Chapter 7: $81K in debt, creditors calling. Should we file ASAP or save up the attorney fee first?
My husband and I are considering filing Chapter 7 bankruptcy and I’m looking for advice from people who have been through it.
We have about $81,000 in unsecured debt total ($59,000 in my name and $22,000 in his). I recently lost a much higher-paying job, and we’ve been living paycheck to paycheck trying to stay afloat. We stopped making payments on our credit cards at the end of April because we simply couldn’t keep up anymore.
We’ve consulted with a bankruptcy attorney, and the fee is about $2,500, which seems to be the going rate in our area. The problem is coming up with that money while also paying our regular bills.
A few questions:
Since creditors have started calling, how urgent is it to file? Is it reasonable to take another month or two to save the attorney fee, or is it better to find a way to file as soon as possible?
We lease two vehicles, both in my husband’s name, and we intend to continue making those payments. Has anyone had issues getting approved for a new lease when their current lease ends after filing Chapter 7? Were the rates significantly worse?
For those who filed Chapter 7, how did it affect you in the years afterward? What were the biggest challenges with credit, housing, car loans, insurance, etc.?
Looking back, is there anything you wish you had done differently before filing?
I’m feeling so overwhelmed and trying to make the smartest decision possible for our family. Any experiences or advice would be appreciated.
Thank you.