Ready to file, But afraid.

[LiveLife88]

I have a question all,

If I co-signed for a car loan, and that person is already late and behind on payments but the car hasnt been repo'd yet. How does me filing bankruptcy affect my responsibilty of that loan?

Will I be able to get my name removed from it? or how does it work?

I no longer want to be responsible for it.

[Scupra]

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@LiveLife88 wrote:

I have a question all,

If I co-signed for a car loan, and that person is already late and behind on payments but the car hasnt been repo'd yet. How does me filing bankruptcy affect my responsibilty of that loan?

Will I be able to get my name removed from it? or how does it work?

I no longer want to be responsible for it.

---

When you file BK you will no longer be liable for that debt. It will leave the other person with full responsibility

[LiveLife88]

Thanks for that info scupra.

One more question regarding accounts with a zero balance. Should I close those accounts, or leave them alone and IIB and hope they dont close them automatically?

Ive read that some creditors find out about your bankruptcy and close theaccounts automatically, and some will continue to allow you to use your account after.

[Scupra]

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@LiveLife88 wrote:

Thanks for that info scupra.

One more question regarding accounts with a zero balance. Should I close those accounts, or leave them alone and IIB and hope they dont close them automatically?

Ive read that some creditors find out about your bankruptcy and close theaccounts automatically, and some will continue to allow you to use your account after.

---

I would close them prior to BK. Most, if not all, will close once they see the BK

[Guyatthebeach]

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@LiveLife88 wrote:

Hello everyone,

I have come to a point in my life now where making the minimum payments on my debt and keeping a roof over my head and food on the table is very hard for me. I have about 40K in unsecured debt, and its hard to keep up with it all. Even though I am current on my payments it leaves me with no money left to take care of my basic needs. I met with a bankruptcy attorney and decided its time for me to file, and get a fresh start. It hurts to know that things can change so quickly and after years of hard work and paying my bills on time and being responsible with my credit it has come to this.

Before I moved out on my own with a roommate I was staying with  my parents so it was much easier to handle the debt and paying them the rent they asked. However I moved out and am living with a roommate. My roomate now cannot pay their portion of the rent because of job loss and has abanonded me and left me with the rent to pay by myself. I also co-signed on a car for my roommate which he is not paying for now because he is not working so he is behind on those payments. So now with the increased living costs, and the negative reporting on my credit report due to the car note I am in a pretty crap situation.

I am going to file CH 7 BK and im going to sever a relationship with Navy Federal which has been an extremely good bank to me.

I'm afraid of the future now that Im going to file, and the fact im so young (28) filing bankrupcy feels embarrasing. I'm afraid of how I will be able to rent or buy a home in the future after filing bankruptcy, and how to rework on building my credit again.

If anyone has any suggestions or advice for me that would be great.

---

LiveLife88,

It's alright to be afraid about declaring bankruptcy, because it's a life changing event. You need to decide what's right for you, but before you declare bankruptcy take a look at a few options. 1. Have you tried working with NFCU on a payment plan on your debt with them that you can afford? 2. Have you tried A legitimate credit counciling organization to see if something can be worked out? If one creditor accepted the payment plan for my situation, I would not have had to declare bankruptcy. 3. Have you worked with the creditor that has the car loan to sell it or voluntarily surrender it? If you have exhausted those avenues, the declaring chapter 7 may be the right thing for you.

I would not worry about NFCU? If you have to burn them in your bankruptcy, life will go on. You may not believe this, but there are other credit unions that will work with you. I joined NFCU 4 years after my bankruptcy discharged. You just have to do some research but you will find a lot of great help. There's a thread on how to rebuild your credit. It works, I used it and so did many others. You're 28 now. In 3 years, you will be much better off than you are now.

i would close all cards and lines of credit that PIF before you declare chapter 7. You will still need to let your lawyer know about them as they may be included depending on your state's laws on bankruptcy. After your bankruptcy discharge, I would try to reapply with the creditors left in good standing first as you are rebuilding.

Just remember you're not alone in this. We all have been right where you are. There are only two constant things going in the universe: 

1. The sun will rise every morning and set every evening, and

2. It's not final unless it's fatal.

Hang in there, you can do this. If there is anything I can do, please PM me.

Guyatthebeach

[Guyatthebeach]

Bankruptcy will not affect your ability to get federally backed student loans. 

If you have privately held student loans, you may need to supply extra documentation and show your ability to repay, but you will be able to get them.

[LiveLife88]

Yes I have looked into other avenues of getting myself out of debt, and some just didnt quite meet the need at the moment. Chapter 7 will give me the chance at a fresh start, and I can just manage my finances better from here on out.

I have already started the process of filing, I'm just waiting to get the money needed to pay the attorney fees and court filing fee.

Thanks for the encouragement, guyatthebeach!

[LiveLife88]

Just a quick update, my case has finally been filed. There is no turning back at this point, and im looking forward to a fresh start.

I'm a tad bit nervous for my 341 meeting but my lawyer says I have nothing to be worried about. He estimates that since my case was filed last friday, my 341 should be around towards the end of Februrary. Is this true? (whats the usual timeline?)

Anyway at this point I'm simply playing the waiting game and hoping all goes well.

[shavit87]

Just turned 29 less than 30 days ago...I too was scared, but more than that, embarrassed.

But then I talked to people who filed and got honest with myself about what would happen if I didn't file.

I want to own a home someday, I want to be able to pay reasonable interest rates, and my goodness am I sick of feeling like my past mistakes are only lessons I am repeatedly reminded of or punished for!! 

I can't say what the right decision is for you, but I think the start to finding out for yourself is being totally honest about your ability (and even desire) to clean up past messes and how exactly you'll accomplish that. Educate yourself and arm yourself with the tools to either file or not file. Either way it'll be a process and take time and effort and there isn't any easy way to make the decision other than to make it with everything in front of you so that the decision is an informative one. 

PLUS WE ARE STILL YOUNG! IMAGINE THE AMAZING FUTURE WE MAY HAVE WHEN WE HIT MID/LATE 30s if we take action now! (Action not limited to filing wink, wink)

[empressj]

I was recently discharged and finally feel like I can breathe. No longer having a anxiety attack every time I go to mailbox or when phone rings. It was nerve wrecking but I've made it through. You will make it through too. Now I'm on the rebuilding road and trying to make the best decision.

I had a garnishment order come to my job while out on disability recovering from knee surgery. I was MORTIFIED, especially since I work for a small company and see my CFO/ HR mgr everyday. They eventually found out about my chapter 7. They seemed to be understanding and asked if there was anything they could do to help.

Just take it one day at a time.