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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Throwing in the towel... BK inevitable Date:  10/31/2012  6:12 PM
Author:  vkg Number:  306184 of 312189

See the lawyer before contacting your creditors. Do it soon.
You need to have cash to pay the lawyer. Since you are serious about filing bankruptcy, keep the cash to pay the lawyer and not make further credit card payments.

Your state determines what you can keep through bankruptcy.

Do not change title on anything. It is too late, and could annoy the bankruptcy court. Transactions near the time of filing can be reversed.

Do not go out and use any remaining available credit on your credit cards. (Acquaintances tried that one. They tried to declare bankruptcy after a spending spree. The wife forgot she had already declared bankruptcy, and they couldn't declare bankruptcy.)

1.) You don't own a home, so that not an issue
2.) Personal property
Unless you have jewelry of significant value, it is unlikely to be taken as part of bankruptcy. Regardless of what you paid for your engagement and wedding rings, they are likely worth only a fraction of that amount. Only actual value and not replacement cost is the only consideration.
3.) Equity in car is what matters. Not what is owed.
4.) Clothes and furnishings again unlikely because they just don't have much resale value.

To prepare for the lawyer:
1.) Collect the last 3 months of statements for all debts (including the car)
2.) Collect the last 3 months of statement for your bank and retirement accounts
3.) Collect information on your husband's accounts

Don't worry about normal personal possessions until after you meet with the lawyer. Only if you have something of significant value or have made a major purchase in the last year. It doesn't sound like you have.
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