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Re: Bankruptcy FAQs

New Contributor

Re: Bankruptcy FAQs

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   steer clear...and credit counselors steer clear of them as well.

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Message 1 of 76
Established Member

Re: Bankruptcy FAQs

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.
Message 2 of 76
New Member

Re: Bankruptcy FAQs

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?
Message 3 of 76

Re: Bankruptcy FAQs

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.

Message 4 of 76
New Visitor

Re: Bankruptcy FAQs

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???
Message 5 of 76
Valued Member

Re: Bankruptcy FAQs

are private student loans from sallie mae covered by BK, i read here that GOVERMENT SL's are not, but just SMae's loans??
Message 6 of 76
Moderator Emeritus

Re: Bankruptcy FAQs

Message 7 of 76
New Visitor

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

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?

Message 8 of 76
Moderator Emeritus

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

Welcome to the forums! Chapter 7 BKs stay on credit reports for up to 10 years. This might explain why BoA won't play.
Message 9 of 76
New Member

Re: Bankruptcy FAQs

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.....

Message 10 of 76