Plz Help--Questions about Ch7 in TX

[LimpDisc]

Get free consults from several attorneys. That's where you will get the best advice on your overall situation.

Using the CC's will need to stop because you can't see a BK attorney and continue to use them. As suggested by JEM, I would at least try to make minimum payments on the cards used recently and stop payments on the rest.

[JEM]

We were in the same boat--we couldn't pay all the minimums AND not use the CC's. We were using what available credit we had to buy groceries, or pay utilities, get gas etc...

The cards we used recently, we made minimums on those--the ones we hadn't used recently, I stopped those so that we could afford to make the minimums on the cards we needed to, AND stop using credit at all.

On secured loans, auto and mortgage, the terms will stay the same after you file.

Edited to add...don't borrow the money from a relative. You will have to include that relative as a creditor. You don't want to have any "money" transactions with relatives right now.

[Overmihead]

Thank you JEM and LimpDisc.

If we stop using the credit cards, we will have to stop paying at the same time...which doesn't seem to work in our favor either. Chasing our tail I'm afraid. The only other possibility is trying to borrow money from a relative to keep paying the minimums for another month or two after we quit using them ??? Would this make a difference?

Has anyone out there used cc for living expenses up to the time of filing Ch.7 and come through okay?

And on point #6, does this mean that any of our creditors (including mortgage company) can raise our interest rate/change our terms, even if we never have a hiccup in our payments to them?

I appreciate the replies and hope more will chime in. I'm going to look up some attorneys in Austin right now and would still love to hear from anyone with input and/or an attorney recommendation.

[LimpDisc]

Welcome to the forum.

Question 1. If you're planning on filing BK you need to quit using the CC's

Question 6. You don't get to pick and choose what creditors wil be included in BK.

[JEM]

Questions:
1. Since we know, and have known for a couple of months, that, barring a miracle, we would probably have to go the route of bankruptcy, are we getting ourselves in big trouble by continuing to use the cards to live on? (I don't know what else to do right now)

2. There is no danger of losing our home, correct? (We are doing whatever it takes to continue making the mortgage payments as usual)

3. Timing-wise, do we need to worry about how close to tax time we file? (I'm guessing we should get several thousand back...but will need that to live on post-bankruptcy, til hubby's salary is restored).

4. How can I find a good attorney, other than googling "good bankruptcy attorney"? I know it is recommended to visit several, but I don't think that will be possible. Hubby's salary is cut, but not the hours he needs to be at work. And childcare is always an issue. So it would be really nice to be pretty confident in who we choose to meet with first, in hopes that will be the one we go with. Can names be posted here? Or could someone send me a message if you know of a good one in either the Austin or S.A. area? And maybe a ballpark on the price?

5. We have about $1,500 of furniture financed that we'd like to try to settle on and not include in the bankruptcy. Is this common? Difficult?

6. The debtors that we don't want to include in the bankruptcy....will anything change with them? Will they find out about it and raise our rates anyway?

Sorry this is so long...thank you to all who have taken the time to read the post

1. You MUST stop using the credit cards. Today.

2. If you are current on the mortgage--you should be able to file a Ch. 7 and keep the home.

3. From my research, it's hard to protect cash on hand during bankruptcy in TX. (I'm in TX also) If you use federal exemptions vs. TX exemptions, you can protect "some" cash.

4. We haven't started interviewing attorneys yet. Here in the next couple of weeks we will be.

5. Not sure the answer to this.

6. I believe you have to include all creditors. However, I believe you can chose to pay them AFTER you file. BUT, I've read that very few credit accounts survive the filing. Meaning, they'll close you down once they get wind of the bankruptcy.

[Overmihead]

Hi all. First time post for me. I have learned a lot here already, but have some specific questions if any of you are willing to give me some input.
Brief synopsis of our situation:
Hubby & I have 3 kids & live in TX. We have gone through some financial struggles, but always managed to get through, with help of family sometimes and more debt on credit card (often). We have never defaulted on a payment on anything. Big, sparkly credit scores and qualified for all the best rates/deals, despite the lean times. Hubby is 1/2 owner of a small business started 4 years ago and I am a SAHM for a while longer until our youngest starts school. Like most everyone, this economy has hit us hard + we had some big medical expenses and major vehicle repairs in the past 6 months. Then 4 months ago, hubby had to reduce his salary to keep the business afloat. We purchased our current home a year and a half ago, and it was a stretch for us to make it with the new, much bigger mortgage even on his original salary, but this is the home we plan on raising our kids in and staying in, probably permanently (this is the 3rd house we have owned). Since the salary cut, we have had to start using credit cards...it is to the point that we are having to use them to pay electric bill, groceries, gas, etc. We kept thinking the reduction would just be for a couple of months and that things would turn around, but they haven't yet, and no telling how much longer he will be on reduced salary. In the meantime, we are about to run out of room on the credit cards and soon will be unable to make minimum payments on them. We have not missed or been late on a single payment thus far, but I am so stressed at the thought of bankruptcy, that I'd rather file before we are in default and being harassed. I have looked up the means test, and we are under the monthly amount for a family of five, based on the reduced salary. And even if we were above it, I think we should qualify. We have huge health insurance costs (private insurance for all 5 of us is over $800/month directly out of our pocket...+ co-insurance, etc.) It may or may not be relevant to mention the following:
We own 2 vehicles outright. (150K miles & 225K+ miles, and are happy to keep driving them as long as they'll run)
We had 2 major appliances go out just before the salary cut 5 months ago and had to put the new ones on credit card (about $2K).
We had to put all of Christmas expenses/presents on credit card.
We have had to put a few thousand in medical expenses on credit card in the past 4 months.
Total c.c. debt right now is probably up to 45K.

Questions:
1. Since we know, and have known for a couple of months, that, barring a miracle, we would probably have to go the route of bankruptcy, are we getting ourselves in big trouble by continuing to use the cards to live on? (I don't know what else to do right now)

2. There is no danger of losing our home, correct? (We are doing whatever it takes to continue making the mortgage payments as usual)

3. Timing-wise, do we need to worry about how close to tax time we file? (I'm guessing we should get several thousand back...but will need that to live on post-bankruptcy, til hubby's salary is restored).

4. How can I find a good attorney, other than googling "good bankruptcy attorney"? I know it is recommended to visit several, but I don't think that will be possible. Hubby's salary is cut, but not the hours he needs to be at work. And childcare is always an issue. So it would be really nice to be pretty confident in who we choose to meet with first, in hopes that will be the one we go with. Can names be posted here? Or could someone send me a message if you know of a good one in either the Austin or S.A. area? And maybe a ballpark on the price?

5. We have about $1,500 of furniture financed that we'd like to try to settle on and not include in the bankruptcy. Is this common? Difficult?

6. The debtors that we don't want to include in the bankruptcy....will anything change with them? Will they find out about it and raise our rates anyway?

Sorry this is so long...thank you to all who have taken the time to read the post