Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)


Posted by on Apr. 9, 2014 at 1:23 PM
  • 13 Replies
1 mom liked this

I'm thinking of filing for bankruptcy.  Has anyone done this before?  Pros and cons?  Any advice?  I'm in way over my head and don't know where to start.  I look on-line and get so overwhelmed.

by on Apr. 9, 2014 at 1:23 PM
Add your quick reply below:
You must be a member to reply to this post.
Replies (1-10):
by Member on Apr. 10, 2014 at 7:12 AM
1 mom liked this

There are free non profit credit counseling agencies out there that might help you negotiate payments. Other than that I don't know. Just be careful to get a legit agency.

by on Apr. 11, 2014 at 11:46 AM
1 mom liked this

You need to sit down and figure out how things went south in the first place. The court can wipe out the entire debt (except taxes and student loans) but if you don't figure out how you got there in the first place it will happen again. If the debt is mainly taxes & student debt then bankruptcy won't make a difference.

Before going that route I'd talk to all the creditors to see if they are willing to work with you. There are times that they will lower payments, amount owed if it will keep you from going bankrupt. They get more money that way. Be up front but be sure not to promise anything that you can not 100% follow thru with.

Sell what you can and pay off one debt at a time. Realize that there are many things that we think of as neccesity's but really are not. A phone may be but a phone with all the bells and whistles is not. My computer at home is 7 years old. Lot slower then what I work on at my job but it still does the job. It's a necessity that I have computer/internet because I ebay and use that money to pay down my debt. If it came to the point where I was paying more for internet then what I was making then I would need to drop the internet and stop ebaying.

Have someone else sit down with you to go over your finances. They may just be able to point out where you can save money and where you have a major leak.

by Bronze Member on Apr. 18, 2014 at 11:23 PM
1 mom liked this

 My DH and I had to file almost 8 years ago. We made some bad decisions followed by me losing my job because the company closed. We tried to stay afloat for as long as we could. I called all companies that we owed money to and tried working on some kind of different repayment plan. None of them would give me the time of day. They felt that because we were still making payments and not technically behind that there was nothing they could do. I made an appointment the next week with a lawyer and we went from there. We kept our car and house. We had to continue to pay my student loan and some medical bills. Everything else was wiped away. We made major changes to our life and have completely revamped how we do things and save so that we'll never be in that position again.

by Member on Apr. 19, 2014 at 2:02 PM

My SIL filed back when she was 19 (no clue why, just credit card debt I think and didn't research it)
Now at 26, her and my brother want to get a house and it's just following them around. Also, I believe student loans are exempt from that, which is where a lot of folks debt comes from, but not always. I definitely say research it and even go to your local bank or somewhere that someone can give you even a bit of info/advice for free.

by New Member on May. 18, 2014 at 8:21 AM

I filed in my early 20s. i was married at the time and me and my husband both had good jobs but we were dumb and not careful and made crappy choices financially. Well, apparently we made more than crappy financial choices, because we ended up divoricing. But, it was a big mess. I lost my good paying job and couldnt pay my end of the debt. he lost his soon after and couldnt pay his. We filed and the courts wiped it all away. NOW, I am in my 30's. I KNOW that I make wiser choices now. I have no credit card and no debt other than 1 doctor bill. However, I have needed to apply for credit twice since my bankruptcy and have been turned down both times. The first time was because it was too soon after filing, even though it was past the 7 year mark. The second time was within the past year (and its been about 14 years since I've filed) and was told I do not have enough credit to get a line of credit.  I dont speak to my ex husband, but I do talk to his mother on occasion. And she has told me that he still spends carelessly and has had to file another chapter with his new wife. I do not like owing people money that i cannot pay back. That is why i have tried so hard to keep my head above water and not repeat what happend to me when I filed bankruptcy. I pay cash for everything. While I am proud of that, I am not proud of the fact that I do not own my own house. I pay rent every daggone month for something I will never own. And the way I see it, I dont know how I will ever get credit to buy a house. The bank told me to take out a credit card to build my credit up. That terrifies the crap out of me! I was given my first credit card by JC Penney at age 17. That was one of the cards I had to file on in my 20s. My advice to you...if you see no other way out, the court will help you wipe away those credit cards and other bills with exception of student loans. But make darn sure its what you have to do, cause it will find some way to follow you for the rest of your life. It has for me anyway. Good luck to you!!!!!!!

by New Member on Jun. 6, 2014 at 9:48 AM

we recently got our discharge early this year. It was a very tough decision to make and one we did not take lightly. We've been trying to get our selve's out of debt or at least a manageable amount for several years now but my husband losing his full time work last September just put us over the edge. It was a very rough adjustment living on his income alone. We are 10 months into living on cash only and it's just now getting easier. We used credit cards for groceries and gas all these years so that's definitely been hard. We also have to save for a long time to even buy one thing that we "want". As hard as it was losing everything and starting over. It was definitely worth it. I feel more at peace living within our means now. We hired a lawyer and he charged us $1400 total for his and court fees. Everything was done through him so we did not have to deal with anything bankruptcy related. 

by Member on Jun. 12, 2014 at 4:54 PM

I filed when I was 21 - so it's been quite a number of years ago.
But I agree, if you don't figure out where things went wrong to begin with it WILL happen again. You have to get control of your spending and make a choice to be frugal and follow a budget. 

Discover how this stay at home mommy of 2 used Facebook to give herself a 
$7,200 annual raise!  ***Contact me today to find out how!***

by New Member on Jun. 26, 2014 at 1:16 PM
I had to when my ex-h abandoned the house we owned together. I hired a lawyer for $1000. Its a lot of paperwork. It's been a couple years, my credit score took a dip, but after a year I got a car loan. In about 9 months I can get a home loan. I'd recommend trying credit counseling first. I did that right after leaving my husband.
by New Member on Aug. 12, 2014 at 4:58 PM

We're going through it right now. While I've been stressing out like crazy, it's actually been pretty simple and straightforward. 

I bought the NOLO How to file for chapter 7 bankruptcy book and have done it without a lawyer. There was a ton of paperwork to fill out but it wasn't complicated and the book answered any questions I had.

Filing was easy, the clerk was really polite. The trustee requested some additional paperwork and I'm sending all that out today. Our 341 meeting is at the end of the month and then everything should be discharged about 60 days after that. 

In our case, our bank sold our mortgage and the new lender is flat out breaking the law. They doubled our mortgage. We've been fighting them for six years now and I just can't do it anymore. Every time we fix a "mistake" that they make, they just make another one. They're beyond predatory and I'm not willing to lose any more of my life to them. So, we're saying "fuck the house" and filing bankruptcy and surrendering it. It's worth nothing since the recession anyways. We're in one of those neighborhoods that became a ghost town when everyone was foreclosed upon. We're literally surrounded by rotting, abandoned homes. The bank is stupid. If they hadn't screwed with us every damn month we would have just kept paying the mortgage. Now they're getting no money and a worthless house back they won't be able to sell. I hope the jollies they got from kicking us were worth it to them. LOL

The bright side is we aren't going to lose anything. That's what prompted me to take my accountant's advice and file. We live pretty modestly and all of our retirment funds and college savings accounts are protected. The only thing we're losing is the debt of the mortgage. I don't even consider the house a loss at this point. I pretty much despise it now.

by Member on Aug. 17, 2014 at 1:48 AM
I agree with some posts from above. You have to change your habits before you will truly benefit from any help or relief you may receive.
It may be your choices you've made or it may be unforeseen circumstances.
I've not filed bankruptcy but I have looked in to it. I know people that have and it seems that it was a good decision for them. I am surprised by how easy it has been for them to obtain credit after the fact.

We went an alternate route and implemented a lot of the Dave Ramsey practices. Not all but some. I did not have anything in collections so I don't know how easy it is to work with debt collectors. I only worked with my credit card companies to work out payment plans on things that had become late and also worked to get some of my interests rates lowered. I am not debt free but we are in a much better situation than we were. Just having the relief from having fees added on to fees and interest being tacked on to interest really helped to get it under control.

There are other options. Just make sure you research them all before you dive head in to one.
Posted on CafeMom Mobile
Add your quick reply below:
You must be a member to reply to this post.
Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)