Finally doing it

[pikaroth]

After a long while, I finally decided to go through with chapter 7. I met with an attorney today and things appeared to at least start on the right foot.

All of my dept, a little over $47,000 is strictly credit cards, and approximately 80% of the dept is from after college and through my late 20s. I'm now almost 34, and looking at things, I could only continue to make my minimum payments for another month or two. My gross income is below the state median (Florida), no house or anything of value save for a 2004 Accord that I am still paying on and wish to continue to pay on.

The oddest thing for me, and I know many here understand, is to stop making my payments. I have been sick to my stomach for weeks now and after today I was mixed with a good feeling and one of disappointment. I have had credit cards since I was 18, and I have quite literally never missed or been late on a payment, ever. Now, though, I am advised to stop immediately due to making the decision to file. When I found out I could not do so unless I have not used a card for 90 days, I stopped, but that was only a week ago, and I am now cursing my Publix grocery shopping. Still, they're gone, and it's one week down.

The lawyer made everything sound almost overwhelmingly easy, and a co-worker just went through this about nine months ago with the same law office and had no issues. Nevertheless, I'm worried far more than I can describe. To imagine a creditor calling me makes me feel sick; I was advised to just give the name, address, and phone number of my attorney, and ask them to direct things to them.

Anyway, I probably posted far too much, but this is pretty much making me sick. I actually do appreciate everyone here, having read dozens of threads, but I am still nervous. Like I said, my gross is below the median by about four thousand dollars, I wish to continue to pay on my car, and all of my dept is strictly credit cards that I quite simply can no longer pay on and even if I could, I would never, ever be able to pay them off. I will say this: it's amazing what growing up will do to a person.

Thanks to everyone here, and for everyone else going through this, I wish you the best of luck because I know I need it.

[ValleYum]

First post :Waves Hi!:

DH and I are seeing our 1st attorney for a Ch 7 consult tomorrow. I can't sleep and am up running numbers and making sure I have any possible answer to any question the attorney may ask.

I have a heart attack question here: You can't file BK on credit cards until you haven't used them for 90 days?

Good luck pikaroth, I know how you feel (more than I can tell you). We just had some extenuating circumstances become our giant baseball bat to the head - letting me know for sure we will drown (and I will die from anxiety) if we don't do something ASAP.

I haven't charged much - maybe a utility bill, groceries or something and my B&N Nook account was linked to a CC which I had totally thought it was coming out of the bank. DUH is me - avoiding looking at accounts doesn't make them have more or less $$. LOL Anyhoo, I am still paying on the cards and actually have pending payments still set up for the 25th payday.

Any info will be appreciated. The posters here ROCK!

Thanks again.

[pikaroth]

Good luck! I was thankful that the attorney I went to seemed to be very straight forward and 'easy going,' if that makes sense. Came across that she knew what hse was talking about, so all I can do is hope.

What you said, though, is dead on: I so want to continue paying until I absolutely can't, but really, when I sit down and rationally think about it, there is no reason to do so having come to the conclusion to go through with it. I have one due this Friday, and to think about not paying it just boggles the mind in ways that I can't describe but I know others feel.

For years I was making the minimum payments with the occasional addition of a few hundred here and there if I was lucky enough, but my living situation changed (lived with my sister, but she, god love her, got a vastly higher paying job and moved to Belgium), and due to that, my rent went up (downsized, of course), paying for electric and all that good stuff on my own, and, as I said initially, another month, two at the most, and I'll simply be unable to make my credit card payments, it's that simple, and it kills me. I feel like a failure if I am being honest.

For anyone reading this thread, I do have one question: I had read a lot about the means test, and the attorney did not bring that up at ALL, and I did not realize it until right now. Is it because I am below the median income range, or is it something that is done later? I was given a packet to fill out and bring back in that asks for a large bit of information (how much is spent each month on groceries, etc.). She called my case "no asset," but is that for sure or can it change? I rent an apartment, make less than the median income in Florida, and have nothing of extreme value (normal stuff: television, computer, furniture, chairs, electronics, dishes, etc.).

I am overwhelmingly nervous, and as ValleYum said, it's more than I can actually say. Everyone I have spoken with, and everyone I have read, appears to imply that a case like mine SHOULD be 'easy,' but then I get that feeling that all of this will somehow fall apart and fail miserably.

[ccsjoe]

Hello pikaroth & ValleYum,

pika-We were just like you, credit history for years with perfect payment, never a miss or a late. Up until the first due date came for a cc after we decided to file I literally had their website up, logged in, and the payment plugged in just deciding if I should click the "pay now" button before 5pm came...it was 4:59. So yes, your feelings are normal, anxiety. It does get a heck of a lot easier. On your second question, since you are beloe the median, you need not worry about the means test.

Valle-You shouldn't use your cc's 90 days prior to filing because legally you should know at that point that you ae insolvent and probably will not repay them, hence it can be construed as fraud. However, if your credit card use within those 90 days was for groceries and other living expenses, you should be ok. Stop using them now. Hopefully you did not run up any luxury or expensive charges on them.

[tobee43]

pika...welcome and your post was just fine and certainly NOT to long. that's why we are here to support and hold u up when you just having one of those days!!

i so understand the guilt associated with what your going thru...it was very difficult for us as well...but we just have to do it! now...as far as the phone calls...just don't answer them, or if you feel compelled to do so...just give them your atty's name and number.

ahhhhh and don't curse your pulix's grocery shopping last week...or maybe you should!!! LOL!!! did you see the sales they are having this week...this is TOO funny, or so i thought......i'm there yesterday on rt 50....and this lady in front of me...i swear the entire cart was full of macaroni...i don't mean like 10 boxes ...i mean like she had 50...NO KIDDING...so..i had to ask..so are you having a macaroni party or what??? she said no...we are so broke and it's buy one get one free and i also have 6 $1 off coupons and this will feed our family for almost 2 months....i just wanted to crawl in a HOLE!! see it can get worse....(i personally like the publixs on 27 and not the ones on 50 for some reason they have better selections i think).

anyway...talking about going on way toooooo long...you are in excellent company and you need to just move forward and onward with your life...this is just a bumpy ride right now, but it will soon pass and you'll be fine.

[ValleYum]

Hello pikaroth & ValleYum,

Valle-You shouldn't use your cc's 90 days prior to filing because legally you should know at that point that you ae insolvent and probably will not repay them, hence it can be construed as fraud. However, if your credit card use within those 90 days was for groceries and other living expenses, you should be ok. Stop using them now. Hopefully you did not run up any luxury or expensive charges on them.

Thanks for the info ccsjoe!

Thankfully it was groceries and utilities and nothing huge. The only thing that could remotely be considered luxury is my e-Reader books were auto charged to one CC but it wasn't even $100 over a period of several months and I would be willing to remedy that if they allowed me to. I am changing the auto-charge right now! We can't file until after Dec 1 b/c of the new means test and a payment in the spring that we have to wait out. So even the newest charges would be about 60 days of no use at that point.

Eeek - What if some type of renewable subscription is auto-charged - any thoughts on how to handle that? That happened on one of the CCs as well. Gonna cancel and get that refunded. I have a good month to work on things like that since I paid everything for this month and they probably won't get demanding until I am actually late. We may could even wait out the 90 days.

I feel so bad and sad. Hopefully like you told pika, it will get easier. 4 hours until our 'consult' appointment. :gulp:

Thank you again.

[tobee43]

valle....good luck at the meeting...and one thing to remember....if you don't like these atty's there are a million more out there and one is right for you. so go with how you feel about them...if you have a great feeling about it...great...if not move on to the next consult!

best of luck!

[pikaroth]

Thanks for the responses from everyone. It is really appreciated. I actually woke up to a phone call today from the attorney (again, the firm seems pretty decent to me, but having zero experience, who knows), and he did say they did not bring up yesterday with me the fact I should close my bank account and open with another bank, and he wanted to ensure I did that. I have two credit cards with Chase and, yes, I bank with Chase, and technically they can take money from your checking account. Never knew that. Now I do. So, just one more thing to add to my plate, but it will be done tomorrow (too late of notice today).

Another question: looking even deeper at this forum, seems quite a few people have had an auditor or some such come by. How common is that, and is it typically only if you own a home or are above the median income level? Right as I can even remotely calm about everything, my nerves pick right up again, and I'm sick to my stomach. And, again, tomorrow is my due date for one of my CC payments, and as ccsjoe stated I will probably have the thing pulled up on my screen waiting to hit the button. I should probably be away from home when the time comes around, so I literally cannot do it.

Anyway, time to get a new bank, one I don't have a CC with.

I hate posting negative sounding posts, but quite frankly I am scared. I just read all the positive outcomes here along with people I know who have gone through it in life and how happy they are, and I hope for that outcome.

[tobee43]

Thanks for the responses from everyone. It is really appreciated. I actually woke up to a phone call today from the attorney (again, the firm seems pretty decent to me, but having zero experience, who knows), and he did say they did not bring up yesterday with me the fact I should close my bank account and open with another bank, and he wanted to ensure I did that. I have two credit cards with Chase and, yes, I bank with Chase, and technically they can take money from your checking account. Never knew that. Now I do. So, just one more thing to add to my plate, but it will be done tomorrow (too late of notice today).

Another question: looking even deeper at this forum, seems quite a few people have had an auditor or some such come by. How common is that, and is it typically only if you own a home or are above the median income level? Right as I can even remotely calm about everything, my nerves pick right up again, and I'm sick to my stomach. And, again, tomorrow is my due date for one of my CC payments, and as ccsjoe stated I will probably have the thing pulled up on my screen waiting to hit the button. I should probably be away from home when the time comes around, so I literally cannot do it.

Anyway, time to get a new bank, one I don't have a CC with.

I hate posting negative sounding posts, but quite frankly I am scared. I just read all the positive outcomes here along with people I know who have gone through it in life and how happy they are, and I hope for that outcome.

first, it's natural to be scared...we all are and were and it's just part of this process...you will most likely even grieve, feel guilt etc. it's all part of going through this.

i also was surprised to hear about trustee's sending out appraisers, however, a very well respected ( for me and i'm certain i speak for many) poster here in the forum jb...did mention it, in one of the threads that it does happen here in florida. now....personally, we never experienced it...and really...i don't think it's anything to concern yourself with now. i think it happens when people fudge their petitions and have so many assets that the trustee wants to make certain there is not enough assets to turn your case into an "asset" case as opposed to a "no asset" case.

frankly, i think in the middle district where you are, hopefully they are so busy who knows what's going on!

promise..it will get better!

[platter]

I can relate to the being 'scared' feeling. As far as guilt...no. I won't allow my physical body to deteriorate over feelings of guilt. No. And when you hear about the card companies wanting to keep us in debt, then after a person files and it's over, they send another card because they know you can't file again for X amt of years so they play you again. And, they do these as a tax write-off, correct, so don't they get their money or most of it back in that sense?

With the economy like it is and many, many people (some of whom you'd never expect) are having to file BK, it's not like there's a spotlight over our heads pointing at us as if we're the only ones.

So, see, what really makes me the most uneasy now is just having to learn about all this and gather all this info that I need. And I've decided to use one of those paralegal type of offices where you get your forms and they do the means test for you when you provide them the info. (I decided to do it this way because I'm low or no assest and I can't see an atty sitting in the meeting doing nothing but twiddling their thumbs which is what one told me it's pretty much like, and I can just do the paperwork myself because the paralegal office place will check to make sure I've got everything ready as far as what the checklist requires.

[ccsjoe]

Hey piko et al, here's a thread I started a while back when dealing with the fear of not paying. I think y'all will enjoy it.

http://www.bkforum.com/showthread.php?60310-Dealing-with-the-stress-of...not-paying

[Freddy03]

Welcome to the board! Good to see another Floridian here

My situation was just the opposite. I stopped paying my credit cards more than a year ago. I dodged phone calls, letters and fought 3 cc lawsuites before reality hit me that we needed to file BK. I wish I filed last year. It would have saved me a year of not sleeping and worrying.

Hope your BK goes smoothly!

[pikaroth]

platter - what you say about guilt is dead on, and reationally I realize what you say is true. I AGREE with it. Yet, here I sit, feeling guilty. I will be working on that daily, and I am certain it will dimish, but I can't lie or pretend it's not there when it is. In regards to getting offers for more cards as soon as you go through bankruptcy, that in and of itself is disgusting and should wash much of these bad feelings away. I hope it does eventually.

ccsjoe - thank you for the link! I just read the entire thread and posted a response. It's a great thread that needs to be bumped every so often. There are new people here daily, and that thread should be read by everyone.

Freddy03 - Yes, another Floridian! I am overly sorry to hear about your previous situation. To imagine going through that for over a year is, well, just sickening to me. I have yet to even miss a single payment (tomorrow that will be different), but thinking about it just, well, I've said it a million times: makes me sick. I can only imagine what you went through, and I hope now you are much better off. I so want my situation to go smoothly and just be done and over with.

I am doing my best to look at this as a good thing. No joke - the rest of my life has NEVER been better. Not that readers here want to know all about me, but my professional life has really changed for the better over the past year (no more money or promotion, but I got the transfer I so wanted, and I am so much happier for it), my personal life is the best it's been in years, and it is my dept, and only my dept, holding me back daily. It's always on my mind, always. I am hoping that by doing this and handling it that it can be a distant memory and that 'fresh start' that so many others have had can come to me, too.

[helpme2010]

I think everyone on this board has gone through a similar experience. I tried as long as possible to make payments. What really sent me into the angry mode and eventually into Chapter 7 was the credit card companies who treated me like crap. I tried to set up a payment plan with them and a couple finally went along after harassing me for months and calling my bluff of not paying anything, but Discover refused and continued to harass me. They also kept sticking me with higher and higher late fees and refused to help me lower the payments while I was out of work.

Like many people on this board, I should have filed earlier and stopped paying creditors earlier, but I kept thinking I need to keep my house and I don't want a BK to show on my credit report when interviewing for jobs. But it turns out a BK with a fresh start will likely look much better to an employer than a person with bad credit who is struggling with high debt.

The BK is also cool as it immediately stops all those jerk creditors from harassing you.

The scariest part is going to be walking away from the home I have owned for 20 years; however, I will now be able to rent a house much closer to my girlfriend, family, and work, so this alone will save me a huge amount of time sitting in traffic jams in SoCal freeways!!!