Please help with some answers to questions

[ScaredinPA]

Hello everyone. I am new to the forum.

I have finally come to the conclusion, after many sleepness and tear-filled nights that I must file for bankruptcy. Basically, once we pay our bills we have negative money left in the checking account and our savings is almost depleted. Basically, one more month will leave us with zero dollars. It's totally my fault - I overextended myself on credit cards and now the interest rates are increasing. To date, we are current on all of our accounts and do not have any late payments. Both of our credit scores are in the mid-600s.

My husband and I have combined joint credit card debt of $21,000. He has $5,000 himself and I have around $33,000 myself. I am hoping to refinance our house at 100%, pay off the joint credit cards and then individually file for bankruptcy. This way, his credit score is not affected by the bankruptcy, only mine.

I met with an attorney a year ago and he thought we would have to do a Chapter 13. I've estimated all of our bills and payments to be $4900 a month and we bring home right around that. Our combined annual income last year was $85K, however $10K of that was overtime which he has not worked at all this year. I'm hoping to do a Chapter 7.

I think more so than anything, I need some questions answered.

1. I'm worried the trustee will yell at me.
2. Will we be able to buy a vehicle in approximately a year and a half because one of ours is "on it's last leg".
3. If we cannot refinance, can I reaffirm the joint debt so his credit doesn't suffer?
4. If we decide to jointly file, what are the chances that they will force us into a 13 vs. a 7?
5. Will they allow you to reaffirm one credit card?

[ScaredinPA]

I also wanted to ask how often credit card companies show up at the 341 meeting. We owe Providian, MBNA, Chase, Bank of America, AT&T (Citibank) and Fleet.

Thank you for any help or advice you can give.

[Minnymouth]

You didn't specify whether you had a lot of equity in your home to refinance against. If you have very little equity, then it wouldn't be worthwhile to clear up cc debt this way.

1st thing you need to do is a "actual budget" of your living expenses to see how much you would have left over cash wise. If a lot you will probably be in a Chap 13. If not a Chapter 7 might work out well for you.

You really need to see a lawyer again, in fact I would contact at least 2 - consultations are usually free. This way you will know what your options are.

Would do this as soon as possible. Ask about just filing for yourself and excluding your husband.

With your interest rates increasing you are feeling the "snowball" effect of lenders who now consider you a "high risk". It will keep up too.

Good luck to ya,
Minny