[bryden1401]

Ok so I have finally decided I cannot handle the stress any more and am going to file for bankruptcy we are severely in debt and our score is very very low, has anyone filed for it and which chapter was it OK and did it make your life better or worse. I know it's a personal chioe but at this point in my life I don't have much choice. I'm still young and can recover from it, we are a family of 5 on one income. I just feel as if I have no other choice. Just a little nervous it's a total life changing thing but can tell you one thing when it's all said and done I will never have another credit card unless it has a very very small credit line on it. Oh and if you file when you do you taxes and get a return can they take it until the bankruptcy is paid off don't know that?Thanks

[txhutch07]

I would suggest you consult an attorney. There are a lot of questions you need answers to and I could give some of them you but it's a lot of information.

Ask a lot of questions. If you are considering a chapter 7 please know that if you reaffirm on any debt an agreement has to be signed by all parties, this includes you, your attorney and the creditor and filed with the court prior to discharge. If you have a secured creditor (home or car) that you owe payments on and intend to keep them you must continue to make payments on them. If not the creditors can file a motion in the court to take the property from you. If you have any judgments, advise your attorney. You must disclose all creditors that you owe to. Any person that you have co-signed a loan with must be notified of your decision to file. As far as the taxes, the trustee will decide what happens to the funds.

Chapter 13 you will pay a trustee month on a payment plan.

Again there is a lot of information. Get a free consult with a good attorney. Ask a lot of questions. The laws of changed and I wish everyone who filed took the time to know the information and ask a lot of questions.

[Lndsbgrd]

Hey I feel for you - we are going through the same thing and we just got a lawyer. It all depends on how much your home and other assets are worth and what your income has been six month prior to present. My husband is looking more to go 13 but that's a repayment to the courts where 7 is pay back nothing. I wish you well and I would suggest you get a lawyer.

[humble48]

I am no expert by any means, but a lawyer is needed as soon as possible. You need to know your rights and what is expected. If you have friends that have friends that are lawyers or anything of that nature, you are best off.

Find consultation that will help you both recover and move on. I'm sorry that it did not work, but in the end, you're both looking to move and get back on track. At this stage, consultation is the best course of action in my option.


Remember - My advice is that what is. The decisions are your own.

[Jason8676]

Hello,
I filed a Chp.7 back in 2003 due to the debt load and stress. I started getting threats of wage garnishments and lawsuits. On top of that, my telephone was ringing constantly from bill collectors. I just wanted to be left alone. I knew I was in over my head but I was not man enough to work something out with my creditors. The filing may have erased my obligation to pay, but the repercussions are still being felt. I can say that I learned an invaluable lesson about money but to this day I am afraid to apply for credit anywhere. The credit I do have is being handled meticulously and I stay on top of my crdeit reports. Don't blindly assume that the filing will wipe the slate clean on your reports. The creditors and credit bureaus don't care about the accuracy of your information. I only viewed my credit reports for the first time back in the Summer and I was so furious about the erroneous info that I was seeing red. The filing will remain on your reports for 10 years and the effects trickle down from your creditworthiness to the ability to get insurance, get an apartment, even obtaining employment. Consult an attorney but be advised-bankruptcy is a gut-wrenching and life-altering decision. The clean slate may look appealing but the scar remains for 10 years, maybe longer if somebody really wanted to dig into your past. Hope this helps! Good luck in whatever decision you come to.

[Fr_Chuck]

First this is not a real life changing thing, it merely stops your creditors from sueing you and calling you. And I doubt it does much more than having 15 bad debts showing up, either way you have no credit and ability to buy things on credit. And actually if you have several judgements, a bankruptcy could actually slightly improve your credit.

[s_cianci]

A bankruptcy protects you from your creditors litigating against you for any unsecured debts. You'll need to reaffirm your secured debts if you wish to keep the collateral securing them (e.g. your house if you're paying a mortgage, any cars that you're currently paying off, etc.) That being the case, your tax return is free from interception and your real property is free from any liens (other than loans for which the property is collateral.) It will be difficult for you to get credit for a while and when you do you'll pay extraordinary interest rates. I agree with your decision to avoid credit cards at all. With time and paying your remaining bills on time your credit will improve and you'll be able to qualify for more competitive rates.

[George_1950]

This close to the end of the year, if you are anticipating a large tax refund, I would wait until I have received the refund before filing. It is much easier to get the money and use it, properly, than have a trustee claim if and tie it up for months. You need to be careful where you use the money; payments made to creditors within 90 days of the filing can be recovered by the Trustee, thereby doing you no benefit. Spend any refunds on necessities. You need to review the subject of "exempt property" with your attorney.