My bankruptcy journey begins...

[masscredit]

---

@Horseshoez wrote:

---

@masscredit wrote:

I see a registered letter in my USPS informed delivery email. I might sign for it or I might have it returned. How long can I go before I start getting more letters like this? Like, when things will really start getting stressful for me? 

I probably won't wait _that_ long. I want to start rebuilding. I've read a number of theads here from people who went from BK to 700 in a year or two (don't remember which one). 700 will be my main goal after this is over.

---

I can read your words about starting your rebuild two ways, 1) you want to start rebuilding now before you file, and 2) you want to file soon so you can start rebuilding shortly thereafter.  The first is a non-starter, the second is a good plan; I'm assuming you meant the second, but just wanted to clarify. 

---

I don't plan on starting to rebuild inless there is a point before that when it is recommended to start. 

[masscredit]

@jmcmillan wrote:

Just file.

You may be putting it off because you think bankruptcy will tank your credit. It’s already tanked, and even if you won the lottery today, it will be years before all of those derogs stop affecting your credit.

I delayed filing for about two years. I went through this denial where I thought I could just save money and negotiate settlements. Since I live in Texas, I felt protected by Texas laws. But then I started researching …. Even though Texas prohibits most wage garnishments, the creditors could technically levy my bank accounts. I also spoke with a lawyer who said my wages could be at risk because my employer is based in California, and they do allow garnishments. Most of my debt was with Navy Federal, and it seems they don’t hesitate to sue. Midland Credit was also threatening to sue.

I still had about 2.5 years out of 4 to meet Texas’ statute of limitations. I suddenly had an epiphany that I could spend years dodging these creditors, hoping I don’t get sued, and trying to negotiate settlements; or, I could just get it all over with and file bankruptcy. The resources on this forum taught me that there is life after bankruptcy, and it seemed like a much easier path than the alternative. I am settled in a nice apartment that I like, and my car is relatively new, so there would be little effect from bankruptcy.

When I decided to file, I told my lawyer, “I want this done ASAP.” I spent days under a lot stress gathering all my documentation and filing past due taxes. My lawyer wanted to know why I was in such a hurry, and even suggested that I wait because the trustee I would receive is known to be difficult. I said I want this done so I can relax. The day I filed, all of the stress (for the most part) was gone.

Now that I am discharged, I can focus my efforts on paying off student loans so I can be 100% debt free. I have 3 secured credit cards to kick-start my credit rebuild and the future looks bright.

@jmw1 wrote:

I don't recommend dodging mail or dodging process server because it may be related to lawsuits against you. If you get junk mail related to legal services, you have already been sued and the process server is coming soon. That might push you to file sooner. The point when you waited too long is when they put a lien on your house or garnish your wages or bank account after a judgment. There are some instances when it's worth it to wait such as waiting for income to rise to the level where you can live off of it without credit. 

Don't be so concerned about the rebuild. Make sure you have enough income to live on without credit after you file. Then run the marathon (it's not a sprint) while keeping debt to the absolute minimum so you can get a mortgage someday.

My current EQ08 score is 486 so my credit has taken a nose dive. It was close to 800 a couple of years ago. That part really sucks!  I guess I've been putting it off because it's the path of least resistance right now. I really don't have to deal with much. I get some main and I don't hear any of the calls because my phone silences unknow callers (this is the BEST feature!).  I've started to Google BK attorneys in my area. Not looking forward to all of the paperwork I'll have to put together for this but it will be worth it in the end. Today I received notice that Navy Federal has closed my account. This is the first one to be closed. 

I've been very tempted to make one call or answer one call from each of the credit card companies. I'll just tell them that I don't have the money to continue payments. I know they will try to make sure arrangement but that's not going to happen. I don't know if talking to them will matter or help (maybe less calls). If I do this and they ask if I'm going to file BK, should I say yes?

As for living without credit, I'm financially doing good without having to pay my credit cards. I have a budget that I live by. It's pretty much equal to my income. 

[Horseshoez]

@masscredit, under no circumstances take a call, and that goes double for even remotely hinting you are going to file for bankruptcy.  Why?  The instant they get a whiff of the "B" word, they'll rush to the court house and get a judgement against you and that really will screw you up.

[masscredit]

---

@Horseshoez wrote:

@masscredit, under no circumstances take a call, and that goes double for even remotely hinting you are going to file for bankruptcy.  Why?  The instant they get a whiff of the "B" word, they'll rush to the court house and get a judgement against you and that really will screw you up.

---

Thanks for the info! Even though I really don't want to, I didn't think taking a call would cause much if any problem unless I say the wrong thing. The most I would have said would have been something like "Unfortunately I don't have the money to pay my bills right now. I'm happy to be able to eat and cover living expenses". 

Card #2 was closed today. That one is Lowes. From what I'm seeing, it looks like some companies are doing that after payments are 60 days late. My JC Penney closes on the same day as Lowes so I expect that one to be shut down soon. I'm going to pull my TU and EX scores soon to see how bad they are.

[masscredit]

I received an email from Discover about debt settlement - 

Is credit card debt settlement the best choice?

Unlike third-party debt settlement companies, our payment programs could lower your payments, reduce your APR or help you avoid late fees. So you can pay back your debt, your way.

I'm not going to be using this but just adding it as a data point for others who read this thread. I wonder how many credit card companies offer this for people who have debt that can be made manageable? 

[masscredit]

Coming up on 120 days late for some cards. I don't get as many calls as I used to. The guy from PENFED is persistent. He calls every day. A few cards have sent notices suggesting they can lower the balance. I'd probably consider that if it was pennies on the dollar but in the end, I think BK will be the better option. My EQ08 score is now 480.

I have a list of attorneys I'm going to contact soon. 

[Anonymous]

Trust me just file. I went through every option imaginable, from trying to get a loan to buy time (I did, and in the long run all it did was delay me having to face the music a year, I would be much happier to be another year post BK) and trying to individually talk to each creditor; I even explored several debt mgmt plan options (a nonprofit gets you a deal where a bit of your debt gets shaved and the interest goes waaaay down and you make payments to pay it all off over 3-5 years.)

None of it made enough sense to choose over the golden standard: CH7.

Why waste more years of your life trying to pay all this BS back when Uncle Sam will tell all your creditors to go pound sand and not tax you a nickel on it? Your credit is already eviscerated. File, start over, rebuild, literally a few months after discharge it's like it never happened. It has only caused me the most minor of inconveniences, NOTHING LIKE WHAT I FEARED AT ALL. It's a **bleep** gift TAKE IT before they change the rules or something lol!

[masscredit]

So... I usually don't open any mail that I get from creditors. The pile is getting big. I received my first letter sent through UPS. I was courious so I opened it. This one is from Citi. It says my account is being sonsidered for placement with an attorney to pursue legal options. I have until August 14th to contact them to set up acceptable payment arrangements. 

I guess I should get moving with finding an attorney.

[Lurker22]

---

@Anonymous wrote:

Trust me just file. I went through every option imaginable, from trying to get a loan to buy time (I did, and in the long run all it did was delay me having to face the music a year, I would be much happier to be another year post BK) and trying to individually talk to each creditor; I even explored several debt mgmt plan options (a nonprofit gets you a deal where a bit of your debt gets shaved and the interest goes waaaay down and you make payments to pay it all off over 3-5 years.)

None of it made enough sense to choose over the golden standard: CH7.

Why waste more years of your life trying to pay all this BS back when Uncle Sam will tell all your creditors to go pound sand and not tax you a nickel on it? Your credit is already eviscerated. File, start over, rebuild, literally a few months after discharge it's like it never happened. It has only caused me the most minor of inconveniences, NOTHING LIKE WHAT I FEARED AT ALL. It's a **bleep** gift TAKE IT before they change the rules or something lol!

---

Couldn't agree more!

[masscredit]

I received a settlement offer email from NFCU -

As of the date of this email, the total outstanding balance is $8817.71. You may settle your account by paying 65% of your current outstanding balance.

Your possible settlement options are:

1. Pay $5731.51 to settle your account; or

2. Pay a first payment of $855.00 and 11 consecutive monthly payments of $443.31 each.