2nd thoughts about filing ch. 7 :(

[Anonymous]

I made the very tough decision about filing ch. 7. Met with my lawyer, paid half down, and then turned in my paperwork. I go back next week to officially sign and file. BUT I am starting to have second thoughts.

I just don't know what to do. I've posted a few times before about my debt. I really DONT want to file, but two of my loan companies that I owe have submitted my loans to a lawyer office. My fear is the judgements and garnishment of my check. (This new job sucks and the pay is just a big NO...but it's a job so I'm grateful. By me losing my previous well paying job, I cant keep up with my car payments either. The second job I secured, they low balled me on my offer....This is all why I filed.

Are judgments that bad? Do they stay on your credit that long?

I read this forum almost daily. I'm afraid my rebuild won't be easy.

[Anonymous]

No one WANTS to file, but unless you can find another job quickly with more pay, your options are limited. If the 2 loan companies have attained attorneys and your having issues with your car payment, it's looking bleak. I've never had garnishments, but that can't be a good time when your already strapped for cash. 

Just fyi, I totally get why you don't want to, I didn't want to either. But, you CAN strategically rebuild your credit. 

[medicgrrl]

Judgements have the potential of staying on your credit report for over 10 years if not paid. They affect your credit as much as a bankruptcy from what I hear.

Do you have a plan of action if you decide not to file?

[StartingOver10]

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@medicgrrl wrote:
Judgements have the potential of staying on your credit report for over 10 years if not paid. They affect your credit as much as a bankruptcy from what I hear.

Do you have a plan of action if you decide not to file?

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^^^Right. Not only that, but depending on where you are, a judgment can last 20 years and be renewed at the end of the 20 year term for another term of 20 years if unpaid. The entire time a judgment is unpaid, it accrues interest at the statutory rate. Here is a little more informationhttp://www.nolo.com/legal-encyclopedia/how-creditors-enforce-judgments.html

: 

Judgments go against you in the public records - so even if it drops off your CR it impacts you in other ways. For example, if you own a home, the judgment lien holder can collect on your proceeds when you sell your home.  In about half the states the judgment automatically attaches to your home when it is issued. http://www.nolo.com/legal-encyclopedia/judgment-liens-property-your-state-46808.html

BTW, I'm not pushing you in either direction. If you can come up with a plan of action without filing Bk you can recover from the two judgments. It is better if you attend the hearings or set up payment arrangements to avoid the judgments. If you end up with the two judgments you can still make payment arrangements. Discuss with your attorney.

[Anonymous]

Oh wow I did not know this. Thank you so much. I honestly don't have the money to even make a payment arrangement. I have a job interview coming up in my previous field. It pays well, I hope I get it.

Now that I have more information on judgement I feel much better about filing. Thank you again.

I read 700 in 24 months thread and the bk friendly cards thread and I'm wondering since I'm burning both capital one and credit one, who should I rebuild with first. Luckily, I'm in at NFCU. They lady said I could get a rebuilder loan, but I don't want anymore loans. I have current student loans that are current and in deferment.

I'm burning Capital One for 3k total for 2 cards. And Credit one. Should I go the secured route for my first card.

Also, I'm surrendering my car. I really need a car to get to work and school. I've been on Carvana and saw a nice car for 14k with a real cheap car note. Trust me, I e learned my lesson with 500+ car notes. Can I get one after I file, or wait until I'm discharged?

Also, if I get this job that will pay more than my last job, will I have to resubmit my income if I get it after I officially file next week?

[Anonymous]

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@Anonymous wrote:
Oh wow I did not know this. Thank you so much. I honestly don't have the money to even make a payment arrangement. I have a job interview coming up in my previous field. It pays well, I hope I get it.

Now that I have more information on judgement I feel much better about filing. Thank you again.

I read 700 in 24 months thread and the bk friendly cards thread and I'm wondering since I'm burning both capital one and credit one, who should I rebuild with first. Luckily, I'm in at NFCU. They lady said I could get a rebuilder loan, but I don't want anymore loans. I have current student loans that are current and in deferment.

I'm burning Capital One for 3k total for 2 cards. And Credit one. Should I go the secured route for my first card.

Also, I'm surrendering my car. I really need a car to get to work and school. I've been on Carvana and saw a nice car for 14k with a real cheap car note. Trust me, I e learned my lesson with 500+ car notes. Can I get one after I file, or wait until I'm discharged?

Also, if I get this job that will pay more than my last job, will I have to resubmit my income if I get it after I officially file next week?

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NFCU Secured would be a great place to start.

You've thought about it long and hard and already have the ball rolling on filing. I would personally roll with it if I were you.

You can get yourself situated and start over and be fine on your current income. If you get the new job down the road, things will REALLY be looking up.

My story was a bit similar. I secured a much better job a few months before I filed, and fixing my employment situation combined with fixing my debt problem really propelled me in the right direction. 

You can get a car without a note. Scrape together a couple grand with the money you're saving not paying your bills while you're pending discharge. Then have a mechanic check out and buy a $2k car for cash to get you by a couple of years while you rebuild and save for the next one. Don't let yourself ever fall into the upside down trap again.

Good luck with whatever you decide

[Anonymous]

I'm going through a similar issue that is causing me to file bankruptcy except that my bank account has actually been garnished. All payments to my bills and credit cards were reversed and not paid. My paycheck hasn't been garnished yet but it could be coming. The only way to stop this is to file bankruptcy and hopefully recover some of the money that has been taken. I was never late on any of my credit cards or other bills and never thought about bankruptcy before then but now I'm forced to because I'm behind on everything with no way to catch up. It sucks and I wish I could have caught it like you did before it happened. Bankruptcy isn't fun but sometimes it may be for the better especially if the situation calls for it.

[Anonymous]

Update: officially filed today! Big sigh of relief. I'm actually at peace with my decision. Super nervous about my 341 hearing though.

[Anonymous]

Congrats, I'm sure you feel relieved!  341 meeting was easy-peasy.  It's the waiting for official discharge that is nerve-wracking!  Time won't move fast enough!

Good luck on your rebuild!

[Anonymous]

Don't  worry about the 341.  It may last 10 minutes.  I have seen debtor, attorney for debtor and trustee present  and thats it.