Jump to content

Should I file?


Recommended Posts

Hi. Help me please. I have considerable credit card debt. I lost my job last year and have gone thru my savings paying on accounts. i am out of money and still no job. Should I file? I own my house free and clear, 2 vehicles less than 2500.00 each, but have quite a few inherited antiques or family heirlooms worth much more than the allowed exemption. in my situation....should I just default?

Link to comment
Share on other sites

If he can get you to file and not lose any to little assets, I would go and do it.

However, you will be able to analyze BK on a cost benefit analysis. If the "cost" of BK is too great....at that point you can consider the option to default.

The good news is: I believe your state has thrown out credit card arbitration. If this is correct, (which I'm not 100% sure about) this can give defaulting credit card consumers some options. You could exercise arbitration clause to waive suing debt attorneys rights to litigate the defaulted claim. You need to do A LOT of research on this to see if its a viable idea. I do know a WA state consumer lawyer that is exercising arbitration clause in a few cases and its really jacking off debt collection lawyers.

Link to comment
Share on other sites

Hi. Help me please. I have considerable credit card debt. I lost my job last year and have gone thru my savings paying on accounts. i am out of money and still no job. Should I file? I own my house free and clear, 2 vehicles less than 2500.00 each, but have quite a few inherited antiques or family heirlooms worth much more than the allowed exemption. in my situation....should I just default?
It appears Chapter 7 is likely out of the question. In washington, you can choose between the federal exemption schedule or the Washington state exemption schedule. Under state law, the homestead exemption is $40k which is larger than the federal exemption. You are only allowe to exempt ONE motor vehicle worth up to $2500 plus some personal items up to $2700 + $1000 (see link), and anything (wildcard) up to $2000 fmv. If you can cram everything you own into those cubbyholes, then Chapter 7 may be a good way to go. Even if that is the unlikely case, wait to file until you are back on your feet. If not, you risk accruing more debt that would be post-filing and therefore nto part of the filing. You certainly don't want to go through a filing only to have post-petition creditors harassing you again.

Chapter 13 is not an option right now due to a lack of income.

http://www.bankruptcyinformation.com/WA_exemp.htm

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.