I helped my daughter get out of debt using my credit cards but now it is too much for me to handle so I decided to look into Chapter 13. I paid a lawyer and now he is telling me that it\’s too soon to file and the debt is so high the creditors will show up and want their money. I\’m very worried about what to do. I can\’t make the payments but I don\’t want to get into trouble. Any help would be appreciated…what should I do?
The lawyer is cautioning you because if you incur a large amoutn of debt and then very soon thereafter file for bankruptcy someone is going to ask the obvious question, “did you know you were going to file when you borrowed the money?” The more time that has passed since you incurred the debt the less likely that question is to be asked.
There are options other than bankruptcy (Chapters 7 or 13). Have you tried to consolidate your debt? Have you lookied into credit counseling? Both of these options will reduce your payments and interest costs and keep you out of bankruptcy. Your lawyer may be able to refer to someone for either/both of these services.