Hi Everyone,
I am new to the board and am currently trying my best to bounce back from a hard financial time during the past 2 years. Long story short I had a difficult pregnancy, doctor ordered bedrest from work, hospitalized to save my and baby's life, had a successful birth, went back to work, lost my job, and currently about to lose the house. Foreclosure sale date is set for Feb 5, however I have accepted it and moved to an apartment and been living here for about 3 months now. I also was able to find another job and have started back working. I really wanted to try and handle my debts one by one after the foreclosure as I realize that bankrupty should be a last option however the judgement is NOT something I feel I owe. I am willing to settle just for 25% to have it off my report but otherwise i feel I would be better off just filing the BK 7 and getting a FRESH START. I have put a plan in place for rebuilding afterwards on both scenarios but really just want to clean up my credit and keep it that way.
So my question is do you think I should file if I CAN'T settle the judgement or should I just suck it up and pay the judgement even if I don't feel I owe it. Debts are listed below. Thanks in advance for all advise, suggestions, and thoughts.
JUDGEMENT ACCOUNT
Public Record: Waterford Crossing Apartments $4,265
Date Filed: 07/06/2011
Type: CIVIL JUDGMENT
Estimated month and year that this item will be removed:
06/2018
I honestly don’t feel I owe this as I gave proper notice and left for military deployment. I received the letter of the court date while I was hospitalized during my pregnancy and was unable to attend. I contacted both the lawyer and the court and no one was willing to help even though I had document proof from the hospital and my doctor.
HOME FORECLOSURE
WELLS FARGO HOME MORTAGE
Balance: $123,365
COLLECTION ACCOUNTS
FROST-ARNETT COLLECTION (Medical Bill)
Placed for collection: 02/27/2012
Balance: $1,863
Original Creditor: MEDICAL-GWINNETT ANESTHESIA SERVICE (Medical/Health Care)
Estimated month and year that this item will be removed: 08/2018
HOLLIS COBB ASSOCIATES I (Medical Bill)
Placed for collection: 05/20/2010
Balance: $377
Original Creditor: MEDICAL-GEORGIA EMERGENCY MEDICINE SPE
Estimated month and year that this item will be removed: 07/2016
HOLLIS COBB ASSOCIATES I (Dental Bill)
Placed for collection: 05/20/2010
Balance: $190
Original Creditor: MEDICAL-GEORGIA DENTAL ASSOCIATION
Estimated month and year that this item will be removed: 07/2016
AFNI (Direct TV
Placed for collection: 11/01/2012
Balance: $224
Original Creditor: DIRECTV (Utilities)
Estimated month and year that this item will be removed: 07/2019
Dish Network:
$59: Disputed with EQ 1/8/2013 (ONLY ON EQUIFAX)
FRANKLIN COLL SVC (ATT)
Placed for collection:04/29/2011
Balance: $119
Estimated month and year that this item will be removed: 05/2017
Walton EMC (Electric Bill)
Balance: 400
NOT on credit report but I know I have this bill lingering.
Starting: 503 EQ FICO (1/2013-Pre Foreclosure) 
First off I want to say thank you for your service to this great country of ours and I am very happy to hear you and the baby are OK, that is the most important thing.
Have you talked to an attorney about this judgement? That is illegal what they did and you could sue them for damages. If you have to break a lease due to deployment, you are exempt from the binding contract, which is your lease.
Life after a Chapter 7 is very hard credit wise. I filed both a 7 and a 13 and I successfully completed the Ch 13 plan and it was deleted off my credit reports at the 7 year mark in Oct 2012. The Ch 7 is still on my reports and it will be deleted Aug 2013 after 10 years. I am still having a difficult time getting credit cards from prime lenders. I barely got a Chase Freedom this month after reconsideration. During the reconsideration process, Chase sent me a denial due to bankruptcy letter. But a week after I received it, the card was approved but it took 3 weeks of calling multiple times and faxing in stuff...it was such a hassle! I also have been denied housing multiple times due to the Ch 7. They all said, if it were just the Ch 13, they could charge me a higher deposit and let me move in. So I have had to deal with private landlords, which are the worst.
I would talk with an attorney about your judgement to see if he can get it removed. If he can, head to the rebuilding section of this site to find out how to take care of your collections. If the attorney can't do anything, I would consider a Chapter 13 over a 7 and you would just pay back a portion that you owe over a 3-5 year plan and if.you complete it successfully, the bankruptcy will be removed 7 years from the date you filed. A 13 looks more favorable to creditors as it shows you have paid some of your debts back and you will be able to reestablish your credit sooner rather than later as it will be easier to get new credit.
In my opinion, you should only file a 7 if the creditor in the judgement threatens to garnish your wages.
Best of luck to you and the baby.
Have you talked to an attorney about this judgement? That is illegal what they did and you could sue them for damages. If you have to break a lease due to deployment, you are exempt from the binding contract, which is your lease.
Life after a Chapter 7 is very hard credit wise. I filed both a 7 and a 13 and I successfully completed the Ch 13 plan and it was deleted off my credit reports at the 7 year mark in Oct 2012. The Ch 7 is still on my reports and it will be deleted Aug 2013 after 10 years. I am still having a difficult time getting credit cards from prime lenders. I barely got a Chase Freedom this month after reconsideration. During the reconsideration process, Chase sent me a denial due to bankruptcy letter. But a week after I received it, the card was approved but it took 3 weeks of calling multiple times and faxing in stuff...it was such a hassle! I also have been denied housing multiple times due to the Ch 7. They all said, if it were just the Ch 13, they could charge me a higher deposit and let me move in. So I have had to deal with private landlords, which are the worst.
I would talk with an attorney about your judgement to see if he can get it removed. If he can, head to the rebuilding section of this site to find out how to take care of your collections. If the attorney can't do anything, I would consider a Chapter 13 over a 7 and you would just pay back a portion that you owe over a 3-5 year plan and if.you complete it successfully, the bankruptcy will be removed 7 years from the date you filed. A 13 looks more favorable to creditors as it shows you have paid some of your debts back and you will be able to reestablish your credit sooner rather than later as it will be easier to get new credit.
In my opinion, you should only file a 7 if the creditor in the judgement threatens to garnish your wages.
Best of luck to you and the baby.
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Thanks movingforward for your kind words and advice. The baby and I are doing great now and he is a healthy happy big boy. He is actually 1 yr old now.
I was considering Chapt 7 because I also have a house that is set for the sheriff sale on Feb 5. Luuckily I don't have to worry about the landlord/moving situation because I work for a property management company and have already moved onsite to one of our luxury apartment communities. The other plus is I get a really good discount so I can actually SAVE and REBUILD. I have a plan written out to save 20k over the next 3 years with my now husband so that we can buy again 3-4 year after the bk discharge. He is not on the loan for the current house that is about to foreclose on.
So I guess my next 2 question are:
1. Do you think even with the Foreclosure and keeping in mind I don't want to keep the house that Chapt 13 is still the best option?
2. My sister has really good credit and has a Chase Freedom credit card that she is willing to add me as a joint account holder to (after the bk is discharged) in order to help me rebuild. Is this a good idea considering I have read chase is not bk friendly.
Hi! I am glad you and the baby are doing great and he is happy and healthy. With the foreclosure situation, it might be best to file a Ch 7. I hate to say those words. 
I filed a 13 to try to save a home that was headed for foreclosure. It foreclosed anyway and I had the BK amended to exclude the mortgage arrears from being paid back. They never came after me because WAMU went under. So if you file a 13 with a foreclosure and you don't include them, they can try to collect the debt. If you include the arrears in BK 13, your payment to the trustee are likely to be high. But talk with a attorney about both options and have him estimate what you would need to pay per month with a Chap 13 given the foreclosure arrears you have. I did a 5 year plan vs a 3 year plan and the payments were lower. Your Ch 13 payment might not be as high as I am thinking as your total debt is not too bad.
Yes, I would get added as an Authorized User to your sister's Chase Freedom. Just ask her what the balance is and the limit and make sure she has no missed payments. If she has a high balance, you might want to reconsider adding yourself as an AU because the high utility will hurt your score. If she pays in full every month, then it would be great for you to be added as an AU.
I filed a 13 to try to save a home that was headed for foreclosure. It foreclosed anyway and I had the BK amended to exclude the mortgage arrears from being paid back. They never came after me because WAMU went under. So if you file a 13 with a foreclosure and you don't include them, they can try to collect the debt. If you include the arrears in BK 13, your payment to the trustee are likely to be high. But talk with a attorney about both options and have him estimate what you would need to pay per month with a Chap 13 given the foreclosure arrears you have. I did a 5 year plan vs a 3 year plan and the payments were lower. Your Ch 13 payment might not be as high as I am thinking as your total debt is not too bad.Yes, I would get added as an Authorized User to your sister's Chase Freedom. Just ask her what the balance is and the limit and make sure she has no missed payments. If she has a high balance, you might want to reconsider adding yourself as an AU because the high utility will hurt your score. If she pays in full every month, then it would be great for you to be added as an AU.
ok great! thanks for the advice and info. I talked with a BK attorney and she recommended I do the Chapt 7. My home loan was through the VA and they advised me they don't go after veterans for payment. So hopefully this is true. Honestly if I could get the lawyer over the judgement to PFD I wouldn't do the BK and just clean up the rest of the collection items. but he playing hardball so..... Filing Feb 6 which is one day after the foreclosure sale.
Considering you have spoken to a attorney about this and gotten sound advice, the only things I would reiterate that may be a good reason to file ch 13:
1. If you have sufficient disposable income after paying your Ch 13 payment with or without foreclosure included. If the VA won't come after you and it's certain and additionally, you can't get the judgement removed, consider a Ch 13 if your Ch13 payment with the judgement and collection is affordable. If it is not affordable, file a Ch 7. Ask your attorney to calculate this monthly payment for you given 3 or 5 years. I forgot to mention that if the Ch 13 doesn't work out, it can easily be converted to a 7. I would try not to do that at all costs though. Remember a 7 stays on your report for 10 yrs, a 13, 7 yrs if you complete the plan.
2. If you can get the judgement removed, I wouldn't file at all. Instead I would focus on saving up to pay collections for deletion.
Best of luck to you on your decision. I have a feeling that you will make the best choice for YOU! And that is how it should be done.
I have a 6 yr boy. Baby boys are soooo fun! Take care. :-)
1. If you have sufficient disposable income after paying your Ch 13 payment with or without foreclosure included. If the VA won't come after you and it's certain and additionally, you can't get the judgement removed, consider a Ch 13 if your Ch13 payment with the judgement and collection is affordable. If it is not affordable, file a Ch 7. Ask your attorney to calculate this monthly payment for you given 3 or 5 years. I forgot to mention that if the Ch 13 doesn't work out, it can easily be converted to a 7. I would try not to do that at all costs though. Remember a 7 stays on your report for 10 yrs, a 13, 7 yrs if you complete the plan.
2. If you can get the judgement removed, I wouldn't file at all. Instead I would focus on saving up to pay collections for deletion.
Best of luck to you on your decision. I have a feeling that you will make the best choice for YOU! And that is how it should be done.
I have a 6 yr boy. Baby boys are soooo fun! Take care. :-)