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Advice please probably filing 7

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Anonymous
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Advice please probably filing 7

I'll try to keep this as short as possible. I am very hesitant to even post on a board but I have nobody I can really talk to about this without being very embarrassed.

My husband and I are more than likely going to file a chapter 7 sometime this year. We have met with 2 attorneys and have picked the one we think is best. A little bit of our back story. For years we have carried lots of debt but were able to make minimums and at times able to pay some smaller debts off. I will admit we have never been good with our money and I dont know why. We don't live extravagant at all. We live in a simple house and drive simple cars. I'm not a shopper at all and neither is my husband. I wish I could pin point how we even got into as much debt as we have but I can't . I just can't. I was in a car accident a year ago and haven't been able to work since. We were able to stay afloat for several months but by the end of the year we had to make a tough decision to stop paying all unsecured creditors because we didn't have it . I then sat down and added up all that we owe and I was shocked! Just shocked! I had no idea it was as much as it was. I never added it up because before I was hurt, we made the payments and it seemed fine so I guess I had my head in he sand. Anyways I realized very quickly that we could never get out of this so I scheduled a consult with 2 attorneys and got all the info I could.

Ok so here is where it gets complicated, because of my wreck, and me losing my job I have a pending lawsuit from my wreck. I was not at fault and its a clear cut case. I will be getting a settlement some time this year. Both attorneys recommended we wait until after lawsuit is settled to file and we will protect as much as we can. But this scares me because I'm afraid we will get sued before we can settle. The settlement will not be enough to pay our debts, so with or without we are bankrupt. I would like to say that the wreck is the cause of all of this because if i hadn't been injured, we would have been able to pay our bills. Even if it was just minimums.

Also another thing is I cashed out a small pension that I had when I couldn't work because we needed the funds to pay taxes and also to pay for us to live for a while without my income. The 2 attorneys disagreed on this. One told me I would probably have to show what I spent it on and the other told me I didn't. But like I said, I paid taxes, bought groceries, gas, kids clothes. Nothing luxury at all. I have most receipts for all. I still worry about spending this money now though. I still have some left but that will be used to pay an attorney.

We have 80k in credit card debt, medical bills, house, two cars and also state taxes past due.

So I guess I don't really have one specific question. Just any advice and support I would appreciate. Thanks for listening!

Message 1 of 6
5 REPLIES 5
Anonymous
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Re: Advice please probably filing 7

Can't provide an answer but I can provide you some clarity and support.  Bankruptcies carry an unfair stigma behind them. "You cant manage money so you had to get bailed out." That's not always the case.  Freak accidents, loss of jobs, failing businesses...numerous things can cause a person to have to consider bankruptcy. In my case, I was young and dumb. Thought I could spend spend spend and pay it back in small chunks. Not always the case lol After several years of trying to stay afloat I finally caved and realized BK7 was my best option. I went back and forth about it until I essentially got confirmation from a lawyer that in my situation bk7 was best. While I certainly felt the sting of "I cant handle this on my own, I'm being bailed by the system", it was overall the best decision for me.  It's literally a fresh start. In my situation all of my debts were wiped clean. When you're deep in debt, the release of those burdens really give you a fresh take on life. Combine that with the new found knowledge I've been gaining everyday on my own and this website, I'm in a much better situation POST bankruptcy than I was pre-bankruptcy. I've more credit than I ever had before, I'm consistently keeping my utilization below 8% (PIF is a great feeling when compared to barely meeting the minimums), I'm an avid rewards chaser and the commradory and stories you see on this website truly make the rebuilding journey worthwhile. If you do indeed deem bk7 or 13 is necessary, know that its not the end of the road...it's merely a detour back to the beginning of what can be a healthy and prosperous life and credit health. Good luck and keep us posted!

Message 2 of 6
Anonymous
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Re: Advice please probably filing 7

try not to fill. i you do . do a chapter 13 and keep your home. we filed in 2011 and still cant get a home

Message 3 of 6
Anonymous
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Re: Advice please probably filing 7


@Anonymous wrote:

try not to fill. i you do . do a chapter 13 and keep your home. we filed in 2011 and still cant get a home


There's more to everyone's story. Have you been on the straight and narrow towards credit repair? 4 years is a solid amount of time to recover and make great strides. Theres some on here that have been successful...some have not. Here's hoping you get whatever it is you need. Smiley Happy

Message 4 of 6
Anonymous
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Re: Advice please probably filing 7

We actually plan on keeping our home and cars. We are current on these. I guess I should have said that, sorry. Both attorneys said if we file a 7 it shouldn't be an issue as long as we are current.
Message 5 of 6
Anonymous
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Re: Advice please probably filing 7

correctomundo

Message 6 of 6
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