I think I need to file, but can I do Chapter 7?

[GoingUnderInNV]

I'm thinking that I might have to go directly to Chapter 13, but kinda hope I can go with a Chapter 7. I hope you folks can help shed some light on my confusion. Here's the situation in a nutshell.

Go laid off March 2004 with about $20k in unsecured debt; was paying it off at a nice clip (good paying job). Moved to Nevada in search of work (at the time there was a serious lack of tech jobs in California and Washington), and eventually (August 2k4) got a job that paid about half what I was making before. I was unable (read: not enough income) to pay my top two credit cards by December (ran through my bank account), and haven't paid on them since. I HAVE kept all other debts current, and have in fact been working hard to get the small stuff paid off. The only bad entries on my credit report are these two cards, which have long since gone to collections.

Well, I'm finally in a position that I can start paying a little to these creditors (like $100 each), but a) the balances are now insane (totalling about $33k now), and my offers of payment aren't enough for them (they've actually said that isn't enough). One has just graced the desk of an attorney (MBNA), and I'm just waiting for the other shoe to drop. So at this point, since they won't accept my payment offers, I think my only solution is bankruptcy.

I take home about $2700/month after taxes, and clear about $200-$300 after paying rent and bills right now. I have an old car (Kelly Blue Book lists value at between $1000 and $1400), own two acres of land, and rent; no furniture, some basic toys (a couple old computers, camera, etc). My current TOTAL unsecured debt (including the above cards) is about $41k.

Help! This is making me a nervous wreck, especially given that I can make small payments finally but these two credit cards don't even want to talk to me about it! If my paychecks start getting garnished now, I'll go under for the last time!

All comments and thoughts welcome. Thanks for your suggestions!
GoingUnderInNV

[keepmine]

Two questions come to mind.
What is your income in relation to the median for your state and secondly, what state are the 2 acres located and what is the value of the property?
NV. has some pretty decent exemptions.

http://www.thebankruptcysite.com/bankruptcy-exemptions/nevada.php

Try and calm down. We've all been in your position . Give us a few facts and you'll get some ideas.

[GoingUnderInNV]

What is your income in relation to the median for your state and secondly, what state are the 2 acres located and what is the value of the property?

Thanks for responding! Well, according to a linked Trustees page I saw in another thread, the "median" for Nevada is about $38k (assuming per year). I didn't see anything that identifies this as pre- or post-tax. I make $43k/year before taxes (take-home averages about $2700/month). The land I own is here in Nevada (Elko county), and worth about $500 according to the assessors office.

[keepmine]

It's gross income and then, you deduct your withholding taxes as you fill out the worksheet.
Just because you are over the median, doesn't mean you don't qualify for a Chapter 7. You'll just have to list your expenses and if your disposable income is under a $100/month, {seems to be the benchmark from postings of filers post bk reform} you have a good shot at a Chapter 7.
Most bk lawyers give free initial consultations. Talk with a couple and see what they say.

[SinkingFast]

I take home about $2700/month after taxes, and clear about $200-$300 after paying rent and bills right now.

GoingUnderInNV

Is that $200-$300 counting paying CC's/debts payments??

You'll have to subtract out any payments you are making to any Creditors that will be discharged in your BK. So if you intend to discharge any of the CC's/debts you are current on now, you'll have to add those payments to your disposable income.

Does that amount figure in what you'll need to pay auto insurance when it comes due? How much you spend, on average, on medical/dental/vision bills? Auto registration and taxes? Dry cleaning? Newspapers and magazines? Gym memberships?

There's a link in an old thread you might want to take a look at toward figuring your monthly expenses. Search for "expenses calculator" in a thread posted by BKFiler. I think the title of the thread was "Don't be a Scrooge on you Expenses when you file BK" or something like that.