ch7 bk

[bombbat]

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

I was out of work for 2 years and now have a pretty massive debt, ~ 50k unsecured, I did get a job and have recently started a position for 60K/yr. Now i'm not sure what to do, all these bills are in collections. A couple are CC w/10K balances on them. Should I try to settle with them for 1, 20 , 30% ? should I claim a chapter 7 or do I make too much now? Should I pay my discover down enough to borrow against it some more to pay anopther creditor or will large payment set off some flags and have every creditor I ever owed knocking on my door? i own a car worth about 6k payed off. Nothing else, no kids..... i could scrape together a few grand and try to make one of these companys an offer... not sure what to do here ....

 

[bigun]

For those sort of dollars, someone will sue sooner rather than later.
BK is not just about your income and debt levels, it's also about your living expenses . You live in a state with a high cost of living so $60K won't make much of a dent.
Were I you, I'd see a lawyer and get all of my options explained. Most bk lawyers will give a free initial consultation.
Here's an expense calculator to see what sort of disposable income you have:

http://www.ca-bankruptcy-attorneys.com/calculators/expense_calculator.html

 

[bombbat]

ty bigun

I did go to a lawyer, he acted like I had no right to be there. I have been trying to figure out a budget that will show a negative or less then $125 expendible. I'm concerned that my ch7 will be denied and I'll be an indentured servent, ch13, for the next 3-5 years.

what about paying off my Discover and then borrowing that money right back? That CC is the last one I have kept afloat and this way i would be making payment and then cash advancing to payoff the debt collectors. Do they, debt collectors, take CC?

 

[bigun]

What sort of disposable income are you showing? Were I you, I'd get another opinion.
I'd be careful about depending on cash advances. The interest rate will be high and nothing says Discover won't cut your credit limit once they've been paid.

 

[bombbat]

xpenses

rent 540
food 330
st loan 277
oil ch 20
tire rotate 20
gasoline/tolls/maint. 325
postage 7.75
elec 40
cable 55
entertainment 70
auto ins 80
cell phone 50
laundry/dry clean 45
gym 10
tolls 60
clothes & shoes 50
grooming 20
gifts 40
health ins 150
cigrettes 150
dental 40
vehicle registration 7.5
excise tax 20

after all this I have about $750 expendible
It sounds like a lot but not enough to make a dent on 50k of CC debt ......

 

[bigun]

Yeah, that's way too damn much disposable income. Your best bet may well be a chapter 13 if you can't settle this stuff.

 

[bombbat]

ok ch13 then, questions?? BIGUN

So I file for ch 13, how much do they take, 100% of my expendible income? For 3 years, or 5 years ?

 

[bigun]

They'll take all of your disposable income to fund a plan. It's my understanding that if you can't pay 100% of the unsecured creditors with 36 months, you will be in a 60 month payback at some percentage-likely less than 100%.
Another thought would be to rent a more expensive apt. Say, $1000/$1200 a month and wait as long as possible to file. {before bk reform}. I assume you've include applicable payroll taxes in your expenses.

 

[bombbat]

rent increase

I could increase the rent and then what, get a ch7 a few months later? I live w/GF right now, I assume we would have to split the rent 50% ea., or she could leave me and move out and I would have to pay the entire rent ....

How quickly can the judgement and garnishing process take? Can they garnish my wages ? Is there anyway to hide from that?

 

[bigun]

No way of telling about lawsuits. They can't garnish until they sue and win.
Seriously, I'd see another couple of lawyers. You'll need a pad of your own with the resulting expenses like utilities to get your disposable income to the level needed for a Chapter 7.