Bankruptcy tips needed

Just my opinion: don't even think about a 13. Just do the 7 and get it over with. A Chapter 13 makes your life a living hell. And looking over your situation, I don't think you would qualify for it given that you are now out of unemployment benefits. Why drag it out?

Nobody will show up at your door. Since I don't know BK laws in NY, can't say for sure but probably you will get to keep most or all of your stuff depending on their value.

Don't hold your breath for Social Security Disability. They started us on the road to ruin by taking almost 2 years to approve me. Sure, you get a back check but by that time a lot of people have been starving for months and it is quickly eaten up by bills, loans etc. The diagnosis isn't what they go by. Their regulations are totally weird, make no sense and put people through unnecessary agony. Like anything else the government does!

The best advice I can give you is to go on Google's alt.bankruptcy board. It helped us through a 13 and then the conversion to a 7. You may find your answers there (there's a search engine) or you can join and ask your questions. There's lawyers on the board who will reply. One in particular practices in New York so he can tell you all you need to know.

In any case, good luck on all accounts.

 

1) If you go for BK, sounds like Ch7, but you should get up to speed on this for yourself.

2) In MA, start to finish, less than six months. Can't tell you about NY, but probably similar.

3) You don't include cards w/zero balance, and you can choose to leave any debts out if you want. Be aware that CC companies LOVE an excuse to JACK your interest rates, so be very, very careful about keeping any cards. I had a few cards w/zero balance cancelled, so don't pay off a card to zero assuming you'll be able to keep it. Count on nothing and you'll be in great shape. Also, do NOT pay off ANY cards/loans within a few months of your filing, it can throw the whole process off - you're essentially "favoring" a creditor, they really don't like that (other creditors

4) probably not, unless you've got a bunch of assets. Since you're applying for Medicaid, not likely.

Having just gone through some of this w/my mom, I want to say something that may not at all be accurate but I hope you follow up on it.

If you qualify for medicaid, you're essentially "uncollectable" and your circumstances are quite obviously out of your control and may continue for a while. I would urge you to wait as long as possible before filing BK, if at all. When your health is at risk, NO CA or OC (who wants to get their money will be bothering you much. They may check in from time to time to see your status, but that's about it.

It also sounds like your CC situation is "stable", so why not let the medical bills get sorted out and then see what you'll do? I know every bill I got for my mom loved hearing "medicaid applied for" and waited for that outcome. Unfortunately, she did not qualify and then they came back to me.
.

 

• 
  
  Good luck and hope your health improves. I'm on full disability also.

 

for NY State chapter 7
you are allowed to keep 5000$ in aggregate assets (cash, household goods like TV, computer, etc., jewelry, clothing)

Remember this amount is depreciated amount, not costs of items new)

The standard they use is "what the item would be priced at if it were for sale in a garage sale"

Also i believe you are allowed to keep a car worth up to 2400$

Credit cards must all be listed, you are given the opprtunity to "re-affirm" with the cc company meaning you agree to continue making payments...IMPORTANT..they will also agree not to close your account!

for more info refer to ny state debtor and creditor law - NY State Consolidated Laws Chapter 12

good luck, take care of your health..that is most important right now

 

Hi there, IMHO you should consult a lawyer dealing with bk matters in your area. Shop around and you can get a feel for the fees and if they really care bout your situation. Remember there are the legal fees and the filing fees to deal with.

Not to blast those bk lawyers that deal with bks on the wholesale level, (like those that advertise on last night TV) but they have a tendecy to push you towards a bk-7, since it's faster and cheaper than a bk-13.

I agree from reading your post that a 13 is not a good idea but than again a bk lawyer (a good one) will help you determine that.

Yes, it's true you cannot leave out any cc even with a zero balance out of the bk. Chances are if you do keep them and the cc find out they can cancel your account. Not to even mention what happens when the bk judge finds out.

As for someone knocking on your door, in you case no. I have a friend who deals in this and it does come down to a meeting between you, any creditor that shows up and the trustee. You will be under oath as the trustee is bound to make sure that the bk is just and that your stated assets are truly listed. Again it depends on your situtation and your ability or lack of to deal with your debt.

bk-13 is not for everyone as I myself did a bk-13. It was rough but in the long run personally it was the right choice for me.

Also, a bk-7 will stay on your CR for 10 years while a bk-13 will only stay for 7 years.

Keep us posted.

Best of luck,
Mirage

 

You sound judgement proof to me. Unless you have some huge asset lying around that you didn't mention, you own nothing they can take, and you have no income they can garnish.

You also have an illness with recurring bills that probably isn't resolved yet. (Even if it seems to be, I bet your doctors are not guaranteeing it 100% in writing, are they?)

So I would very seriously consider not filing. At least not yet. Once you file, all the bills that come AFTERwards are on your neck, and if you have ongoing medical problems, you will not have fixed anything. You'll be piling up bills you can't pay, and you will have used up your legal means of relief (at least for the next six years, which is when you could file another C7).

As things stand, your creditors can harrass you about the money you owe, but they can't actually get anything from you. Send them limited cease and desist letters (e.g., tell them to communicate only in writing) if the phone calls bug you.

Just one note, you MUST file all debts. A debt is where you owe a non-zero amount of money to someone. So you don't have to file on CCs that have a zero balance. Otherwise you do, unless you "reaffirm" and commit to paying off the current balance. Really, I wouldn't bother.

 

Wrong!

Let me say this loud and clear so that someone does not get themselves in a compromising position.

YOU MUST LIST EVERYTHING. THIS INCLUDES CC's WITH NO BALANCES.

The reasoning behind this? They want to know everything about your finances. They want to know what credit you have available. This falls into that category. Do not let people tell you to keep something out of a BK. If you get caught, the Trustee can motion the judge to dismiss with prejudice. Then you can ask yourself if it was worth it. One of the things the trustee wants to be aware of is any new credit you might try to get. As this would possibly cause fairness issues as well as an inability to pay, or even worse, they may think that your not sincere in trying everything you can to avoid BK.

SnakeMan

 

With all due respect, Mirage, this is inaccurate. Nothing in bk code compels you to list credit cards with zero balance. I had three retail cards and one "bank" card with zero balances. After I filed only one creditor without a balance, Sears, closed my account. Now I *do* agree that's it's potentially grounds for a bk dismissal if you use the cards with zero balance before your discharge. At a minimum any debt incurred will not be discharged.

But if you wait two-three months after your discharge without creditors with zero balances sending you a letter saying they're closing your account you should be safe. I ordered something inexpensive on-line with my "bank" card to make sure it was still "good". I received a letter from Sears 10 days after I filed stating they were closing my account. Unfortunately I had already cut up to two retail card that are still in good standing and still contributing to my positive accounts.

What we do not know is if the poster has any credit cards with zero balances.

 

I will check on the part of listing cc with zero balances if it needs to be listed on the bk files.

Give me a day or two and I will contact the bk trustee's office in my district.

I'm not dissing anyone but I think as a group we owe it to ourselves to find out for sure.

Best regards,
Mirage

 

Re: Bankruptcy tips [original poster]

 

Re: Bankruptcy tips [original poste

I'm glad to see others are echoing my main concern for you in this situation - find out your options if you'd like now, but please don't file until your situation improves.

As for including zero balance debts, my attorney, who dots every 'i' and crosses every 't' with legal-beagle precision, told me to leave them out - because they will not be discharged. He also told me to not have any activity on any card from that day on, including paying off any cards. He warned me that they might not want to keep the account(s) open after we file, and he was correct.

This is what I did, and two years after Ch7 I have an account w/a 10k limit and another w/a 5k limit. I don't think I would have had CLs anywhere near that if I hadn't kept my zero balance cards.

 

Re: Re: Bankruptcy tips [original poste

This is EXACTLY what our atty told us. We did not list any accounts with a zero balance. We had several credit cards with a zero balance that we were hoping would survive the bankruptcy but they did not. Right after we filed we began receiving letters from these creditors saying our account has been closed.

Whatever you do ... do NOT use any credit card from the day you file bankruptcy until you are discharged. Doing this could cause your case to be dismissed. If you have reoccuring charges try getting a bank account with a debit card. Your debit card will act like a charge card but the money will come straight out of your checking account.

Laws vary in each different state. Anyone considering filing for bankruptcy should call an atty who specializes in bankruptcy and meet him/her for a consultation. Most attys offer a free initial consultation. Although this board offers a wealth of info, every bankruptcy is unique.

For what it is worth our Ch. 7 took 5 months from start to finish.

 

vghost! I am so happy to see your message.

I have AIDS, and was very much dealing with all the UNIMPORTANT HASSLES you are dealing with now.

Do a Chap 7 - everything will stop immediately.
They will not take your TV, etc - but they may want the Hope Diamond back... sorry for the humor.

You can buy a house, car, get cards, just like before, after a yr or so.

Get this other stuff filed and off your back. You and I deal with enough.

You said the COBRA expired, - well you were getting cancer treatments before last week - so you are automatically able to extend - if you can pay the monthly. - This is an ongoing condition - which disallows them from dumping you - unless you can't pay. I think you are OK - but borrow the money for a few months from somebody to keep the health going - while SS and Medicaid process.

File the Chap 7, and check on the COBRA - they cannot dump you under the Disabilities ACT. I know a LOT about your situation.

Also, your BK atty should be able to do some amendment to cover additional medical bills - ask but this is not an unusual situation.

I am so happy you wrote and I hope you email me
But work on your health - dump the other issues.

I was very touched reading your post - you have a friend in SF fighting the same battles.

You got family around you? Friends?

aarrff - Dogman

 

You should have automatic continuous coverage on COBRA - another extension to 36 months.
That $3000 week should be being paid by COBRA NOW vghost!

Can you tell more when you feel like it?

It seems to me:
1- MED bills should be paid by COBRA extension for 36 months.
2 - Chap 7 relieves the other issues.

You are entitled under HIPPA (Health Insurance Portibility Act) you take insurance with you.
COBRA is that insurance. It goes for 18 months then expires - the idea being when you get another job with a company, you get auto approved for their
group policy again.

IF there is an ongoing health issue that was an issue during the time that 18 months expires, it is automatically able to be renewed for a total of 18 additional months.
I am VERY CLEAR on this.
I am also VERY CLEAR that if you smoke a joint after the treatments, you will NOT get sick. Works better than Compazine.

Good luck vghost - and again, I am very happy to talk further by email if you wish.

aarrf - dogman

 

I'm concerned "unemployed ALMOST a year"

COBRA expired a week ago.

Its automatically 18 months (unless it expired for non-payment). I hope no one is lieing to you about the expiration.

 

1. A "cease and desist" letter is one where you tell the creditor never to contact you at all. A "limited cease and desist" limits the contact, usually to mail (no phone). If you do a full cease and desist, they have no recourse other than just to sue you. The other has better odds of keeping them off your back longer.

2. "Judgement proof" means that you have no income for them to attach, and no assets for them to seize. You have nothing, hence a judgement cannot harm you. You are an invulnerable Superman!

3. Because you're judgement proof AND it doesn't sound like your life has stabilized, I strongly advise you not to file any BK now. Wait until you stabilize and aren't falling into the hole each month. If you file now, all debt that you run up after the date of filing is still yours, and once you file, you can't file again for six years. So until you reach the point where you aren't incurring more costs each month than you can pay, I wouldn't file. Wait until the end, then file on ALL of it.

4. No, you do NOT have to list zero balance CCs. The CC companies might LIKE to know that you filed, but that's their tough nougies. You file on DEBT. If you owe no money, you have no debt. In order NOT to file on a card, your CC cannot have ANY balance on the day you file, though. E.g., you must have payed it in full, the payment must have posted, and you must not charge anything on it in between times. And there's still a very good chance you'll lose it, so don't go planning life around it.

 

I agree completely - jlynn - and vghost could use a boost right now.

vghost - we're waiting for you - to help get these issues solved easily for you.

Dogman