I need advice on what to do about filing BK, paying debt, etc.. LONG

[NYmommy28]

ughh, this might get long but i am at a loss of what to do... if anyone have any advice/thoughts let me know. i have several questions.

i have made a lot of mistakes financially and just want to start over, i am getting more and more depressed by the day, stressed to no end and just want to start clean and do it better this time

here is the thing:

ok, my husband and i had planned on filing BK sometime after we get our taxes this year( we cant afford to pay for it other then using our taxes) i made a huge mistake with my checking account and went in the negatives in November, with all the fees it spiraled out of control fast, i stopped using the account so i would not make it worse, husband and I opened a new account and we r using that now, the bank where the negative was deposited enough $$ in my account to bring it to $0, i signed the paper saying so much would be taking out of the account every month till the loan is paid back, so the account is still open but is $0 and i do not plan on using it anymore. so one question i have is should i continue to pay the amount every month or should i stop paying it and claim it on the BK?? one thing i am wondering is will i have to show bank statements from this bank? if so can they say anything about all the negatives in it? can they do anything that will hurt me because of it?? if i stop paying it, they will close my account, if this happens will i still have to show any of the statements from this bank? or will i just have to show statements from the bank i am at now?

i am trying to figure out if i should continue to pay or stop paying. and when i should file for BK? should i wait a few months and let this bank close my account, then file for BK?

ok, next i am wondering about our taxes, i know creditors can not take our taxes but if i get my taxes then file for BK right after i have heard the trustee can take some or all of our taxes to put towards our debts, we can not afford to loose any of our taxes, we always use that to buy things the kids need like clothes, etc.. also to buy fuel for heat, etc.. we always need the money for something! sooo should i wait for a few months after our taxes to file?

what we have for debt is 2 vehicle repos, one from a few years ago, we have not been bothered by them at all, and one from this past May, they have not been too big of a problem, LOTS of medical bills, again we have not been bothered by them other then they keep sending us bills, and we each have a few credit cards but the total for them i beleive is less then $2k, one company( CA) from one of my husband's was calling a lot, few months ago threatened garnishment( total owed to them is less then $1k), but have not heard from them in a month or so. as of right now no one has sued and there is no judgement against us. i am a little worried someone is going to freeze our bank account, there is never much in it, just enough to pay bills and then is out of the account in a day usually but if they do i am worried how we will live and cash my husband's paycheck, or start to garnish my husband's check, if that happens we will be hurting...


questions:

1. how many months bank statements do u have to show?
2. do u just ahve to show statements from ones that r open at the time of fileing or others that have been closed?
3. do u have to show tax returns? if so how many years?
4. can they do/say anything about where your taxes went and why were your debts not paid?
5. can u get all the way to the meeting with the trustee and creditors and they not approve u for BK? even after u have paid the lawyer?

i think this is all, i hope i made sense,lol, but i have no one IRL to ask these questions and just want to know what is best to do.

[Coltfan1972]

It all makes perfect sense and your questions are far from unique. What you need to do is make about three appts with different BK attys so they can answer your questions. They are not all that complex, but you can talk to a BK atty for free.

I'll give you my personal opinion. Why in God's name would you pay on a debt until you paid it off then file BK. That is what BK is for, situations like you just described, assuming there is no fraud involved which it 100% sounds like there is none. There is no way I would pay one penny more on any debt I might BK.

And of course the court is going to look at your bank records, it's BK they expect to see a train wreck of a financial mess. You actually sound like your not in that bad of shape as far as BK is considered. BK is called the nuke option. It's like dropping a nuke on your creditors, it just wipes it all of the face of the earth, well just about all of it.

With what you just described, it appears BK would be overkill.

[willingtocope]

You've got enough complications there (check fraud?) that you really want legal advice before you decide what to do. Talk with a couple BK lawyers in your area...most will give you a free consultation. Find one you can work with...

(Generally, the trustee will take your tax return. If you spend it within 6 months of filing, he may expect you to come up with the money. However, spending it on living expenses may get you off the hook. Like I say, you need a lawyer that knows how the trustees in your area look at things).

[Coltfan1972]

I don't think you've described check fraud, only you know that. In my opinion, you've described letting your checking account get out of control.

However, Willingtocope and I were posting at the same time. Do you see the common theme with talking to an atty?

[willingtocope]

Just so you know, I'm not accusing you of check fraud, I'm only bringing it up because the bank may see it that way...and try to get their debt excluded from the BK. On the other hand, if you do pay them before filing, the BK trustee may see that as "preferential treatment" and try to get that money.

talk to some lawyers...

[NYmommy28]

Originally Posted by willingtocope

You've got enough complications there (check fraud?) that you really want legal advice before you decide what to do. Talk with a couple BK lawyers in your area...most will give you a free consultation. Find one you can work with...

(Generally, the trustee will take your tax return. If you spend it within 6 months of filing, he may expect you to come up with the money. However, spending it on living expenses may get you off the hook. Like I say, you need a lawyer that knows how the trustees in your area look at things).

There was no checks that bounced, it was all debits.

[NYmommy28]

Originally Posted by Coltfan1972

It all makes perfect sense and your questions are far from unique. What you need to do is make about three appts with different BK attys so they can answer your questions. They are not all that complex, but you can talk to a BK atty for free.

I'll give you my personal opinion. Why in God's name would you pay on a debt until you paid it off then file BK. That is what BK is for, situations like you just described, assuming there is no fraud involved which it 100% sounds like there is none. There is no way I would pay one penny more on any debt I might BK.

And of course the court is going to look at your bank records, it's BK they expect to see a train wreck of a financial mess. You actually sound like your not in that bad of shape as far as BK is considered. BK is called the nuke option. It's like dropping a nuke on your creditors, it just wipes it all of the face of the earth, well just about all of it.

With what you just described, it appears BK would be overkill.

I guess cause I was not sure if I could claim the bank account going negative on BK.

Do u know how many months of statements they would want? Jw cause I don't have any of the statements from the account that went negative.

What do u mean in your Last statement about BK being overkill?

[Coltfan1972]

Originally Posted by NYmommy28

There was no checks that bounced, it was all debits.

Debits, checks, whatever, they bounced, were not honored and the account went negative.

You're making a huge mistake if you don't seek the assistance of a BK atty. They pass out free one hour visits like Santa does candy in a Christmas parade.

The biggest benefit you will get from taking with an atty is they will know what really happens and what you can really expect, not what should happen or what the law says, but what is likely to happen.

Before I went to court (not BK) I knew I had the winning arguments. However, I asked around about the judge and his leanings. Luckily I had to do nothing different because he was a straight, by the book, shooter. However, if I needed to kiss a little rear, wear certain clothes, not make mention of certain things (such as calling all bankers lying thief scum, only to find out his father is the president of a bank), I wanted to be prepared. That is what a BK atty can do for you, give you inside information.

[NYmommy28]

Originally Posted by NYmommy28

I guess cause I was not sure if I could claim the bank account going negative on BK.

Do u know how many months of statements they would want? Jw cause I don't have any of the statements from the account that went negative.

What do u mean in your Last statement about BK being overkill?

Also I don't want to get in any legal trouble during BK for the account going negative .. and honestly I feel like I should pay it, I put it in the negative for a dumb mistake and just think that as long as I can I should pay it off.
.

[life is good]

I filed BK about 15 years ago on only 10K...I wouldn't have done that had I known how it followed me around for the 10 years it did....I was able to begin getting credit cards shortly after my BK, however, getting cars, renting homes, cell phones, and trying to get mortgages and sometimes bank accounts, was near hopeless. The best thing filing BK did for me was to wipe out the night terrors I experienced from having all these debts I incurred ....and they were numerous, but with small balances. I just could not keep track and that drove me crazy. (plus, I was getting a terrible divorce, moving to another state, and unemployed) All of this made for a bad choice, in my opinion.
BK attorneys will always be happy to assist you and take the fees, of course, but here are some things to think about after you have consulted with them, or during the consultation;
1. is the amount worthy of 10 years BK on your record?
2. What will the BK forgive and not forgive?
3. Think about what that will affect; increasing your insurance premiums to having to come up with extra cash money as deposits.....etc.
4. How did this happen?

After reading through this site, I have come to realize there are SOL's that arent' as long as 10 the ten year period from filing BK. Having that on my record was just as bad as the bad credit.....and bad credit doesn't (isn't supposed to, that is) stay as long if you watch it and go through the due process of having it removed, or fighting it to get it removed. It does take time and diligence, however. Even after my BK, alot of these "forgivin" debts stayed on for years...unbeknownst to me.

Personally, I would really read through this site to see what you CAN do, and then I would get myself some instruction on budgeting your finances. Self discipline is hard when it comes to finances; it's easy to wipe em out....and then you find yourself in the same predicament all over again. It took me a couple of credit card experiences to learn that I shouldn't have more than just one.....that way i don't get myself into trouble. I have learned that if I can't pay for it now, I can't have it, period.
( of course, that excludes a home and a car..) And today, I don't have all those monkeys on my back keeping me haunted all night and day long. You would be surprised at how wonderful it is to live without all the extra "things" we think we need, but really don't need.
As it is, just in order to function in society....we HAVE to pay bills to live...water, gas, electric....etc..you get the picture. Why throw more on top of the heap? Keeping up with the Jone's isn't what it's cracked up to be...Our savings account should be one of our biggest priorities, yet, most people don't even have one.
You can learn all this online, and for free; just apply yourself and you will see how learning to be responsible for your financial debt to income ratio can lead to a lifetime of security (and happiness)
This site is particularly helpful for all of the above. Use it. These generous people, sharing real experiences and remedies, are here to help you-not with "quick fixes" but with real and lasting improvement.
Don't make rash decisions without investigating your options, and then take the necessary steps to ensure that you don't find yourself in the same place several years down the road.
I realize that sometimes, we don't have many options sometimes- but we do have the ability to learn, all the time.

[NYmommy28]

If I figured it out right we have a total of approximately $32k-$35k total debt.

Vehicle repo. $5k
Vehicle repo$7k
Credit cards- I think $2k-$3k
Rest is hospital /Dr bills

Everything got out of control cause hubby had a very good paying job and lost it a couple years ago and we couldn't keep up with the payments.

[Coltfan1972]

Originally Posted by NYmommy28

What do u mean in your Last statement about BK being overkill?

Based on what you posted, it does not sound like you need to file BK at this time.

BK is a huge, huge deal. As posted above, it can have, sometimes, life long consequencs that will follow you.

On a side note, as I posted earlier, the court expects a train wreck when they look over your financial situation.

I don't know how far they go back, I think it's six months.

[jq26]

Bank statements: not required but may be asked for by the trustee so your attorney will tell you to have them ready. The bank will give them for a nominal fee.

You need to submit tax returns or tax transcripts (free, call the IRS and they will mail) and paystubs for the preceding 60 days prior to filing.

United States Code: Title 11,521. Debtor’s duties | LII / Legal Information Institute