“Dear Steve,

Since last March, I have charged $30,000.00 in Credit Card purchases. The bulk of this was March thru May 2008. In May My hours were reduced (At that point I was using my credit card for survival. I.E. Groceries, Gas, Utilities, Car Repairs and needs). In August I was laid off and still am.

In Mid December I stopped using my credit cards all together. Right now I am considering Bankruptcy with $52,000.00 in Credit Card debt. For the last year I have strung Nine cards along with minimum payments while using the cards as described above. My wife also took 5 new cards in her name in April 2008 and they combined have a balance of $16,000.00. (This is part of the $30,000.00 in charges). My Wife as of this month is unemployed from a job she had for a year and a half. My unemployment will run out in April 2009 ($320.00 per week).

Based on my story above, would I run into problems filing a Chapter Seven BK in March 2009? All my debts are Credit Card and my Assets are minimal with a home that had lost all of its equity due to the housing market.

Lee”

The Answer:

Dear Lee,

The last thing you need from me is a lecture on using credit cards without an expectation that you will be able to repay them, so I’ll skip that.

I think the situation is what it is and the absolutely best advice is that you need to go and meet with three different bankruptcy attorneys in your area. Why three? I just want to you to find a bankruptcy attorney you are comfortable working with and also get at least two to agree that you won’t have any problems with your Chapter 7 bankruptcy filing.

There are two answers to your situation. One is by the book and the other is by reality. It is really all going to hinge on how the bankruptcy lawyer thinks they can present it and how tough the local bankruptcy court is.

If I was to guess, I think you’ll be fine, but follow my advice. If you need help to locate a bankruptcy attorney, click here.

Big Hug!

@GetOutOfDebtGuy

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Read the full article at GetOutOfDebt.org, click here: Would I Run Into Trouble Filing a Chapter 7 Bankruptcy? – Lee

The story below caught my attention. An early sign that things are getting worse for consumers. When you notice a noticeable uptick in credit card use in a down economy that means that more people are running up debt when they can’t afford to pay. Yikes!

POLK COUNTY (Bay News 9) — During these tough economic times more Americans appear to be turning to plastic when they’re making purchases, and business owners are noticing.

Crowder Brothers Hardware has sold hammers and nails to people in Polk County for three-decades.

And while many small businesses are struggling, their customers keep coming in.

“You can put off buying a new car or some new clothes,” said Bruce Phillips owner of Crowder Brothers Hardware. “But if your toilet is leaking you don’t have that option of saying, ‘well we can let it go — we’ll fix it in a few months.’ So, we’re fortunate there.”

Phillips says the biggest change he’s noticed through the years is that his cashiers now swipe more credit cards than they count cash.

“We’ve probably seen credit card usage go from 30 percent up to now 50 and 60 percent,” Phillips said.

But as more consumers get used to swiping, more are finding themselves in the red.
Americans now owe an estimated $850 billion in credit card debt, which is four times as much as in 1990.

Consumers aren’t the only ones affected by the increase. Small business owners like Phillips say they’re also paying a price as the popularity of plastic rises.

“Cash is king,” Phillips said. “Credit card — we pay a percentage to have those processed and that affects our bottom line profit.”

The Consumer Federation of America reports 58-percent of people with credit cards do not pay their balance in full each month.

Watch video.

Source: Business noticing increase in credit card purchases

Other Related Articles to Read

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• Bailout Plan Wants to Push More Credit On Overloaded Consumers
• So You Have to Use Your Credit Card In An Emergency – Personal Finnance Bloggers Question of The Week

Read the full article at GetOutOfDebt.org, click here: Business Noticing Increase in Credit Card Purchases. Not a Good Sign.