new to forum...need advice...sorry, long
Ok, I love researching so this forum has been very helpful. I can't seem to stop reading. But I can't turn my brain off or stop worrying even with reading all this info so thought I'd post my situation and get some other input.
My husband and I are planning to file Ch. 7 in colorado in june/july 2009. I have spoken to several attorneys and believe it should be okay but after reading some of these posts I'm a little nervous.
Basic situation: I had TWO jobs up until Jan 1 of this year. I quit both due to the fact that I've been under so much stress this last year that I've been getting constantly sick and my husband and I have been fighting non stop. I was constantly irritable and hated my jobs (one was a telecommute job 1099 position that cost me more to keep than what I actually made from it) so I decided after much deliberation to give them both up and pursue my dream, which is being a full time artist. This is what I went to school for, I have a BFA in studio art, and I decided I wanted to actually DO something with my degree. Problem is I have yet to make any money at it.
My husband makes $52k a year. In Colorado the Median income is $62,500. So we are under the income and I believe we'll qualify for the means test as well. We have about $50k in cc debt combined, another $10k in school loans, 2 cars, one paid off the other still making payments, but both under $5k in value. Due to our income when I was working, we have to wait at least 6 months to file. We have owed several thousand dollars the past 3 years in taxes, and will probably owe again this year. We rent an apartment and have no other assets.
We stopped using cc Dec. 1, 2008. I did a cc charge/pmyt spreadsheet and we did actually PAY more on cc last year than charge, but we did charge things like hotels, shoes, etc. However, at the time we had no intention of filing bankruptcy. We just thought we'd be in debt for a long time. Anyway, I paid the minimum on the cards that had charges in December and then have stairstepped them down to pay $50 the next month, etc so it wouldn't look like I was charging up and then stopping paying. However, the cards that I didn't pay on, that have the lowest balances are already calling. I have 2 capital one cards and after one missed payment they sent me to their collections, which I find amazing because up till this point I've never missed a payment or even been late.
So here are my questions. Am I in danger of being accused of fraud for changing my career if it doesn't make me money? I do have a legitimate reason, but reading all this I'm afraid they'll think I purposely quit to lower my income. Because our income was so much higher when I worked I'm wondering if that will be a concern.
Also, I want to try to avoid getting sued BEFORE the six month time is up. With the capital one that sent me to collections already, should I call them and send a good faith payment for now? I will probably be able to hire my attorney in a few months. I know they can't really take calls for 6 months, so I was hoping to take the calls/harrassment myself for a few months, then hire the attorney a few months before we file. But I want to hold off the more aggressive cards as long as possible. The balance on this card is only $2200, and up till this one missed payment it has been current for the past 8 years since I got the card, so it seems strange they are so aggressive already. I got a new phone number and didn't update them so I have to call and change that since they already called my parents trying to get hold of me. should I send a DV letter to them for the collections notice I got? It's an inhouse collections agency.
Oh, and as of right now we haven't changed our bank account, and we have cable and a gym membership. should we get rid of gym membership and cable...are they considered a luxury? Also, I bank at a credit union out of Oklahoma...should I switch to a local bank so it's a new bank?
any advice would be very helpful and much appreciated. I read a lot of posts that help a lot.
Thanks,
mellydan
Ok, I love researching so this forum has been very helpful. I can't seem to stop reading. But I can't turn my brain off or stop worrying even with reading all this info so thought I'd post my situation and get some other input.
My husband and I are planning to file Ch. 7 in colorado in june/july 2009. I have spoken to several attorneys and believe it should be okay but after reading some of these posts I'm a little nervous.
Basic situation: I had TWO jobs up until Jan 1 of this year. I quit both due to the fact that I've been under so much stress this last year that I've been getting constantly sick and my husband and I have been fighting non stop. I was constantly irritable and hated my jobs (one was a telecommute job 1099 position that cost me more to keep than what I actually made from it) so I decided after much deliberation to give them both up and pursue my dream, which is being a full time artist. This is what I went to school for, I have a BFA in studio art, and I decided I wanted to actually DO something with my degree. Problem is I have yet to make any money at it.
My husband makes $52k a year. In Colorado the Median income is $62,500. So we are under the income and I believe we'll qualify for the means test as well. We have about $50k in cc debt combined, another $10k in school loans, 2 cars, one paid off the other still making payments, but both under $5k in value. Due to our income when I was working, we have to wait at least 6 months to file. We have owed several thousand dollars the past 3 years in taxes, and will probably owe again this year. We rent an apartment and have no other assets.
We stopped using cc Dec. 1, 2008. I did a cc charge/pmyt spreadsheet and we did actually PAY more on cc last year than charge, but we did charge things like hotels, shoes, etc. However, at the time we had no intention of filing bankruptcy. We just thought we'd be in debt for a long time. Anyway, I paid the minimum on the cards that had charges in December and then have stairstepped them down to pay $50 the next month, etc so it wouldn't look like I was charging up and then stopping paying. However, the cards that I didn't pay on, that have the lowest balances are already calling. I have 2 capital one cards and after one missed payment they sent me to their collections, which I find amazing because up till this point I've never missed a payment or even been late.
So here are my questions. Am I in danger of being accused of fraud for changing my career if it doesn't make me money? I do have a legitimate reason, but reading all this I'm afraid they'll think I purposely quit to lower my income. Because our income was so much higher when I worked I'm wondering if that will be a concern.
Also, I want to try to avoid getting sued BEFORE the six month time is up. With the capital one that sent me to collections already, should I call them and send a good faith payment for now? I will probably be able to hire my attorney in a few months. I know they can't really take calls for 6 months, so I was hoping to take the calls/harrassment myself for a few months, then hire the attorney a few months before we file. But I want to hold off the more aggressive cards as long as possible. The balance on this card is only $2200, and up till this one missed payment it has been current for the past 8 years since I got the card, so it seems strange they are so aggressive already. I got a new phone number and didn't update them so I have to call and change that since they already called my parents trying to get hold of me. should I send a DV letter to them for the collections notice I got? It's an inhouse collections agency.
Oh, and as of right now we haven't changed our bank account, and we have cable and a gym membership. should we get rid of gym membership and cable...are they considered a luxury? Also, I bank at a credit union out of Oklahoma...should I switch to a local bank so it's a new bank?
any advice would be very helpful and much appreciated. I read a lot of posts that help a lot.
Thanks,
mellydan
NO ASSET
Just had to say that.
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