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Ok so my hubby and I are thinking of the dreaded decision BANK RUPTCY :(

We SOOOOOOO do not want to do it, but with the way everything keeps going up but the paycheck. We feel we have no option. We dont spend a lot of money, almost everything our daughter has was given to her, we buy grocieries like every other month, we litterally wait til we are eating crumbs to save money. and his over time has come to a stop! So now we either pay bills or have money to live on from week to week. it was never this bad!!! but we feel we have no option. I have tried all the work from home deals they dont work, and i cant find a job, nor am i willing to put my daughter with someone when it is best she is with me if my paycheck is going to pay for her childcare anyways. So i wanted to hear from people that have been there before, what to expect and did you do ch 7 or 13? My hubby has school loans so i think we have to do 13...do they both look as bad even though you are paying some back with 13?

 
Anonymous

Asked by Anonymous at 11:00 AM on Mar. 13, 2009 in Money & Work

This question is closed.
Answers (24)
  • Seeing your update info let me also say I know how hard it is. My exhusband was hurt on the job in 2003 and couldn't work. We lived off workers comp and unemployment and it JUST got us by. When unemployment ran out the workers comp didn't even cover our mortgage. We filed bankruptcy and eventually had to WALK away from the house as well. I know what it's like to lay awake at night worrying about how to pay the bills and how to get through it, but we did get through it. If you ever want to chat just PM me
    Mom2Jack04

    Answer by Mom2Jack04 at 11:35 AM on Mar. 13, 2009

  • IDK anything about bankruptcy except try everything before you have to do it and when I read your question I was thinking of you watching children in your home then you could be with your daughter. Just an idea...Good luck.
    ria7

    Answer by ria7 at 11:03 AM on Mar. 13, 2009

  • Do what ever you can to avoid filing for bankruptcy. It will follow you for the rest of your life.
    Anonymous

    Answer by Anonymous at 11:08 AM on Mar. 13, 2009

  • 1- School loan's won't go away. EVER.
    2- If you file bankruptcy, the utility companies shut off your utilities and ask that you pay a $400.00 deposit to have them turned back on. That might only be if you already owe them money, but it's something I would look into before filing. My mother had to file a year ago and that's the main reason she did, and it REALLY screwed her.
    Anonymous

    Answer by Anonymous at 11:10 AM on Mar. 13, 2009

  • We had to file and are in the middle of a chapter 7 bankruptcy. I will tell you this neither 13 nor 7 will cover school loans, those are yours to pay back. You have to pass a means test to qualify for chapter 7, if or when you meet with an attorney you should not have to pay a fee for a consult, they will tell you the best option for you! Please do not feel ashamed, bankruptcies were set up by the government because sometimes it is what has to be done! I do not ever want debt again! We are looking at this as a chance to start over make new and better decisions. It will be on your credit for 7+ years...but in reality you do not need credit! We are going to rent a home. And we will save up and pay cash! We just purchased our first car with out tax return money. However if you are looking for an alternative you can check out Dave Ramsey! He is awesome. You will make the best decision for you! Don't let anyone tell you otherwise.
    Anonymous

    Answer by Anonymous at 11:15 AM on Mar. 13, 2009

  • This is Anonymous 11:15 we will be surrendering our home and our cars along with our debt. We have not had any of our utilities cut off and we are not going to pay $400 to have them turned back on! If you are filing bankruptcy it is against the law for creditors to contact you during a bankruptcy. You stop paying the things you are filing against for us that means we stopped our house payment, car payments, and credit card payments, this money is now being saved for a deposit on a home to rent and a car for husband, they will not take this money from you. This is me speaking from MY experience in filing a CHAPTER 7! If you want to know anything else you can send me a message and I will do whatever I can to answer any questions!
    Anonymous

    Answer by Anonymous at 11:21 AM on Mar. 13, 2009

  • Bankruptcy will stay on your credit for WAY more than 7 years. A family member did it in the early 90's, and to this day it's still on their credit.

    And to the above poster, they still run your credit almost everytime you want to rent a house or an apartment. In reality it's good to have credit.
    Anonymous

    Answer by Anonymous at 11:21 AM on Mar. 13, 2009

  • You might be able to qualify for a deferment on your loans if you are experiencing a financial hardship-I would call your lenders and see if you qualify. Sometimes they can defer for 6 months-a year. That might help for a while.
    Anonymous

    Answer by Anonymous at 11:22 AM on Mar. 13, 2009

  • To anon 11:15-if you have money that you STOPPED paying to your bills to save to get a house-why the heck did you file??

    Sounds like you were just tired of paying bills?
    Anonymous

    Answer by Anonymous at 11:24 AM on Mar. 13, 2009

  • Yeah student loans cannot be put on a bankruptcy period. You HAVE to pay every dime. And these days the laws are stricter than what they were even just 2 years ago as far as bankruptcy. it's not as easy to qualify anymore. How much in credit card debt are you? If you owe utilities money, yes it can be put on a bankruptcy but they DO in fact charge you a fee to keep the service. Mine wasn't $400 like another poster said, but it was about $180. When we moved and shut off the utilities in that home we did actualy get those deposits back since we were in good standing since the BK.

    Perhaps look into other ways to help save money....apply for HEAP & Food Stamps. This Spring/Summer grow veggies yourself & make sauces and meals you can freeze. Save electricity by putting things on pwoer switches and turning them off at night. 20% of our electric bill is from computers, tv and such being left plugged in when not in use
    Mom2Jack04

    Answer by Mom2Jack04 at 11:26 AM on Mar. 13, 2009

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