topic Re: Considering Bankruptcy Chapter 7 in Bankruptcy

Considering Bankruptcy Chapter 7

Anonymous — Tue, 22 Jan 2013 12:06:47 GMT

My home is in Foreclosure and I’m considering filing chapter 7. The house and the two mortgages on it are the only items that I’m including in my bankruptcy. I’ve been in loss mitigation for a year now and it doesn’t seem like they are going to work with me….I haven’t paid my mortgage in a year. I just received a notice for a non-trial jury….My credit cards have low balances and I’ve never been late on any of my credit cards. I’ve never missed a car payment or paid late. The only negative on my report is the foreclosure. I have a consultation with an attorney later in the week.

Questions:

Will my cc companies close my cards because of the bankruptcy?

I purchased a brand new car in 2011 (financed by SunTrust Bank) – Will I have to surrender the vehicle in the bankruptcy?

How long does it take for a bankruptcy to show up on your credit report after you file?

Re: Considering Bankruptcy Chapter 7

Scupra — Tue, 22 Jan 2013 16:25:51 GMT

@Anonymous wrote:
My home is in Foreclosure and I’m considering filing chapter 7. The house and the two mortgages on it are the only items that I’m including in my bankruptcy. I’ve been in loss mitigation for a year now and it doesn’t seem like they are going to work with me….I haven’t paid my mortgage in a year. I just received a notice for a non-trial jury….My credit cards have low balances and I’ve never been late on any of my credit cards. I’ve never missed a car payment or paid late. The only negative on my report is the foreclosure. I have a consultation with an attorney later in the week.

Questions:
Will my cc companies close my cards because of the bankruptcy? You have to list all DEBT owed to any creditors, I had a $0 bal on a 7yr old Cap1 one card that was closed a week after my filed BK hit my report. I called in and there was nothing they would do, besides approve me for a new card. Don't go pay off any balances to try and keep them or it will look like you are favoring particular creditors.
I purchased a brand new car in 2011 (financed by SunTrust Bank) – Will I have to surrender the vehicle in the bankruptcy?
How long does it take for a bankruptcy to show up on your credit report after you file? The week after my lawyer said we were filing electronically it showed on on my report. After about two weeks of it showing discharged on Pacer it showed discharged on my report.

I will speak to what I can for you! Hope that helps, I am sure someone can chime in about the car, I had no assets when I filed.

Re: Considering Bankruptcy Chapter 7

StartingOver10 — Tue, 22 Jan 2013 20:41:44 GMT

Consider a short sale for your home. Use an experienced short sale agent to handle the sale. Get it on the market immediately before your hearing.

As posted above, you have to list all of your debt and every single one of your assets in order to file BK.

It sounds like the house is your only issue and that everything else is going great for you. Try a short sale. Also talk with several BK attorney's so you have accurate info on exactly what would happen to any assets you do have -

The prior poster is correct - when you file, it hits your CR right away and all the creditors will close each of the accounts you have with them.

Re: Considering Bankruptcy Chapter 7

Anonymous — Wed, 23 Jan 2013 14:01:02 GMT

Thanks for youresponses. Both were very helpful. I applied for a short sale before I stopped paying, but was denied. My house was upside down then but not as bad as it is now......The bank said that it didn't look like I had a problem paying the mortgage and my workout package showed a surplus at the end of the month.

Re: Considering Bankruptcy Chapter 7

Anonymous — Wed, 23 Jan 2013 17:09:05 GMT

Hi and welcome! I am sorry you have to consider bankruptcy at this time in your life. You will have a long road of rebuilding ahead of you but you will recover. I filed both a Ch 7 and a Ch 13 two years apart from each other almost 10 years ago for the Ch 7 and almost 8 years ago for the Ch 13. I have pretty much recovered as I have received approval for my first prime credit card since before filing, also received tier 1 lease financing at an Acura dealership, and also I am closing on a brand new home at the end of this month. All of those good things began to happen last year. About 3 years after I filed the Ch 13, I got a new auto loan and the Orchard Bank card a year after I got the auto loan. I gardened those trade lines, and in late 2011, my student loans came out of deferment and I started paying on those and by July 2012, my highest fico score was 754!

As others stated, you have to include every creditor in bankruptcy, which means that every creditor will get a notice that you filed bankruptcy on them and all your credit card accounts will be closed. You will have to attempt reaffirming the debt to get your accounts reopened and reporting to the credit agencies but there is no guarantee that your creditors will oblige. What is guaranteed after you reaffirm is your creditors can come back after you to get you to pay any debt owed.

To keep your vehicle, you will have to reaffirm the debt with the auto finance company. This part usually goes well. I had to reaffirm a car after Ch 7 bankruptcy and the bank accepted and I continued to make my normal monthly payment. And in fact, the auto finance company sent me a letter before I had a chance to call them and it said that in order to keep my car, I must sign the enclosed reaffirmation agreement so you might get something like that in the mail shortly after discharge.

The bankruptcy public record will hit your credit report very shortly after you file. When the Ch 7 hit my credit report, my score dropped over 100 pts immediately.

Re: Considering Bankruptcy Chapter 7

StartingOver10 — Fri, 25 Jan 2013 13:16:34 GMT

It doesn't look like you used an experienced short sale agent. Also, the banks and servicers are more proficient today than they were even a couple of years ago. You might try for another short sale. The key is, the lender/servicer is looking for a hardship situation that is causing you to exceed your monthly budget. You can always try the SS again, maybe you will end up with a different negotiator on the file.

Re: Considering Bankruptcy Chapter 7

Anonymous — Thu, 28 Feb 2013 14:21:33 GMT

Desperately needing advice...

I've already spoken to the BK attorney and the sale date has been scheduled for May 15th -- **A bit odd* I received a letter from the bank stating that my file was now in Loss Mitigation Review. Yesterday the loan processor rep told me that she could postpone the sale date until they reviewed my file.I apparently qualify for some kind of assistance to get current with my mortgage.....

My BK attorney told me to just move forward and not wait on their decision....I'm single, in my 30's, no dependents, elementary teacher,.....part of me wants to wait and then again I would rather walk away and rebuild my life......I'm only filing BK because I know the bank will come after me for the remaining balance on my mortgage...

I'm not sure what to do at this point......

**another question**

I have a checking and savings account with Bank of America. I'm going to include an outstanding CC balance of $3000 in my BK.....

Has anyone had experience with BOA and BK? Are they going to close my checking and saving? Will they pull the $3000 from my checking and/or savings account?

Re: Considering Bankruptcy Chapter 7

starry1 — Thu, 28 Feb 2013 16:27:02 GMT

I wouldn't take the chance. Move your accounts before you file.

Re: Considering Bankruptcy Chapter 7

aussiesareforever — Thu, 28 Feb 2013 17:29:44 GMT

I don't know much about houses since I've never owned one but I feel like you should wait on filing. Esp if the bank is going to possibly work something out. Go ahead and sell the house and then file if the bank decides to come after you. When I filed BK, I had a court date with a creditor and I got BK protection immediately my lawyer filed my papers. Didn't have to show up in court, didn't have to deal with having my wages garnished or anything like that.

BK definitely gave me a fresh start but 10 years is a very very very very long time. In retrospect I wish I had found these boards before I filed. I would definitely have done a lot of things very differently.

My 2 cents.

Re: Considering Bankruptcy Chapter 7

aussiesareforever — Thu, 28 Feb 2013 17:32:05 GMT

To answer your second question, I included a BOA credit card in my BK. They never did anything to my funds in checking or savings. I actually still use those accounts now. They just closed the credit card and things continued as normal with the other accounts.

I am almost sure that it is against the law somewhere to take the money from your other accounts. That is what BK protection provides you.

However, if you have a lot of extra money somewhere, your BK Trustee will probably distribute those funds among all your creditors.

Re: Considering Bankruptcy Chapter 7

Anonymous — Thu, 28 Feb 2013 19:19:22 GMT

I also owed BOA 30K on a CC when I filed. I moved my money just in case anything happened but nothing ever did so I went back and still use the accounts as I always did with no problems.