Anyone here ever file for bankruptcy?

[lickin_starfish 1,649]

I was just notified by my employer that I have to take a $200/week pay cut. There is no way I can make up that much money to pay my bills, so I am thinking of filing for bankruptcy. I already have a house and vehicle, so I can't foresee needing a loan within the next 7 years. What are the pitfalls of bankruptcy? Will it affect my childrens credit when they are older?

[titans&bucs&bearsohmy! 2,745]

I was just notified by my employer that I have to take a $200/week pay cut. There is no way I can make up that much money to pay my bills, so I am thinking of filing for bankruptcy. I already have a house and vehicle, so I can't foresee needing a loan within the next 7 years. What are the pitfalls of bankruptcy? Will it affect my childrens credit when they are older?

 

I've never filed, but I used to do creditor legal work, so I know a bit.

 

First of all, I assume you are talking a ch. 13.

 

This will put a stain on your credit, which will remain there for 10 years. Basically, it takes your wages, and comes up with a plan to pay your creditors (the ones that file a claim anyway) over a period of years (less than five.) When the plan is up, your remaining debts are discharged.

 

I can't think of any reason why it would affect your children's credit at all. Yours, yes, theirs, no.

 

Anyway, go make appointments with several bankruptcy lawyers. Shop around, see if you can get a deal. If you know any lawyers, ask around for a referral. The key to bankruptcy, particularly ch 13, is to fill out the petition accurately, and include ALL creditors. Get all your bills together and organized, go ahead and collect addresses and whatnot for your creditors, and get your ducks in a row. And if you are going to file, you may as well stop paying on your unsecured debt, like credit cards.

 

You should also know that certain debts (student loans being chief among them) are not dischargable in bankruptcy.

 

Also, concerning your house and car, you usually have several options. You can either reaffirm the contract, and keep paying as you are now, or repudiate the contract and relinquish the collateral, or, in some cases, you can do what is called a cramdown, in which you basically make a lesser offer, at lower interest, etc., although I think that is rare.

 

Anyway, concerning the car, you need to make sure it will last you a while, as you will not be able to get a loan on good terms for a while. If your car is old, or damaged, you may want to consider buying a new one before you file (although I cannot of course advise you to run up debt prior to filing, that would be unethical).

 

Anyway, the key is to get a good lawyer. Cheaper is not always better. You want one who will actually talk to you and return your calls. You may talk to someone at the local ch 13 trustees office, or the court clerk, and ask for a referral.

 

Good luck to you, hope it goes well.

[crackattack 517]

Can you find a part time job? I would try that first.

[mayhem39 3]

Ask congress for a bailout. That seems to work for the big shots.

[Giants Fan 85]

Well, when I did it ... like 4 years ago, the laws were different. I didn't own a house ... but I did keep my rent up to date. The attorney was expensive but I even got out of a $25k student loan that I never paid on .. and a ton of credit card debt. Kept my Jeep .... was worth less than $5k by KBB. I had no other option. That's when you go BK .... when it's no longer possible to pay your bills.

[phillybear 365]

I did it just after 9/11, so it's been 7 years. I still don't have any credit cards to this day.

 

My cunt of an ex-fiance screwed me financially. I've won't bother going over the details again, as I've posted them before. I was a bookie, and she made a cash grab.

 

I got rid of about 40 grand in credit card bills, a 10 grand loan on a motorcycle, and another grand or so on utilities. I still had to pay the IRS 500 bucks and owed 4 grand on student loans. Other than that, 500 bucks to the attorney, and it was over with. But it was easy for me. Renting an apartment, didn't own a car at that time, and all I had to do was show that my bills were higher than my income.

 

I suppose I'll get a credit card again in the near future, just to re-etablish myself. But there is really no point. Checks and cash. Nothing simpler in the world.

[Brad GLuckman 519]

Is there any way you can eliminate some of your monthly debt?

 

The easiest one would be the car payment...any way you could sell your car and buy a junker?

[FeelingMN 273]

If I were you, I'd try to settle all of your accounts before filing. Choose an account or two and quit paying on it. This will help you save, and it will alert your creditors something is wrong. Then explain to them your situation, and tell them you're considering bankruptcy. Initiate a settlement amount of about 50%. You'll go back and forth before settling on a figure, but if they do agree everyone involved makes the best out of a bad situation. The creditor gets $$$$ they otherwise wouldn't have gotten from you, and you unload some debt more cheaply and preserve your credit rating.

 

This only works with like CC companies, so if you have other debts you might want to pursue other options. If you elect to go this route, make sure you get everything in writing, and send all correspondence via registered mail. This way if they try to collect on the remaining balance a few years down the road, you can show them they had already agreed to settle the account.

 

Good luck man, and keep your head up!

[NorthernVike 2,082]

Get a hair cut and get a real job.

 

 

[heavy-set 39]

bk is a last resort.

 

work pt time

sell the home

get a better job

[wil_d_thril 0]

Get a hair cut and get a real job.

 

[jets24 6]

Well, when I did it ... like 4 years ago, the laws were different. I didn't own a house ... but I did keep my rent up to date. The attorney was expensive but I even got out of a $25k student loan that I never paid on .. and a ton of credit card debt. Kept my Jeep .... was worth less than $5k by KBB. I had no other option. That's when you go BK .... when it's no longer possible to pay your bills.

 

Great. We all pay for dooshes like GFIAFP. Skips out on a $25K student loan that he never paid on and then becomes a pedophile teacher. America really sux sometimes.

[swirvenirvin 25]

Well, when I did it ... like 4 years ago, the laws were different. I didn't own a house ... but I did keep my rent up to date. The attorney was expensive but I even got out of a $25k student loan that I never paid on .. and a ton of credit card debt. Kept my Jeep .... was worth less than $5k by KBB. I had no other option. That's when you go BK .... when it's no longer possible to pay your bills.

Loser

[shotsup 832]

any way you could sell your car and become a junkie?

 

thats just not good advice.

[IGotWorms 3,782]

Get a hair cut and get a real job.

 

My advice to you is to do what your parents did: GET A JOB, SIR!

[kutulu 1,594]

Get a hair cut and get a real job.

 

 

I heard a commerical for George last night...he's playing at Foxwoods soon.

 

Saw him wayyyy back in 8th grade.

[edjr 6,070]

200 less a week would cause you to not be able to pay your bills?

 

way to be the typical american and live way beyond your means.

[pimptastic69 0]

I filed Chapt. 13 a year and a half ago. Not a pleasant experience. Kind of like getting repeatedly assraped by a financial corncobb.

 

However at the time, the choice was filing BR or becoming homeless with 2 kids.

 

At least it allowed me to keep my house.

[Giants Fan 85]

Great. We all pay for dooshes like GFIAFP. Skips out on a $25K student loan that he never paid on and then becomes a pedophile teacher. America really sux sometimes.

 

I hope you are joking. If not ..... you are a focking idiot.

 

Yes, it's true, I have been on food stamps, I have collected unemployment, I have accepted FEMA assistance and all within the past 8 years. It's not how I planned it, but in the end it's all been legit. I'd be an idiot to NOT accept $25k from FEMA, right? As long as I was honest in my application? There's a lot of people (like my father) that don't need social security .... they have pensions and second houses. They don't need it .... but they are going to drain the system anyway. And people under 40, like me will pay into it all their lives, just in time to see it run out. THAT is going to be an economic disaster .... when Generation X retires.

[Giants Fan 85]

BTW, even after my BK and the grandfathered rules, I still owe 40k in student loans. Again ... my attorney was like, "This is a slam dunk." because when Bush changed the BK laws it made PRIVATE student loans un-dischargable. Again .... I'd just be stupid to wait until the laws changed. Don't be mad at me for being smart, and making the best of a bad situation.

[Giants Fan 85]

Also, because I didn't own any property .... I was able to file Chapter 7 .... which meant I didn't have to pay back anything, and there was nothing they could take from me. Kept my computer, my Jeep .... and of course my education. What I WAS stupid about though, was I cashed out my 401k at one point, to pay my bills. Took the penalty whatever ... had to pay my bills, was out of work. I also used student loans to pay credit card bills. NEVER CASH OUT YOUR 401k .... retirement funds are protected. Also, NEVER use govt. secured student loans to pay off UNSECURED debt. You NEVER get out of govt. secured loans, bankruptcy .... whatever .... you still owe.

[shotsup 832]

there was nothing they could take from me. Kept .... and of course my education.

 

somehow you lose out on that one for sure.

 

I personally know to many people that take advantage of the "system"

 

"$400 bucks for food stamps ? Cool thats my truck payemnt! See I used to have a drug problem and that is keeping me back from getting a good job and I have this limp from high school football - if I can get the right doctor to sign off on a work related injury and get 100% disability I wont have to work again".

 

Guess what JoeBobJohn whatever his name is - you are officially a ni@@er.

 

Sorry for sounding like gfiafp

I'll go back to being a tool

[Giants Fan 85]

I have a herniated disk in my back. L5S1. I can't stand in line for an hour. I'm also clearly depressed. That's enough for me to qualify for 100% disability ..... but I honestly believe I can work ..... and I want to work for as long as I can. Lack of social security or not .... I want to work. Unfortunately my education wasn't free. Just as I say, "They can't take that from me" ....well, they can make me pay for it. Even after bankruptcy. I still owe. My degrees have not made me rich.

 

And that's just how it is. I accept that I spent too much time and money on my education. Most people wont admit that.

[flipya4real 0]

I have a herniated disk in my back. L5S1. I can't stand in line for an hour. I'm also clearly depressed. That's enough for me to qualify for 100% disability ..... but I honestly believe I can work ..... and I want to work for as long as I can. Lack of social security or not .... I want to work. Unfortunately my education wasn't free. Just as I say, "They can't take that from me" ....well, they can make me pay for it. Even after bankruptcy. I still owe. My degrees have not made me rich.

 

And that's just how it is. I accept that I spent too much time and money on my education. Most people wont admit that.

 

But $25k less than you should have....thanks for making everything cost more for me GFIAFP