Bankruptcy

[devlpr]

If you file what happens to credit cards that you don't have a balance on? Will they stay open? Can you rebuild your credit with them after BK?

[maggie88]

When you go for Bankruptcy, all your credit is listed, whether paid or not.  

Whether the company wishes to keep you or not is "up" to them really.

Usually a few will let you maintain your status with them to help you rebuild credit, but not always.  It depends on the retailer and/or credit card company.

[maddy1001]

I received notice that one of my delinquent credit cards is suing me, with a court date set for the beginning of Sept.  I have contacted Legal Aid to help me file bankruptcy, but they are usually backed up and I'm concerned if they don't get paperwork started before then.  Also, I'm very ill and may not be able to go to court.  If I don't go to court, they automatically get a judgment against me.  Can anyone enlighten me on how bad this will be if I can't go to court?  Is there anything else I can do in the meantime?  I'm on disability and have no funds to work with.

[maggie88]

In Reply to Katie 22001

I'm glad that you are able to start out fresh and obtain a loan. It's different in each state and with each individual case. What was done to me may not be done to another; and that is all I am referring to.  If you're working that is a big plus. 

Don't get me wrong here...I appreciate the fact that you allowed me to see another side and how you can rise up from the so call bankruptcy flames like a phoenix. 

I wish you good luck.

[maggie88]

I can feel you're predicament  and all that you're going through at the moment.  I won't say I'm the wise owl here who knows all...because I am not and to suggest something, may just not fit you and your case.

Yet It appears you may have to file bankruptcy. You don't have much of a choice, it seems your backed up to a wall. The attorney's can help you,  at least get these people off your back in the meantime. Also, they may be able to work with you on a payment schedule or something. It doesn't hurt to ask.  Call and find out.

Meantime, if your that ill and unable to deal with the stress of communication with the creditors or lawyers, you may want to ask a relative that you can trust, to be the spokesperson for you.  ( It's just a suggestion.)

[maddy1001]

Hi Maggie,

Thanks for the input.  Unfortunately, my only close relative is going through her second series of chemo, so there is no one that can help at this point (she has major problems of her own).  I will contact our local senior organization to see if anyone there can assist me, but I don't hold out much hope based on past experience.

I'm under enormous stress (which is exascerbating my condition) because this is just one of many financial dominoes that continue to fall.

I will have to file for chapter 7 bankruptcy, since there is no way I can pay anything back (unless I hit the lottery ?).  I wish I could do the paperwork myself, but that is impossible.  I have to hope that Legal Aid will come through on this.

Has anyone else ever had Legal Aid help with their bankruptcy?  I also have to try to get the financial counseling that's required prior to filing.

It just never ends.

[mandy2012]

I disagree. Bankruptcy can save your financial future if you are in over your head (like most Americans). I filed bankruptcy a few years ago and it saved me. I am doing much better now and my credit score has increased quite a bit. It does NOT stay with you forever by the way.

[ShyTownDva]

@maddy1001

I am new to myFico and have found a lot of useful information &  thought I should share my experience with you as I was in a similar situation.

Yes, you  MUST have the financial counseling or your case can be dismissed.  This can be completed on line.  I  was advised by my legal Aid rep to file an emergency petition as she was sure that her office could not get my case filed in time to advert a garnishment of my wages. 

The emergency petition was only 5 or 6 pages that asked general information about your household, income, budget & creditors (I only listed creditors that were currently threatening me)  I filed Pro Se & completed a form asking the court to waive filing fees. (Which in my case was granted)  I was  immediately protected under the automatic stay.

There was also a bankruptcy assistance desk available to help me at the court house.  Legal Aid assisted me with filing the complete petition  which had to be filed within 14 days of the emergency petition.  If time is of the essence,  I would suggest you contact legal aid office right away and also maybe the bankruptcy assistance desk in your area to find out the about their hours of operation.  The assistance desk usually takes only a certain amount of people each day (10 at my court house), no appointments, first come first served and the slots typically fill up fast.

This was just my experience.  You should definitely seek legal advice.

Good Luck & I hope all goes well for you.

[maddy1001]

ShyTownDva:  Thank you so much!  At least I now have a direction to follow.  I'm totally ignorant of how these things work, so your information is very valuable.

I'm sure lots of others will also be grateful for this info.

[tayra03]

i have the same problem to, but i was never last w any of my cc and loans. it very fustrating! I was told that it would be including in my bk, and not show up. Now not only does it show up but its state that i was late w my payment.