Financial Bottom

[Anonymous]

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@Anonymous wrote:

Hello NormanFH. Unfortunately, I cannot file for BK until end of 2019. I am scared that now I am working, they will garnish my wages via court order and I cannot do anything about it. I don't have enough money for an attorney right now and cannot attend the trial for these lawsuits as my job is in a different state than I am being sued in. It is a real mess. Not sure how to proceed.

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When was your BK discharged and what type was it?

Garnishment from an out of state suit is not easy to accomplish unless the employer is based in that state.

[Anonymous]

My BK was filed as Chapter 7 in IL (2009), discharged in October 2009.

My employeer is only located in CA, but now that I am based in CA, I am guessing they will start suing me here too. I only got sued by two firms, but I am guessing others won't let go.

[Anonymous]

You will file in CA but it will stop lawsuits everywhere, which may be interesting since you filed in IL before. Talk with a BK lawyer and let us know what he/she says. This will be interesting since it crosses state lines. Most likely tho same regulations will apply.

[Anonymous]

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@Anonymous wrote:

My BK was filed as Chapter 7 in IL (2009), discharged in October 2009.

My employeer is only located in CA, but now that I am based in CA, I am guessing they will start suing me here too. I only got sued by two firms, but I am guessing others won't let go.

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The BK7 will remain on your reports for 10 years, but you can file BK7 again after 8 years, or a BK13 after 4 years. See here

[Anonymous]

I want to thank everyone again for all the input. Feeling much better knowing I got some options out of this and once this is all over, I am not getting a single credit line ever again.

I know that only perhaps a BK attorney can answer this but...do you think I should wait until 2019 when I can file Chapter 7 or do Chapter 13 now. I have not had any judgements assigned to me just yet and I am working. My old Bk attorney confirmed that I can file for Chapter 7 again in October of 2009 (not sure why that date, maybe it is like that in IL?).

Also, I am not planning on it, but it will be nearly impossible to get credit after second BK correct? Reason I ask, I am hoping to own a home one day or at least get a decent job and not be turned down due to my credit or rent like I have been lately

[Anonymous]

Not sure why your attorney would say that. BK is federal law, so IL state law simply does not come into play. The statutes clearly state 8 years from one BK7 to the next. Maybe he just got the years mixed up?

The thing about not getting a credit line again, well, thats a good thought in some ways, but if home ownership is your goal, you simply cannot build a decent credit score without at least ONE revolving account. The thing to keep in mind though, is that the account need not be a large credit line at all. You could simple get a $300 limit Cap One "starter" card, and never increase its limit. You could very well build into the 700's with three such cards with a BK on your files.

If you filed in Oct of next year, you could be "rebuilt" to a 700 score in about 18-24 months. At that point the first BK would be gone from your reports. Plenty of people have been able to purchase a home with a BK but it usually needs to be 2 years in the past.

[Anonymous]

Wow, that is wonderful, thank you again for all your input and help. I always thought that second BK is death sentence in terms of credit.

I will just have 1 card and never put myself in this situation again, because if you get sick, everything falls.