freaking out

[hsanders]

Hi I'm new to all this and having a very hard time. My story as briefly as I can make it: my husband and I have been self employed for about the last eleven years. The economy has basically forced us to close our business, we own a commercial building in addition to our house and we are losing both to foreclosure. My husband is now going to look for a job in another state after being out of the workforce for some time. I understand that we can only have 300.00 between us when we file the papers. I have no idea how to live until he gets a job, or where we'll live. I have some part time work, but it's only about 500.00 a month. I'm grateful for it, but I know it won't support us. Three kids 19, 16, and 12. We had some money in the business account when we closed it (less than a week ago) and we were trying to find a way to save some of that so I can get myself and the kids to the other state. We went in to see the lawyer today to file and were a little freaked out (okay a lot) by the time we left. We have not filed yet because he didn't have some of our creditors in the paperwork and has to add them, but now I figure we have to use this money before we can file. I feel like I'm rambling and not making any sense. Anyone???

[keepmine]

First thing you do is take a deep breath and calm down. This is just money-your creditors can't eat you.
I'd suggest not filing until you 2 have your finances stablized. After all, you still have to support your family post bk. You don't want to file and 6 months fom now somebody gets seriously ill and you have no insurance and you already played the bk card.
BK will still be there when you are both employed and can support yourself without access to credit.
I'd use the money from the business account to support yourself until you land jobs.

[NewDawn]

Actually, my husband was diagnosed with cancer 6 months after filing bankruptcy. We did not have health insurance. We were lucky, though. We applied for financial assistance at the hospital. The hospital ended up writing off the debt (charity write-off).

All of the separate doctor bills did the same thing. They asked us if we applied for assistance at the hospital. Once I had the charity approval letter indicating that the hospital did a full write-off, the doctors honored it as well. So things can sometimes still work out, although I had serious doubts at the time.

If your income is low enough, you might qualify for Medicaid for yourself and your children or possibly a state or county based program while you get yourselves stablized. There are also Federally Qualified Health Centers around the country that charge very little if you have low income.

[69corvair]

I agree, especially if you're fine with losing the properties to foreclosure, there's no reason to file right away. Take some time, get your life in order, make sure that you aren't going to have to incur any new debt in the short term (i.e. medical bills, past due rent/utilities, etc), and then file when you have a plan. Structure the filing on the day before payday when your bank account is at low ebb & you'll be fine. Your lawyer really should have told you all this at your consult, IMO.

[Jimmy9190]

I am no expert either, but I would get your family and your financial situation taken care of first before filing. The money you have now should be used for your own family right now. Like the others said, bk will be available later when it is more to your advantage to file. If you are supporting yourself and the 3 kids on your part-time income, you can look into applying for Food Stamps and Medicaid. With only $500 a month to support 4 people, you would certainly qualify. It would help you until you get back on your feet. If your hubby is living in another state, you won't be able to include him but he can apply for Food Stamps for himself in that state if he earns less than $1,127.00 a month. He would not be eligible for Medicaid though, until he lives with you and the kids again.

Good luck.

Jimmy

[NewDawn]

In addition to applying for Food Stamps and Medicaid, you very well might qualify for welfare (TANF) if your income is only your current part-time job. I don't know what state you are in, but in Texas you apply at the Department of Health and Human Services location for your county of residence. You can try calling 211 and you can apply over the phone. It sounds like you really need the help at this time. This was not something you could have predicted.

But above all else, like other posters have stated, wait to file until you get yourselves stabilized because you may have other bills besides medical that you might get behind on with little income. It's hard to have an accurate picture of your total debts until all the dust settles.

I hope things turn around for your family soon.