Declaring Bankruptcy... any experiences?
 

avoiding, initiating, outcome?

It will kill your credit for a few years.

Chapter 7 or Chapter 13?

Here is what you need to do...

You need to go into more details as far as your situation. Do you have any assets the collection agencies can get too (homes, cars you own, bank account, etc..). Is your credit still good?

I use to work with a bankruptcy attorney.

Assets... just my computer stuff... my credit is still perfect except I owe too much money... now the interest is above my income...

it is a LOT harder to declare bankruptcy nowadays, and they make the penalties more harsh too, so only do it if you have to

GFED,

Some advice...

1. There is going to be some changes in the way bankruptcy wipes out your debt. Find out when the deadline is from a bankruptcy attorney.
2. When filing bankruptcy, creditors will argue that you new you were going banktrupt and went ahead and bought new things and charged up your cards, etc. I suggest that whatever you have left on your credit cards as far as credit, you use it for business purposes - if you know what I mean. That way, its justified.
3. You can take a chance and write checks to your credit card companies, wait to your credit card company posts the check to your account and free up credit. You can then go and spend more money :-). By the way.. you never had any money in your checking account to clear those checks.
4. If you have any cars for the repo man, hide them. And if the repo man tries to scare you, tell them to go fuck themselves. If the bank hires a local attorney to get it, wait until the last few days then hire an attorney. You'll be driving your car for for awhile for free.
5. If you can apply for credit, then do it. Worst case scenario you have to pay back a percentage. Think of it as a big sale on anything you buy.

Have fun!

Also, hire a good attorney who knows how to make the system work to your advantage. If you live in Los Angeles, I've got a really good one for you.

Plan B: Get a job and pay back all the money you borrowed. It's nobody's fault but your own that you're in debt. Do the responsible thing.

Thats pure class right there.

work harder for a bigger income and take care of it.

What about just consolidating your debts? This way you have one payment and a lower $ amount per month or bi-monthly or weekly...whatever you can do.

Why not just consolodate your debts and try to lower your interest?

Yeah, that's a real classy thing to do. That's fucking theft as far as I'm concerned and it's premeditated. It's because of dumbasses like you that legitimate people have to pay out the ass. If you do that then I hope you're caught and go to fucking jail. :321GFY

I get preapproved credit all the time... tried applying to consolidate my debts... and then I get denied because I owe too much money... what the fuck... :(

avoid bankruptcy at all costs, i had 5 tradelines as late now all are up to date but somehow they disappeared i dont know how :)

:1orglaugh :1orglaugh :1orglaugh :1orglaugh :1orglaugh :1orglaugh :1orglaugh

Holy cow, and you said you worked for an attorney? Did he get disbared or did you get fired. You just told someone to comit a crime. Writing a check and not having the money in the bank to cover that check is illegal. If it is over $500 it is a felony. Bad advice.

What you do need to do is contact a good bankruptcy attorney ASAP (I believe you only have a month or two left to file before the law changes in the US regarding bankruptcy) and let him sort it out while you get to work. If it were me and bankruptcy was the only way to go I'd pick one credit card I wanted to keep and pay it off so it has a zero balance. That way you do not lose it when you go through bankruptcy. All other bills that are not related to my housing I would stop paying all together. That way you have a place to live and an emergency credit card. For a few years that is all you will have. that one credit card and cash/debit card.

There are some people who will still lend you money after you file bankruptcy but expect to pay a lot higher interest rate. If mortgages are say at 6% interest with your bankruptcy on your credit report expect to pay 10%+ with probably at least a 20% down payment.

If you are stuck and it is the only way out then you have to do it. But as I said time is running out. You need to do it ASAP. Call an attorney today.

My friend's ex-husband, filed for bankruptcy after she divorced him, few days later, driving a brand new car.

Good Advice. I believe the new b/k law goes into effect 10/16. Stop using credit card 60 days prior to filing and no cash advances 90 days or you may have to pay them back. Do a search on credit board forum. Good Luck :)

I file BK petitions and attend hearings almost every day.

October 17th is the deadline. Chapter 7s will be very difficult to qualify for after that date. 90 days is the credit card trigger, but it can go back further is they suspect fraud (ie, I'm gonna buy a bunch of shit right before filing for BK). This type of fraud is dischargeable, however, in Chapter 13 - a minimum 36 month payment relationship where you pledge all your disposable income.

First, check with an attorney as laws ahve changed.

Some of the information can vary from state to state, but you do not lose your assets. That's a farce. You can declare bankruptcy, and keep your car if you are still making payments, and your house, etc.

When you declare bankruptcy, you get to go through your list, and say what's included and not. But do not think you are keeping credit cards, all your bank accounts, and so on. As soon as your bankruptcy is decharged, credit card companies, even those you had in good standing will cancel you. Same for some kinds of bank accounts. It's done for no other reason than you are now bankrupt.

You can dicharge credit cards, parking fines, and a number of things. Student loans are not covered, neither are back taxes, plus a few other things, so make sure you go over it in detail with your attorney.

Your credit will be in the toilet for 1-2 years. But you will receive all kinds of high interest offers after it's discharged. Apparently companies feel since you are now debt free, you have more disposable income. If you repair your credit by paying your bills on time, and so on, then you will be able to start buying things again in about 2 year mark. There will still be some things you are shut out of til about the 5 year mark. You will have to buy cars either cash, or from those high interest, no questions asked places. Things of that nature, but if you take the opportunity to get rid of old debt, then repair everything by paying on time for a few years, then you will be in the clear with most institutions. Not nessesarily banks. Also, depending on your state, insurance companies will hold the bankruptcy against you as well in your premiums.

Good luck.

:pimp

I know (stopped associating with immediately after) some people that abuse that option. It is another thing that is ruining our society as it is removing liability &/or accountability.


Used to get out of:
- paying child support
- honouring previous arrangements (bought a ton of shit on the CC)

I believe a person should not be able to declare bankruptcy, unless they truly are.
They should not be able to:
- own a house (should be forced to reside in gov.housing or co-ops etc)
- any thing the person negates on MUST be removed (no toys)!
- all investments should be forfeit

MHO, or maybe I am taking he word too literal.

I filed for bankruptcy about ten years ago. Everything you've heard about bankruptcy is bullshit. Yeah, it stays on your record for seven years. So what.

In 1994 I had gotten to the point where I was physically paying more in monthly bills than I was making every month. I had to live off of my credit card to eat, which meant my credit card bills were going up every month. I went through the bankruptcy process, which was quick and painless.

After you go through the bankruptcy you have good credit other than the bankruptcy itself on your record. Think about it - you suddenly have no debts, and you can't file for bankruptcy again for the next seven years. You'll be instantly flooded with credit card applications.

I filed Chapter 7 back in the mid 80's. I had an AMX card with my husband as a secondary holder. We got divorced and I was too stupid to cancel the card and he changed the billing address to his. I didn't know this for a few years until I started getting my wages garnished. They had "served" me at his address so of course I didn't show up in court and they won a default judgement.

It was WELL past what I could ever afford to pay off so I filed Chapter 7. Chapter 7's are on your record for 10 years and every app. you fill out asks if you have EVER filed BR. Even when I bought my last house - 15 years later - they asked me about it.

If there's any way possible to pay what you owe, do it. BR is to be used in an emergency only, IMHO

My girlfriend filed chp 7 recently (debt she racked up with the help of her ex before we met). It was quick and easy. She paid $650 total for a lawyer and the fees. She was worried about her good credit, but what the fuck is good credit if you are in over your head? Good credit is not feeding you. She is debt free, no more phone calls or letters from creditors, no more stress. Do it now before the new laws. Search google for credit boards or credit forum. Good luck.

Yah .. great idea: go out, acquire as much debt as possible, and negate on the contract.

What is the name of that guy who hired a designer and refused payment?

It's okay, mommy, daddy or Uncle will save your ass.

ask brad shaw. hes done it way back.

I have a lawyer friend who specialized in bankruptcy in Michigan. She told me that the new laws kick in in October. The entire bankruptcy law industry is going through something similar to what the adult industry is going through on 2257. She said - and I am NOT quoting her - the new bankruptcy laws were written specifically to protect banks and are VERY bad for the petitioning lawyers, the citizens, and even the automotive financing companies (GMAC, Ford Motor Credit, etc). She said that if you are going to file, file now while the filing is still good.

They are in Chicago right now having their big convention about what to do with these new laws.

I am all for holding people responsible for their actions. I am accountable for my actions and believe everyone should be as well.

Society, the government and business should not have to suffer because some dumbass made too many impulsive decisions!

Think first!

Yes holding someone accountable for their actions is one school of thought. However, many things happen. One of the most common causes is pure corporate greed.

A bank borrows money at under 2% interest. They resell you that money at 5% on mortgages, and more for other less secured loans.

One day you're running a balance at 9% interest on your credit cards. That's not bad. Then the bank jacks up the interest rate to 23.99% and there's nothing you can do about it. The bank says you don't have to pay the 24% interest, just pay off the loan by the end of the month. Obviously, Joe Average can't do that. So suddenly he begins his long journey to the bottom of the hole.

Also, crazy medical bills come due (due to the lawyers suing doctors), people have accidents, your car gets wrecked so you can't get to work, the economy forces your company to downsize, the government passes legislation that causes you to lose your job, etc. The tax level in America is unbearable to begin with. Suddenly something unexpected comes up and you have a problem.

As soon as your creditors detect a problem, they jack up your rates intending to throw you into the biggest hole possible. It's not intended to help get you back on track and get them money long term, it's designed to help them claim the biggest writeoff and chargeoff they can and to screw you as much as they can.

And they won, beginning in October.

I filed Chapter 13(Tax debt, forgot to file a bunch of years when I was young) 9 yrs ago, paid it off ,its not on my credit report anymore, bought a house and my score is currently in the low 700's

You hit the nail right on the head. Well said.

I filed Chapter 7 with my demolition company/personal a few years ago.
I went down for just over 800K total.

if you do not have significant debt and you just want to lower your monthly outlay and you have no real assets , then I would suggest you consildate and or try to negotiate different terms of payback with your creditors.

if you have significant debt and are trying to keep some assets, or have NO foreseeable way to pay for these debts and feel you will have the ability to have some real assets in some time in the near future. then I would suggest you take the Bankruptcy route

as was mentioned before though, it is really quite painless and not hard to re establish your credit , everything in life is a negotiation process.

I am not from the states so this question might be stupid ..

How does a bankruptcy lawyer get paid ?

HAHA good question,

The answear is they get paid upfront prior to doing your filing.
Otherwise they would be a creditor and able to be discharged as a debt as well.

I would say the only thing you can probably keep and pay is your car and car payment. If you think you can still keep a card open even if you had paid it on time or owe no money on it you are wrong. They credit card company will cancel the card. Why fuck yourself and lose out on spending that money. Your going bankrupt. Go shopping man. Buy all the shit you always wanted. Debt consolidation? are you fucking crazy. Read the fine lines in debt consolidation.

I guarantee you'll get offers in the mail for approval for car loans, credit cards, quick cash advances within a month of going bankrupt.

It is way beyond a different 'school of thought':

Back in the 90?s, I borrowed $80+ grand to buy a car. I had two jobs, and both places went belly-up.
I left dreamland, sold EVERYTHING I had in order to get what I owed as low as possible; moved to a place with a good economy was good, walked to work for years and all is cherry now.

Corp greed *HAH* Whatever TF th@ is supposed to mean. Therefore, people go chp.7 because of Wal-Mart.

Credit cards are the last resort only[!] and everyone knows you only maintain a balance if you REALLY REALLY MUST! Not because someone thinks they need a new monitor or PC (unless it is no longer usable), iPod etc. (I laugh at idiots that look for deals, then buy the item on their CC, and carry a balance. Th@ is pure basket case balancing skills.)


It usually goes like this: people hire lawyers to sue doctors.

a). insurance?
b). walk, take the bus, hitch , skate etc. Just because the vehicle is gone is not an excuse.
Many countries, people walk 25 or so MILES to get to work, then walk 25 or so MILES back. When my folks moved to Canada, they walked fucking KMs upon KMs and I would not see them for days. I can't imagine what woudl have happened if they simply gave-up & stayed home because they did not have a car.

The US has one of the best tax levels. Average Canadian at he end of the day pay 53%, and I believe the US is @ 20-something!

Yes, emergencies, are exactly what credit cards are for, and nothing else. Not wants ? NEEDS!

I would not know; I have done what ever it takes (as listed above) to keep the fucks away.

:1orglaugh EX :1orglaugh FUCKIN :1orglaugh ACTLY

The person is supposedly BANKRUPT ... no bank (all GFY'ers know bank = $)

Wow... that was so cruel of your ex

Do you ever run into problems obtaining loans or anything like that? Is it actually gone from your record now?

Have you tried contacting your creditors individually and telling them about the situation? Sometimes they'll cut you a deal. Think about it, they would rather get 50% of what you owe instead of 0% after you file bankruptcy.

This is none of my business but I am curious... how did you get so far in debt yet have NO assets?

Wow, quite a few that are very rich now have been through backruptcy. What's your story Rochard? I think I remember you posting saying that your pretty successful now. What changes did you make in your life?

Declare bankruptsy.... How the fuck does an adult webmaster do that? FUck...

That's definitely true for Chapter 7s. Attorneys actually advise clients to stop paying certain bills to come up with the scratch to file. As for 13s, it's a more complicated relationship. Typically, the client has to pay half before filing. The other half is billed through the plan + additional fees incurred to maintain the plan through the years (buying cars, new jobs, etc). The client cannot get a discharge at the end of the plan without paying the attorney's bill. So, the client either pays up in the end or gets his case dismissed.

Attorneys can make good money with a healthy 13 case load - think of a 3 to 5 year mandatory rebilling relationship. The reformations is going to make it even better.

Its easy for someone at $80k-100k taxable income to pay 25-40% in taxes

IMHO play the banks as hard as you can.

they charge 20% interest and ridiculous penalties, and you in turn have the godgiven right to fuck them out of their unsecured loans.

watch your ass on the new GOP bankruptcy legislation which in essence is just a stopgap measure to help the banks not go ass up when the whole real estate/credit bubble pops. Banks sent people credit cards on the basis that the debt was unsecured and bankruptcy was an option, and people paid interest rates to reflect that. moving the goalposts at a federal level now is bullshit imho.

there is nothing dishonourable about fucking banks out of high interest unsecured debt. do not sacrifice years and years of your life working 2 jobs and living in poverty if its for some sort of bullshit "honour". play the fuckin game.

Exactly!

I always borrow money (no matter what the rate) and then fuck the lender. Who gives a shit. It is their problem that they are lending the money and asking for interest. Sometimes, if you are a risky borrower, they ask for a higher interest rate and that is sooooo unfair! When they do this . . . just take them for all you can!!! It is the honorable thing to do!

Hey Toasted . . . I need 10k and I promise to pay you back with interest. Give it to me! Give it to me now!

HEY TOASTED - I said . . . GIVE ME 10K YOU FAT GREASY BASTARD!

GIVE IT TO ME NOW!

Don?t worry . . . I promise to pay you back . . . with interest.

I accept paypal.