Bankruptcy

What is the name of your state? What is the name of your state? MA

I'm considering bankruptcy heres the lowdown:

I owe about 29,000(wow seems even bigger when I type it). I earn 50k a yr and have not been late on any payments. The problem is I will never pay the credit cards off.. It really stinks not having anything extra every mth.
My ? is do I have to max the credit cards out and not make payments for a few mths prior to doing anything? Can this be considered fraud? I'm just looking to get rid of the credit cards and the stress(really starting to get to me!!) ..

[Ladynred]

No, you don't want to max them out, and its a good idea NOT to ! Charging up to the limits and THEN filing raises all kinds of red flags and could cause your case to be dismissed. If you're REALLY going to file, quit paying the creditors and put up with some annoying phone calls for a few months, then file. You'll need the money you'd pay them for your BK lawyer anyway.

I spoke w/ lawyer today.. she said that the new bankruptcy law can go through at any time.. has anyone heard the same? She wanted to know the last time I used them.. I used one about a mth ago.. other than that the others have not been touched in a yr or so.. I also have not been late on the pymts.. should I stop paying on them now? This new law makes me nervous - any idea what the new law entails

[Ladynred]

The new law is NOWHERE near being passed. It died on the committe floor before legislature recessed for their 'vacation', and it is looking unlikely that it will get anywhere very soon after they come back in September. Its very possible its dead for a long time. Even if they did manage to get it thru the House and Senate, it would be 6 months after the Prez signs it before it becomes law.

You've got time.. and so do the rest of us, thank God

[bigun]

If you wish to see what is in the new law, go to [url]www.clla.org[/url] and scroll to near the bottom of the page. There will be a comparative analysis of the House and Senate versions of the bill. The Committee seemed to be leaning more towards the House version.

[MidnightSwinga]

Thanks for the link biggun. Yes, there is a 180 delay from the passing of the law to when it takes effect.