If anyone needs advice on if they should file bk... please comment!!!

[MartyFisher92100]

Hello All: My name is marty and I was a bankruptcy attorney for 7 years from 1999-  2005 and If you need any advice on chapter 7 or 13. I will answer. Thanks.

[Marine1975]

Can you look at my recent post and give your thoughts?
http://ficoforums.myfico.com/t5/Bankruptcy/Chapter-7-and-mortgage-questions/td-p/2252225

Thanks!

[Teddy502]

Hi Marty, hoping you could help, I have a few questions below.

1) Can you confirm a ball park figure as to how much an attorney should charge for filing Chapter 7? I have an attorney with whom I have paid twice ($6,000+)  for two failed and dismissed chapter 13 BK's and I have opted to file Chapter 7, I was quoted $1500 from the same lawyer but have seen prices from other attorneys between $500-$800, is this reasonable? I have no mortgage debt, 1 car that I am paying for monthly (plan to keep), unsecured credit and tax debt.

2) I am considering filing Chapter 7 pro se and have done so many years ago without incident; my concern is my vehicle and tax debt,  I do not want to reaffirm mry car but will continue to make the payments as I am not behind on payments, what in your experience have you seen a lender do when one does not reaffirm?

3) In regards to tax debt, what is the skinny on tolling? I have reviewed countless information and can't seem to determine what can be discharged but do know tax years from over 3 years ago can be filed from the time they came due, I have state debt (2007 & 2008)  and federal debt (06,07, 08) all filed on time and have been advised that some of the debt may not be dischargeable due to the previous BK's and tolling guidelines, when this debt is filed in the CHP 7 case, will the state and IRS advise on which years can be discharged? t I  was also wondering if I should wait to file until I am able to include all tax years.

That is all for now, thank you in advance!!

[SoulMaster]

Teddy - 

We just had a NIGHTMARE tax case come through our offices because of tolling and incorrect information on IRS letterhead (the IRS is not responsible for their own mistakes).  It was so bad, we almost referred it out to a bankruptcy/tax code specialist to get it resolved.

I'm going to make this about as plain as I can.  You're thinking about filing pro se?  Stop it.  Stop it right now.

As for your $ question, it's generally area specific, but attorneys who advertise low rates generally don't include court costs.  The other option is that they have paralegals filling out the schedules and you never even meet your "appearance" attorney until your at your 341.  In other words, they're bankruptcy "mills" who cookie-cutter people into their mold and understand very little about the nuances that can crop up (like tolling, for example).

Get yourself a good attorney who's going to represent you from beginning to end, and make sure that it's the attorney (not a paralegal) who's going to do the schedules and filing.  A good one will run you from $1500-$2000 for a CH7, incl filing fees.  Interview several attorneys before you make your decision, then pick the one with whom you have the best report.  You might want to find a BK/Tax specialist... they're out there.

Good luck.

-SM

[Teddy502]

This is great information. Thank you very much!

[Countingpennies]

Teddy, 100% in agreement with Soulmaster. I was a simple, no asset 7, and could have filed pro se. I consulted with several attorneys, fees ranged from $1200-$1600. The attorney I signed with was in the middle, and worth every penny. Just the fact alone, that if any problem did arise, I knew I had an expert on my case, was such a stress-reliever. My attorney had a reasonable payment plan as well.

The money you spend on an attorney can save you much more, if there are items where discharge may be questionable. When you go for your consults, be sure and ask what is included in their basic fee. Some (not all) attorneys charge extra for vacating judgements, getting tax liens released, writing letters to any CAs that show up on your report post-BK, etc. My attorney gave me a sheet with all possible charges clearly spelled out, and a sample of the agreement stating what he would do, and what I was responsible for. He was the only one who did that, the others were verbal, off-the cuff quotes.

Don't automatically go with the lowest quote.

[grassfeeder]

I spent $1800 total on my attorney and that included court costs as well as vacating 3 judgements.  Best use of money I've ever spent.  Please seriously consider everything they can do for you before going about this alone.  In a years time, you're not even going to care about what you paid when you're free and clear and rebuilding your future.

[missgaonmymind]

I'm trying to make an informed decision whether to file for bankruptcy for a second time (first was 2004) or try to struggle clear up about $12000 in debt (not including student loans of $80K):  My credit score is extremely low and after doing a credit analysis, paying off everything that is in collections won't bring my score up by that much.

My scores are in the low 500's, with 1 score even dipping below the 500 mark.  From your experience, can a person, who has filed for bankruptcy, have what is considered a" good" credit in around 2 years time or even sooner?

[missgaonmymind]

I'm trying to make an informed decision whether to file for bankruptcy for a second time (first was 2004) or try to struggle clear up about $12000 in debt (not including student loans of $80K):  My credit score is extremely low and after doing a credit analysis, paying off everything that is in collections won't bring my score up by that much.

My scores are in the low 500's, with 1 score even dipping below the 500 mark.  From your experience, can a person, who has filed for bankruptcy, have what is considered a" good" credit in around 2 years time or even sooner?

[missgaonmymind]

Wow! This was my exact question I posted in the BK forum? And I see, a year later, your scores are considered good.  I was also going to deal with a paralegal because her argument was that you can do the same exact process that at BK lawyer does for half of the money.  Maybe, I will consider going to a lawyer, after all.

[SoulMaster]

---

@missgaonmymind wrote:

I'm trying to make an informed decision whether to file for bankruptcy for a second time (first was 2004) or try to struggle clear up about $12000 in debt (not including student loans of $80K):  My credit score is extremely low and after doing a credit analysis, paying off everything that is in collections won't bring my score up by that much.

My scores are in the low 500's, with 1 score even dipping below the 500 mark.  From your experience, can a person, who has filed for bankruptcy, have what is considered a" good" credit in around 2 years time or even sooner?

---

$12000 in debt is a settled $3000-$4000 in debt.  The BK fees alone will be ~$1500 of that, so really you only need ~$1500 more and your problems go away w/o the extra BK.  Let's call the total $4800 to estimate on the really high side.  That's $400/mo for 12 months.  That may not seem possible, but...

...Here's a better plan:  You should cut up all the plastic, and get a second job until you can settle them all.  Something that pays $10/hour for 10 hours/week would get you that $400/mo.  Also, buy the book "Total Money Makeover" by Dave Ramesy.  It's like, $10.  It has some really good ideas for budgeting in it and can also teach you some really good things about living a 100% debt free life.

If you don't want to live debt free, the book is still really good at budgeting.  Also, you have to get rid of the debt before you start a rebuild, and the credit analysis modeling tools are all 100% wrong.  Ignore them.  In addition, your 2004 BK will fall off next year... why would you want to put another one on there right away?  Whatever you do, make sure to read this post: http://ficoforums.myfico.com/t5/Bankruptcy/Something-ALL-of-us-BK-people-need-to-remember/td-p/22849...

Finally, if there's an attorney/paralegal out there who will let you file BK on $12000 in CC debt: Send them my way... I'll slap the hell out of them for you. 

-SM

[SoulMaster]

I'm trying to make an informed decision whether to file for bankruptcy for a second time (first was 2004) or try to struggle clear up about $12000 in debt (not including student loans of $80K):  My credit score is extremely low and after doing a credit analysis, paying off everything that is in collections won't bring my score up by that much.

My scores are in the low 500's, with 1 score even dipping below the 500 mark.  From your experience, can a person, who has filed for bankruptcy, have what is considered a" good" credit in around 2 years time or even sooner?