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So lost on what to do - should I file Bankruptcy or try to work it out - please help

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Jnbmom
Credit Mentor

Re: So lost on what to do - should I file Bankruptcy or try to work it out - please help

@Anonymous 

 

We filed BK in 2005 after a job loss and we were overextended prior.

 

I worked massive overtime and tried to stay afloat for over a year. We paid thousands of dollars and were still under water . I wished we would have filed earlier but I felt ashamed overwhelmed and guilty . I now realize that we should have done it much sooner .

 

I suggest if you know you can't make it do it sooner rather then later.

EXP 780 EQ 791TU 795
Message 21 of 35
Anonymous
Not applicable

Re: So lost on what to do - should I file Bankruptcy or try to work it out - please help


@Anonymous wrote:

 


@Anonymous wrote:
There is a thread in post 7 of the Scoring Primer I believe bankruptcy to 700 in 2 years.

I'm not sure what a scoring primer is?  Nevermind, I found it but a bit lost in the whoe thread.  Thank you, I'll keep searching!


@Anonymous go to post number 7 of the Primer and look for the thread that says bankruptcy to 700 in 2 years, click on that thread and read it.

Message 22 of 35
Anonymous
Not applicable

Re: So lost on what to do - should I file Bankruptcy or try to work it out - please help

@Anonymous  found it, thank you so much!

Message 23 of 35
Anonymous
Not applicable

Re: So lost on what to do - should I file Bankruptcy or try to work it out - please help


@Anonymous wrote:

@Anonymous  found it, thank you so much!


@Anonymous No problem! If you have time, you want might want to breeze to the table of contents in post 8 and read some of the first 5 posts. A lot of good stuff there to help you understand scoring! And as you see, there's plenty of helpful links to other threads in post 7. Enjoy!

Message 24 of 35
Jnbmom
Credit Mentor

Re: So lost on what to do - should I file Bankruptcy or try to work it out - please help

While I realize these threads about rebuilding after BK will come in handy, I think you need to focus on your financial well being at the moment and speak to a few attorneys and see where you stand . I wouldn't worry about rebuilding right now that will come in time .


Focus on your current situation and have a plan for your financial future and  how to make an emergency fund and how to set yourself not to have these issues down the road again.

 

If BK is your best option file .

 

EXP 780 EQ 791TU 795
Message 25 of 35
Remedios
Credit Mentor

Re: So lost on what to do - should I file Bankruptcy or try to work it out - please help

Post containing unethical advice was removed (along with some collateral damage), and that's without even getting into potential harm it could cause should someone decide to follow it.

 

Please refer to MyFico Terms Of Service  if you require additional clarification on what's allowed and what is not. 

Message 26 of 35
FinStar
Moderator Emeritus

Re: So lost on what to do - should I file Bankruptcy or try to work it out - please help


@DebtStinks wrote:

@Remedios is this why my comment responding to what I beleived to be bad advice was removed?


As the post containing the original TOS violation was removed, so are its replies/references (i.e. collateral damage).  This ensures content integrity and flow which in turn minimizes any confusion for the community by having a dangling fragment without the original reference(s).

Message 27 of 35
Anonymous
Not applicable

Re: So lost on what to do - should I file Bankruptcy or try to work it out - ***UPDATE***

UPDATE - 

 

I spoke to an attorney and she advised me to stop paying my unsecured debt and to to continue paying mortgage, auto loan and credit union loan going forward.  I would have to file with my husband so she advised us to wait until he's laid off so that we pass the means test for the previous six months income.  We were struggling before and I was worried about making the payments when he gets laid off but we've both been diagnosed with Covid-19 and are quarantined through next week.  This has put even more of a burden on us.

 

I have always paid my bills and never had a late payment and if we can't file until February/March, will this have any other negative consequences that I do not realize while waiting to file?  

 

She did tell me if i got calls, to tell them we are filing chapter 7 and to give their name/phone number to contact.

 

Nervous and scared, not sure of what but the unknown.  Is there anything else I should be aware of at the present time?

 

Thank you.

 

Message 28 of 35
DebtStinks
Established Contributor

Re: So lost on what to do - should I file Bankruptcy or try to work it out - ***UPDATE***

Follow your attorney's recommendations.

 

Keep in mind that any negative reporting should stop once you file CH7 and the debt is discharged.

 

COVID or anything health related takes prioity over bills, but do your best to make sure the mortgage and anything you're keeping is paid on time...or worst case scenario, no more than 29 days late each month. Negative reporting begins at 30 days past due. Yes, late fees, etc wouldn't be fun, but they can be negotiated and are still better than the negative reporting.

 

Make sure you don't make any unnecessary purchases/cash advances on cards, especially in the 90 days leading up to file date..try to as best you can ensure all transactions are groceries, gas, utilities, etc. The courts will scrutinize your income in the 6 months preceding your file date and purchases/transactions on all accounts in the 90 days leading up to file date.

 

With regards to the comment about telling creditors you're filing CH7 and to call your attorney is really nice of him/her. Most attorneys won't offer this option unless or until you've retained their services with at least a down payment. If you have retained (via down payment or payment in full) an attorney, don't apply for any new credit, etc as it could be construed as fraud knowing (or at least thinking) you're filing for bankruptcy protection.

 

To sum up, what you're feeling is completely normal and just know that if you follow your attorney's advice, everything should go relatively smooth. It's not a fun process, but I've been there...just as many other members here. It will all be fine in the end, and you'll breathe a big sigh of relief once it's all done and you have your discharge.

 

Best of luck!

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Total CL - $115500

CH7 BK Filed 8/1/17 Discharged 11/7/17

Scores as of 2/18/21:




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Message 29 of 35
Anonymous
Not applicable

Re: So lost on what to do - should I file Bankruptcy or try to work it out - ***UPDATE***

@DebtStinks  I know this should be the least of my worries but I don't want to do anything wrong.  I understand just pay my mortgage and living expenses which I can do.  I still get paid while off work thankfully.

 

Is it a problem if I purchase / cash of course christmas presents for my grand children? 

 

I'm not sure how to go about the holidays.  I know not to use my credit cards for any purchases.  I have not retained the attorney as far as payment yet.  Only 1/2 down to start and rest at the end and not until at least March/April for income purposes.  So, if I pay for christmas items with my cash during december and we don't file until april, the 90 day period would be Jan - Mar 2021 if I understand correctly and I dont have to worry about purchasing christmas gifts?

Message 30 of 35
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