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Have to file Bankruptcy and unhopeful.

PleioneG
Regular Contributor

Re: Have to file Bankruptcy and unhopeful.

Thank you everyone for the advice and encouragement. 

 

We filed for Bankruptcy earlier this week. The lawyer worked with us and everything is moving along. Already the calls have stopped and we actually have money again to pay for necessities like utilities and groceries. We decided to let go of the car because we simply couldn't afford both that and the loan alongside it. While we're sad to lose the car since it has a lot of memories to it, we're happy that we will be getting close to $800 back into our pockets a month again. We're confident that this was the right move to make. We should have done it before, but we wanted to try and take care of it without filing.


I'm not sad that we won't be able to qualify for a home or even another house going forward. I know that this is the break we needed to get our lives back on track and start being able to take care of our children. While it will suck having this chapter on our records for 10 years, I know it will be worth it in the long run. I'm not scared anymore. And we no longer have to live pay check to pay check.

 


After evaluating our expenses going forward, it looks like we'll even be able to save and put aside money for a house in three years. Just gotta baby our credit and make it shine for when that day comes.

Back to the drawing board.

BK7 Discharge: 2/18.
Message 11 of 23
WadeDalton
Established Contributor

Re: Have to file Bankruptcy and unhopeful.


@PleioneG wrote:

Thank you everyone for the advice and encouragement. 

 

We filed for Bankruptcy earlier this week. The lawyer worked with us and everything is moving along. Already the calls have stopped and we actually have money again to pay for necessities like utilities and groceries. We decided to let go of the car because we simply couldn't afford both that and the loan alongside it. While we're sad to lose the car since it has a lot of memories to it, we're happy that we will be getting close to $800 back into our pockets a month again. We're confident that this was the right move to make. We should have done it before, but we wanted to try and take care of it without filing.


I'm not sad that we won't be able to qualify for a home or even another house going forward. I know that this is the break we needed to get our lives back on track and start being able to take care of our children. While it will suck having this chapter on our records for 10 years, I know it will be worth it in the long run. I'm not scared anymore. And we no longer have to live pay check to pay check.

 


After evaluating our expenses going forward, it looks like we'll even be able to save and put aside money for a house in three years. Just gotta baby our credit and make it shine for when that day comes.

Back to the drawing board.


That is OUTSTANDING news! I am so relieved for you and your family. It's amazing that in the course of a few days, the entire situation shifts from major anxiety to being able to breathe again. Just two years from the time of discharge for an FHA loan and believe me two years goes by in the blink of an eye when you're busy rebuilding. Now you can take the time to plan for the rebuild and make yourselves strong financially and probably more so than ever.

 

Please keep in touch and let us know how it's all going. I'll be watching for your updates. We are all here for you and I wish you and yours, a very happy and peaceful Thanksgiving!

 

Smiley Very Happy

 

 

Message 12 of 23
PleioneG
Regular Contributor

Re: Have to file Bankruptcy and unhopeful.

Well we got our date for the creditors meeting. The 13th on December. Didn't realize it would be that fast. I still have to fax over the hospital debts that I want to also discharge but ... I guess I'm worried that creditors might contest this? What if they decide not to discharge?

BK7 Discharge: 2/18.
Message 13 of 23
WadeDalton
Established Contributor

Re: Have to file Bankruptcy and unhopeful.


@PleioneG wrote:

Well we got our date for the creditors meeting. The 13th on December. Didn't realize it would be that fast. I still have to fax over the hospital debts that I want to also discharge but ... I guess I'm worried that creditors might contest this? What if they decide not to discharge?


That's great that it's coming up so fast...the sooner it's out of the way, there is nothing to dread. Creditors actually showing up?? It is SO rare that anyone shows, please, don't worry about it. Even if for some reason they did, it's 999/1000 a non-event. If you can't pay, you can't pay. Make sure to get all the creditors faxed in and and collection agencies as well.

 

I obsessed over the creditors meeting and was horrified. It was a huge non-event. I'm sure your's will be as well.

 

Smiley Very Happy

Message 14 of 23
ptkdude
Regular Contributor

Re: Have to file Bankruptcy and unhopeful.

I was a wreck for mine but honestly it was nothing.  I got there super early so I sat in the room for the hour before me and in probably 10+ meetings I saw, not a single creditor was there.  This was for a chapter 13; I don't know about the chapter 7 meetings (and not sure which you filed).  When it was my turn, it took like 4 minutes.  The trustee asked me pretty basic questions that were easy to answer.  My attorney was right next to me if I needed her.  One thing that they asked in every meeting I saw was "Do you have an account at a credit union?".  If the answer was yes, they asked for the balance.  My attorney told me afterward that a lot of people sign up for a credit union through their employer and like $5 or $10 a paycheck goes into it and people forget about them.  

Message 15 of 23
kberly69
Frequent Contributor

Re: Have to file Bankruptcy and unhopeful.

Same thing here. I worried about it and lost a lot of sleep. I filed pro se so I had the added stress of having to be up there myself and defend my own paperwork. I was called nearly last and no one had a creditor present. Mine lasted maybe five minutes and I received very nice compliments about following the instructions and how thorough my paperwork was. I can't even recall what was asked but they were standard questions (that Nolo book prepared me well). The only people I saw get "in trouble" were those who didn't have things the trustee asked for and by "trouble" I mean they were asked more questions and their attorneys were told to send it later. 

I know you're going to worry anyway, but try to relax. You're close to discharge and rebuilding your life!


CH7 BK Discharged 10/16
Oct/Nov 2016: EQ 632 TU 532 EX 573
Feb 2017: EQ 695 TU 673 EX 670
March 2017 EQ 702 TU 676 EX 673
April 2017 EX 683 (TU & EQ unknown)
May 2017 EQ 695 TU 685 EX 693
Feb 2018 EQ 704 TU 687 EX 694

9/24/20: 4 years from discharge FICO 8: EQ 751 EX 765 TU 766 FICO 9 EQ 814 EX 804 TU 821
Message 16 of 23
PleioneG
Regular Contributor

Re: Have to file Bankruptcy and unhopeful.

It seems my bank is not updating to reflect it was included in the bankruptcy. We decided to release our car back to them and our meeting is on the 13th. Yet even though other credit cards and reports are listing IIB, the bank isn't. Do they plan to contest? Or do they just wait until after the discharge? Or are they waiting to get the car back?

BK7 Discharge: 2/18.
Message 17 of 23
kberly69
Frequent Contributor

Re: Have to file Bankruptcy and unhopeful.

I seriously would not worry about how things are reporting before your discharge. Wait until the dust settles. My student loan, for example, was showing as unpaid for the months I was awaiting discharge even thought I paid it throughout. Then it was reporting as delinquent. It took another month following discharge for it to report properly. Save yourself some stress and stay away from your reports until after discharge (NOT your 341 meeting). You can check PACER for any filing activity on your case if you want to save a call to your lawyer. 


CH7 BK Discharged 10/16
Oct/Nov 2016: EQ 632 TU 532 EX 573
Feb 2017: EQ 695 TU 673 EX 670
March 2017 EQ 702 TU 676 EX 673
April 2017 EX 683 (TU & EQ unknown)
May 2017 EQ 695 TU 685 EX 693
Feb 2018 EQ 704 TU 687 EX 694

9/24/20: 4 years from discharge FICO 8: EQ 751 EX 765 TU 766 FICO 9 EQ 814 EX 804 TU 821
Message 18 of 23
WadeDalton
Established Contributor

Re: Have to file Bankruptcy and unhopeful.


@kberly69 wrote:

I seriously would not worry about how things are reporting before your discharge. Wait until the dust settles. My student loan, for example, was showing as unpaid for the months I was awaiting discharge even thought I paid it throughout. Then it was reporting as delinquent. It took another month following discharge for it to report properly. Save yourself some stress and stay away from your reports until after discharge (NOT your 341 meeting). You can check PACER for any filing activity on your case if you want to save a call to your lawyer. 


@+1000! Consider that your reports will be in flux until discharge and then check for accuracy afterwards. I checked immediately and then after about 2 weeks, it was all reporting perfectly. @kberly is soooo right..it will drive you nuts if you check before and you've had enough stress. IMHO there is no way the bank is challenging anything about the car and banks take their sweet time updating CRA's. You're almost there...breathe...we're all here for you!!

 

Smiley Very Happy

Message 19 of 23
WadeDalton
Established Contributor

Re: Have to file Bankruptcy and unhopeful.


@PleioneG wrote:

It seems my bank is not updating to reflect it was included in the bankruptcy. We decided to release our car back to them and our meeting is on the 13th. Yet even though other credit cards and reports are listing IIB, the bank isn't. Do they plan to contest? Or do they just wait until after the discharge? Or are they waiting to get the car back?


I was just thinking about you and your family and realized that the creditor's meeting is now in the rear view mirror. I just wanted to let you know that you guys are in my thoughts and I know that 2018 will be a wonderful fresh start for you!

 

Please let us know how you're doing when time permits.

 

Happy Holidays my friend!

Smiley Very Happy

Message 20 of 23
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