HELP! Find the best way2 handle Chapter 7

[JOBK]

I'm going to chime in and agree with Lady in the Red that you should wait until you're finished with treatment, so that all of your medical bills are discharged in bankruptcy. Concentrate on getting better. Get on Food Stamps, and any other aid you qualify for. To he-- with the credit cards!

Thank you lotsahats for chiming in and giving your thoughts and advice! Yes, LadyInTheRed made a believer out of me, her insights and point by point answers to my questions – was RIGHT ON the money!!! Your type of comments will truly help me get to the next level of my journey through financial freedom and good health! God willing! Sorry took awhile to reply did the site crash?
Thanks again and God bless you!

[lotsahats]

I'm going to chime in and agree with Lady in the Red that you should wait until you're finished with treatment, so that all of your medical bills are discharged in bankruptcy. Concentrate on getting better. Get on Food Stamps, and any other aid you qualify for. To he-- with the credit cards!

[HHM]

and If I do have that money I will continue to pay my cc instead!

huh, that makes not sense. So, you are saying that you are unwilling to save up the cost for an attorney (by the way, keep shopping around, $3K is very much on the high end), yet you will try to keep paying on the credit card even though you have no money.

Well, As Thomas Pain said

"To argue with a person who had renounced the use of reason is like administering medicine to the dead"

[JOBK]

Here is the thing, in two years time that debt will be $30,000.
AND $18,000 is NOT TOO LOW, people file bankruptcy at all levels, $5K to $5MM+.
If you can't pay you can't pay. The creditors, and your financial rebuilding are not going to wait 2 years and then put you on a payment plan.
Bankruptcy EXISTS for people who can no longer pay their bills.

Well, like you said, If I can't pay, I can't really pay! Okay, so there is really no difference between $18K or $30K if I file for BK except the time involve (2 years of rebuilding lost?) Well, if that is the case then I will let time heal itself and go from there? Besides, at this time again, I do not have the money to pay for lawyers fees, etc. and If I do have that money I will continue to pay my cc instead! In the meantime, I will keep finding ways to get out of this dilemma. Thanks again HHM!

[JOBK]

The tax liability refers to settlements for less than the full amount owed. It would be paid to the gov't. It doesn't apply if you are insolvent- which you, OP, almost surely are. But you'd need some cash to settle, and it's generally not recommended for a bunch of reasons.

Thank you for your explanation and advice keepsmiling!!! Your name made my day If there's anything else I need to know as far as my issues above ... please do share it! Have a nice day!

[HHM]

Here is the thing, in two years time that debt will be $30,000.

AND $18,000 is NOT TOO LOW, people file bankruptcy at all levels, $5K to $5MM+.

If you can't pay you can't pay. The creditors, and your financial rebuilding are not going to wait 2 years and then put you on a payment plan.

Bankruptcy EXISTS for people who can no longer pay their bills.

[JOBK]

Why go to all the hassle of playing cat and mouse, just file BK and get it over with.
But collection proof takes work and you will NOT rebuild your credit or financial life. They can still get judgments, and those judgments just sit there.
File BK, and get back peace of mind and at least the opportunity to rebuild...don't take up permanent residence in loser-ville.

Thank you for your input HHM! Well, there's a lot of reasons why I don't file BK right now: No money to pay for lawyer fees ($3K minimum?) I don't have much of a debt at the moment ($18K too low?)
I would like to have a chance to pay these off in the future (2 years from my timeline now?) And, I really don't like to file another BK in my name (unless to protect my family?)

I agree with you all heartedly about the work involved about dodging the creditors in the future; the fact that my credit life will be shut and the impending judgments that may occur in the future! That's a lot to handle? But with my reasons above, what can I do at this point? Is there a third option perhaps, anyone???

For the moment I'd like to take care of my health issues first, then be able to get back some peace of mind and eventually have the opportunity to rebuild in the future! Thanks again for your time and if there's anything you would like to add – I'm All Ears... Have a nice day and God bless you!

[keepsmiling]

The tax liability refers to settlements for less than the full amount owed. It would be paid to the gov't. It doesn't apply if you are insolvent- which you, OP, almost surely are. But you'd need some cash to settle, and it's generally not recommended for a bunch of reasons.

[JOBK]

The Walmart debit account is not a checking acct. They(creditors) will only know if you only divulge it. I would not put all my dough in one place, spread it around. Besides the Wal-Mart one, there is the Green Dot one which can load the Amex, Paypal debit cards etc. Purchase some Amazon, Target and Wal-Mart gift cards for essentials such as for groceries.
I would not bother calling. They don't care about your sob story. Pull the plug and learn to live credit free. As for handling the late fees and over the limit became material to me with no meaning. Its just a number. I will never feel obligated in paying them back if my current financial situation improves. With all the interest I paid and them profiting from my transactions with their vendors, I doubt they lost at all. And since they sold off to the junk debt buyers and wrote off the amount, who would I pay and plus incurring a tax liability. No thanks.
I pulled the phone chord and went off the grid. I now only communicate via skype.

Thank you so much jacko for your candid and thorough explanations regarding my queries! I really do appreciated the information! I just have one more question, you mentioned “incurring a tax liability” is this from the creditors or from the government itself?
Thanks again, take care and have a great turkey day!

[HHM]

Why go to all the hassle of playing cat and mouse, just file BK and get it over with.

But collection proof takes work and you will NOT rebuild your credit or financial life. They can still get judgments, and those judgments just sit there.

File BK, and get back peace of mind and at least the opportunity to rebuild...don't take up permanent residence in loser-ville.

[jacko]

The Walmart debit account is not a checking acct. They(creditors) will only know if you only divulge it. I would not put all my dough in one place, spread it around. Besides the Wal-Mart one, there is the Green Dot one which can load the Amex, Paypal debit cards etc. Purchase some Amazon, Target and Wal-Mart gift cards for essentials such as for groceries.

I would not bother calling. They don't care about your sob story. Pull the plug and learn to live credit free. As for handling the late fees and over the limit became material to me with no meaning. Its just a number. I will never feel obligated in paying them back if my current financial situation improves. With all the interest I paid and them profiting from my transactions with their vendors, I doubt they lost at all. And since they sold off to the junk debt buyers and wrote off the amount, who would I pay and plus incurring a tax liability. No thanks.

I pulled the phone chord and went off the grid. I now only communicate via skype.

Thanks jacko for your input. So opening up a Walmart prepaid cc account is working alright for you? They (creditors/collectors) can't touch that account at all? By the way, do you think I should call them up and explain my situation or that is not a good idea?

So, sorry to hear about your $60K that's a lot compare to mine. How did you handle the late fees, over the limit, the phone calls from cc and/or creditors during the first 3 months of defaulting on them? I would like to know if you don't mind!? It's more than likely that I might have to go your route of termination but I still would like to pay for what I owe someday! I hope for the best for you and thank you again for your time... Have a good day and God bless!

[JOBK]

Thank you for clearing that for me. I hope I wasn't being too nosy.
Yes, go get that disability benefit as soon as you are able. You will feel better to know that you'll have some money coming in. It's true 18k isn't much of a debt compare to some of us here. but considering that you still have a year of expensive treatment left with a possibility of transplant, it's so understandable how stressed you are. I feel for you. As for CC, sorry I'm not much of a help. Hopefully, some of the gurus or some one who' been there can give you some advise? ( I stayed current till the very month of the filing, stupid, I know, but scary nonetheless when I finally stopped) Try going through other topic in this forum, I bet you can find loads of similar questions already posted. After all, CC debt is huge part of why we are all here... P.S. Talking to a lawyer isn't a bad thing, though. that dose not mean that you have to commit to file. You only gain more information, that's all. When I was looking for one, lot of them would correspond with me via email, they didn't charge me. Yet I understand how you feel. It is daunting and very stressful! Don't beat yourself up too much, though, stuff happens. I'm praying for your health !!

Oh thank you yarnball – of course you're NOT being too nosy at all. I will go ahead and apply for disability tomorrow either online or via snail mail. I just hope they will approve my request.

Oh boy, a bit of bad news last Friday?! The nurse practitioner at my clinic informed me that my treatment will not be starting till she comes back from maternity leave at the end of May, 2012??? So, instead of starting sometime in January 2012 I have to wait for her till then because she is going on maternity leave starting in Janaury ??? She said, “she's the only one that handles my case and no one else to replace her???” I was dumbfounded as this clinic/hospital is huge, OMG??? I just don't know? Maybe my immune system is not ready for this treatment yet till June of next year, says the Lord?

Anyway, back to reality of CC lol... (had so many questions marks above but they're actually bad words : ) I don't know where to start as far as the stickies with my case – can you please refer me a link or two? Also, you if you have any input with some of my questions to "jacko!" As far as the lawyers, I will look into them especially the ones via email. Thank you so much for your input, time, kindness, compassion and understanding regarding my plight. Now, I must take care of some of the side-effects of my medicine I am taking at the moment – V omit!

[JOBK]

You need to cut the chord and walk away. Pocket the min payments and open up a Wal-Mart prepaid debit Visa or Master Card account. If you stop paying on the three, it will show up on the credit report and the fourth one will most likely cut you off.
I walked away from my CC debt which has now has a default balance over $60K. I sleep fine. My cash flow has improved and moved on. Its been three years and only have 2 worthless judgments. A BK today would not solve my current financial issues.

Thanks jacko for your input. So opening up a Walmart prepaid cc account is working alright for you? They (creditors/collectors) can't touch that account at all? By the way, do you think I should call them up and explain my situation or that is not a good idea?

So, sorry to hear about your $60K that's a lot compare to mine. How did you handle the late fees, over the limit, the phone calls from cc and/or creditors during the first 3 months of defaulting on them? I would like to know if you don't mind!? It's more than likely that I might have to go your route of termination but I still would like to pay for what I owe someday! I hope for the best for you and thank you again for your time... Have a good day and God bless!

[yarnball]

At the beginning of my thread I mentioned that I was unemployed or didn't make enough to file for an Income Tax Return. Thus, I asked my sister to be my joint-sponsor and file an affidavit of support on behalf of my wife also.

Thank you for clearing that for me. I hope I wasn't being too nosy.
Yes, go get that disability benefit as soon as you are able. You will feel better to know that you'll have some money coming in.
It's true 18k isn't much of a debt compare to some of us here. but considering that you still have a year of expensive treatment left with a possibility of transplant, it's so understandable how stressed you are. I feel for you.

As for CC, sorry I'm not much of a help. Hopefully, some of the gurus or some one who' been there can give you some advise? ( I stayed current till the very month of the filing, stupid, I know, but scary nonetheless when I finally stopped)
Try going through other topic in this forum, I bet you can find loads of similar questions already posted. After all, CC debt is huge part of why we are all here...

P.S.
Talking to a lawyer isn't a bad thing, though. that dose not mean that you have to commit to file. You only gain more information, that's all.
When I was looking for one, lot of them would correspond with me via email, they didn't charge me.
Yet I understand how you feel. It is daunting and very stressful!
Don't beat yourself up too much, though, stuff happens.

I'm praying for your health !!

[jacko]

You need to cut the chord and walk away. Pocket the min payments and open up a Wal-Mart prepaid debit Visa or Master Card account. If you stop paying on the three, it will show up on the credit report and the fourth one will most likely cut you off.

I walked away from my CC debt which has now has a default balance over $60K. I sleep fine. My cash flow has improved and moved on. Its been three years and only have 2 worthless judgments. A BK today would not solve my current financial issues.

Thank you jacko for your reply. No, I don't think filing a second BK will solve my terminal issues but it will surely help me cope in terms of the stresses that comes with the territory. Also, I have no money to pay lawyers fee, so this question is moot, I think?! It just bothers me at this time that I will be missing monthly payments for the first time since I got these cc. I do have one question for you though, do you think I can continue paying my monthly minimum charge on one cc, just to keep it for emergency? But they probably close that one to as soon as my other 3 cards starts taking action to collect down the road. Like I said, I haven't default on anything yet (but this one card is due the on the 22nd.) Thank you in advance for your reply! God bless you!