Chapter 7 Bankrutpcy

[Anonymous]

I have been considering filing for chapter 7 bankruptcy and surrendering the home as well. My question is, after you file and get discharged, I'm wondering what have your experiences been finding a place to rent after doing so? Any information would be appreciated.

[Anonymous]

Welcome to the forums! It is a difficult decision for sure. We went through it recently. It wasn't easy to find a new place to live. I would recommend finding a private owner. They may be a little easier to deal with than the large corporations. We were denied straight out by our first choice of apartment due to our BK7 (we had been discharged for 6mos). Our second choice denied us originally, but they came back and allowed us to take the place with a 1 month rent risk fee.

Realize, even if you surrender your house, you will probably still be able to stay in it for awhile. It takes time to go through all of the legal procedures. Just be ready to move somewhere else when the foreclosure auction is in place (the one after you file, if you are staring at a foreclosure now, realize the filing of your BK7 will provide an immediate stay).

I know things look bleak now, but realize there is light at the end of the BK7 tunnel. Learn from the mistakes of the past and make a plan on how to succeed for the future.

Good luck to you!

[Anonymous]

Finding a plance to rent was not the easiest but very doable.  The bigesst challenge was making sure you dont move out of current home until AFTER you bankruptcy is discharged as most people/companies wont rent to you with open bankruptcy.  In addition most would require a high security deposit, but these can easily be worked around.

[Anonymous]

Thank you for the prompt responses. Right now I am in the position of questioning myself if I should file or not. I have been doing lots and lots of research on the topic and at this point I'm undecided. I live in Texas which happens to be a debtor friendly state. I have about 6k in capital one debt which I stopped making payments on. I had a Wells Fargo line of credit in the amount of 8500 that I stop paying and a truck that got repoed which is now in collections for the amount of 6100 after they sold it. I am also current on some conn's stuff, furniture, and a refridgerator and have an avant loan that I"m current on, and care credit which is only 20 a month. I'm just sick of living paycheck to paycheck, and it's my own fault, I got the line of credit and was living through the credit cards to pay on my mortgage. It was dumb of me to get the mortgage because really my familiy isn't ready to be homeowners truth be told. I got in way over my head and before I realized it I was deep in the waters. The only thing preventing me from filing right now is that after I get the bills paid off that I am current on that will open up more disposable income for me and my hope of surviving is that I don't get sued by one of the creditors that I am behind on. If I get sued, then I would be forced to file as there isn't any way I have the means to pay back the debt. So right now for me it's lifes decisions while researching bk.

[Anonymous]

I am not staring at a foreclosure now as I am current on my mortgage, barely scraping by. However, do you move when you get the foreclosure notice or when you get the sale date notice. I've had different opinions on this one.

[Xarquinn]

With a car repo, collections account and two lines of credit currently in default you are going to have a tough time getting approved for an apartment regardless of bankruptcy. 

If you qualify for chapter 7 based on your household size and income (google "means test") I would go for it.  You wouldn’t have to pay on any of your loans including mortgage during the process which should allow you to save up a decent security deposit.  Also, it is a reset that stops creditor from reporting after discharge allowing you to rebuild.

You have until the sale date to vacate your home.  Should be a minimum of 7 months from when you stop paying but probally closer to a year.

[Anonymous]

That is true I would have a tough time trying to get an apartment with that bad credit however I am not trying to get an apartment unless we decide to go through with a bk. If we dont go through with the bk then we will keep the home so will not have to worry about an apartment with the bas credit. Im just not sure if its best to file bk or if I should wait it out and see if I can get by without getting sued first. The attorney said I qualify for chapter 7 but its no garanteed meaning as long as the court wouldnt want to count my yearly bonus as income then I qualify. He said if they want to count it as income then Id probably be forced into a 13.

[Dis0314]

I wouldn't file.. Of course I don't know your income but 20k in unsecured bad debts split between three parties isn't that much. I'm in Texas and to give you an example on just an AMEX platinum I had 85k on it. that last 16 months up until I filed and all I received were lawsuit threats. 

And what  happens if they do sue you?

Let me me paint a picture of what will probably happen. You don't pay them and they have 4 years to sue from last payment.. After 9 months or so you can begin offering to settle in full. I had Amex asking me to settle lol. They were offering 65% to settle in full. so save your money do not pay them anything. Once you can start settling. I wouldn't chp7 for that debt. 

[Xarquinn]

Filing doesn’t necessarily mean that you have to give up your home.  If it is under water, you can file without reaffirming, continue making payments on the mortgage and keep the home.  You can later bail if you decide that you no longer want to keep the house. 

A Ch7 bankruptcy will eliminate any worries about a judgement and allow you to begin the rebuilding process.  If you have to file Ch13, you may be better trying to settle with your creditors as the other poster had mentioned.