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Meerkat
12-06-2002, 04:38 PM
Seems all the rage of late. Might as well join in the "fun" and see if that's a way out of my deep hole before joining the "under bridge" crowd :(

One of the regulars knows something about it?

redface.gif :( :( :( redface.gif

Sam F
12-06-2002, 04:42 PM
Yes one of my close friends did this about 2 years ago. It was a very unpleasent experience and they lost almost everything.
Their's was a business bankruptcy so a personal one may not be as bad...
One mistake they made is to not consult a lawyer immediately. If you can, by all means do so.
I sincerely hope you can work it out without too much trouble.

Joe (SoCal)
12-06-2002, 05:07 PM
I have been following some of the other fomites suggestions in my Drowning thread and contacted my creditors. They will fight you tooth and nail I even had one tell me to post date 5 months worth of checks by phone yea rite :D I told him to go to hell to take my minim payment and love it. If your nice and make deals and a sincere effort to pay and keep to it you can stretch out big time then the key is to keep you spending down to catch up. For me its going to work on Sat and not going to Mystic for the EBS

On Vacation
12-06-2002, 05:15 PM
Good for you, Joe. In some states that is illegal. Credit card companies are worse than loan sharks. And they will take a dollar anytime just like one.

Dave Fleming
12-06-2002, 05:23 PM
IIRC, does not a Bankruptcy stay on your credit history almost till the Sun goes black?

I would do everything to work it out with your creditors first. BUT talk to a real flesh and blood Washington State lawyer before even doing that. Again IIRC, each state has different twists on things even though the Bankrupcy Code is Federal.

A good friend of SWIMPAL's just stopped bye to pick her up for a day at Balboa Park Christmas stuff. She let the bomb drop that she and her husband can no longer afford their house and are looking for a condo with lower payments. She is on SSDI and he on straight SS, with a small pension to go with that. Both have medical problems and costs are rising every year so its crunch time for them.

I wish you the best Meerkat, the best.

brad9798
12-06-2002, 05:25 PM
TALK TO A BK ATTORNEY! BEFORE you do anything.

Donn did have it reversed ... 13 is the 'wage-earners' plan and 7 is liquidation.

BUT, 7 is not necessarily liquidaton- there are many exceptions/allowances/etc. with regard to your house, cars, boats, etc.

If you have no net worth on paper, then you have nothing to liquidate, if you follow me.

Now, if you have a house that is worth $350k, and you owe $100k, you're screwed- the trustee will sell it out from under you.

You will also have a chance to re-affirm your collateral debts (cars/boats/house) with the creditor, and 99.99999% of the time they will re-affirm as long as you continue making payments. Think about it, the car company doesn't want your car back just to sell it at 1/2 value at an auction ... they would MUCH rather you keep paying on it.

TALK TO A LAWYER about any retirement or life insurance plans you may have ... cash surrender value on life insurance may be vulnerable, as will be any 'non-secure' accounts. If you are in IRA's or 401k's, you are fine. BUT, if you keep $$ in a CD or money market, or your checking accout- it's theirs.

Make sure you have no suspicious/large transfers in the previous months ... up to a year +, I believe. I.e. checks to folks over $500.

7 is a fast and relatively painless process IF you are a no-asset case.

Good luck to you, and DO NOT try to negotiate with creditors on your own.

Brad

ishmael
12-06-2002, 05:38 PM
Don't know about it Meerkat, but keep your chin up. Seems quite a few folks are having a hard time just now and you know what they say, misery loves company.

Get a lawyer and watch for the Spring. It's there, nascent in the upcoming solstice.

Best,

Jack

Scott Rosen
12-06-2002, 05:38 PM
Check your email.

Scott Rosen
12-06-2002, 05:41 PM
Originally posted by Dave Fleming:
IIRC, does not a Bankruptcy stay on your credit history almost till the Sun goes black?By the time a person needs to file bankruptcy, their credit is already shot. Filing bankruptcy won't usually make it any worse. Once the bankruptcy case is filed and the debts are discharged, the credit history starts to improve.

Memphis Mike
12-06-2002, 05:46 PM
Hope it all turns out OK MeerKat. Someone
I know filed not long ago and was able
to keep his house and his personal belongings.
As a matter of fact, the only thing he lost
was the debt and his credit for the next
seven years. Then again, the creditors are
so desparate right now that I've heard of
them issueing credit to bankruptcy cases.

I think if your young, go for it. I've been
advising a young couple that I know to file.
They're in way over their heads and will never be
able to get out. They're only in their 20's
though.

Meerkat
12-06-2002, 06:00 PM
Argh... this feels like one of those nightmares where you wake up in a public place with no pants on :(

Thanks for input peeps.

I have credit - (nearly) all bad. Don't understand why I keep getting these "guaranteed acceptance" cc offers in the mail. Capital-1 must be really desparate for customers!

Scot, got your email and will reply in the next day or so once thoughts are collected.

Memphis Mike
12-06-2002, 06:08 PM
Posted by MeerKat:
"I have credit - (nearly) all bad. Don't understand why I keep getting these "guaranteed acceptance" cc offers in the mail. Capital-1 must be really desparate for customers!"

They're all desparate as hell! They're spamming
everyone with these offers. Don't ever take them
up on it. If you get in too far you'll never
get out. If you need credit go to your local
bank. They will offer you the best interest rates.

Oh yeah, I almost forgot. Don't ever charge
anything at Sears. ;)

[ 12-06-2002, 06:10 PM: Message edited by: Memphis Mike ]

imported_Conrad
12-06-2002, 06:33 PM
A guy I work with has been through this, a chapter 7 personal. Almost all of it was credit card debt. The card companies were very inflexible, and unwilling to do anything except continue to apply pressure with strong-arm tactics. In the end all debt was wiped out, kept his cars, tools, personal effects, and some cash. (Washington law, may be different indifferent states). Saved his marriage.

One year later he had an unsecured credit card, three years later has three, and could buy a house with 10% down. It's off the credit report in 4 more years.

If you have a good reason- sickness/medical, injury, etc. future creditors will cut you a lot of slack. If they get the sense you're too lazy, irresponsible, etc. that hurts.

As a banker, many lives ago, I could usually get someone a home or business loan appeoval 2-3 years post bankrupcy, if it could be explained and the circumstances didn't reflect poorly on the creditor's integrity. So in sum a lot depends on the circumstances and how they are handled. Debt counciling services seem to have a lot to offer in reduced rates and clout with the card companies that an individual will never have.

B_B
12-06-2002, 06:49 PM
Originally posted by LOON:
If it's ok for the Catholic Diocese in Boston, it must be ok for anybody.Trolling on this thread Loon? Shameless!

I know of a couple, declared bankruptcy (everything was liquidated) and within 18 months had new loans for a house, car and credit cards.

So I guess I am paying outrageous bank fees to pay for these idiots choices - hmmm not to call the 'kat an idiot, but the freakin banks.

My spouse and I seriously considered it, I mean SERIOUSLY, but then found out that student loans (in this country) were not covered - there went my plans for a free education! - but decided to stick it out and make it work for no other reason than to have the satisfaction of saying "We did it". I am here to say that we paid off our 'bad'debts (credit card, overdraft, etc) and most of our 'good' debt (student loan, mortgage) where we only have a mortgage left - woohooo.

It cost us money as opposed to declaring bankruptcy - cost us time, money, effort, standard of living - but we doneded it!

Good luck Meerkat - it is a tough situation - and all situations are different - but either way consult a good lawyer/tax guy/doll (or two or three) and take their advice. Often times newly divorced individuals have a really tough time making a go at things because they are used to thinking differently.

Good Luck - and I really mean that.

Mrleft8
12-06-2002, 11:14 PM
Notice that the lawyers always get paid up front... :D

ken mcclure
12-07-2002, 10:58 AM
If I was a lawyer working with a potential bankruptcy, I'd want my money up front too!!!

Does anyone have any experience with any of these credit counseling services? What do they do to your overall credit rating? How do you pick one that's good ... how do you tell if one's better than another?