when to file chapter 7

What is the name of your state? Virginia
Well at the end of my rope and going to have to file bk7. Need advice. Backround... No savings, No heirlooms just basic house furnishings, 800 in savings bonds and a 99 Saturn (paid for). Joint mortgage w/ boyfriend, refinanced in april 2003, joint home equity at 10,000 max. no equity in home, joint time share. BF will not file will reaffirm joint assets. All dischargable credit in my name only unsecured credit cards & personnel loans & medical bills, also have 10 year old student loan not sure if I can get that discharged. Last charge 15 days ago/ last cash advance 2/02. I believe I need to wait 90 days for charges / 1 year for cash advances. Have been paying min on credit cards. Current on all credit cards but one (Discover). Can't keep up anymore. Paul has robbed Peter. Bad decisions, 2 surgeries (no 3 counting my sons) and a time share I got suckered into and I'm up against a wall. I will seek council once I can get the money up. Concern.. I get a great tax refund because well.. I don't make a lot and 2 kids...earned income credit is a wonderful thing for people in my situation. I need to keep my refund to do some repairs to the home. Refund should be approx. $4000.00.

Questions:
1. How long does the bk process take after I retain a lawyer?
2. If I file in December or January can I wait till april to file my tax return and will they take it then?
or should I get my return asap spend it on repairs then file in March?
3. Can my refund go toward my va exemptions?
4. Should I continue to try to stay current on my credit cards if I'm going to wait till March or just stop paying and put the money toward a lawyer? Will I be sued before I can file? How long does it take for them to sue you?
5. Discover card has started harrasing me and I'm only one month late. They want the min due $267.00 , I was going to send them $100 but they said they would continue to call me until my account was brought current. Should I even bother to send them anything?

I have to file BK7 there is no way around it. Any advice would help so much. Thank you.

1) varys to much by district to comment, but maybe 4-6 months.
2) VA has a wild card, unused homestead, to unsure full use make sure you are discounting home for selling expenses. Last check homestead appeared to be 5k, but check VA code for new law.
3) see 2
4) stop paying, retain (some attorney set-up a payment plan, final payment is the filing fee) an attorney now, file at the advice of attorney. Most attorneys let you forward credit/collections call to their office.
5) Tell discover to suck wind and give them your new attorneys number.

Make sure you have a good budget, and make sure you start with GROSS INCOME (not your take home, because you are being overwithheld). A trustee will see the 4k overwithholdings as $333 a month you could fund a chapter 13 with ($333*60months=20k). You want as little disposable income, or even negative.

You will also have to account for BF contributions to living expenses. Your attorney will advise.

I've been reading the boards and trying to keep myself informed for a couple months now. I was hoping it won't come to this but...as for my budget I'm real negative. Even with BF income I don't know how we have stayed a float this long. Living beyond our means I guess. Thanks for advice. One more thing. What about charges that were made recently? If I wait the 90 days I should be okay right. Discover card has really got me worried. I can't believe they are calling all ready. I won't be able to get a lawyer till next month. Should I just blow off the calls and ignore them till I retain a lawyer in December?

[Ladynred]

The tax refund - if you file NOW, the Trustee will take it, especially for that amount of money. If you get the refund and spend it on necessities, then the Trustee likely won't be able to question it - so waiting until March may be a better idea.

Planner.. how do you figure she's being overwithhled ??

The budget is a good point, you need to make sure you list ALL your expenses, people get in trouble when they underestimate true expenses. A good lawyer can help with that.

Discover is a pain in the butt and will harrass you endlessly. They are also the most likely to sue - but NOT before charge-off, and they do that after 6 months of non-payment. If you can stand not answering the phone, save your credit card payment money for your attorney's fees. Creditors and possibly collectors will call, but there's not much else they'll do before charge-off stage. It takes time for a lawsuit to go thru it doesn't happen over night. You have time to get filed.

If you have caller id, use it and don't talk to them. Telling them you're filing for BK won't stop them until you actually DO file.

You definitely need to wait 90 days AFTER any charges have been made. Of course, if you need groceries and have to charge them, the Trustee probably won't give you a hard time about it.

File your taxes (I'd advise doing it online) ASAP, as soon as you have all your tax info. Spend the money on necessities and repairs, then file.

Question for Ladynred: Discover called me after I missed one payment too. For "mom" can she still pay less than the full amount or even skip payments (not stop paying all together) due until March and talk to them about her financial difficulties (purely as a valid "stall" tactic)? I guess my real question is does "Charge off" for accounting purposes start at six months of paying less than the full payment or six months after no payment. And I've heard of cases where DC initiated lawsuits a mere three-four months after missed payments and did not wait for the account to be "charged off". Or is this just an "urban legend"? Discover Card is very quick to sue and over any amount.

I agree that telling or "threatening" creditors that you're going to file BK is ineffective, until you actually have a case number. Maybe this tactic used to work but with so many folks actually filing bk these days, creditors have heard it all.

Good luck to you.

With 4k IRS refund, I just guessed she is over withheld.

You may want to file a W-5 (earned income credit advanced payment).

As for the tax refund, if you have no other assets to protect, you can use your wild card to protect the refund (assuming no home equity).

[url]http://www.virginia-bankruptcy.com/exemptions.html[/url]

You may also check you with your phone company to see if they have call blocking service. Mine does and I love it, no more calls from "unavailable", "out of area" or the 1800-PAYMENOW and lie credit card company.

You will see just how important the CC are after they start calling and keep telling you “its urgent and this must be resolved today”, day after day.

[Ladynred]

Cyana - I don't think she should pay Discover - or any creditor, if she's going to file - why throw that money down a rat hole ? I hadn't heard of DC suing people BEFORE charge-off.. usually before CO they have some hope of getting paid.. hence the endless and nasty harrassment. If she stops paying now, she can get to April before it charges off, and she can probably get filed by then.

Must be an "urban legend" LOL. In full agreement with not paying any charge accounts then until the OP files.

I still advise filing your taxes as early as possible next year and spending your refund on necessities and repairs. With direct deposit you can get your refund in as few as 10 days assuming you file in taxes in early to mid February 2004.

Thanks all! Guess I'll be visiting here for a while longer....I'll keep posted.

Hey
I know this is a little late, but I have had a lot of dealings with Discover. Stop the calls with a written letter requesting the all collection calls be stopped. By law they can not call after they receive written notice to stop calling. Also, my Discover was charged off two years ago and nothing was done, that may be just because the amount was not a really large amount, so I am sure you will be fine by the time you file.

thanks. I though about that. They called at my work today I took the call and told them this was a business, that I was not allowed personnel calls of this nature. I varied my home phone number and my home address. I told them to contact by those means not to call this number anymore. I have caller Id and just don't answer. I'm trying to get some money together to retain a lawyer in January. Not to mention get through christmas. Thanks for your advise.