Filing Ch7 on my own

What is the name of your state? Arizona
Have been out of work since Oct 2001 and waiting for surgery on my lower back,and trying to survive on $439.00 a month VA Disabiliy. (Fortunately, I rent a room in a friends house and she only charges me $200. a month for rent and part of the utilities). Don't own any property or a car.

I have approx $8,000 in unsecured debt and am considering filing Ch 7 but because I don't see anyway I could afford a bankruptcy lawyer, I would be filing on my own.

My question is has anyone either used or know about the Ziinet (100% on line Backruptcy) site and if so, is it worth the cost?

I have also checked into Bankruptcyweb.com - but I think that is just purchasing a "kit".

[Ladynred]

That's not a lot of unsecured debt, are you sure you want to file for bankruptcy ?

Are you going to be able to work again ?

Lots of people here have used Ziinet successfully and were quite happy with it. Lots of them also had questions, so it might be worth it to you to also buy a copy of the Nolo Press book on how to file Ch 7, it covers and explains everything.

It may not be a lot of debt, but sure seems like it to me... Won't know if I will be able to work again until after surgery and recovery (surgery is scheduled for 1st part of March). In the mean time creditors are drving me crazy and one has threatened to sue.

[Ladynred]

Understood

The reason I asked if you'd be able to work again is that as of right now, your sole source of income is EXEMPT from judgment.. they cannot garnish a single penny of it if they did sue and win. Since you own no other assets you are, right now, judgment-proof.

If someone won a judgment, and you were able to work again, then they could possibly garnish your wages (if your state allows it) but I would think, at that point, you could negotiate a payment or settlement rather than have that happen.

If it ends up you cannot work again, I'm assuming you continue on disability of one kind or another, which will STILL be exempt.

AZ has a VERY short SOL on credit card debts - 3 years. That means in no one sues you before that time is up, they can't sue you afterwards to collect on the debts. A lot depends on who the creditor is.

Bankruptcies stick on your credit for 10 years but you can rebuild credit faster in 3-4 years. A judgment will stick around for 10 years, more if renewed, and during that time they can keep doing asset investigations and bug you with questionairres to discover assets. If you end up on permanent disability, then they'll be whistling in the wind for a long time. The judgment will certainly affect your ability to get credit, but it its not that urgent for you, then you would have to weigh the differences.

As for the calls, if you're dealing with collection agencies, send them cease and desist letters and tell them to only contact you by MAIL - send the letters certified RRR .

Hope this helps

BTW - I had back surgery - ruptured disk - 5 years ago, nearly 6 now. No problems since and it rarely bothers me except for some fatigue. Good Luck !

LadyinRed: Thanks so very much for the info. Gives me something to think about for sure. At this point I have four accounts I am worried about.

One is not a credit card, but for a contract I signed 4 years ago for credit card processing for a business I was trying to start (the business didn't work out but of course I was still liable for the contract). At this point I am 15 months behind with 3 more payments coming due. They are the ones that keep calling me sometimes twice a day and at least once a week(and charging me 6.00 per call).

Two of the credit cards involved are coming out of a year's deferement this month. No way I have the funds to start paying them.

The final card (Capital One) has already gone into collections.

I'm in florida so it may be different but when we did our chp 7 in 1991..finalized in 1992 we went to a legal clinic...they gave us the forms to fill out (list of assets, debts, etc..). We filled it out and they then typed it up and filed it thru the courts. We then got all our hearing info in the mail...went on our own in front of the judge, etc....

I think it cost us like 200 total to file that way. We also had no money for an attorney and I couldn't see spending more money I didn't have to pay for one.

Try a local legal clinic first.