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Need a little advice?


kerplunk30
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Hello, I am currently $21,000.00 in unsecured debt. I rent which means I have no home of my own and my car is a 89 volvo valued at around $1200.00 and some household things which would not total around $2,000.00. For the past few years I have managed to pay the minimal amount due on all of my Credit Cards and one personal loan which was getting me nowhere as average percentage rate is 29%.

Due to my car breaking down a few months ago I got really behind on all of my payments and the calls started to come in left and right demanding payment. I signed up with a credit counseling firm about a month ago"Big Mistake!" and made a payment to them, The calls still continue demanding the past due ammount and late fees and threats of legal action. My net income per month is $1588.00 and my expenses with the min payments on the credit cards($800.00mo), rent, Utilities, food, and gas totals $1700.00mo alone! I have been reading your boards and have found them a wealth of information and my questions are.

1.Am I eligable to file chapter 7?

2.Will Having dealt with a CCC look bad to a trustee?

Any advice you can give would be greatly appreciated as I'm getting really scared and confused.

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1 - Probably. What are your normal expenses WITHOUT adding in the credit card payments ? CC payments are NOT considered 'living expenses'. If your disposable income is $100 or less, then CH will probably work for you.

2 - Trustees don't care about CCCS. However, I'm sure they see that CCCS and other debt elimination/managment/settlement companies actually drive people to BK sooner anyway.

Here is an expense calculator to get a handle on what you can include as living expenses. Do NOT skimp, put in amounts that you'd spend if you were not squeezing every penny.

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

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