What would you do w/ this financial situation?

Question

My husband and I are in over our heads in debt. We owe approx 88k with cars and credit cards. We obtained the debt when he had a good job but now his job has changed and we just can't pay minimums. We've seen a bankrutpcy lawyer who we didn't like very much and another who we liked. The one we like costs 1300 dollars more and we just don't have it. We really don't want to file bankruptcy but w/ a new baby, childcare expenses, a new job, no childcare for one of us to work part-time (due to conflicting schedules), there seems to be no way.

We're already behind on credit cards... should we scrounge up 500 to pay the retainer and find some way to get the remainder for the good lawyer? Or use what little we have for the crappy lawyer and file there? OR should we just wait until it gets worse to file just incase life seems to throw us something great? HELP!

Answer 1

Bankruptsy will give you some peace and will get the creditors off your back. Go with the lawyer that you are most comfortable with even if he cost more. They will usually let you pay them out. If you are going to put your cars on there, the car loan people will REPO your cars. So, go and buy something you can afford and let the expensive ones go back. We did this 10 years ago and you would be surprised how many people have to do this sometime in their lives.

Answer 2

If you're going to file for bankruptcy why does it matter if you keep paying the bills? don't pay  your cc's for a while so that you can save up for the good lawyer..

do you REALLY REALLY have to file for bankruptcy? have you looked into a debt consolidation company? they're still bad, but not as bad as brptcy.

Answer 3

Shop around for an attorney that your like but don't wait too much longer for answers that are not going to come.  Different attorneys have different prices.  It is good to remain hopeful but believe it or not your life will become more managable AFTER the bankruptcy filing.  Bill collectors are not to even call you and if you pay the retainer you can instruct them to call your attorney for debts that they want to collect.

It can be a daunting task trying to figure this all out but just remember you are not defined by your material goods, you can always by more stuff over a lifetime.  There is also no price for peace of mind.  Good luck.

Answer 4

Get the good lawyer, if a lawyer screws up your bankruptcy process then you will be the one paying.  If you haven't done so all ready stop paying the min. payments on your credit cards and save that money to use towards the lawyer fees.  I would sell the cars now and buy a cheap used one--if you file the bank will take the cars from you.  Also you have  to realize you will lose the house and your credit will be destroyed for a while, which will make it hard to even rent an apartment.

Answer 5

Well, it's already bad if you are behind on your bills and it sounds like it is going from bad to worse.  From your situation, it sounds like you would qualify for a Chapter 13 bankruptcy, which means you pay back part of what you owe.  Each month you make a payment to the bankruptcy trustee and the trustee takes that payment and pays your creditors.

Did you ask the bankruptcy attorneys if their fees could be included in the bankruptcy plan?  I had a friend of mine recently file a Chapter 13 and most of the fees were included in the repayment plan.  All he had to pay up front were filing fees, which were less than $400.00.  The other attorney fees are included in the payment he pays monthly to the bankruptcy trustee.

Answer 6

Talk with an accredited National Foundation for Credit Counseling (NFCC) organization to make sure you have exhausted all your options before filing bankruptcy.

Bankruptcy is a complex legal proceeding, and I suggest you scrounge what you need to be able to work with the lawyer you trust, if you decide to file.

Depending on your income, you may qualify for a Chapter 7 bankruptcy (complete discharge of debts).  If your income is higher than the median for your area, you may still qualify for a Chapter 7 depending on the amount of essential expenses you have to pay.  But, if you own a home, and want to stay in it no matter what, you'll need to consider a Chapter 13.

So, don't take someone else's word for it.  You need expert advice to help you decide which form of bankruptcy is suitable for your situation.

Find a location near you at the NFCC locator from the following link:

http://www.debtadvice.org/takethefirstst...

Or, call them at 1-800-388-2227.

Good luck and God bless.