Any experience filing bankruptcy??

  • Posted by a hidden member.
    Log in to view his profile

    Jun 11, 2011 5:11 PM GMT

    I am posting this under All Things Gay cuz it doesn't really fit anywhere else.
    I am considering filing bankruptcy and don't know anyone who has.
    If you have filed, are you glad you did it or was it a big mistake??
  • Posted by a hidden member.
    Log in to view his profile

    Jun 11, 2011 7:05 PM GMT
    While the idea is to encourage a new fresh start it has some early repercussions. One is in your credit scores. You will take an even deeper hit and would be in the black list for 10-years. However, you CAN start again by opening a secure credit card with a pre-set limit and then you PIF each cycle 3-years after you filed.

    Bankruptcy is the best solution if you are 100% sure you have ran out of all options and you cannot keep up with your bills. If you think you might be able to work some sort of re-payment plan with your lenders, then don't do it. But if you are completely upside down and you know you won't be able to re-pay anything back ever then that's the best and only option.

    Always evaluate the best chapter option for you. Don't compare what John Doe did because every situation is unique. Chapter 7 is straight bankruptcy., a total liquidation of all assets and you walk scotch free of any former responsibilities., you don't want that If you want to keep your home and cars., Chapter 11 is a good option if you want to keep certain assets and chapter 13 is a 5-year repayment plan.

    Our "illustrious" former president George W. Bush Signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 to make it more difficult to filed Chapter 7 but not impossible. So get with your financial Advisor and a Bankruptcy Attorney and discuss all the options you have.
  • Posted by a hidden member.
    Log in to view his profile

    Jun 11, 2011 7:18 PM GMT
    I did (chapter 7) due to about 80K in medical bills in an 8 month period when I had no health insurance. I made sure that I was not going to be getting another 10K in bills before I did file, one mistake many people make. If one does not fix the problems that cause the debt, bankruptcy is a waste of time. For myself, getting health insurance was the determining factor that I was indeed ready to file. I don't regret it; it actually helped my credit score in a short amt of time.

    Depending on your situation, BAPCPA may or may not have much impact on your filing decision. For me, my financial situation was so dire that I was no where near being denied filing due to new regulations.

    I also did it myself without an attorney. By filing pro se, I was able to have the filing fees waved as an indigent. Impossible to do with a lawyer, rationale is that if one has enough money to hire a lawyer, they can afford filing fees. It probably goes counter to all advice you will see elsewhere, but filing it was not a difficult process and I would encourage people to at least consider it. When I was talking to lawyers, I mentioned possibly filing myself, and they laughed at me and told me there was no way I would be able to do it myself. I took that as a challenge--It took some careful reading of the paperwork, but it was not hard at all. Plus, I saved over $1000. But, I wouldn't expect an attorney to tell me that I was able to do it myself and put themselves out of business.

    As the above poster stated, each situation is different. What worked for me may not work for others, but I found it a relatively painless (effort-wise, the blow to self-esteem was a little tough) process.
  • Posted by a hidden member.
    Log in to view his profile

    Jun 11, 2011 7:46 PM GMT

    Thanks...good advice so far. I am leasing the house I live in and owe $12k on the car I drive and cannot give up.
    My entire debt is from credit cards which fell behind last year when my roommate was laid off of his job.
    My only asset...and it might be questionable..is my car. I must keep it under any circumstances.
  • Posted by a hidden member.
    Log in to view his profile

    Jun 11, 2011 9:08 PM GMT
    You can keep your car when filing for bankruptcy. You have to let your financing company and your lawyer know that you intend to keep paying. You can also negotiate new payment terms if your payments are too high. I did a "voluntary repossession" on mine (turned it in) and included it in my bankruptcy because I was upside down on the car from the previous trade in.

    I absolutely have no regrets, you just have to learn your lesson and not get yourself into the same shit again. Don't make the same mistakes you made in the past and be more wise about your purchasing/spending decisions. It was totally a reality check for me and I'm no where near as reckless with my spending habits as I used to be. I financed a new car to help build my credit back up less than one year later, but with a high interest rate. After about one year of having it I'm going to refinance for a lower interest rate. Other than that, everything else I buy I purchase outright.