topic Re: Chapter 7 in Bankruptcy

Chapter 7

Anonymous — Fri, 01 May 2020 16:36:27 GMT

It has been a long journey to this point. As an update, we found a great rental home in a good school district with a reasonable budget and plenty of space for our large family to be comfortable. We are no longer a group of 8 cramped in 900sf in the inner city!

With this breathing room, we have decided to move forward filing a chapter 7 bankruptcy to get a fresh start. We have about $222k in debt ($124k student loans and $98k in defaulted credit cards, auto loans and medical bills).

Our low income, combined with large family and living expenses qualified for free legal services and we submitted all the documents to the lawyer this morning. We will be filing a Chapter 7 as a married couple. We should be filed by May 15 and I can only imagine the relief we will feel when this is over.

Thank you for all the support and comments in the past. I will use this as my rebuilding thread from now on.

Re: Chapter 7

Mjhall85 — Fri, 01 May 2020 17:24:14 GMT

Good to hear you've improved your housing situation. I filed for chapter 7 in February and am now at the end just waiting for discharge. It was a huge relief once it was filed. Now I'll be 72k lighter and can have a better future.

Re: Chapter 7

FireMedic1 — Fri, 01 May 2020 18:09:10 GMT

Congrats. Although most debtors won't be able to discharge (wipe out) student loan debt in Chapter 7 or Chapter 13 bankruptcy. However, if you can prove that repaying your student loans would cause an undue hardship to you, you can get rid of your student loans in bankruptcy. It doesnt happen often. Good Luck!

Re: Chapter 7

Anonymous — Fri, 01 May 2020 19:49:50 GMT

@FireMedic1 if they manage to get student loans discharged though you will no longer be eligble to apply for them right?

Re: Chapter 7

Anonymous — Fri, 01 May 2020 21:00:38 GMT

Our student loans will likely not be discharged, but it is a manageable burden with income-based repayment.

Re: Chapter 7

FireMedic1 — Fri, 01 May 2020 21:56:33 GMT

@Anonymous wrote:
@FireMedic1 if they manage to get student loans discharged though you will no longer be eligble to apply for them right?

Dont know. I wonder if debts DC'ed like homes, cars, and thousands in credit are wiped out. You can still get another home post BK in 2 yrs with FHA. I guess you could get another student loan. Good queston.

Re: Chapter 7

FireMedic1 — Fri, 01 May 2020 21:57:18 GMT

@Anonymous wrote:
Our student loans will likely not be discharged, but it is a manageable burden with income-based repayment.

Thats good. Least the others will go poof. Good Luck!

Re: Chapter 7

Anonymous — Wed, 13 May 2020 15:39:43 GMT

Back again with an update! I just hung up from a telephone conference with the lawyer.

We reviewed some things on the schedules and he will be making the corrections. We are dropping off a check for the filing fee and signing the paperwork Monday.

I am so relieved!

Re: Chapter 7

Azuieldrago — Wed, 13 May 2020 21:29:26 GMT

Good luck to you all. Once its started, such a wonderful feeling. Wait until discharge. I was so excited, I printed off the PACER discharge and now its framed up on my wall. Nice job on a bigger place. I lived in about the same with 4 people and thought it was cramped.

Re: Chapter 7

Anonymous — Wed, 13 May 2020 21:30:42 GMT

What's PACER?

Re: Chapter 7

ballysdad — Wed, 13 May 2020 23:33:15 GMT

https://pacer.psc.uscourts.gov/pscof/login.jsf

Its free but says charges 10 cents per page but I believe it is billed quaterly with like $30 free..

It shows all documents in your case it is public record

Re: Chapter 7

Mjhall85 — Wed, 13 May 2020 23:49:56 GMT

Congrats on getting the ball rolling. The time will fly by. I filed in February now I am just awaiting discharge. Like the above stated pacer is a great tool. You can follow your process and see any documents filed.

Re: Chapter 7

Anonymous — Sun, 24 May 2020 06:58:55 GMT

Another update!

COVID has slowed down the process a little bit (we are in New York) but the filing fee and signed paperwork were dropped off Thursday. With the holiday, we are anticipating an official filing this week.

I cannot wait to tell creditors we have filed so the phone calls stop!

Re: Chapter 7

FireMedic1 — Sun, 24 May 2020 09:48:34 GMT

Excellent. Any time now. New beginings

Re: Chapter 7

Anonymous — Thu, 28 May 2020 11:11:24 GMT

We are officially filed as of yesterday, May 27! There is a huge sense of relief already!

When should I check our scores for "starting" score? Today before the bankruptcy reports to the bureaus or wait until the bankruptcy is showing? After the bankruptcy is discharged and everything updated? Thanks in advance for your guidance.

Re: Chapter 7

Azuieldrago — Fri, 29 May 2020 06:21:13 GMT

Pretty much I wouldn't worry about your scores until after DC and you ensure your reports are accurate. Until then, they are gonna have more ups and down and curly cues than a roller coaster that can get a fighter pilot sick. Accounts will update with the BK. Then follow up with the change in balance. Others could zero out your balance before noting the BK. Some might just stay as they are until after discharge and then you have to get them updated. As of now, don't worry about your score. Just breathe a sigh of relief that it is officially kicked off.