What to do???!!

[bleau615]

Hi, I've been contemplating bk for quite a while now and went and saw an attorney yesterday. He said I'm in a position for a C7.
Everything was going fine until I mentioned I had a loan with my parents and I've been paying them pretty monthly.
Here's my problem, he said that if I have paid over $600 to them or any family member in the past year, I have to tell the court that and they could go after my parents for MY unsecured debt.
Now I don't know what to do because I didn't want my parents to find out and I certainly do NOT want them dragged into my mess.
Are there any other options?
Does calling the credit card companies and negotiating really work?
What about these debt settlement companies? I've heard nightmares about them.

Any help or suggestions would be much appreciated.

[deadbroke99]

Hi, I've been contemplating bk for quite a while now and went and saw an attorney yesterday. He said I'm in a position for a C7.
Everything was going fine until I mentioned I had a loan with my parents and I've been paying them pretty monthly.
Here's my problem, he said that if I have paid over $600 to them or any family member in the past year, I have to tell the court that and they could go after my parents for MY unsecured debt.
Now I don't know what to do because I didn't want my parents to find out and I certainly do NOT want them dragged into my mess.
Are there any other options?
Does calling the credit card companies and negotiating really work?
What about these debt settlement companies? I've heard nightmares about them.

Any help or suggestions would be much appreciated.

How have you been paying them cash or check?

[bleau615]

Paying them by check.

[arkienurse]

Here's my problem, he said that if I have paid over $600 to them or any family member in the past year, I have to tell the court that and they could go after my parents for MY unsecured debt.
Now I don't know what to do because I didn't want my parents to find out and I certainly do NOT want them dragged into my mess.
Are there any other options?

Any help or suggestions would be much appreciated.

I had not heard this. I do know that if you have paid any creditor more than $600 (I thought it was in the past 3 months), they can make them pay it back to the trustee. I have never heard that your parents would be responsible for your unsecured debt. Unless they cosigned with you, in which case they would be responsible, as their name is on it also.
If they personally loaned you money, you must include them in your list of creditors, but you can always pay them back after the bk is over and done.

[keepmine]

Your parents are not responsible for your unsecured debts. I think you misunderstood.
How much have you paid them in the past 12 months?

[bleau615]

Yes arkienurse, that is correct but anything I have paid them in the past 24 months they can go after them not just 3 months. I've been paying about $200/month give or take.
So they could go after them for about $4800 of the money I have paid them.
From what I understand too, this may not even come up.
Is that correct?
Thanks for the replies.