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.
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.