bankruptcy questions

[glc4122]

hello all, i have a couple of questions maybe some one can help. i have considerable credit card debt and have approx $30,0000.00 equity in home. I tried to tap in my equity several times ,no one will give me the money, due to heavy debt burden. my wife was working but, became unemployed a couple of months ago. the questions i have (1) i used my credit cards for groceries, gasoline etc.( no big purchases) if i file before the 90 days what would happen can this be considered fraud? the reason im asking is i stopped paying some of the cards approx 3 weeks ago and have had calls from these credit card companies(which i never talked to nobody ) the answer machine has been taking care of them.(2) how long does it take to be sued by credit card companies ? In a case of being sued should i contact a bk lawyer with in the 90 days and proceed to file? (3) would it help in my case to try to debt consolidation plan at CCCS? All comments would be helpful and any solution that any one would have would be appreciated.

thank you

[lrprn]

i have considerable credit card debt and have approx $30,0000.00 equity in home.

We can help you more if you can answer some questions first. What state are you in? If you add up all the income from every source coming into the family for the last six months, how much is that? How many persons are living in your home? (adults and kids) Are there other assets (cars, other property, etc) you want to keep?

(1) i used my credit cards for groceries, gasoline etc.( no big purchases) if i file before the 90 days what would happen can this be considered fraud?

It's possible. However if your charges were small and for life necessities, then that's less likely than if the charges were large and for more luxury items. Depends on the creditor. Small local creditors are more likely to go after recent charges.

(2) how long does it take to be sued by credit card companies?

If you've been making full payments on time up to 3 weeks ago, they are likely to keep you in internal collections for a couple of months, then sell your account to a collection agency. The collection agency will typically harass you for a few more months. Average time before heading to court can be anywhere from 6 months to 18 months. Just depends on the creditor.

In a case of being sued should i contact a bk lawyer with in the 90 days and proceed to file?

A better option would be to make free consultation appointments with 3-4 experienced bankruptcy lawyers in your area NOW. That way you will learn a great deal about your best options when/if you do file, and you will get a chance to see if you get along with the lawyer's style as well. Finding a good bk lawyer is NOT something you want to do in a rush if you can avoid it.

(3) would it help in my case to try to debt consolidation plan at CCCS?

95% of the time debt consolidation won't help you. And remember that any of the debt totals you owe that do get reduced by the creditor, you will pay taxes on the difference forgiven. Not a pretty outcome.

[glc4122]

bk questions

thank you again for the help. i appreciate it.

[glc4122]

bk questions

question #1 ---- state i live in is ohio

#2 --- im below the state average for ohio for 3 people

#3----- who lives with me? my wife ,myself, son(which is disabled) and a daughter in college

question i have--- do i have to add my son's SSI wages,( im the custodian to this account) to the means test ? and also can i use my daughter as a dependent for this means test?

#4---- what would i like to keep as property? i have home which i mentioned, i have $30000.00 equity not sure if i want to keep. but probably so if all possible.

[sickandtired8]

question #1 ---- state i live in is ohio

#2 --- im below the state average for ohio for 3 people

#3----- who lives with me? my wife ,myself, son(which is disabled) and a daughter in college

question i have--- do i have to add my son's SSI wages,( im the custodian to this account) to the means test ? and also can i use my daughter as a dependent for this means test?

#4---- what would i like to keep as property? i have home which i mentioned, i have $30000.00 equity not sure if i want to keep. but probably so if all possible.

Son's SSI can't be touched during BK. Everyone including your daughter will be included in the means test. It goes by how many are in your household. S&T

[lrprn]

question i have--- do i have to add my son's SSI wages,( im the custodian to this account) to the means test ?

Yes, you do add your son's SSI income, but as I recall, it gets backed out later on another form.

and also can i use my daughter as a dependent for this means test?

It depends on howmuch of the time your daughter lives at home. If she spends most of the time living away at college, some districts won't allow you to include her. Your lawyer can give you insights about this. Since you are already below the median income for Ohio for 3 people, hopefully this won't be a Ch 7 deal-breaker for you.

#4---- what would i like to keep as property? i have home which i mentioned, i have $30000.00 equity not sure if i want to keep. but probably so if all possible.

The Ohio exemptions allow only $5,000 for the homestead exemption and has only a $400 wildcard - http://www.bankruptcyinformation.com/OH_exemp.htm . This can be doubled if you and wife are filing jointly. If you've cross-checked the current housing market in your immediate area and are sure you have $30K in equity, then you have $19,200 more in equity than your exemptions can protect.

However, Ohio recognizes "tenancy by the entirety". That means depending on the circumstances, regardless of equity the house may be exempt against debts owed by only one spouse.

Getting the advice of an experienced Ohio bankruptcy lawyer is going to be your best bet to find out exactly where you stand on the house, family size, and any other unique aspects of your situation.