MasConcepts Incorporated

I wanted to share my experience because I was stresssssssssing about filing for Chapter 7.

I had always been the type to use my cards and pay them off in full each month, but then one thing after another happened, causing me to carry a balance, and then more happened, and then I lost my second source of income. Before I knew it, I was 60k in credit card debt in a little less than 2 years, trapped in a vicious cycle of paying just above the minimums, then having to use the cards again to cover my living expenses until I could no longer cover everything due to interest. I looked into debt relief programs and started researching, which led me to Reddit and this sub, and down the road of Chapter 7. I was so worried about the word ‘bankruptcy’ and the stigma, but I decided it works best for me, so I can get a fresh start, but… There seemed to be a huge obstacle in my way. I received a one-time payout of my PTO balance because my employer overhauled everything effective1/1, and that payout pushed me 5k-ish over the median for my area. I met with one attorney who handled bankruptcy and real estate transactions, and he said I’d have to wait until July to file because of the payout. I got the feeling he didn’t have much bankruptcy experience, so I met with two other attorneys, and both insisted that there’s a way to explain away the payout. They were both the same cost (2500), but I ultimately went with the one with more experience, mainly because he was closer to home, insists on doing the 341 meetings at his office, and seemed way more comfortable with the thought of dealing with the US Trustee if it got pulled for an audit. Well… After about 2 months of gathering documentation and the payment (2500) and waiting for the 341, I can confidently say the process was sooooo not as scary as I had made it out to be! Had my 341 last week (as of then no audit!) I was called first by the trustee, which made me freak out internally, but he just asked me if the debts were mine and whether they were all accounted for, whether I cut up my cards, if I had any other sources of income, if I was ever married, if I got alimony (which sort of made me wonder if he was trying to trick me because I already said I was never married), whether I owned property over a certain period, if I own property in a trust or am a beneficiary of a trust, and whether I’ve loaned money, am owed money, or owe another person money, and if I have any pending claims/cases that I could benefit financially pending… Then he said, ‘Hey, have a great weekend,’ and asked us to disconnect! I was shocked because my attorney prepped me to answer about the PTO payout and there was nothing! So hopefully in less than 60 days, I’ll have my clean slate!!!!!!

I want to add to my ramblings that my area, or at least my trustee, seems to work on a less is more system if you only receive a salary. I only had to provide a copy of my license, SS card, and paystubs for 2 months prior to filing – no taxes, no bank statements, nothing more. I did provide my attorney a copy of my 2024 taxes when we initially met, but he said he didn’t need to pass it along and said the trustees typically only wants more when someone works shifts and can have OT or more fluctuation in pay and always for people who are contract workers for places like Uber and Doordash.

Also, I want to add… I threw my PTO payout at my debt before considering filing, and it didn’t make a dent. My attorney let me know that if I had held onto it and came to him, he would have let me know it could be exempted with the rest of my stuff, so I am kicking myself because I could have 7k right now!!!!