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    Your thoughts greatly appreciated

    I have learned so much about bankruptcy from you guys. I started coming here a few months ago with the intentions of filing then but chose to wait because of the things I learned here. Let me tell where I am today.

    I live in New Jersey
    salary is $85,000
    Single mom with 2 children (daughter freshman in community college, no financial aid I pay the bill and son in high school)
    I have a home with $246,000 first mortgage - payments to date with credit union
    2nd mortgage $26,000 - two months behind with credit union
    CC and installment loans - close to $90,000 all of which have not been paid since July/August. Last used credit cards in July. Amex Vof 7 years was on its way out.
    Own investment property in Texas - $80,000 paid $105,000 for it in 2000, but hard time selling because it has structural damage and the market is terrible in the area where the house is. No real equity here.
    over $40,000 student loans - which I know cannot be discharge via bankruptcy.

    My attorney said that with expenses I probably could qualify for chapter 7. However she never told me about the 70/90 day or preferential treatment rules that I learned from here.

    Okay here is my dilemna I won $3,200 ($500 back in my daughters savings account, paid electric bill, cell phone bill, water bill, bought my son some sneakers and paid car insurance) last week from the lottery and I now I am concerned how this will affect the bankruptcy. Other issue - the credit union called and emailed me regarding my equity loan and I felt compelled to return the 50 calls they made. I told them that I can pay them $300 towards my $800 outstanding balance next week and then bring the account to date next month. I did this because I believe that my equity (2nd mortgage) account has to be current to file chapter 7.

    I am afraid that I may get pushed to chapter 13, but I am having a hard time staying current with my bill while I am not paying the credit cards, I don't know how I did it before.

    Your thoughts and recommendations for good bankruptcy attorney in NJ are greatly appreciated.
    Last edited by trying2makeit; 10-25-2008, 05:39 PM.

    #2
    Paying utility bills etc will not arose suspicion. They might question the money you put in your daughter's savings account and thus she could lose that. Since it is less than 600 dollars though I"m not sure they would.

    What is your mortgage payment?
    Also is the 1st and 2nd at the same CU?

    You are correct both mortgages though need to be current when you file.

    How much is the payment on the investment property?

    What sort of vehicle payments do you have?

    Does your daughter have at least a part time job to help pay for her own schooling?
    May 31st, 2007: Petition Filed by my lawyer
    July 2nd, 2007: 341 Meeting Held
    September 4th, 2007: Discharged and Closed.

    Comment


      #3
      thanks for your reply

      1st mortgage $1,750
      2nd mortgage $250
      Both with credit union
      car payment $410sk about my income for the
      investment property $1,000

      Yes, my daughter does have a part time job, but it doesn't even cover her books.

      Let me ask about my income for 6 months.
      My job salary + rental property + lottery winnings is this correct? If so, I can't see how I qualify for chapter 7.
      Last edited by trying2makeit; 10-26-2008, 02:12 AM.

      Comment


        #4
        I do believe the lottery winnings would count as income however I've not seen that come up. If so can you wait 6 months to file and let that fall off?

        Well your house payment seems within reason of your income.

        The car is within reason too.

        On the rental is that gross 1k or net 1k? If it is gross, what is the net after any mortgage on it etc?
        May 31st, 2007: Petition Filed by my lawyer
        July 2nd, 2007: 341 Meeting Held
        September 4th, 2007: Discharged and Closed.

        Comment


          #5
          Also, do you receive child support for your children (you state you are a single mom have apparently have full custody of both children).

          As to your attorney question, call the New Jersey State Bar Association (look in your phone book under your "state" section). Call them and advise that you are in the position to consider filing bankruptcy, don't know what to do and need the names of good, reputable attorneys in your city/area. They will help you. Do not be drawn to any TV advertisements or the big full page ads in the phone book. In the past, did you utilize an attorney for wills or house settlement and liked the attorney? Call him/her up and ask for some recommendations for a good BK attorney. Most attorneys will see you free for a consultation; go to at least 2 or 3 before you make any decisions.

          Best of luck to you.
          _________________________________________
          Filed 5 Year Chapter 13: April 2002
          Early Buy-Out: April 2006
          Discharge: August 2006

          "A credit card is a snake in your pocket"

          Comment


            #6
            you guys are great

            the investment income is actually $0 because i get $1,000 and it all goes to mortgage company; i make no profit.

            I don't think I can wait 6 more months, I think citicard and amex might start garnishing my paycheck by that time. I work in the finance department of my company and this would be devasting for me. My last payment and use of credit card was July. I waited out so I wouldn't have any problems there.

            Regarding the attorney, I've talked to two and met with one. The one I met with seemed pretty good, but I'm concerned because she did not tell me about some of the things I learned here. i got both of their names from the bar association. My laptop is acting crazy now that's why the lower case and upper case switch.

            no child support; it's included in divorce decree never enforced by ex-husband is in a different state so it hasn't been easy.

            Thanks again for you thoughts.

            Comment


              #7
              hi there trying2makeit - just wanted to say welcome and good luck. I've learned quite a bit here too.
              Much thanks for all the support and information I receive on this forum.
              Chapter 7 filed 11/21/2008
              341 Meeting 01/05/2009
              Discharged 03/06/2009

              Comment


                #8
                Thanks Flowers - I look forward to growing in knowledge with you.

                Comment


                  #9
                  NACBA.org is a great reference for a BK attorney in your area. Stop paying the credit cards, get current on your second and then decide if you want to keep the rental prop. in Texas (sounds like it would be best to let it go). In regards to getting garnished, remember the creditor has to file a lawsuit, typically no less than 5 to 6 months of delinquency before they go that route, then they have to get a judgment against you before they can garnish your wages. Even if you were to receive a summons for a court appearance, you can request to have the date reset at least once, pushing it out a couple more months.

                  Good Luck
                  Disclaimer: I am not an actor on TV, but I play a BK Paralegal in real life. Nothing I say should be construed as legal advice, or really anything but entertainment. Please seek out professional help.

                  Comment

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