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Have any of you ladies claimed bankruptcy due to debt? I am considering it and just want honest experiences....pros vs cons
Posted on CafeMom Mobile
by on Jun. 22, 2012 at 4:59 PM
Replies (71-80):
ab51304
by on Jun. 24, 2012 at 9:54 PM

There are different types of bankruptcy and it doesn't destroy your credit for ten years.  You can obtain credit cards and auto loans right after discharge.  You can buy a house two years after a chapter 7 if your house wasn't included on the bankruptcy.  Before you send misleading comments you should do some research.

Nursesummer
by on Jun. 24, 2012 at 9:57 PM
I just did it.My trustee meeting is tomorrow
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Cpdsptchgrl
by on Jun. 24, 2012 at 9:58 PM
It stays on the report for 10 years...yes, it does damage your credit for that time as anybody who does a credit check will see it. Can you get credit cards? Yes, however I have had my jaw drop at the interest rates. Can you buy a car? Yeah...same thing with the interest rates. Will it get better over the years? Yes, but it WILL damage it. Also...to those who think credit cards will build credit do NOT fall into that trap. They do not help enough to take the risk, but they sure can damage it like crazy. If you want to recycle credit personal loans and things of that nature are the way to go.


Quoting ab51304:

There are different types of bankruptcy and it doesn't destroy your credit for ten years.  You can obtain credit cards and auto loans right after discharge.  You can buy a house two years after a chapter 7 if your house wasn't included on the bankruptcy.  Before you send misleading comments you should do some research.


Posted on CafeMom Mobile
ab51304
by on Jun. 24, 2012 at 9:58 PM

BUMP!

ab51304
by on Jun. 24, 2012 at 10:06 PM

I JUST got through with the bankruptcy.  We obtained two credit cards for a credit limit of $600 each and our rate is 13%.  We obtained a loan for a van (we have 7 people in our family and because our cars were repossessed during bankruptcy we needed something sensible to transport) for $14K at 8%.  The interest rates are higher than normal BUT ithas already raised our credit scores and our van will be paid off in August since we can now put $750/month towards the van instead of the actul monthly payment of $250.  we only spend less than 30% at a time on the credit cards and pay them off the following month so it reports to the credit companies.  If you take the courses seriously that are offered by your lawyer then you will learn how to rebuild credit.  If you were responsible before your bankruptcy then you should have no problem managing and improving your score.  We negotiated a better rate with the bank and our credit card holders because I called the companies individually and let them know the situation.  The underwriter at the bank took our interest for the car from 17% to 8% with the flick of his pen.  Don't think your credit has to be bad because of a bankruptcy.  Negotiate, know your rights, know the laws and stay in contact with your lawyer and paralegal.  They will give you the exact terms and laws to bring to the table when negotiating anything.  There are laws preventing banks and credit companies from charging you astronomical rated just because of a bankruptcy.

inpraize
by on Jun. 24, 2012 at 10:24 PM
I have filed bankruptcy three times in my life (once with ex, twice with hubby). Each time was following a catastrophic illness or accident that came with $25,000 in medical bills each time.

The process is long, hard and expensive, but the relief is unspeakable. If you have bills coming in, find an envelope and start collecting them. Pick your attorney carefully (I wouldn't suggest doing it yourself the first time).

Make a plan for after your discharge. Decide if you need to downsize on anything (vehicle, housing, lifestyle) and resolve to stick with it.

Unfortunately, my husband suffered two strokes in a week three years ago following six months off work from a job related accident. The company he worked for dropped our insurance and between his medical expenses and mine (I'm normally the sickly one), this time we have $42,000 in medical bills and about $25,000 in personal bills. We have no choice but to file again because we have both been told we cannot return to work.

Our plan: file, downsize to an apartment, start an online business.

You can survive bankruptcy and beyond. Good luck.
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PinkieRed
by on Jun. 24, 2012 at 10:33 PM

I'm not a member of this group, but saw this post on the CM homepage. 

That's awful what you went through! The police CANNOT arrest you for not paying a debt, other than child support, or maybe taxes, and only then, after all the proper channels have been gone through. It is NOT illegal to get behind on bills other than those I mentioned. Credit card bills, medical bills, student loans, etc, etc. - no way can you go to jail for not paying those! Don't let any bill collectors tell you that - they are full of it, and just trying to scare you! It is a violation of the Fair Debt Collection Act to threaten someone with arrest or imprisonment for not paying a bill!

Quoting hargonagain:

I am in the middle of filling out all of the paperwork.  It is a huge undertaking.  I have tried to avoid it for 4 years, but it has come to the point that I either file for bankruptcy and start over, or just lay down and die.  I tried debt consolidation, that was a huge disaster.  I tried settlements, but as soon as I would pay one creditor I would start getting hounded by 4 or 5 more.  A few months ago I paid off a $315 bill that was a couple of years old.  The next thing you know my mail box and my voice mail were flooded with threatening letters and phone calls.  One bill collecter demanded that I pay $800 that day or she was going to send the police to my house to arrest me within the hour!  I was off work for almost 11 months due to heart problems and when I got back to work my checks for the first 3 months were only $800 per month.  Then they started gradually going up, but the past three years has been incredibly hard for us.  As it is we (my son and I)  ended up moving in with my Mom to try to get on our feet, but even then we struggle.  I didn't want to do it, and like I said I have avoided it for 4 years, but things are getting any better, so I already paid the filing fees and retained the attorney.  I am in the middle of the paperwork and hopefully it will be done by the end of June (the paperwork part).   

 

mommynac
by on Jun. 24, 2012 at 10:34 PM

Yes. I was able to wipe out 30K in debt from my divorce. All of it was related to ex's irresponsibility.

denisepeace
by on Jun. 24, 2012 at 10:49 PM

I filed! Best thing I ever did. All you do is get an atty. You fill out papers, go to court. You really don't go in a court room, you go into a court office....the person asks you your name, verifys your information and usually within two minutes they stamp your paperwork and your FREE!~ and I mean FREE.  Who cares that your credit score is bad. Are you really seeking to get into debt with more credit cards? Further more, check with your state, your bad debt can only stay on your credit report 6 or 7 years and then it has to come off.  Bankruptcy usually falls off in 10 years. Make sure you keep track of the credit report because most of the time you need to request these accounts fall off.  Now, too, keep aware that your old debt accounts will be sold to collection agencies. Never answer the phone to them. They will be sold right before the time comes for them to drop off.  If you acknowledge the debt, the clock starts over, so don't under any circumstance, acknowledge.  They're getting ready to come off the report.  File the bankruptsy. You will feel so much better. It may be an issue if you rent as landlords want good credit.  But if you own your home, they are going to ask you if you want to reaffirm your mortgage and say no.  By doing so, you can always walk away from your home if something happened. For instance, if your house caught fire, (God Forbid) and there was no insurance to cover the costs of the loss, the bank can come after you to finish paying the loan. If you don't reaffirm the mtg, you can tell the bank to get lost.  LOL  You can tell how I feel about banks and their terrible ways.  I personally think you should file. The powers at be are thinking of changing the bankruptsy laws, so you better do it soon, before you don't have a chance to later.  Also, get the books, "Debt cures they don't want you to know about and Free Money, by Kevin Tredeau. You can get them from half.com    These books have been my financial bibles and really got me upset when I read about the tactics the banks use!  Great books to have on hand.  Gosh, I keep going on and on......File and be Free!   God Bless,

1stpreggers
by on Jun. 24, 2012 at 11:28 PM

 I actually started the process it seems overwhelming, but not actually that difficult. Its a ton of paperwork though. I would try and find a legal aid or paralegal there're much cheaper. also some ppl qualify to have their court fees waived.

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