Has anyone here filed for bankruptcy, either Chapter 7 or 13?

[SeattleGirl]

I am seriously looking at that, and have a message in to a bankruptcy attorney. I've never had to look at this option before, but it's something I may end up having to do.

I was wondering if anyone here has done that, and what the experience was like. I realize this is a sensitive topic, and one people may not want to talk about in a public forum, so if you are so inclined, would you PM me? Thanks.

[GOPisEvil]

1. I did. Chapter 7. I had no options.

I was in debt in excess of my annual income :dunce:. My attorney prepared the filing. I went to court and confirmed what I had filed. None of my creditors filed any objections, so I had all my debts discharged. It was finally great getting to start over with a blank slate. After a couple of years, I got my first credit card and paid it off every month. I slowly built my credit to the point that 5 years after my bankruptcy was discharged, I was able to buy a house. Now I have a great credit score and the bankruptcy comes off my credit report in 2 years.

Of course, I filed in the old days before the new laws, but it seriously I had to do it and it worked out.

[SeattleGirl]

3. Glad it worked out for you.

Sometimes there isn't a lot of choice. The worst thing for me right now is being treated like a piece of shit because I'm in debt. I don't know why these people (creditors) think that they have the right to make personal attacks on someone. They do have the right to say, hey, we need to work this out; but to treat someone in a bad way just sucks. x(

[Lydia Leftcoast]

9. I had to file in 1998 because I lost 1/2 my income when a major

customer went out of business.

Credit counseling told me that I had no alternative.

Ironically, it takes money to file for bankruptcy, but until I acquired the money, my attorney was willing to fend off the nasty creditors for me if I put down a small down-payment. The next time a creditor hassled me, I just said, "Please talk to my attorney." That stopped the harrassment.

[SeattleGirl]

10. Thanks, Lydia.

That's one of the worst things -- all the calls. I talk to them, tell them what's going on, and what I can do right now. But that's just not good enough. They treat me like I'm lying, they threaten me, etc. I've finally gotten to the point where I say, "That's fine. You do what you think you want to do; I'll do what I can do."

However, "Please talk to my attorney" sounds a hell of a lot better.

[GOPisEvil]

14. Once you file, those calls stop.

The most weightless I have ever felt is when I realized I couldn't be bothered by asshole creditors. I hated having to make that step, but it honestly worked out very well for me.

[SeattleGirl]

15. They are such a weight, aren't they?

Especially when they keep calling, even though you just talked to them a day or an hour before, told them what you would do, yet they continue to call.

It's not a step I really want to take either, but it seems I just keep sliding farther and farther down the rabbit hole, and this may be the ladder I need in order to climb back out.

[GOPisEvil]

20. I hated dodging the calls and feeling like a criminal.

Lydia is right, "Talk to my attorney." are 4 beautiful words. :)

[SeattleGirl]

27. The disrespect with which these people treat those in debt

is despicable.

[WCGreen]

2. I went Chapter 7 in 2003...

We just refinanced our home and it looks as if we are going to get our credit back...

[SeattleGirl]

4. That's great, Chris.

I'm glad things have turned around for you. That's what I'm looking at doing -- turning things around.

[ikojo]

6. But was 2003 before the passage of the

new more draconian bankruptcy laws?

[WCGreen]

29. They are...

But if you can still file Chapter 7 if the court deems it necessary

[merh]

5. Before bankruptcy, please interview with a credit counselor.

They can help you work with the crediters to pay off the debt.

It doesn't hurt to check out all avenues. Good luck and I'll keep you in my prayers. :hug:

[SeattleGirl]

7. Thanks, my friend.

:hug:

[SPKrazy]

19. That Is A Good Thought!

and look for one that is a non-profit organization that does it.

:hug:

[Deja Q]

25. Seconded. I had gone this route;

and my credit score had improved over time.

The big "B" stays on for 7-10 years and even then there are other problems, such as getting loans in the future.

And, these days, the Bible is more forgiving of debtors than the Corporate sect.

And he means 'credit counseling'. Not 'debt consolidation', or the folks who say you can pay back debt for pennies on the dollar ('debt forgiveness'). Those routes are the worst way to go and they won't tell you about the hidden taxes that essentially cost almost as much as the amount of the debt forgiven.

[Lisa0825]

40. BE VERY CAREFUL ABOUT CREDIT COUNSELORS!

Credit counseling services can often make your credit even worse, because some focus only on settling debt, and do nothing to help you prevent taking bigger hits to your credit report. You can actually come out of bankruptcy with better credit options than with CCCS. In fact, while I cannot confirm this, I have even read that even "non-profit" credit counseling companies are funded by credit companies, a huge conflict of interest.

[Lisa0825]

41. More info....

from this link:

http://www.bendover.com/weekend.asp

Why does CCCS pound the fact that they're a non-profit organization? Dover's Reality: Because the vast majority of consumers don't have a clue about what non-profit really means. Bottom line? Non-profits do make money...they just distribute what would normally be returned to shareholders as dividends and pay it out to employees or officers as bonuses. They make money, kids...they're not charities-they're spin-masters that play on your lack of savvy.

How is CCCS paid? If you wanna read their spin and side-stepping explanation, read the answer they've posted on their website here. Dover's Reality? These "voluntary contributions" that CCCS receives are also known as commissions. The fee received by CCCS amounts to a commission for collection services-which in my book makes them a debt collector. Let's see...they're being paid by your creditors to "work out" a repayment plan that's supposedly in your best interest. You believe that? You're a fool if you do! I promise you their loyalties are with the people paying them...not with the beaten-down-and-buried-in-debt consumer who naively seeks their counsel.

edited to add more info from www.buhibbs.com:

2. ENROLL IN A CREDIT COUNSELING PROGRAM:

Consumer Credit Counseling Service (CCCS) has had a reputation that for many years it misrepresented itself to consumers in the way that it conducted business. Only because of successful class action lawsuits has their monopoly on this market been broken. My complaint about all credit counseling is that they get paid a commission, (averaging 10-12%, paid by the creditors), yet try to confuse the consumer with misleading words and phrasing such as "non-profit." Don't be fooled! This is a billion-dollar industry which at one time was sold as franchises like McDonalds and Colonel Sanders. Credit counseling is much the same as a Chapter 13 Wage Earner Bankruptcy plan in which debtors enter a long-term program to repay their debts. This can last as long as five years, while seriously hampering your credit recovery. If you follow CCCS's program, the original creditor is allowed, under federal law, to report the debts for an additional seven years after you've made your last payment, thereby adding to the time it is allowed to stay on your credit reports. Another big problem is the contract they require clients to sign. You literally sign your rights away and give up any future rights to litigation, no matter what they do to you as a client. Finally, far too many of the credit counselors have demonstrated that they are too ill trained to be dealing with the complex issues of debt and collections. I have heard numerous stories from consumers across the nation that credit counselors gave improper advice which negatively impacted their lives, including advising consumers file for bankruptcy protection.

Edited to add:

Link to discussion at Wikipedia about content that was removed from WIKI article:

http://en.wikipedia.org/wiki/Talk:Credit_counseling


If it looks like I am putting a lot of effort into this, I AM. I have known several people SCREWED by the "non-profit" credit counseling industry, so I try to make sure anyime I hear of someone considering it, they at least go into it with eyes wide open, not just trusting in the manufactured image of the financial savior.

Good luck to you with whatever avenue you choose to go.

[SeattleGirl]

45. One of our local news stations did a "consumer alert" story

on credit counseling agencies. Man, seems most of them are nothing but places run by scam artists.

[CaliforniaPeggy]

8. My dear SeattleGirl........

I'm holding the good thought that all will be well for you, and very soon, sweetie.......

:loveya: :hug: :loveya:

[SeattleGirl]

11. Thanks, Peggy.

Having decided to give serious consideration to bankruptcy actually does make me feel better. The creditors are not happy with the fact that I can only pay a little bit toward each bill, so I end up feeling as if I'm just going nowhere. At least now, I feel like I may be able to get on with things.

[wildhorses]

12. no words of advice--just

:hug:


keeping you in my thoughts and prayers

[SeattleGirl]

13. Thank you, wildhorses.

Prayers help a lot. :hug:

[NMDemDist2]

16. we went Chap 13 so we could keep our business open

Chap 7 and we would have had to sell everything

this was before the new laws took effect. now you have to go through credit counseling before you can file

[SeattleGirl]

21. That's one reason that I'm hoping I can do Chapter 13

I don't have a business, but I don't want toget rid of things either.

You HAVE TO go through credit counseling? That wouldn't do me a lot of good, since the good ones I've checked with don't (probably can't) do anything to stop reposessions, garnishments, etc. What I need is a way to stop people from taking legal action against me, and to help get me to a point where I can make payments to pay off what I can.

[NMDemDist2]

23. no no, if you go chap 7 you won't have to get rid of anything

we would have cuz our business assets had a high enough $$ amount they would have made us liquidate

if you have no assets other than your house and car (you can keep your house and one car) they can't make you sell your stuff

[SeattleGirl]

26. Whew! Thanks.

I don't know all that much about the new bankruptcy laws, except that they were designed to screw the average American even more so than we already have been....

[graywarrior]

17. Get a good lawyer.

Mine was an idiot.

[SeattleGirl]

22. Absolutely!

I deal with a lot of attorneys in the field I'm in (not bankruptcy attorney's though), and have little or no tolerance for the bad ones.

[graywarrior]

32. If I ever run into mine, I'm gonna yank his rug right off his head,

[SeattleGirl]

33. He'd better hope he doesn't run into you, then.

Don't blame you a bit for feeling that way. It always amazes me when my clients start bitching about not getting much help from their attorneys, and I say, "Then fire him, and get a new one." They give way too much power to their attorneys, and start acting like THEY are work for the attorney, instead of the other way around. :eyes:

[idgiehkt]

35. Mine too

I filed base 13 in 1996. My attorney did not figure in the interest in my student loans for the time of repayment, which were on there, . I only did it to get the collectors from my student loans off my back, because I didn't repay them because I was very busy staying professionally drunk and stoned. But since she didn't add the interest in (in fairness, she blames the trustee, the trustee blames her, yada, yada, yada) anyhow, it was discharged in '98 or '99 and I'm going about my merry way or whatever singing hallelujah, not knowing about this, and thinking it's cool, when I arbitrarily checked my FICO score and it came back that I had massive overdue debt on my credit reports. I mean YEARS over due, 12 months overdue for greater than 12 months, etc. It was that loan interest that had been accruing the whole time I was paying on that bankruptcy, and the whole time after I thought it was paid. So I had to pay the stupid shit off, and it's still on my credit, which should have been clean by 2003 at the latest. I disputed it and equifax dropped it because the loan had been through so many different hand they couldn't verify it, but those lovely c*cksucking motherf*ckers at Transunion wouldn't drop it off my report. I went through the ringer trying to have it removed. My attorney said all I could do was sue her for malpractice, but that I would probably lose, because she used due diligence and I should have known the amount wasn't high enough. How the hell was I supposed to know, lol, that's what I paid HER for, otherwise I'd have done it myself. I don't know what Experian has on me and I really don't want to, since it isn't affecting my life at the moment. But a debt that should have been gone off my credit a few years ago could possibly be on there til 2009. I was just about destroyed by that since other than those stupid loans my credit was fine...I didn't even have a credit card til I was 30 or 31. My FICO score is still pretty decent but the whole thing just kind of sticks in my craw, you know...it just really gripes me. I feel like that should have never happened.

But, I guess I should have said at the beginning of my post...the bankruptcy was just a 'pay the bill each month kind of thing', pretty straight-forward, and then it was done. Not too much stress involved. I didn't have any of that debt you can charge off.

If I had to do it over again no way would I file bankruptcy over this. It was a huge mistake because it was such a pain. I'd just let them garnish my wages, for that they could have only taken around 10 or 20%. It would have been done in ten years...this year in fact. I was just really private and didn't want my employers knowing my business.

[SPKrazy]

18. Hey Dear Sister!

No words of advice or experience there

but hang in there, we love ya!

no shame, no guilt

reality in * world is that there are lots of folks that will file, that's why they made it harder to do recently. I don't live that far away from paycheck to paycheck myself.

Used to have savings until..., well never mind, that's a long story that doesn't need to be here.


Good vibes your way!

:hug: :loveya: :yourock:

[SeattleGirl]

24. Thanks bro.

I know I am far from the only one having financial problems; in fact, I cannot recall a time when so many people I know are barely hanging on. Yeah, thanks George. x(

Thanks for the vibes. :hug:

[SPKrazy]

30. More vibes coming at ya sis!

:hug:

[sniffa]

28. yes

and thanks to DU, i was encouraged to reLease my embarrassment and do it before the deLaware-Laws came into effect.

even though i struggLed for so Long trying to "catch up" it was reaLLy fucking hard for me to accept that i needed to do this.

i can't reaLLy speak for what it's Like now after the new bankruptcy ruLes, but i at Least wanted to get on here and Let others know (you incLuded obviousLy) that you shouLd do it if you feeL you need too.

[SeattleGirl]

31. Thanks, sniffa.

I really don't feel any embarassment; I'm just tired of trying to dig my way out, to "catch up" as you said. I know some people may look down on me for doing this, but I really don't care. Can't be any worse than the contempt with which I am treated by the creditors.

I'mnot sure about the new laws either, which is why I will use an attorney for filing.

[Skittles]

34. good for you sniffa for taking the advice

and for passing your wisdom on to others who are struggling - yes INDEED

[bicentennial_baby]

36. and i'm really proud of you still...

i remember those times...and i'm glad i could be there for you :hug:

:loveya:

[madrchsod]

37. been there- done that -a couple of times

a good lawyer will advise you on your options if you need a 13 or 7 because there are advantages and disadvantages in both. a lot depends on what kind of debt you owe and if you have the ability to even payback on a 13. the new credit card law sucks and the last time i filed medical bills do not effect my credit recovery. sometimes there`s nothing one can do but to file . like i said make sure your lawyer goes over your options and you understand them.

[SeattleGirl]

38. The one I have a message in to does both 7 and 13

so she should be able to explain the pros and cons of each.

[Lisa0825]

39. There is a bankruptcy forum at www.creditinfocenter.com

www.creditinfocenter.com

I have found that site immensely helpful in improving my credit. I did not declare bankrputcy, but they have a forum for that there, and people who have been through it or have exptertise in it.

[SeattleGirl]

43. Thanks, Lisa

I'll check it out.

[PRETZEL]

42. I had retained counsel also just within the last couple of months

credit card debt, being a co-signer on my wife's car that was repossessed and just overall cash poor left me with what I thought was no other options.

When I first contacted the attorney the process was that he was planning like it would be a ch. 13 based on income (and the income thresholds are important) but given the exemptions allowed under the new laws there was a possibility that I would qualify for ch. 7 which would have been better.

Naturally what I didn't explore at the time was another refinance of my house. I hadn't realized that the values in the neighborhood had increased to a point where I could take out whatever equity I had left to pay off my debt and avoid the filing.

And of course, the reason one generally files for bankruptcy is lack of cash flow. And it ends up costing a couple of grand just to file. If I had the couple of grand on hand, I wouldn't be in the position I'm in.

[SeattleGirl]

46. Re-fi is not an option for me, since I rent.

Not sure how much it will cost; I'll find out when I talk to the attorney.

[Lars39]

44. Get a *certified* bankruptcy lawyer.

They cost more, but are worth every penny.

[SeattleGirl]

47. The attorney I left a message for is certified.

I definitely know that when one needs an attorney, he/she should be an expert in the field in which you need them.

[Lars39]

48. Good!

I hope all goes well for you and yours, SeattleGirl. :hug:

[SeattleGirl]

50. Thank you, Lars

:hug:

[judaspriestess]

49. yes, I just filed in Ocotober of this year

If you don't own a home or are not behind on payments, then file a ch.7
I had to file a ch. 13 because I fell behind on my house. Credit cards won't see a dime in the end and they will be zeroed out.

With a bk it is very important that every card goes on the petition and make sure they are 'zeroed' out after your bk is discharged with the credit bureaus. I know many people who have incredible credit after a bk. Its just a fresh start.

Also with the new laws, they will TRY to get you to pay back the debt through debt consolidation. Don't bother, thats where the big corps got their wish to trick people into believing that is the only alternative.

Good luck

p.s. I grieved tremendously from this. I had such great credit before :(

[SeattleGirl]

51. I know what you mean -- my credit used to be really good.

It probably doesn't even register on the credit-rating scale anymore. :-(

But, sometimes, no matter how hard you try, it seems you just can't get out of the hole. That's how I feel right now. So I'll see what the attorney has to say, and go from there.

[judaspriestess]

52. Shit happens and we move on

we rebuild and leave that chapter of our lives behind. Go fuck yourself 2006. Helloooo 2007
:)

[SeattleGirl]

53. I will be SOOOO happy to wave buh-bye to 2006!

Stinker of a year if ever there was one.