Bankruptcy

[bean]

Who's done a chapter 7 before?

I'm basically looking for advice and tips. I own under $10k in property including my car, and have over $100k in debt, so it should be pretty cut and dry. My only concern is apparently if you do chap 7 in TX, your car cannot be worth more than $3225 (private party kelly blue book "fair" value on my car is $3800). My car is mechanically perfect, but the paint is peeling from half of the body panels, it has hail damage, unrepaired deer impact damage, and bent suspension from hitting a curb a few years ago. I emailed my insurance agent asking if he knew someone that could appraise it in its current condition, in a way that I can use in court. (2001 Honda Accord LX 4 door 5 speed manual, 2.3L 4 cylinder, 110k miles.. runs and drives like the day it was brand new, the a/c even works great, but it looks horrible... paid $8600 for it 3 years ago )

[Eric the Grey]

First off, if you are going to do it yourself, obtain and READ each and every line of each and every document you can find about filing for bankruptcy in your state.

Then, read it all again and get hold of the forms you'll need.

Go through them at least a dozen times, and make certain you have everything covered, and I do mean everything. Follow the directions to the letter. I cannot stress this enough. My wife had to do this last year due to a ton of medical bills and we went through hell getting everything together, and almost lost it due to one slip up on our part (in CO you have to mail certain documents to the trustee, and we turned them all in with the rest of the documents. You'd figure they would make it to him, but noooo....)

Anyway, best of luck on it. It's not easy, and it is time consuming, but in the long run, it may well be the best thing you can do for yourself.



Eric the Grey

[draggar]

Hore a bankruptcy attorney, it's only about $1500 and makes life a hell of a lot easier.

In Florida you can "reaffirm" debts (car loans, house loans) meaning you do plan to repay them and you will not lose them.

Also, you can only keep $1000 worth of "stuff" per person - not including assets tied to reaffirmed debts.

[NightAngel]

Find your local Legal Aid office and have them help you. It's either going to be a lot cheaper or, quite possibly, free. It's all income based and it puts this in the hands of a real lawyer.

My Mother filed Chapter 7 many years ago. She walked away with almost nothing and debt free. She managed to remain debt free after that and her life was immensely improved.

People will try and talk you out of it because, "it ruins your credit for 7 years!"
My thought is that if you're at a point where you're filing your credit is probably ruined for at least that long anyway.

Good luck.

[draggar]

My Mother filed Chapter 7 many years ago. She walked away with almost nothing and debt free. She managed to remain debt free after that and her life was immensely improved.

People will try and talk you out of it because, "it ruins your credit for 7 years!"
My thought is that if you're at a point where you're filing your credit is probably ruined for at least that long anyway.

There are courses you'll have to take online but some entities will pay you to take them and submit surveys.

The class is on debt management and the bankruptcy itself (the one we took is 2 hours long). You also have at least 2 surveys - one before the class and one after the class. We also had an optional third survey to take a few months later for an extra $10. (I think it is the University of Nebraska that is conducting the survey - you end up making money after the course and payment).

I'm glad we did it - my wife hasn't had a job since June of 2008 and bills were piling up as well as credit cards and student loans. Everything was forgiven but my wife had to surrender a pending lawsuit from a car accident she was in last year. No, we're not living a life of luxury now but at least now we can afford to live (food, utilities, car payments, gas etc..).

Afterwards - you will get pre-approved credit card applications in large numbers. Just throw them out. They're smart - they know you cannot file for another 10 years so you'll be locked in with those cards. Just throw out those applications - don't get back into the mess. Right now the only debts my wife and I have are the two mortgages and my wife's car payment (my car is now paid off).

[fma_fanatic]

I highly recommend this site if you haven't already checked them out. There is a lot of good advice and some experienced posters there.

I filed last year by myself with a lawyer.

Before you officially file you will need to take a debt counseling course. Different companies charge different rates, but in the end, it's all about price. You do not have to use the same company for post filing, and be prepared to spend a couple of hours taking the post filing. Shop around and don't go with the first company you find online. You also have to make sure they are licensed to offer courses in your state.

As long as you lay everything out on the line, the 60 days after the creditors meeting will pass faster than you think. The fact that bankruptcies are up, most companies are more willing to let it go than try to object.

Also, once you finally get discharged, you're going to get loads of offers for car loans and terrible credit cards. My advice is to opt-out on your credit reports as soon as possible to avoid this.

[Aethian]

I don't think anyone should do bankruptcy but won't condone anyone for doing so. But are you sure your bankrupt? Have you lived on a budget and told every dollar what it's supposed to do BEFORE the month began? Have you stopped using your credit cards (if you have em)?

Link I've been pushing him to every person I know cause he makes sense and if you follow the program you learn how to not use credit.

Good luck with what you do.