Keep stuff in Chap 7?

[dws613]

What is the name of your state? Arizona

I spoke to a bankruptcy attorney here in Arizona today and he said if I filed a chap 7 I could keep my car as long as I paid for it and just bankrupt my credit cards. I always heard its all or nothing.

I have $10,800+/- in credit card debt and a $13,500 car loan. I have no job. I have cash advanced to the max to stay up on my bills but have come to the end of the road. I have no more credit, I am out of options. Now, lets say I get a job that pays $1,000/mo, my current living expenses are about $1,500/mo. Would the court do a full bankruptcy for me or would they reduce my debt until my payments were $900-$1,000? With all my debt gone my monthly expenses would be about $600/mo (rent, food, electricity, etc...) so I would have "extra money", would the court make me use that to pay part of my debt (such as a chap 13 instead of a chap 7)?

 

[Ladynred]

You still have to include the car loan in the bankruptcy and list the debt AND the payments. However, how do you pay for a car loan without a job ??

If you're unemployed NOW, you have NO INCOME, except maybe for unemployment, and THAT is what is considered when you file for bankruptcy. If after paying ALL your NORMAL living expenses, plus payments on SECURED debts, you have less than $100/mo left over, then Ch 7 should be no problem. If you have MORE than $100/mo, you'll be looking at a Ch13 - but if you have no job, you can't make plan payments on a Ch 13.

 

[dws613]

I have been paying for the car with cash advances, I have been paying for everything with cash advances. I have maxed out my credit cards though.

Is it based on the job I have when I file? If I file tomorrow and get a job the next day, will they take the $0 income I filed with or see that I got a job?

Right now, my monthly expenses are about $1400. If I got rid of all my debt my monthly expenses would only be about $600-$700. Even a crappy job would pay me $900-$1000/mo. Should I wait to get a job until after I file? How long should I wait?

What if I just don't pay my bills and don't file bankruptcy? Will they ever stop harassing me? When will they write it off, and how long will my credit be ruined? If I don't have a phone, how will they harass me?

 

[spoiler]

how long ago was the cash advances? How much were they for? You could have a problem....

 

[dws613]

I cash advanced $1,000 about a month ago and cash advanced $1800 2 days ago. All my other advances were over 3 months ago which I heard the courts would not care about. I have been working very on-and-off. Since Feb 1 I have had 2 jobs that each lasted a week.

I have mental problems, such as obsessive compulsive disorder, ADD, and borderline personality disorder/bi-polar. I also have pretty severe depression and anger problems. That is most of the reason I have trouble holding down jobs. I should get disability or something. I tried to take medication for the problems and became psychotic and tried to kill myself so I was taken off of the meds.

 

[AttorneyOney]

Be sure to tell your lawyer right away about the cash advance 2 days ago. He probably gave you some advice about using your credit cards, and you will need to do what he says. Don't be surprised if he says you need to wait 58 days before filing bankruptcy.