Getting sued by Discover - planning to file BK within a few weeks

have you talked to an attorney yet to get their thoughts on the situation? and also would you qualify for chapter 7. i wasnt sure when i went and saw my attorney for the first time and he recommended the chapter 7. it doesnt make sense to agree to pay back an amount for 5 years if you know it will be just as hard as trying to pay the creditors yourself. best advice i can think of is talk to an attorney. btw- i am a debt collector, shhhhh. dont tell anyone =)

If you can qualify for chapter 7, then that is the way to go. You may have to give up your business, but that would be better than what you are going through now. I have done the online means tests, and they are pretty straightforward. We are under the median income for our state, so it is pretty simple. You can get all the info from a local attorney. He will have the best advice for your situation in your state.

Thanks - both of you .

SouthernApostolic - can you tell me what is meant by "giving up my business"? Would this be to have less income? or would this be something "forced" upon me like to "get a job"? If I gave up my business what would stop me from starting another one?

Sorry - I don't get it. Thanks for your patience.

It would depend on how the bankruptcy trustee would view it as an asset. You are only allowed a certain level of assets in a chapter 7, and it varies by state. Anything over that, the trustee would seize. This is why you need to get a consultation from a lawyer in your area.

how much do you owe ? and how far behind are you on you payments ? to Discover that they are suing you >

Hi - I owe about $80k by myself - $18k to Discover - spouse owes his own $80k in his name - probably $12k to Discover. Taking me to court will cause both of us to go bk and then Discover will "lose" his account too - and he's been paying them. He's been paying his bills and the mortgage - and has nothing left after - I've been paying just household expenses - groceries, gas, etc. since my income got cut in 1/2 last fall. MY Discover hasn't been paid in about 6 months. My *ideal* situation would have been for just me to take the hit on this - if I could get ch 7 by myself - but the means test doesn't make that look possible. It's ludicrous how it doesn't take into account that your spouse can have just as many debts of their own as you do.

Unfortunately, the means test does not account for the amount of debt that you have. They are only interested in your disposable income. If you have extra income after paying your necessary living expenses, then they require you to file chapter 13, and make payments. After the 5 years, whatever balance is left over will be discharged, but it will allow you to keep your assets.