Has anyone filed with very high credit card debt?

[sunshinepa]

If your going to file BK, why are you paying the cards? I would stop using my IRA to pay cards, it's a waste of money.

[IamOld]

sue2 - are you talking about IRA WITHDRAWALS??? As far as I know (and others will correct me if I'm wrong) IRA's are EXEMPT assets. Now, WITHDRAWALS are, alas, counted as income...(I believe)

If you are talking about withdrawals, can you guys wait a few months for that to drop off your income average?

[SemiSpook]

Well, I'm in a similar situation, but it sounds like the issue is relatively moot. What I find amusing is that even after a year of being off of CCs (and the $100k+ owed on the various cards), I'm still alive, and we're just getting into some judgements. However, as soon as I get paid this week, and send that copy of the stub to the lawyer, along with the small fee to stop all judgements against us, we're in the system for Ch7 (as of 1 July). It can't come soon enough.

[IamOld]

Best of good luck semispook!

[JackBondLove]

I had about $140K, all unsecured, no student loan. Haven't had much income over the last few years, but I did have about $100K in cash as early as 3 years before the Chapter 7. I guess I basically spent down that cash (buying a house on the way out to take advantage of the homestead exemption.) I was also a Hurricane Katrina victim, so I had a good overall excuse. I just told the trustee that I've been juggling all this debt for a while and have just decided to throw in the towel.

[SemiSpook]

I had about $140K, all unsecured, no student loan. Haven't had much income over the last few years, but I did have about $100K in cash as early as 3 years before the Chapter 7. I guess I basically spent down that cash (buying a house on the way out to take advantage of the homestead exemption.) I was also a Hurricane Katrina victim, so I had a good overall excuse. I just told the trustee that I've been juggling all this debt for a while and have just decided to throw in the towel.

Now were you doing this with a lawyer, or was this pro se? With the amount of unsecured we have, a lot of which just jumped up on us due to unforseen circumstances, our lawyer is going to work with us to make sure the story is straight to the trustee, because that high amount is going to be scrutinized.

Much like you, were trying to stay afloat until about a year ago when this all started, up until 25 April we were over the median for family size, and now we're in the home stretch. Got a chunk of student loans, as well, but I'm on the cheaper end. My wife went to the same school for her undergrad and graduate degrees, and that wasn't cheap.

[sue2]

I will have to wait for several months. I had no Idea what the BK laws were! My husband will be getting some Social Security next month. Is that income also ?
I am worried about the creditor calls! Should I change bank accounts ? Citibank has my bank account number.

[tobee43]

I will have to wait for several months. I had no Idea what the BK laws were! My husband will be getting some Social Security next month. Is that income also ?
I am worried about the creditor calls! Should I change bank accounts ? Citibank has my bank account number.

SS is exempt under the SS act as income. as well, in many states and counties, unemployment insurance is as well. there are also some exemption exceptions for certain types of pensions as well.

how you with your means test?

[Medora]

We had $137 or so in CC debt, discharged a year ago (thank you!!).
Have since been living on cash, scaled-back lifestyle (thank you loan mod!!), and like the feeling of being debt free (except to the IRS, which we're paying off monthly.)
However, need cc's for business travel--renting cars has been tricky but doable.
Best thing we did was hire a local lawyer who knew the requirements of the trustees. Worth every penny...our paperwork was perfect and we sailed through. Phew!

[NewStart11]

$137 dollars???
Why???
Or was that suppose to be $137,000?

[tmkats]

Filing with just under $55K in CC debt and loans. Even with my DW's income counted our lawyer said we wouldn't have a problem with the means test since all the cards are in my name.

He said it shouldn't be a problem and that they wouldn't even bat an eye at the debt. Waiting the 6 months is going to be the hardest part (need those pay stubs). I just want this to all be over and never have to go through this nightmare again!

[JackBondLove]

Now were you doing this with a lawyer, or was this pro se? With the amount of unsecured we have, a lot of which just jumped up on us due to unforseen circumstances, our lawyer is going to work with us to make sure the story is straight to the trustee, because that high amount is going to be scrutinized.

Much like you, were trying to stay afloat until about a year ago when this all started, up until 25 April we were over the median for family size, and now we're in the home stretch. Got a chunk of student loans, as well, but I'm on the cheaper end. My wife went to the same school for her undergrad and graduate degrees, and that wasn't cheap.

I had a lawyer.

[nodebtnomore]

We have about $60,000 in credit card and lines of credit debt. Along with about $15,000 in medical bills. We were advised to file chapter 13, even though we would pass the means test because our unsecured debt is very high and might look suspcious (would cause an investigation for fraud). There is no fraud, but we were told everything would be looked through with a fine tooth comb and if 1 simple mistake was made it could cause a lot of trouble.

All of the $60,000 in debt is over 2 years old, we stopped paying on all of our credit cards in August 2009. The medical bills are more recent.

Any advice you have would be great - thank you!

Fraud is absolute BALONEY. Who told you that? We passed the means test and had a extremely hassle free CH 7 case & creditors meeting. Smooth as silk. We earn $120,000 a year and we had OVER $100,000 in CC debt.

NUMBER ONE THING is get a very good attorney. Stay away from the mill attorneys and find one who has been doing BK exclusively for many years and personally prepares your case and represents you. Our attorney was not cheap but he was the best. It was easier than I thought.

My opinion is we had been told to file CH 13 we would not have bothered..... worse nightmare than being sued

[tobee43]

Fraud is absolute BALONEY. Who told you that? We passed the means test and had a extremely hassle free CH 7 case & creditors meeting. Smooth as silk. We earn $120,000 a year and we had OVER $100,000 in CC debt.

NUMBER ONE THING is get a very good attorney. Stay away from the mill attorneys and find one who has been doing BK exclusively for many years and personally prepares your case and represents you. Our attorney was not cheap but he was the best. It was easier than I thought.

My opinion is we had been told to file CH 13 we would not have bothered..... worse nightmare than being sued

and may i "" the absolute truth..get a GREAT atty!

[sue2]

How do you find a good lawyer ? I went to one and he did not offer any advice, just wanted $2000.00 and told me Chapter 13. We only make under $5600.00 gross. I have been using
my IRA. My husband is worried.