topic Re: Bankruptcy FAQs in Bankruptcy

Re: Bankruptcy FAQs

Anonymous — Wed, 26 Dec 2007 01:07:12 GMT

There is no good reason to file bankruptcy unles you have valuable property that you need to salvage and reorganize in order to keep it. otherwise I would never do it. remember...that once you file bankruptcy it is something that you must tell all forever and ever when asked...so steer clear...and credit counselors steer clear of them as well.

Re: Bankruptcy FAQs

Anonymous — Sat, 29 Dec 2007 22:01:03 GMT

There are good reasons to file bankruptcy. Noone ever wants to do it. In my situation I caught my wife cheating on me and soon found out that she (who did the bills) had opened up and maxed out credit cards and maxed out the cards we had together as well. Owing over 60, 000 dollars in cards, 600/month car payment, plus mortgage of 1600/month plus HELOC of 500/month(which isn't dischargeable in chapter 7) I had no choice but to sell the house and file. Believe me, it haunts me every day. I will never again entrust another to handle (or to solely handle) my finances. I work very hard for a living and make a good salary, yet was still overwhelmed. Once at the attorneys office for the divorce (more money) we figured everything out and I was now negative balance per month . On top of that I now owe 800/month in child support for my son. (she got him, go figure. But that's another topic). gotta go cool off now.

Re: Bankruptcy FAQs

Anonymous — Thu, 24 Jan 2008 23:57:37 GMT

I have a question and this is my first time on site. If error in credit report is found and disputed, bankruptcy listed as dismissed and actually discharged, disputed corrected as discharged, does credit report bureau have to give you access to new fico score for free?

Re: Bankruptcy FAQs

Anonymous — Sun, 22 Jun 2008 04:19:46 GMT

ALTHOUGH I AM NOT AN ATTORNEY, I believe the following information from this Sticky to be at least partially incorrect:

"What are the most common mistakes I can make when filing?

Not showing up for your hearing and not listing all of your debts. Fail to show up at the hearing, and your case is dismissed. Fail to list a debt, and you continue to owe it. Also people often have too much in a checking account when they file or a tax refund coming. The best policy is to list all your debts and assets. Always list every debt, even if you think it is nondischargeable, it may be discharged anyway. Even include last month’s utilities."

Okay, "Fail to list a debt and you continue to owe it".

This is not true. If you fail to list a debt, the creditor can object and request that you pay it. However if it was a no asset Ch. 7 and you were discharged, the Trustee will probably discharge the unlisted debt as well unless it was very large and very recent.

Then: "Also people often have too much in a checking account when they file or a tax refund coming."

This depends on your state and exemptions and how much money is in your account. And some districts do not take an interest in tax returns in a Ch. 7 bankruptcy. If you have a wild card exemption in your state for $23,000 and you do not own a home and only have $5,000 in your checking account and $5,000 coming back from taxes, then that will be exempted in the wild card or OTHER exemption. Many states have different exemptions so discuss this with your attorney.

"Always list every debt, even if you think it is nondischargeable, it may be discharged anyway. Even include last month’s utilities."

Personally, I would not list utilities in my bankruptcy. It will make it difficult to sign up for utilities next time you move, you'll have to pay a big deposit, etc.. I would just pay my utilities unless they were really very high, like if I had not paid them for several months in the winter with very high gas bills or such.

But the rest of the above is true. It's always best to list every debt even if you don't think it's dischargeable. If it is a personal debt like to a friend or family member, you can always tell them you agree to pay it after the bankruptcy is done even though you technically would not have to.

Re: Bankruptcy FAQs

Anonymous — Tue, 26 Aug 2008 13:40:58 GMT

I have quick question, I'm in a process of fileing chapter 13, and i miss couple of mortgage and second mortgage payment but it will be up to date till i file, would they decline my file for chapter 13???

Re: Bankruptcy FAQs

Anonymous — Wed, 03 Sep 2008 00:34:42 GMT

are private student loans from sallie mae covered by BK, i read here that GOVERMENT SL's are not, but just SMae's loans??

Re: Bankruptcy FAQs

llecs — Sun, 21 Dec 2008 12:41:11 GMT

I split off your post to start its own thread.

Re: Bankruptcy FAQs -- Bank of America denial after 9 years bankruptcy

Anonymous — Wed, 28 Jan 2009 04:23:48 GMT

I claimed Chapter 7 bankruptcy 9 years ago and I STILL CAN'T GET A CREDIT CARD FROM BANK OF AMERICA. I'm not sure why? I thought bankruptcies only stay on record for 7 years. But when I call Bank of America, they say they take it into consideration for 10 years!!! I don't have a problem with car loans and even buying a house! But for a BoA visa, I'm off the list. Has anyone had similar problems with bankruptcy and denials from creditors even after 7 years?

Re: Bankruptcy FAQs -- Bank of America denial after 9 years bankruptcy

fused — Wed, 28 Jan 2009 06:40:39 GMT

Welcome to the forums! Chapter 7 BKs stay on credit reports for up to 10 years. This might explain why BoA won't play.

Re: Bankruptcy FAQs

Anonymous — Wed, 25 Feb 2009 00:39:12 GMT

What about Home Equity Loans? Thanks to Credit Cards increasing there % rates, we are in big trouble.

We have been able to pay everyone : Home Mortage, Home Equity, Car, basic bills, both credit cards, but we have $85.00 left a month for groceries.

We have a family of 3. We are down to one income, I am 38 recently diagnosed with a heart condition that will allow me only to work part time, I have a 3 yr old, so Day care would cost more than I could make.

We have no savings left! 13,000.00 on one card, 7000.00 on another.

We dont know if we should file, or keep struggling, my husband wants to keep going if we can..But if one thing breaks we are screwed. Me myself Im ready to suck up the pride.

He is afraid he will not be able to get a job in the future due to bad credit checks done by employers. His will be taking a job within the same company in 3 years once a person has retired. But its a different department, so they could possible have him fill out all new application and check everything.

If we do file, Will we risk our home due to we have a home loan & home equity loan maxed for the whole value of the home? We had just adopted internationally (wich maxed home Equity) then everything went south.

Believe it or not, so far I have cooked & planed the cheapest meals and we are ok. We make 42,000.00 a year so no help with stamps or assistance...

File or not? Does anyone know about the Home Equity & wich one they would make us file 7 or 13.. Any info would be great.....

Re: Bankruptcy FAQs

jackg — Fri, 10 Jul 2009 18:29:06 GMT

I filed CH 7 in May 2006 and I'm trying to determine when the accounts that now say IIB will falloff? Does "Date of last activity" play into the date they disappear?

Re: Bankruptcy FAQs

Anonymous — Sun, 09 Aug 2009 03:22:15 GMT

Hi everyone. First, I'd like to say this forum has been so helpful to me and has made me feel less ashamed/depressed about considering filing for bankruptcy. So, thank you!!

I am 99% sure I'm going to file for Ch.7. I have finally come to terms (after many sleepless nights) that I just can't keep struggling paycheck to paycheck paying, payin, paying and getting nowhere. I've paid for years above minimum, strugged on the phone with cc's to lower my interest rates, etc and am getting absolutely nowhere. I'm drowning and finally throwing in the towel and for some reason I'm suprised to find I find some relief. ..I'm in the process of finding the right attorney and have 2 questions:

1. I recently purchased a new car..any info on what happens when I file and what happens w/ a car loan?? Will the loan co. raise my interest rate? Re-possess my car? I have no idea, sorry if I sound ignorant!

2. What's a ballpark rate people have paid for a bankruptcy attorney? I just don't want to get taken advantage of. Am willing to pay for a good attorney but scared too.

Thanks for your support in advance!!

Re: Bankruptcy FAQs

Anonymous — Sun, 06 Sep 2009 17:32:17 GMT

What do you do when you need to file bankruptcy but don't have any money for an attorney? I am just barely paying (2 wks late at all times) my mortgage and have stopped paying all unsecured debt in order to do that. That leaves me with about $150 for the whole month for food, gas, OTC meds, necessities etc. What does one do in that case?

Also, I have a pending lawsuit against someone who owes me quite a bit of money but has made no effort to pay me back in 1 1/2 years (it was a 3 month loan). This will take years to get back from him. What happens if I file bankruptcy now because I am out of money and then maybe a year later I collect from him?

Re: Bankruptcy FAQs

Anonymous — Sun, 27 Sep 2009 00:05:33 GMT

Hello,

As a fellow adoptive parent I can totally relate. I filesd chapter seven with two mortgages and was able to keep my home, and car and just get rid of my cc debt. My employer never knew. I say start make fresh and take care of that Baby!

Good luck

Re: Bankruptcy FAQs -- Bank of America denial after 9 years bankruptcy

jackg — Mon, 28 Sep 2009 18:38:28 GMT

AlmostClear,

I filed CH 7 in May 2006. In June 2007 I went to BoA's pre-approvel site, filled in all the info and got approved for a "Gold" Visa with a $2,000 CL. Was BoA included in your BK? They were not in mine & that might be the issue.

Re: Bankruptcy FAQs -- Bank of America denial after 9 years bankruptcy

Anonymous — Mon, 28 Sep 2009 23:36:57 GMT

Why are you worried about getting a BofA card? I had 3 BofA cr. cds and with the bank doubling and then tripling my minimums and then eliminating my remaining credit available, well, that just helped me on the way to bankruptcy. I tried talking to them, making payment arrangements, etc. BofA is one of the worst.

Go to a credit union or small town bank that has some integrity left. If you doubt what most people think of BofA (BAD!!), go to ClarkHoward.com and search for Bank of America or just Google "Bank of America, Bad behavior" etc. Try this one: http://www.city-data.com/forum/charlotte/613601-bofa-shame-you.html

They don't have anything with their credit cards that you can't get elsewhere, with less aggravation down the line.

Message Edited by maddy1001 on 09-28-2009 04:36 PM

Re: Bankruptcy FAQs -- Bank of America denial after 9 years bankruptcy

sgtm7 — Tue, 27 Oct 2009 14:08:49 GMT

FCRA says bankruptcies can be reported for up to 10 years after filing. The bureaus usually stick to 10 years with chapter 7s, but usually only report chapter 13s for 7 years.

Re: Bankruptcy FAQs

Anonymous — Sat, 05 Dec 2009 15:09:10 GMT

I went to a firm, Pacific Law Firm to be exact, that have attorney's yes, but use paralegals to do their work. You do not see the attorney until the last day. You're questioned about your finances from the time you walk in to the time you walk out. I would say this is a mill so to speak. The paralegal is rude and treats you like a child. Has no time for you, will not explain things as to what exactly she is looking for. You almost have to guess and it adds to the stress. You see an attorney at the very last, providing he isn't at his golf game. He once again asks financial questions and explains the procedure. In my case it was a bit different. I only had Bank of America loans. I was on time and not late. So they had to make me late in order to do this bankruptcy. All creditors I had paid off or not sunk along with BOA.

Day of creditor meeting: I watched the procedure saw the person who was the so call "Trustee" he stated he was the FBI agent. Now I watched others with their attorney's walk through this with no problem. They're attorney's or representation spoke for them. Answered a few questions and that was all. When it came to my turn, I was ripped into for having the loans, ripped into for charging and then paying bills ( prior to my decision to go Bankrupted) I was told I had a shopping spree and then decided one day to do this. ( which was not true) I had no support ( meaning my husband was not there, he had to work that day and he was not in the bankruptcy) This Trustee so to speak ripped me apart as if I had committed a crime of sort. When he got through with me, I was so sick to my stomach. I looked at my representation, who was more interested in his blackberry than answering this FBI agent. I was very angry and upset. When he went to shake my hand, I flat out want to knock him on his butt. I ended up getting sick. This wasn't suppose to be this way. I paid $2,500 for what? To push some papers and be belittled by flunkie paralegals that need lessons in etiquette. Plus another $300 bucks to get this into court and never once saw my "own" attorney, only his friend.

I realize bankruptcy isn't a game. It's serious and beleive me a choice I did not want. I tried everything from trying to talk with BOA to going to debt settlement companies. It wasn't my fault that the economy took a nose dive, or I loss my job and my income was decreased. It wasn't my fault I had to choose between paying the outrageous $1,200 a month loan payments or pay my rent to live. It was a hard decision and one I had no choice.

At 62 the stress of losing my nursing job, the treatment I received from these so call ambulance chaser attorneys/ paralegals, that look more like the Grisham book "THE FIRM" rather than a business of caring for their clients.

My question is this...why what this FBI agent in the meeting of creditors and siding in with the BOA instead of listening to what "I" had to say? Or was this how it was suppose to work?

Re: Bankruptcy FAQs

Anonymous — Sat, 05 Dec 2009 19:40:23 GMT

@Anonymous wrote:

...I was on time and not late. So they had to make me late in order to do this bankruptcy...

No, they didn't! Technically, I suppose, a person entirely able to pay his single debt COULD file bankruptcy (though it surely wouldn't be smart). It's up to YOU, not your attorney! There is no law/rule that says a filer MUST be behind on his payments in order to file. I wasn't -- in fact, my accounts all had been closed while current for almost a year -- but my credit-counseling, debt-management plan (which was formulated before I became delinquent to ANY creditor) obviously was no longer sustainable. I paid my payment one month (which was distributed to creditors on time), and filed before the next payment was due so I didn't have to pay it. My filing date was PRIOR TO my next payment-due date -- so I was then current (though I hadn't had any discretionary money for several months)! And, it benefited me post-discharge: because I had no 'lates' reporting, the BK public record was my only FICO ding, and so my scores never tanked. I closed a mortgage just 55 days post-bankruptcy.

Message Edited by oldhack62 on 12-05-2009 11:40 AM

Re: Bankruptcy FAQs

Anonymous — Sun, 06 Dec 2009 00:17:46 GMT

No, they didn't! Technically, I suppose, a person entirely able to pay his single debt COULD file bankruptcy (though it surely wouldn't be smart). It's up to YOU, not your attorney!

No what I meant was that I wasn't behind on payments and yes it was my decision of course to go do bankruptcy. It was the attorney who told me that I had to wait a month so the debt could be deliquent one payment as they processed the case.

I had gone to a debt managment plan "before" I went to an the attorney. The debt management didn't seem to work for me. It was the same problem. I had no idea of what my income would be to state I could give them x amount of dollars. I didn't know where I stood for almost 3 months. Hope I made this clear.