Need to file quickly!!!!

[boo2654]

It to the point now that after i pay monthly bills, i might have $40 left. I'm about $12000 in debt and $7500 of that is personal loans, online installment loans and store front lines of credit. The loans are whats killing me, I pay around $1100 month on these loans. I talked to a lawyer and he thinks a chapter 7 is what I need. He will make that decision on my next visit when we go over my income versus debt. The real problem I will have is coming up with the money to pay for the bk.

[AngelinaCat]

Welcome to the forum.

You can't just rush in though. You need to do some planning. For one thing, there is a pre-filing course that you are required to take, along with a post-filing course. And we need a little more information in order to make suggestions. For instance, do you own a home, or rent? Are you making payments on the home, and/or a car(s) Things like that.

Also, since you have decided to file, stop paying any CCs and save that to pay your attorney. Don't settle on this one attorney without scheduling two or three more free consults with others.

Read the stickies on the various forum and get yourself educated in the process. The more you know and understand, the better your case will go.

[boo2654]

Thanks AngelinaCat, I have spoken to three different attorneys and they pretty much said the same things. One did talk more about chapter 13 then 7. I have been on this forum alot lately getting as much information as possible. I do not own a home, I live with someone (can't afford to live on my own right now). I own two cars, one is paid for and I make payments on the other, which I am one month behind. Well actually I had to use the "paid for" car as collateral for a loan, so there is now a lien on it. My son uses one of the cars.

[keepsmiling]

You are paying 1100 a month on 12K worth of loans???? Either your interest rate is very high or you are missing a Zero
I was paying twice that on 10x the debt.
Regardless, stop paying yesterday.
The loan on the car may very well turn out to be in your favor when it comes to exemptions.

[Drazil65]

Hi and welcome. I agree with the others, there is some preplanning to this whole thing. Sounds like you know what direction you need/want to go in so if you have pretty much decided that chapter 7 is the direction then stop paying all unsecured debt. That will free up quite a bit of cash for you it sounds like and use that cash to pay the attorney, even if you have to do it in a couple of installments.

What is your job situation? It sounds like maybe you need to generate more income for your future so that is probably something you might want to pursue as well. Sit down and do a filing timeline so that you have clear goals. Also, you will want to create a budget for post filing as it sounds like you may be using things like payday loans etc (store front) so in order to not end up in this same situation again you will need to evaluate your finances and how you handle them. Also, if your son uses one of the cars is he paying the payment (or loan amount if its the one you used for collateral) on it? This might also help your situation. Good Luck.

[boo2654]

Thanks for the advice. To keepsmiling, yes the interest rates are very high. That's the price I'm paying for getting involved with those type of loans. You are right I need to stop paying them now. To Drazil65, no my son is not paying the payment, he is currently out of work. I have been putting a budget together for post filing. I will never be in this situation again. Again thanks!!