Getting no where fast...

[Peridot]

Just looking for a little advice and this is my second stop in looking for information on filing bankruptcy.

Im a 50 year old divorced woman. I have a great job, good income at $39000 annual, and pretty simple living expenses. My income is enough to support my family but not for any extras, and by this I mean things as simple as school clothes for example. These things go straight to the credit card. Ive not bought any large screen tvs but Ive have bought two cords of firewood every year for the last 11 years. My point is, Im not living extraviguently at all (I dont even own a car). Ive now two children in college now and now Im paying for books, tuition and supplies for them.

Ive lost all my child credits now that all my kids (3) are over 17, and without realizing, this year, after receiving money back from taxes all previous years, I didnt change my status of married back to single and am not being hit with an $864 dollar tax bill....

Im in this vicious cycle of paying to the tune of $800 a month to pay down nearly $20000 in credit card debt, then using the cards to live on...and Im going no where fast. I know without this debt I could live graciously on my a budget (Im also at this point trying to sock away money to my 403B pension)

I emailed an attorney and gave him these same details, and he mailed back saying I should make an appointment as soon as possible.

Before I go in, I just want to get some idea of what this is about.

Should I pay this tax bill before I go in ?

Do I get all my debt discharged ? Do they take all my credit cards away ?
How will this affect my future credit ? How long will it be on my record ?
If filing bankruptcy is this easy how come everyone isnt doing it ? What are the negatives (other then credit standing) on this ?

Also, my work is considering moving our office to another town...what if I need to buy a car ?


Has anyone been where I am now ? I keep moving back from forth on what to do. If I was able to get the debt discharged, I could easily pay attorney fees and moving on from there. Im sure of it.

Any advice ?

[Peridot]

Just wanting to ask also....should I consolidate all my debt into one card ? I am able to do this as BofA has graciously given me 22000 credit line. Would that make me look better with other banks ?

[DaisysMom]

I am not as knowledgeable as some people on here, but I would recommend that you do not consolidate your cc debt with BoA. I have a BoA cc and they just raised my rate for no reason. They are nasty.

Also, if you filed BK, that would give you $800 of freed up money, so you would not need credit cards. I plan on using my debit card for any credit card needs I have in the future. IE: flying, motels, renting cars, etc.

And if what I have read is correct, after BK your cc's will all be closed anyways. You can get another after BK but it will have huge fees or have to be secured with a savings deposit.

There is alot more to this...such as equity in your home, exemptions and such. Read all of the stickies and search for posts about what you have questions about. This is a wonderful site and there are great folks who may be able to help you learn.

BTW...I have about 24K in CC debt and BK is the only choice for me as I would be in my grave before I would ever be able to pay it off on their terms. I can't even pay the minimums anymore since some of them jacked up my interest rate. I am in my late 50's, and I don't want to retire in debt over my head. BK is just a SOUND business decision sometimes.

D....

[Flamingo]

"Should I pay this tax bill before I go in ?

Do I get all my debt discharged ? Do they take all my credit cards away ?
How will this affect my future credit ? How long will it be on my record ?
If filing bankruptcy is this easy how come everyone isnt doing it ? What are the negatives (other then credit standing) on this ?

Also, my work is considering moving our office to another town...what if I need to buy a car ?

Has anyone been where I am now ? I keep moving back from forth on what to do. If I was able to get the debt discharged, I could easily pay attorney fees and moving on from there. Im sure of it."

Welcome to the forum. First, may I suggest you educate yourself a bit on bankruptcy. Here on the forum under the chapter 7 and 13 forums are items called "Stickys" which are chock full of information that can help you with some of your questoins. As to filing BK, a lot depends on your income, the state in which you live, the amount of your debts and your assets. At this point witih what you are describing, to further your knowledge on this as to where you stand, and before you make any more financial moves or pay those taxes or consolidate any bills, call and get some free consultations with BK attorneys who will review your entire situation and advise you where you stand. That will alleviate a lot of your fears and questions. Take witih you a complete listing of all your debts, monthly payments, paystubs, sources of income, listing of assets and your most recent state and federal tax returns. Best of luck to you!

[Peridot]

Thanks DM

SOunds like you in the same predicament Im in. Its just silly for me to keep up with this nasty circle.

But this all sounds too easy....I just go to a lawyer and say "I dont want to pay this debt back" and it gets wiped out ?

Is it really that easy ? What about the creditors, what options will they have ?


The reason I wanted to consolidate all onto my BofA card, is that if Im filing bankruptcy...it only effects the one creditor as opposed to 5. Maybe Im just over thinking this.

And yes, I know that I also, can easily afford on a budget which would also include two kids college books and tuition (they are both at a community college) and still live within my means. This CC debt is doing me in.

The only way for me to pay the IRS bill this year is to also put it on my card. Should I do this before filing ?

[Peridot]

"Should I pay this tax bill before I go in ?

Do I get all my debt discharged ? Do they take all my credit cards away ?
How will this affect my future credit ? How long will it be on my record ?
If filing bankruptcy is this easy how come everyone isnt doing it ? What are the negatives (other then credit standing) on this ?

Also, my work is considering moving our office to another town...what if I need to buy a car ?

Has anyone been where I am now ? I keep moving back from forth on what to do. If I was able to get the debt discharged, I could easily pay attorney fees and moving on from there. Im sure of it."

Welcome to the forum. First, may I suggest you educate yourself a bit on bankruptcy. Here on the forum under the chapter 7 and 13 forums are items called "Stickys" which are chock full of information that can help you with some of your questoins. As to filing BK, a lot depends on your income, the state in which you live, the amount of your debts and your assets. At this point witih what you are describing, to further your knowledge on this as to where you stand, and before you make any more financial moves or pay those taxes or consolidate any bills, call and get some free consultations with BK attorneys who will review your entire situation and advise you where you stand. That will alleviate a lot of your fears and questions. Take witih you a complete listing of all your debts, monthly payments, paystubs, sources of income, listing of assets and your most recent state and federal tax returns. Best of luck to you!

Thanks Flamingo...I shall do that because at this point I dont even know the difference between chapters 7 & 13. And I was hoping to get information here before going to an attorney...because frankly...I wasnt raised like this and Im embarrassed as hell to be even thinking about doing this.

[StartingOver08]

If you consolidate those loans, then all of the credit card debt can be challenged by BOA and not discharged in your BK.

It is called a balance transfer - and the lookback period is one year for a balance transfer.

The reason you quote 'that only one card will be affected' is exactly what BOA will cite for fraud.

[Flamingo]

Thanks Flamingo...I shall do that because at this point I dont even know the difference between chapters 7 & 13. And I was hoping to get information here before going to an attorney...because frankly...I wasnt raised like this and Im embarrassed as hell to be even thinking about doing this.

Believe me, the majority of us on here never thought in a million years we would have to file BK...

[Peridot]

If you consolidate those loans, then all of the credit card debt can be challenged by BOA and not discharged in your BK.

It is called a balance transfer - and the lookback period is one year for a balance transfer.

The reason you quote 'that only one card will be affected' is exactly what BOA will cite for fraud.

Aww...thank you. This is exactly the type of answer I was looking for. I cant remember my last transfer with BofA so maybe the best thing it to leave it be. Its also my highest balance card so I really dont want them disputing anything.

I know these are questions I should be asking an attorney...but I know Ill go to an appointment and get timid and embarrassed about asking certain questions because Ill feel quilty asking them.


And wow, thanks all for the great responces and so quickly. I will surely be looking the boards over the next few days and trying to educate myself.

[Peridot]

Well...I did a "median income test" and I do qualify to file.

[DaisysMom]

Great news about median test.

Before you go to the attorney, write all of your questions down. I didn't do that and forgot some of the things I wanted to ask him. And don't be embarrassed or afraid. They are like Dr.'s....seen it all and have been asked it all.

My lawyer started with a talk about Donald Trump.....how many times he has filed as well as some other well know people. It is just a business decision and you should try to look at it that way and do your best to take the emotion out of it. I know exactly what you are going through!!

But I was cured, when I quit paying my unsecured debt (credit cards) and was able to pay my entire gas bill instead of calling them to make payment arrangements. You will see...it is such a wonderful feeling.

D...

[keepmine]

You need to develop a budget that is based on supporting yourself without have access to credit cards. Use the monthly payments you were making to the cc's as a source of funds. If you can't make ends meet without using credit, bk is no help.
Also, since that tax bill will survive bk, go ahead and pay it.