Bankruptcy questions

[xalos]

Before I start talking about this I just want to be clear that I am against bankruptcy in most cases but after weighing our options it seemed like the only good option.

Ok, I lost my job about 1.5 months ago. We fell behind in our bills and got some nasty medical bills due to not having health insurance ( my son has some health problems). From the lack of income from me and the costs of having to go and stay at the hospital we started to fall really behind in bills.

Last Oct/Nov we met with a lawyer and he said chapter 7 would be a good idea due to us getting ready to lose our house and recommended we move and start the process to file.

We just now got enough money to file bankruptcy because I got an $8 an hour job at Comp USA (I know, I know.. But, it was close to my new apt and I needed the money since I cant drive)

So, we made an appointment and met with the attorney this morning. He went over our budget and seemed to think Chapter 13 would be the only way we could file because we make like $2400 a month and after our cars are paid off we only have $1900 in expenses a month and that chapter 7 probably wouldnt happen. Oh, my wife also gets a bonus every period that can be around $1500 dollars. Its not money we can count on but he seemed to think it may have to be included he said he would contact a trustee to find out.

I'm afraid that chapter 13 might make things worse than they are now and I'm just curious if anyone knows where I can find on what criteria they deem you ineligible for chapter 7 or knows first hand.

Thanks in Advance

 

[wbresson]

I don't know where to start so I'll just keep my mouth shut :disgust:

 

[imported_DocHolliday]

so you went to a lawyer to ask about bankruptcy and you want an atot second opinion?

 

[xalos]

The attorney just didnt seem like he knew what to do, he said we were in a gray area. ATOT is very good at giving leads to information. Something you need when you know you have to wait a week for your next appointment.

 

[Ausm]

I went through a bankruptcy and I can tell you it is pure hell. It ten years of scratching,clawing,and going without to get my credit back on track. It also was one most demeaning things you could possibly go through if you have any sense of pride also.

Lawyers are bottom feeding bloodsucking pricks who don't give a rats ass about you personally except for the easy money they can make off your bankruptcy. I would see a financial consultant.

Ausm

 

[dullard]

Originally posted by: xalos
ATOT is very good at giving leads to information. Something you need when you know you have to wait a week for your next appointment.

I don't know details of your specific case and thus I won't give my opinion. However, there is something to think about as you wait for your next appointment.

Bankruptcy bill passed house and senate president to sign it likely this week. It will make Chapter 7 much more difficult to get. It likely will have a 6 month waiting period to take effect, but you really don't have much time to ponder the question of wheter to file or not. If you want to try for Chapter 7, you better do it in the next month or so.

 

[Vic]

I strongly recommend trying Chapter 7 if you can by any means possible. If the primary cause of your insolvency is due to medical expenses, the judge may look favorably upon your case. If this lawyer won't help you with filing Chapter 7, talk with another lawyer, but you need to hurry.

 

[JoeKing]

This site seems like a good start

 

[funboy6942]

Originally posted by: DocHolliday
so you went to a lawyer to ask about bankruptcy and you want an atot second opinion?

Sure some may of gone through it (like me) and can get it from the horses mouth.

I cant remeber the numbers for BK for sh!t but we did the one that gave us a clean slate which for us was the best option. Like you I lost my job due to being injured. I had doctor bills out the wazoo, car repo, along with other not so great stuff. Our option was if we dont do it we cant get credit or a house ever till that gets cleared up. I can no longer work so paying all that off would take a life time at what my wife makes now. We went through it about 2 years ago and now we have no credit but my wife was able to obtain a credit card through capital one unsecured and now that it has been over a year can get a home loan one my lawyer crap with workers comp gets cleared up showing we have money coming in. We were able to make our payments on my wives car almost always on time and we were able to keep it if we wanted. The lawyer said we could put it through but we had a sorta good standing with it and needed a car. So if you have one and your not to bad with it keep it. Same with the house too.

For us if we haddent done it we would be screwed. Now that we did and havent had anything negitive added on we can obtain any kind of loan we wish to have. After the bk is closed you can get almost any loan you want but a home loan (you have to wait a year). They will give you credit again because they know you can BK again for 7 years so if you go through all this and dont change your ways this is your last 2nd chance you will ever get. If have have plans of not changing your ways then may as well not do it.

I dont know why the guy above said he went thorugh hell because before doing it we went through complete hell with collectors and lawsuits pending against us and no end in sight other then doing what we did.

 

[xalos]

Thanks Dullard, so technically if I want to do a Chapter 7 and I act fast what would stop me?

I paid my retainer today and I meet with the legal assistant to have everything filed tuesday.
I don't really feel like I have any other choice than to file bankruptcy. I have probably 150k in medical bills that I couldnt get any gov't help from because my wife made too much money we probably only have 28k (19k is tied up in the repo of the modular home we had) in actual debt that we would be filing on.

Sad thing is the lawyer was very happy to get us a chapter 7 when I wasnt working, but now that I have a job he thinks chapter 13 is better. I'm sorry but 8 an hour 35 hours a week doesnt help a lot.



Thanks everyone who replied while I was typing the above response

 

[StageLeft]

Ok, I lost my job about 1.5 months ago. We fell behind in our bills and got some nasty medical bills due to not having health insurance

Last Oct/Nov we met with a lawyer and he said chapter 7 would be a good idea

You lost your job around the beginning of March, but what did that have to do with this, since you were already in trouble back in Oct/Nov?

 

[Amplifier]

Originally posted by: xalos
Before I start talking about this I just want to be clear that I am against bankruptcy in most cases but after weighing our options it seemed like the only good option.

Ok, I lost my job about 1.5 months ago. We fell behind in our bills and got some nasty medical bills due to not having health insurance ( my son has some health problems). From the lack of income from me and the costs of having to go and stay at the hospital we started to fall really behind in bills.

Last Oct/Nov we met with a lawyer and he said chapter 7 would be a good idea due to us getting ready to lose our house and recommended we move and start the process to file.

We just now got enough money to file bankruptcy because I got an $8 an hour job at Comp USA (I know, I know.. But, it was close to my new apt and I needed the money since I cant drive)

So, we made an appointment and met with the attorney this morning. He went over our budget and seemed to think Chapter 13 would be the only way we could file because we make like $2400 a month and after our cars are paid off we only have $1900 in expenses a month and that chapter 7 probably wouldnt happen. Oh, my wife also gets a bonus every period that can be around $1500 dollars. Its not money we can count on but he seemed to think it may have to be included he said he would contact a trustee to find out.

I'm afraid that chapter 13 might make things worse than they are now and I'm just curious if anyone knows where I can find on what criteria they deem you ineligible for chapter 7 or knows first hand.

Thanks in Advance

Hey Xalos,

I'm sorry that this happened. If you file chapter 13 they will put you on a restructured payment plan, you will be able to save your house though and put some control in your life. Chapter 7 will wipe out your unsecured debt but leave your house less protected.

In my humble opinion, most of the people I meet with financial problems do NOT need to file bankruptcy.

You're making $2400 a month and your expenses are $1900, so you have a positive cashflow of $500. This is really good and leaves you alot to work with. What's killing you right now is the amount of money you are behind on your mortgage and medical bills. What you can do is work out a repayment plan with the bank holding the mortgage (known as a forbearance agreement). They will take the amount of money you're behind and allow you to pay it back over 24-36 months. This will cost an extra $200 a month (depending on how much you owe) but leave your house in a stable situation.

Your car situation may be leading to an overly negative cashflow, if they are you need to take action and get your car payments reduced. Please tell me more about your care situation and I can help you out there.

I have a feeling you have some credit card debt, if so let me know how much. Credit card debt puts more people into financial trouble than any other source. You can work out repayment plans simular to a forbearance agreement however the best thing to do is pay them off any way possible. I can help guide you there if need be.

Medical bills are managable in that you can work out a repayment plan that can give your life control. Just mention bankruptcy and they be willing to work things out with you. The Hospital wants their money and will be more flexable with a repayment plan than the banks because they don't have a loan secured against real property.

So the short story here is that you need to be in contact with all of the lenders and take control of the situation. They aren't stupid, they know that they will lose a ton of money if you have to file bankruptcy. All a chapter 13 will do is make the lenders work out a repayment plan. And if it goes to chapter 13 you'll have that on your record for 7 years. It is easier to just file for chapter 13 but it would be more benificial to you to work things out directly with the lenders.

However if you decide to do that an don't follow through you will lose your house. Take a hard look at your finances, it might mean dropping a cell phone plan or cable, but you need to get your cashflow at +800 at least to gain some security.



p.s. At this point you will start to have alot of letters come to your door, and maybe a few investors will stop by and offer to buy your house. Let me know via PM if this happens and I can give you advice because alot of these people aren't ethical or know what they're doing.

 

[rahvin]

Originally posted by: xalos
Thanks Dullard, so technically if I want to do a Chapter 7 and I act fast what would stop me?

I paid my retainer today and I meet with the legal assistant to have everything filed tuesday.
I don't really feel like I have any other choice than to file bankruptcy. I have probably 150k in medical bills that I couldnt get any gov't help from because my wife made too much money we probably only have 28k (19k is tied up in the repo of the modular home we had) in actual debt that we would be filing on.

Sad thing is the lawyer was very happy to get us a chapter 7 when I wasnt working, but now that I have a job he thinks chapter 13 is better. I'm sorry but 8 an hour 35 hours a week doesnt help a lot.



Thanks everyone who replied while I was typing the above response

The simple answer is lose the job till you get through the filing if it's going to be an issue. I know that's not going to be PC around here but you need to weigh the cost/benefits of the job and decide if it's worth it to have it. After you are done you can do whatever you want.

 

[QuitBanningMe]

Seriously we really need to know the amount of debt. For most people BKs are stupid. Your lawyer is not likely to tell you that.

 

[DougK62]

Go for it. Everyone else is doing it so it must be good.

 

[Ausm]

Originally posted by: QuitBanningMe
Seriously we really need to know the amount of debt. For most people BKs are stupid. Your lawyer is not likely to tell you that.

You got that right...if I would restructured my debt I would seen the light in 5 years not ten-12 after filing chapter 7.

Anyone who condones you filing chapter 7 has obviously never gone through it.

Ausm

 

[Amplifier]

Lawyers don't tell people about the down side of bankruptcy that's for sure.

 

[Mayfriday0529]

My mom filed for bankruptcy about a month ago and her lawyer has always answer all her questions and seems like a really nice guy. She is due for a May court date.

We used to get like 20 calls a day from creditors and it has dropped to like 1 to none a day.

 

[shopbruin]

the general rule we have for those wanting to file ch. 7: monthly excess in income cannot be more than 100 dollars. any more than that, and the court may force you into chapter 13.

at the time when you first met with the attorney you were a better candidate for ch 7 with no income, but now that you have some you have an ability to pay.

if your wife gets a bonus every period it needs to be included.

in chapter 13 you need to pay back i think 25% of your debt over 5 years. if you want to file chapter 7, make sure it's within the next 6 months.

 

[Zebo]

Originally posted by: Ausm
I went through a bankruptcy and I can tell you it is pure hell. It ten years of scratching,clawing,and going without to get my credit back on track. It also was one most demeaning things you could possibly go through if you have any sense of pride also.

Lawyers are bottom feeding bloodsucking pricks who don't give a rats ass about you personally except for the easy money they can make off your bankruptcy. I would see a financial consultant.

Ausm

I was reading an article that said exact opposite. After bankruptcy you have excellent credit, primarly duer to the fact they KNOW you must pay back since you bankruptcy options are now exhausted.

Course I can't get to it now, it was a google news story linking to NYT which requires registration now and did'nt previously.

Can I get a witness?

 

[Ausm]

Originally posted by: Zebo

Originally posted by: Ausm
I went through a bankruptcy and I can tell you it is pure hell. It ten years of scratching,clawing,and going without to get my credit back on track. It also was one most demeaning things you could possibly go through if you have any sense of pride also.

Lawyers are bottom feeding bloodsucking pricks who don't give a rats ass about you personally except for the easy money they can make off your bankruptcy. I would see a financial consultant.

Ausm

I was reading an article that said exact opposite. After bankruptcy you have excellent credit, primarly duer to the fact they KNOW you must pay back since you bankruptcy options are now exhausted.

Course I can't get to it now, it was a google news story linking to NYT which requires registration now and did'nt previously.

Can I get a witness?

Excellent credit? OMG LMAO.....I wish. Nothing is more embarassing then needing a cosigner when you are 28 years old and previously owned a house.

No bank would touch my ass with a ten foot pole and if they did they would screw me royal with interest rates around 25%.

Filing Bankruptcy is an open license for creditors to fvck you at will...

Also it takes a minimum of 7 years for it to come off your credit report but mine haunted me for 12 years when I went to buy another house. I had to write a written statement why I files bankruptcy 12 years before I tryed to get that house. Talk about a pain in the ass.

Ausm

 

[StageLeft]

Originally posted by: Ausm

Originally posted by: Zebo

Originally posted by: Ausm
I went through a bankruptcy and I can tell you it is pure hell. It ten years of scratching,clawing,and going without to get my credit back on track. It also was one most demeaning things you could possibly go through if you have any sense of pride also.

Lawyers are bottom feeding bloodsucking pricks who don't give a rats ass about you personally except for the easy money they can make off your bankruptcy. I would see a financial consultant.

Ausm

I was reading an article that said exact opposite. After bankruptcy you have excellent credit, primarly duer to the fact they KNOW you must pay back since you bankruptcy options are now exhausted.

Course I can't get to it now, it was a google news story linking to NYT which requires registration now and did'nt previously.

Can I get a witness?

Excellent credit? OMG LMAO.....I wish. Nothing is more embarassing then needing a cosigner when you are 28 years old and previously owned a house.

No bank would touch my ass with a ten foot pole and if they did they would screw me royal with interest rates around 25%.

Filing Bankruptcy is an open license for creditors to fvck you at will...

Ausm

I've heard that same thing about having "good credit" but frankly I think it's an urban legend (not that I really know). I know that officially your credit gets shot when you file for bankruptcy. I suppose it's true that a lender knows you can't file again, but if you don't have money you don't have money. Even if you can't file for bankruptcy again they have no recourse to get blood from a stone, no matter how many times they keep calling you.

 

[Zebo]

Nothing embarassing about it (unless you commited fraud or were negligent)... stuff happens in life to the most prudent indivduals beyond thier control.

I'm serious about that article. Went into case detail on about three individual who bought homes and cars just couple months after chapter 7.

 

[Ausm]

Originally posted by: Skoorb

Originally posted by: Ausm

Originally posted by: Zebo

Originally posted by: Ausm
I went through a bankruptcy and I can tell you it is pure hell. It ten years of scratching,clawing,and going without to get my credit back on track. It also was one most demeaning things you could possibly go through if you have any sense of pride also.

Lawyers are bottom feeding bloodsucking pricks who don't give a rats ass about you personally except for the easy money they can make off your bankruptcy. I would see a financial consultant.

Ausm

I was reading an article that said exact opposite. After bankruptcy you have excellent credit, primarly duer to the fact they KNOW you must pay back since you bankruptcy options are now exhausted.

Course I can't get to it now, it was a google news story linking to NYT which requires registration now and did'nt previously.

Can I get a witness?

Excellent credit? OMG LMAO.....I wish. Nothing is more embarassing then needing a cosigner when you are 28 years old and previously owned a house.

No bank would touch my ass with a ten foot pole and if they did they would screw me royal with interest rates around 25%.

Filing Bankruptcy is an open license for creditors to fvck you at will...

Ausm

I've heard that same thing about having "good credit" but frankly I think it's an urban legend (not that I really know). I know that officially your credit gets shot when you file for bankruptcy. I suppose it's true that a lender knows you can't file again, but if you don't have money you don't have money. Even if you can't file for bankruptcy again they have no recourse to get blood from a stone, no matter how many times they keep calling you.

I would get 20-30 calls /day at home and usually 10-15 at work which is illegal but that did not stop them.

Ausm

 

[Ausm]

Originally posted by: Zebo
Nothing embarassing about it (unless you commited fraud or were negligent)... stuff happens in life to the most prudent indivduals beyond thier control.

I'm serious about that article. Went into case detail on about three individual who bought homes and cars just couple months after chapter 7.

Nothing embarassing about it? Maybe for you, but when you go bankrupt it is hard to shake the lowlife scumbag syndrome that usually follows it.

Ausm