possibly.

But if you stop using CC's and go have a consult with a few attorney's, then no, I don't believe I've read about anyone being questioned why they waited a few months (some here have waited years!) to file.

OK, thx. No, we are not going to be using them.

[JEM]

Yes! That'll work

One more general question that popped into my head:
If we do an initial consultation in the next couple of weeks, but wait a few months before actually retaining attorney & filing, will the date of our initial consultation ever be brought up/scrutinized?

If you continue to use CC's after that...possibly.

But if you stop using CC's and go have a consult with a few attorney's, then no, I don't believe I've read about anyone being questioned why they waited a few months (some here have waited years!) to file.

[Overmihead]

Or just to have them bring you over some groceries, or fill up your gas tank for you.

Yes! That'll work

One more general question that popped into my head:
If we do an initial consultation in the next couple of weeks, but wait a few months before actually retaining attorney & filing, will the date of our initial consultation ever be brought up/scrutinized?

[JEM]

Thx again, to both of you. Will quit using the CCs, try to pay what we can toward them, and try to set up a consult w/an attorney in the next week or so.
If it's not a good idea to accept any money from family, maybe if it comes down to it when can just ask them for a grocery store gift card to help get us through.

Or just to have them bring you over some groceries, or fill up your gas tank for you.

[Overmihead]

Thx again, to both of you. Will quit using the CCs, try to pay what we can toward them, and try to set up a consult w/an attorney in the next week or so.
If it's not a good idea to accept any money from family, maybe if it comes down to it when can just ask them for a grocery store gift card to help get us through.