I think bankruptcy is in my future. What do I need to know?

[snuggly mama]

Dh and I have been financially struggling for awhile, and things are coming to a head now. I just had to cash in our change jar to buy food for the next couple of days We have used up all our savings, and are using the cc for daily expenses. 90% of our cc debt is from medically-related stuff for dd2, who has significant issues. Realistically, we should've filed bankruptcy 6 years ago, but sold our house instead, and thought we could get back on our feet.

I'm behind on every single bill we have. My student loans are 12 years old, and I owe more now than when I started. And the older kids are teens, so getting more expensive by the day.

Dh and I both work, him full-time, and me part-time (can't work full-time because of dd's issues), but there's just not enough to make ends meet. We want to keep our house, and we need to keep our van because of dd's medical stuff.

What do I need to know? We have a meeting set up with the lawyer just to talk about things, but I don't even know what to bring, or what I should ask!

[kittynurse]

I'm in Canada so I can't help you but thought you could use a hug.

Martha

[MommyKelly]

Your lawyer will tell you everything at your 1st appt. You shouldnt need to bring anything, but should have a ballpark figure of whatyou owe on what.

You should be able to keep your home ( you can keep your primary residence) and if your car is paid off you can have vehicles worth up to 10K total (ie: 2 care worth 5K, or 1 worth 3 and one worth 7).

If you have a loan you can reaffirm the loan.

You cannot include student loans in a BK.

Hugs Momma. I know its hard.Dh had a heart attack 2 years ago at 31, and lost his job ( gotta love a right to work state) He found a job he loves now, but its a non profit and 1/2 the pay and it killed us financially.

[sweetjasmine]

I'm sorry momma! My brother is also contemplating bk. They readjusted their mortgage to an ARM about 3 or so years ago and around the same time my sil got laid off from a good paying job, couldn't find another comparable but is working again. But since then they've spent their retirement, stocks, bonds, etc. and are at the end of their rope. AND there is threat of a layoff where my brother works. My brother and sil have an appt with a bk lawyer in about a week.

A good friend of mine declared bk a few years ago as did a coworker. Both remarked that it was a huge weight off their shoulders.

[SuzyLee]

Just consider that you may need to be open to not staying in the house. It may be worth it to get into a lower monthly housing payment so that you have better financial security going forawrd. Just something to consider.

That said, I am sure a bk atty can tell you everythin you need to know. So I would start by scheduling consultations with a few of them.

[lalaland42]

No advice, just want to offer a supporting

[Marisol]

The lawyer may be particularly interested in any real estate, such as your home, that you own and exactly how badly you want to stay in it because it will affect whether you file Chapter 7 or Chapter 13.

MommyKelly already said it, but it's worth saying again because it's very important -- student loans are not dischargeable. You'll still be saddled with those after the bankruptcy.

Once you've made the final, firm decision to file for bankruptcy, and you'll be filing in the next 4 months or so, it is to your financial advantage to immediately cut off the creditors of the debts you will be discharging. Ignore their threats of garnishment; there's no way they can push a judgment through in just a couple months. Use the money you save to pay the lawyer and come current on your other non-dischargeable bills.

[snuggly mama]

Thanks, everyone. I was afraid I was going to get flamed for suggesting the bankruptcy route -- you all gave me some good advice and things to think about. I'm hoping the appointment helps us figure things out.

I know student loans are not discharge-able. As much as I hate owing them after all this time, I have no problems paying for as long as I need to on those.

I really hope we can stay in the house, and not sure how we'll handle the car situation, but I guess those are questions for the atty.

[leavemealone]

Make sure you know of debt that may not be on your credit report. For example, we have HOA dues that we are going to include. We are not keeping our house and we cannot afford the dues either, especially on a house we aren't going to own in a few months. Those have been fairly recent and are not on our credit report.

Also, know details of any assets you have sold recently such as a car or stock. Also, if you have transferred anything to someone else's name (such as a parent), that may be scrutinized to make sure you aren't hiding assets. I'm not saying you've done that, but when we discussed it with an attorney, that was one thing he mentioned.