Help Please Don't know what to do.

[cameron]

She actually signed my name on a loan renewal without me knowing.

[cameron]

I'm thinking of going Chapter 13, so I can keep our cars so we can go to work.


We owe 21000 in credit cards which are 90% cash advances that she took to pay other credit cards with.

She would take a cash advance on one and use the cash to pay the other cards.

[cameron]

we only make 4200 a month and have 2 kids.

[lovebirds]

How much discretionary income can you easily come up with each month? I would stop paying minimum payments on all cards and consider settling your accounts. Your lawyer will tell you to stop paying minimum payments anyway when you meet with him. You have a car ownership amount that you can be exempted for and you meet it. Why file Chapter 13 if you don't have to?

[JRScott]

If I had that much debt I'd be jumping up and down. Seriously it's not much. Just work something out. I wouldn't bankrupt myself for that much. Your wife needs to find a job ASAP.

Don't judge others by their debt load, what seems insignificant to one person could well be very significant to another.

[JRScott]

I'm thinking of going Chapter 13, so I can keep our cars so we can go to work.


We owe 21000 in credit cards which are 90% cash advances that she took to pay other credit cards with.

She would take a cash advance on one and use the cash to pay the other cards.

Cash Advances?

When was the last time you took a cash advance?

Have you made at least 3 payments since the last one?

If you haven't made the 3 payments I would not file for at least 6 months after the last cash advance.

[cameron]

last time she got a cash advance was oct 1.

[lindsay2181]

JustFileSuit, Louisiana is a community property state. So here any debt that is accrued during marriage belongs to both spouses.

I have a similar situation Cameron. Most of the debt we have is in my name, so I thought my hubby was "safe," but being that we live in a community property state he is actually responsible. However, I've read that if the spouse with the debt files alone, they *sometimes* don't bother going after the other spouse. I have a POS car in my name and if they want to take it they can go right ahead lol. But we were given a very nice truck as a gift by my in-laws, and it's in my husband's name so I am concerned about that. I think if they KNOW there is something to go after in the other spouse's name, they are more motivated to do so. I will definitely be asking the attorney about it.

Cameron, I can't believe the cc's didn't want to work with MoneyManagement International. They are affiliated with Consumer Credit Counseling. I was in their DMP for over 2 years, and none of my (14 I think?) cc's never turned down the proposal. My payments/interest fees were reduced drastically and it was working for us as long as we were both employed. After we dropped to one income, it was just too hard and we couldn't continue paying.

Good luck! I'm sure you'll find answers to lots of your questions here, I sure have!

[lindsay2181]

Don't judge others by their debt load, what seems insignificant to one person could well be very significant to another.

Well said. I was told by many people that our debt was "nothing" compared to what most people BK for. Finally, after 4 years of stressing about it, I was told by loan officer that there is NO "set" amount, just whatever amount has a person feeling overwhelmed....if you feel you are in over your head and you won't be able to dig yourself out of it, without help, then by all means, get help!

[JustFileSuit]

[QUOTE=lindsay2181;360697]JustFileSuit,

Louisiana is a community property state. So here any debt that is accrued during marriage belongs to both spouses.

/

Thanks for the update; I had not checked that out. As Lindsay accurately points out, "community property" States are special pitfalls for the unwary.

As to our original poster, the taking of cash advances will lead to Objections to Discharge by the creditors if the cash advances are (1) near the time that you file your Petition; or (2) are not repaid. The advice to wait for at least six months is well placed. $20K is a lot of cash-advance; it makes no difference what you were using the cash for.

For the situation that Lindsay finds herself in, the gift of the nice truck from the in-laws, the easy way to rectify that is to sign a Note with the in-laws and place a lien on the Vehicle Title with the DMV. The lien should reflect the value of the truck.

In the case where a Debtor, pre-petition, has borrowed in the past, is going to borrow, or obtain money from family members, then file a U.C.C.-1 security document listing all your assets, including your silverware, television, whatever, as collateral for the loan. You can have the UCC include a blanket description of "all goods and chattels of whatever grade or kind found at 123 main Street, Anytown," for the amount of $XXX,000, and then that blanket charge, plus the itemized charge, takes the goods out of the reach of creditors. the first charge belongs to the family member on the UCC. If you are worried that a creditor may become a judgment creditor, then you can deposit your paychecks into your dad's account and he writes your checks "for the duration." It is an easy way to make yourself judgment-proof. of course, you do have to have a sturdy relationship with the in-laws!

I would heartily concur with the advice previously posted here, to wait at least six months after the last cash advance before filing a Petition in bankruptcy. However, I also repeat my general advice not to let creditors take default judgments. When you slug, you can settle for less. Then you put the "less" into the USBC Petition. That way, in case your Petition gets bombed out, you start out with a lower debt during the time-bar period.