I’m Getting Ready to File Chapter 7 Bankruptcy But Have Some Questions. – Paul

“Dear Steve,

Heading to bankruptcy, retained a law firm, but am waiting to file. I owe the IRS, two states, student loans 1st and second mortgages( 1st is under water) two 401k loans, credit cards(about $90,000). My wife has gambling winnings in excess of $22,000 from January to April( but mostly March). Used the money to pay current bills. Trying to wait until 6months have past so they won’t use gambling winnings in the calculation on my ability to pay(chapter 13). My base salary is about $72,000, but with overtime I make about $92,000. A few years ago I was making $124,000. My wife has been selling gold jewelry to help pay monthly bills. Net income is about $3900.00. Monthly bills equal $4200.00.

I just want to get this over with. Should I wait or just file? The money my wife got for selling jewelry does that have to be declared since it was exempt assets? There is a paper trail. Can they use that money to boost my payments? Is chapter 7 a possibility?

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.


Dear Paul,

If you’ve already identified a bankruptcy attorney and retained a law firm, these are really questions you should ask them.

My concern is if you don’t feel comfortable communicating with the law firm you retained then maybe they are not the right firm for you.

A great bankruptcy attorney will welcome your questions and want to make sure you are both on the same page.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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