Avatar
Please consider registering
guest
sp_LogInOut Log In sp_Registration Register
Register | Lost password?
Advanced Search
Forum Scope


Match



Forum Options



Minimum search word length is 3 characters - maximum search word length is 84 characters
sp_TopicIcon
Bankruptcy - Anyone?
August 6, 2007
10:21 am
Avatar
lettingo
New Member
Members
Forum Posts: -1
Member Since:
September 30, 2010
sp_UserOfflineSmall Offline

I would like to get some feedback on anyone who has gone through a bankruptcy and what it is like afterwards. I am trying to decide if I should take this route. Actually, I may have to. My ex ran up my credit cards, I had to pay around $4000 for his medical crap that he left me with, and also pretty much drained my bank account, left me with the mortgage, car payments, etc., etc. Initially I was working two jobs and I had gotten a roommate and I was surviving. But now, my roommate left and my second job ended. It was a six month assignment. I can probably replace the roommate but the job is harder. I already work full-time so I need something in the evening or weekends. I have been reluctantly considering just filing because I don't know if I can work a second job again. I was always exhausted after a 58 hour work week. I think another big part of it is I hate to admit Defeat! I also know it stays on your record "but" it could be what I need to have some peace of mind. My finances have been a non-stop all consuming thing. Trying to find another roommate and another job is draining me. I hate being in this situation and take some responsibility but my ex who is now in jail has never paid me a dime. What sucks is before the nightmare, I have always had excellent credit and never missed a payment on anything. I still have not missed a payment but that time is coming. Any advice? Any experience in this? Thanks!

August 6, 2007
10:29 am
Avatar
slowbutter
New Member
Members
Forum Posts: -1
Member Since:
September 30, 2010
sp_UserOfflineSmall Offline

just take it one day at a a time I know that sounds like a feathery answer but maybe the lesson will reveal itself not in your perfection but your downfall.

August 6, 2007
10:40 am
Avatar
StronginHim77
Member
Members
Forum Posts: 453
Member Since:
September 30, 2010
sp_UserOfflineSmall Offline

lettingo -

My late husband and I filed for bankruptcy back in the early nineties. It is very important that you PLAN the bankruptcy carefully. I know that sounds odd, but it is possible to emerge from a bankruptcy with both credit cards AND your house, depending upon the State in which you live. (The bankruptcy laws for each State vary.)

We filed under Chapter 7 (Florida Statutes) which -- basically -- discharges every debt. We chose to "reaffirm" two of our credit cards and our car payment. "Reaffirming" means that you do not request a discharge of that debt. You continue to pay on it. Also, in this State, we were allowed to keep our house and any car older than 6 or 7 years (I can't remember which). My own car was very new, so we got rid of that.

You will need a good attorney. Do not try to file this yourself. Once you file bankruptcy, you immediately stop making ANY payments to any creditor and all contact must be made directly with your attorney. If your creditors continue to send your letters or call you AFTER you have filed, they are breaking the law and get in big trouble. Be sure to set aside sufficient cash to pay the attorney up front. If you haven't done so, do that now. But...(and this is a HUGE "but")...don't borrow that money by taking a cash advance off a credit card. That would constitute fraud, since you are planning to file BK and have no intention of repaying the advance. They won't allow that.

Bankruptcy was a tremendous relief for us. We were not "late" on ANY of our payments when we filed, but we no longer had the terrible pressure of trying to keep up with it. I also had a large hospital bill for an emergency surgery. All of that got discharged in the bankruptcy. It only took about 45 days from the date of initial filing.

Keep a copy of all of your most recent credit card and medical billing statements for the lawyer. You will also have to destroy all your credit card (except the ones you reaffirm) in his presence, so you will have to take those into his office with you, as well.

Life after bankruptcy: It was WONDERFUL. We wished we had filed sooner! No more pressure. No more tension. No more sleepless nights, wondering what we were going to do. We were allowed to keep his car, two credit card (with which we began rebuilding our credit), even my wedding rings and his fancy stereo. Your lawyer is helpful in accomplishing this for you. Within 6 months, we had bought a new car for me (at a slightly higher interest rate - a small price to pay!!) and went on to buy a home a couple of years later. Again, we paid a slightly higher interest rate because of the bankruptcy, but we refinanced two years after that which brought our rate back down, as our credit improved.

A bankruptcy will remain on your credit report for 10 years in this country. It never stopped us from rebuilding our lives. Also, companies will give you credit after a bankruptcy because you are not allowed by law to refile another bankruptcy for ten years which guarantees the safety of your debt with a potential lender, weird as that may sound!

Go to a local bookstore and check out the many books, written on how to plan a bankruptcy. Plan it and do it. There is no shame in a bankruptcy and GREAT relief.

- Ma Strong

August 6, 2007
10:47 am
Avatar
lettingo
New Member
Members
Forum Posts: -1
Member Since:
September 30, 2010
sp_UserOfflineSmall Offline

Ma,
Thanks. I only need relief from my credit cards. I used them to pay off his medical bills and I just got a 7.99 on one of them which I used to pay off my car which was at 14% Not sure if they will look at that as a problem. BUT anyway, I intend on continuing with my house payments. Thanks again for your input. I am going to go to an attorney that a friend used.

August 6, 2007
10:56 am
Avatar
risingfromtheashes
st regis falls, ny
Member
Members
Forum Posts: 14
Member Since:
September 24, 2010
sp_UserOfflineSmall Offline

lettingo -

the bankruptcy laws have changed since I did mine.

For starters, it costs more.

second, you must go thru consumer credit counseling BEFORE you file for bankruptcy - this is to ensure the bankruptcy is your ONLY option. Consumer credit counseling is fair and will tell you if they think you can be helped or not - if they can't help you - they send you a letter recommending your only choice is to file for bankruptcy.

Consumer credit counseling takes all your bills into consideration - gets info on all your debt - figures out which ones can be reduced (lowered with finance charges, etc)...and then tells you how much it would cost you each month to pay down your debt.

If your total costs exceeds your income - they recommend bankruptcy.

In my case, they could only reduce my minimum payments by $50.00 per month and I was WAY over my budget each month....so I had no choice.

Aftermath?

In two years I was able to get a car loan with a cosigner. I had a good rate. Two years after that, I was able to get a car loan without a cosigner and at the regular loan rate. So, no pain there.

Within months, I had credit cards offering me new cards - some had high fees - I tore them up - others had decent fees but low limits - I opened two of them. In time, my credit limit was increased and I had rebuilt my credit.

In two - three years - you are eligible for home loans - as long as good credit is re-established and you have a steady job and you meet all the other normal requirements.

Yes, it stays on your record for ten years.

Yes, some loans and credit cards are harder to get because of the bankruptcy - some have strict rules and won't give you a card until this is off your record.

Yes, an employer or prospective employer may see this...if you are interviewing - they MUST get your consent before running a credit check - that is your time to explain AHEAD of time that you have this on your record and explain the circumstances. Not all companies will hold this against you - some will.

Same with landlords - some will care, some won't.

If you have a car or home - or any other credit - you may OPT to keep it open by renegotiating - meaning you don't claim it on the bankruptcy - you continue to pay it as agreed upon.

I hope this helps.

August 6, 2007
11:06 am
Avatar
lettingo
New Member
Members
Forum Posts: -1
Member Since:
September 30, 2010
sp_UserOfflineSmall Offline

Rising,
Thanks for the info. I have no doubt I would qualify for bankrucpy. I do not make enough money on my one salary to pay off all my bills. The ONLY way I was able to get by until now was with a roommate and a second job. I lost both around the same time which has really put me in a bad situation. I am deligently looking for another roommate and a second job but this may not happen and I just can't depend on it. I am going to meet with someone to at least discuss this as an option. I just need to like MA said not see it as a something to feel shame about. I have always been self-suffient. Paid for everything including college (I have a Masters' degree). This is just a hard one to swallow! Maybe it's a pride thing?

August 6, 2007
12:05 pm
Avatar
risingfromtheashes
st regis falls, ny
Member
Members
Forum Posts: 14
Member Since:
September 24, 2010
sp_UserOfflineSmall Offline

It could very well be a pride thing.

my best friend declared a year ago.

she struggled with the idea of doing it.

same reasons - pride.

her debt was not hers - when she married her husband, her husband and mother in law had a business together - thus joint accounts.

the mother in law used the credit for her own personal use - driving up many of the balances.

she had been diligent about paying minimums on time - but announced last year that she could no longer - and wouldn't - and therefore was asking them to declare bankruptcy with her.

since things were joint - he had no choice - she was only a cosigner in most cases.

they couldn't afford the debt.

their credit was almost spotless...yes, they struggle - but declaring wasn't going to gain them anything - except to rid them of one credit card debt of $10K , which they had no problem paying....many of their debts were medical related, but had been paid down so low that it didn't matter - had they declared years earlier - yeah, would have helped them get rid of medical debt from sons being hospitalized with mental illness.

but they paid it off.

anyway, so yeah, now they have lousy credit again and starting over.

it's one of those hard lessons to learn - don't have someone share your credit if you aren't confident they will pay their share....many times, a person declaring is declaring because of debt incurred by something out of their control (like sudden medical bills), natural disaster, or someone else incurring debt in their name and not paying it back.

chalk it up as a learning experience and try not to feel shame.

August 6, 2007
12:20 pm
Avatar
lettingo
New Member
Members
Forum Posts: -1
Member Since:
September 30, 2010
sp_UserOfflineSmall Offline

Rising,
I know they say never say never but I can say that in this case I will NEVER let someone share my credit the way I did in the past. I think another part of the struggle is I feel like I did something wrong and I should pay the piper. I feel like I should have know better but then again why should have even suspected that my HUSBAND would abuse my finances the way he did. I would never think of buy something on a credit card just to pawn it. This will definetly take some research and soul searching. I have an appointment with and attorney tomorrow.

August 6, 2007
12:34 pm
Avatar
risingfromtheashes
st regis falls, ny
Member
Members
Forum Posts: 14
Member Since:
September 24, 2010
sp_UserOfflineSmall Offline

I think this is a case where you just need to be more aware.

I certainly have learned alot in my lifetime, but also alot hearing stories of other women's struggles here and elsewhere.

I will go into my future with my eyes wide open.

I am living with a partner - in a home he owns. We have a joint account - I required both names to be on every check - so we may not use the money without another's consent. I will not put any more money in it than I am comfortable with - making sure MY financial needs are met. In the past, I could easily see myself giving over half my paycheck...I won't now.

Lesson learned - that's all.

These days, it's easy to keep an eye on your credit - many companies offer programs to keep an eye on it and know month to month your activity - I advise anyone that shares credit with anyone - to have this kind of setup -so there is no funny business.

whether it's your mother or your husband or your kids - you never know when the other is going to default - happens for many reasons - never take one more than you can afford to pay yourself...it's hard - but it's a hard lesson to learn if something happens.

August 6, 2007
1:52 pm
Avatar
glittered when he walked
New Member
Members
Forum Posts: -1
Member Since:
September 27, 2010
sp_UserOfflineSmall Offline

ask around of people who you know "know of a good bankruptcy attorney?"

typically the first visit is free (they need business) and they'll make a recommendation for you.

ask an attorney.

Don't know your circumstances, but Chapter 7 may be your ticket.
http://www.uscourts.gov/bankru.....pter7.html
A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets.

Chapter 13 is another option.A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." (1) If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years.

Forum Timezone: UTC -8
Most Users Ever Online: 349
Currently Online:
39
Guest(s)
Currently Browsing this Page:
1 Guest(s)
Top Posters:
onedaythiswillpass: 1134
zarathustra: 562
StronginHim77: 453
free: 433
2013ways: 431
curious64: 408
Member Stats:
Guest Posters: 49
Members: 110958
Moderators: 5
Admins: 3
Forum Stats:
Groups: 8
Forums: 74
Topics: 38560
Posts: 714251
Newest Members:
SeaG1ant, shawncanwe, lianot, dagaf, duminy, emmanathan
Moderators: arochaIB: 1, devadmin: 9, Tincho: 0, Donn Gruta: 0, Germain Palacios: 0
Administrators: admin: 21, ShiningLight: 572, emily430: 29

Copyright © 2020 MH Sub I, LLC. All rights reserved.
Terms of Use | Privacy Policy | Cookie Policy | Health Disclaimer | Do Not Sell My Personal Information