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Posted: Fri Jun 06, 2008 6:39 pm Subject: Bankruptcy- strapped for cash

First of all let me start off by expressing how sorry I am that this post is long. She has alot of medical debt between her and children, right now her wages are being garnished for a $3,500.00 medical bill and they are taking $205.00 out of her check every two weeks.

She wants to file bk and we spoke to an attorney on wednesday and she would charge her $1,200 for a chapter 7 and $350.00 for chapter 13. Well the way I look at is this: #1 She isn't planning on buying a house or a new car for awhile. #2 She doesn't need credit cards, she just needs all of her debts wiped out to get a clean start. There are somethings on her credit report that are going to be falling off this year, do these need to be listed on the creditors matrix?. I have told her that I would be willing to file the chapter 7 paperwork for her as I have been through that before and am quite familiar with it, however this was back in 2003 and I know the bk laws have changed and she has to take that pre and post counseling class before she files and it's discharged afterwards.

I have two questions:
1. Do we need fill out the paperwork "for cerfication by a debtor who resides as a tenant of residential property?" In other words do we need to notify her landlord that she is filing for bankruptcy? She pays her rent on time and will not be filing bankruptcy on him.

2. Another question since her wages are being garnished does that go under the "schedule of creditor's holding unsecured priority claim"? Also do we notify this attorney that is handling this garnishment for the hospital or just the bk court notify them? This female attorney told her to wait until they have garnished over $600.00 because then she get all of that back. Does that sound right to anyone?

Thanks for you help Laughing

Posted: Fri Jun 06, 2008 6:49 pm Subject:

I'm assuming you mean $3,500 for a Chapter 13, not $350?

Posted: Fri Jun 06, 2008 7:17 pm Subject:

No $350.00 for the 13 and over a $1,200.00 for the chapter 7 (which I think is very high for a chapter 7) imho

Posted: Sat Jun 07, 2008 3:03 am Subject:

Yes it is - and $350 is VERY low for a 13! A 13 involves much more paperwork and time for the attorney than a 7. Most 13 filings cost much more than that.

Posted: Sat Jun 07, 2008 8:09 am Subject:

I wonder why she wrote that down in the contract that she gave my sister that is was only $350..? She got her name from totalbankruptcy.com's website would that make any difference?

Posted: Wed Jun 11, 2008 6:48 pm Subject: BK strapped for cash

My Chapter 7 in Florida is costing $1900 total for my husband and I to file jointly. That includes court costs which are around $500. I too thought Chapter 13 would cost more because it is a little more time consuming and a lot more involved. Maybe the $350 was the retainer to start the case?
No-they do not need to notify the landlord. I was so worried about that and my attorney assured me they don't.

Posted: Thu Jun 12, 2008 3:32 am Subject:

ladybug - that $350 sounds very strange to me, unless it's the first payment on the Chapter 13 plan payments?

In my case, I had to make the first payment myself, then the rest started coming out of my paycheck.

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