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Any advice concerning bankruptcy?

My hubby and I are SERIOUSLY considering and leaning hard towards filing for bankruptcy. Do any of you ladies know about going forward with it or have stories about what happened after you did it personally? I need the good, bad, and ugly.....

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SLC3015

Asked by SLC3015 at 6:39 PM on Feb. 22, 2013 in Money & Work

Level 21 (11,041 Credits)
Answers (6)
  • Have not done it or would not do it. First thing when dealing with financials is they always ask have declared bankruptcy . Then there is that 10 year thing following you.   Here are pros and cons  http://www.consumeraffairs.com/finance/bankruptcy_02.html  and this one http://www.nacba.org/resources/consumertips/prosandcons.aspx     Even forclosures not so good I saw a sign that said do not even apply if you had.  So glad I did Not have that issue even if it is illegal they can do what they want.

    sunshine196

    Answer by sunshine196 at 6:50 PM on Feb. 22, 2013

  • There are two types of bankruptcy chapter 7 and chapter 13. Chapter 13 involves arranging a payment schedule with all unsecured debt, but you have to have a certain percentage of your debt for payments. Chapter 7 is where you discharge your unsecured debts and can discharge your home and car, but not student loans or IRS levys. We just completed Chapter 7 bankruptcy and it is quite costly the average lawyer fees are $1200 and then you will need to reaffirm your home and cars if you would like to keep them that costs $250 a reaffirmation. You can't file for bankruptcy again for 8 years, but it can stay on your credit report for awhile, but if you are making all other payments on time and have a positive change in income you shouldn't have difficulty obtaining credit for a car or house in the future. I actually have a friend that filed Chapter 7 and got a car loan the next day.
    amandajoy21

    Answer by amandajoy21 at 6:59 PM on Feb. 22, 2013

  • Been there done that. Once you sit down with a lawyer they will advise on what may work best for you. Do not declare anything you wish to keep (home and car) All other debts are put on hold until the lawyer fees are paid. You don't pay on them you refer their calls to the lawyer. Then you show up on your court date where creditors can challenge the debt owed if they desire. I have no regrets from filing and my credit recovered in less than seven years. Most consultations are free so it can't hurt to discuss your options with a lawyer.
    Anonymous

    Answer by Anonymous at 7:39 PM on Feb. 22, 2013

  • Thank you all....I appreciate all of your answers!
    SLC3015

    Comment by SLC3015 (original poster) at 7:55 PM on Feb. 22, 2013

  • chapter 7- wipes eveyrthing out (except loans and tax stuff) BUT they will take stuff away
    chapter 13 is what we did, we are making 150.00 payments every month. It is for 5 years- cannot pay it off early, and we were able to keep the cars we had this way. We also have to give them anything we get back from taxes ( whatever it is over 1,000)
    we cannot buy anything major, or gt any credit cards while making the payments
    charlotsomtimes

    Answer by charlotsomtimes at 9:03 PM on Feb. 22, 2013

  • We filed chapter 7 and didn't lose anything it just depends on what assets you have
    amandajoy21

    Answer by amandajoy21 at 9:11 PM on Feb. 22, 2013

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