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Bankruptcy - Any Regrets Anyone?

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Garmin
New Member

Bankruptcy - Any Regrets Anyone?

Hello Everyone,

I am going through a massive crisis due to credit card debt & upside down real estate in LV & FL.

 

I am considering Bankruptcy to end this mess & start over. I am also married with children,  scared of BK and still not 100% sure.

 

Can you be honest with me -Does anyone have any regrets of ever filing BK? Please let me know.

Thank you. 

Message 1 of 16
15 REPLIES 15
tray
Valued Contributor

Re: Bankruptcy - Any Regrets Anyone?

Hi, if there is anyway you can re-negociate, make payment arrangements, confide and obtain advice from a real estate attorney I would do so if I was in your situation. In the year 1999 I filed BK chapter 7 thinking oh this is easy clear out my bills/was in a car accident with no insurace in which I was in major trouble there as well and although debts was excused at that time I did not realize down the road the horror I would face with the scarlet letter BK on my credit reports. Even as for now being close to 10 years still face denial getting prime credit cards like Chase, Citi, Amex as they are not BK friendly, obtaining loans and many other things, even rebuilding credit is a struggle in order to prove yourself again that you are credit worthy. BK is just a scar on credit reports. Believe me come the 1st of next year 2009 and I going to be giving myself a party knowing that in a few months after that my BK will be off my reports. Good Luck in whatever you decide to do really think about your situation and also remember nowadays it is more of a hassle to do BK than it was years ago when I did my BK.

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Message 2 of 16
Anonymous
Not applicable

Re: Bankruptcy - Any Regrets Anyone?

I filed BK in 2003 because I had personally guaranteed the debt of my company (over a million and a half dollars) and the time came to pay up when it failed. Several of my vendors offered to "forgive" the debt but that would have had serious income tax consequences. You should definitely contact and attorney to make sure that any arrangement you may be able to arrange with your creditors will not create a tax liability that will likely be non-dischargeable if you eventually DO file for BK. Personally, I have no regrets about my choice to file BK even though it was a hard choice to make. I think it depends on how much debt you have and the likelihood that you will be able to repay it. When I see folks choosing BK over $10,000 in debt, I have to shake my head. I think that is a poor choice if you are healthy and can work because creditors will let you pay that off for as long as it takes to avoid getting nothing if you BK. What will change that will make paying it possible? Can you make those changes without jepardizing your health, safety or relationships? Can you get some part-time work and apply all that money to the debt? Can you get a renter into your homes? For me, it was just easier to start over and try again in business. This time, it has been going very well. I have 727, 700 and 737 on my credit scores now - only 5 years after the BK. Last year at this time they were 584, 646, and 680. When the BK drops off, they will be even better. Keep in mind though that the BK itself is one stain but late payments are another. It is better to do all you can to keep everything current until you make this decision (which you may have already made by now). If you file BK without having late payments, your credit score will improve faster than if you have a BK and several delinquent accounts. I found this out from experience. Good luck to you!

Message 3 of 16
creditchief
Regular Contributor

Re: Bankruptcy - Any Regrets Anyone?

Hello Garmin sorry to hear your troubles.At this time you really have to remember your priorities,you have a spouse and children who needs your good health and a roof over your heads ,the credit will come back later but you need to try and keep your home at almost any cost. Why have a good credit record and live on the streets? You will probally want to talk to a good attorney and possibly file a CH13 to save your home. And always remember to pray about it first because we have a God who will always listen. God  bless you and your family and good luck!!!

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Message 4 of 16
Anonymous
Not applicable

Re: Bankruptcy - Any Regrets Anyone?

I did chapter 7 in 1999.  Business and medical.  If I had it do over I think I would have done Chapter 13.  If it does not work out you can always go to 7.

 

It has been a long hard climb back.  now at 717   733  and 698 with perfect pay for the entire 7 years since I was able to get credit.  Still my credit is affected and BK is 9 years old.

 

I believe with  Chp 13 you pay a certain amount for so many years and you are done.  It only stays on your CR for 7 years instead of 10.  With my chpt 7 it wiped out everything even the IRS.   I did pro se so it was not expensive.

 

Make sure you have a good lawyer.

 

 

Good luck

Message 5 of 16
tatiana
Contributor

Re: Bankruptcy - Any Regrets Anyone?

I agree with the other commenters; it really depends on your situation.  It ended up being a good decision for me as I had just been laid off, knew I wouldn't be able to pay anything off for awhile, possessed virtually no assets of interest, and was in no immediate hurry - once the smoke cleared - to prepare for big ticket credit products like a mortgage.  Further, I benefitted from some very lucky choices made during and since the BK.  Probably the most fortunate was the decision to save three useful, zero-balance, clean credit card accounts from the "before" time, including a Chase card I wouldn't be able to TOUCH if I were applying for it right now, given the BK on my reports.  These accounts made it so I could bypass a chunk of the usual "rebuilding" humiliation and hassle.  Saved me time and trouble on the age front in particular.  

 

Edited for grammar!  

Message Edited by tatiana on 10-22-2008 05:06 PM
-------------------------------------------------------------

Might as well change my surname to Morgan-Chase.
Closed on my crazy midcentury home in July, 2012! Thanks, FHA!
Message 6 of 16
Uniqua
Established Contributor

Re: Bankruptcy - Any Regrets Anyone?

Hi, Garmin:

I have no regrets for my Ch 13 BK. It was the best decision I could have possibly made. Unfortunately, I think I waited a little too long, though, but I still have no regrets. My baby ended up suffering from a brain aneurysm (he's now permanently disabled) and I had to take off an extended amount of time from work to care for him. When I went back to work, I was so far behind in bills I simply could not catch up. Then, all hell broke loose and I was laid off from my job. Needless to say, after trying to do things my way and avoid the embarrassment of BK, I filed. I had no other choice. I'm glad I did a Ch 13 and not a Ch 7. I paid off most of my debt, now I'm on the road to credit recovery. Although I'm still paying for it credit-wise, it won't be long now before the BK is removed from all 3 CRs. That is one day I am soooooooo looking forward to!

Everyone's situation is different. You have to do what is right for you. Get in contact with an attorney or two and seek the legal advice you need. They can give you more information than we can. I know things seem bleak to you at the moment, but this too shall pass.

All the best!
Message 7 of 16
Anonymous
Not applicable

Re: Bankruptcy - Any Regrets Anyone?

I think it's a very different environment now than it was when we filed in 05. I don't regret ours. My husband was out of work for an extended period and we were in foreclosure. I felt like, if we were going to lose the house, there was no reason to keep fighting and BK was the best answer.

 

We had planned to build a house next spring, but now won't be able to because of how the laws have changed for conventional financing. (Instead of 3 years from filing, you have to be 4 years from discharge.) They won't do piggyback loans either, so you need a larger downpayment.

 

We were able to get auto loans through Chrysler last year. Now, there is a shortage of lending money available and even people without BK are having trouble getting loans. Credit card companies are pulling back as well.

 

If you have income you will probably have to go CH 13. In the end, it may be the answer for you, but first, you need to figure out exactly how it will affect you. Where will you live? What will you be able to keep? We had a local landlord who agreed to rent to us despite our abysmal credit at the time... but we had to put down 4 months rent before we could move in... 3 months as a deposit.

 

Look into programs your state or county might have for people in your situation regarding the mortgages. That's a common problem right now and there may be help available. Maybe the bank will let you sell the property you don't live in as a short sale. (It's probably better for them than foreclosure.) If you can work out the mortgage side of it, then perhaps you can negotiate with the credit card companies.

 

BK is still there if all else fails, but don't jump in blindly.

Message 8 of 16
Anonymous
Not applicable

Re: Bankruptcy - Any Regrets Anyone?

Absolutely.  One big one was knowing I had no other choice but file for ch7.  While the discharge of debts was a major relief, the offset was the low score and some missed credit opportunities.  For example, I moved and had to switch car insurance, and got higher premiums based on credit rating, some non-private apartment rental agencies wouldn't rent to me, and some lcar oans and credit cards I did receive after filing were at much higher interest rates.

Still, I was happy that I got the insurance, got the car loan, and got the credit cards.  That's the optimism you must keep for yourself and the position you will be in for a very long time. More good news, is that you can rebuild and good people along the way will be willing to help you.  Especially, and unfortunately, now that so many more people will no doubt be experiencing financial difficulty.  Good luck to you. 

Message 9 of 16
Anonymous
Not applicable

Re: Bankruptcy - Any Regrets Anyone?

 
Message 10 of 16
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