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Self-Inflicted Credit Destruction - Need some serious advice

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Senior Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

Im going to butt in...

You need to at least talk to a BK attourney .... And putting it off is not gonna make it any better...

It sounds like your attempting a DMP (Debt Management Plan)... Is it realistic? How long to supposedly get you out of this mess.. Remember most of your payment on these goes to fees first then the actual debt... 

Heres the thing...

Suck it up, swallow your pride, and really need someone else to see the numbers.... Because the thing is, getting worse off by waiting, and also by waiting, your also postponing the recovery as well.....

You may also want to discuss your DMP on here as well.... 

 

Good luck

-J

 

Message 21 of 29
Regular Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

Don't really appreciate the tone. You aren't a financial advisor, nor are you a bankruptcy attorney yourself.

 

My reservations have nothing to do with pride. If it were pride that were an issue, I wouldn't be transparent about my financial health on here, or discussing it with friends and family. BK is a financial undertaking and commitment that I don't think I'm ready for. And, that's why I've been hesitant to commit. Greenpath plan was suggested by my Credit Union, which IS a financial institution. And, I have already considered the financial undertaking it would be. However, my interest was piqued by the honest effort I'd be making to make good on my debts owed.

 

Bankruptcy is a viable solution for some, and an excellent option that I'm glad exists. I know it's helped a ton of people in crisis. That does not necessarily mean that it's something I HAVE to pursue, even based on where I'm presently at with my credit and finances. So, again, nothing to do with pride. I've been taking the past few months to weigh my options, research, discuss, and determine what the next step is. I'll update if I have chosen to go this way.

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 22 of 29
Regular Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

I was self-employed when this happend. My present attorney, regrettably, for the accident was probably a poor decision on my part, because as it stands it's been 2 years and nothing has really come of it. I actually have a consultation coming up with them in the next week. But, I think it would be a good idea to explore other legal advice/options.


Thank you for the contribution!

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 23 of 29
Frequent Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice


@Dhar33 wrote:

Don't really appreciate the tone. You aren't a financial advisor, nor are you a bankruptcy attorney yourself.

 

My reservations have nothing to do with pride. If it were pride that were an issue, I wouldn't be transparent about my financial health on here, or discussing it with friends and family. BK is a financial undertaking and commitment that I don't think I'm ready for. And, that's why I've been hesitant to commit. Greenpath plan was suggested by my Credit Union, which IS a financial institution. And, I have already considered the financial undertaking it would be. However, my interest was piqued by the honest effort I'd be making to make good on my debts owed.

 

Bankruptcy is a viable solution for some, and an excellent option that I'm glad exists. I know it's helped a ton of people in crisis. That does not necessarily mean that it's something I HAVE to pursue, even based on where I'm presently at with my credit and finances. So, again, nothing to do with pride. I've been taking the past few months to weigh my options, research, discuss, and determine what the next step is. I'll update if I have chosen to go this way.


I dont' think you should read too much into jolt's reply as being rude or antagonistic- the hard thing with reading responses in print is that you cannot hear the tone of thevoice, so it is up to your own interpretation. Im sure he was only assuming it was pride, as it is with a lot of people, but I don't think he was talking down to you from what I read.

 

I am puzzled by your comment though, about BK being a financial undertaking & commitment. Certainly if you were going to do CH13 it would be, but CH7 is relatively painless. Again, that is why I, and others on here, urge you to speak with a competent BK attorney that can answer any & all concerns you may have regarding what your best course of option should be. GL!



Starting Score: Nov 3, 2018: EX 597 TU 599 EQ 616
Current Score: August 1, 2019: EX 674 TU 697 EQ 689
Goal Score: Dec 31, 2019: EX 700 TU 700 EQ 700

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Message 24 of 29
Regular Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

Thank you for the reply. Even though tone is hard to read over written format, it did seem a bit condescending, and I felt attacked for not just jumping into that kind of a decision.

 

I think you're right. I think a lot of my reservation comes from not being very educated on everything that encompasses deciding to go into bankruptcy. As you're mentiong CH13 and CH7, I admittedly don't even know the difference between those! So, I think a consultation wouldn't hurt, just to understand what I'd be getting into.

 

Thank you, again.

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 25 of 29
Regular Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice

In all honesty, I'm worried how much harder things like securing an apartment and getting an auto loan once I've decided to go the route of bankruptcy. I know I'm not gonna look great to anyone right now. But, after BK, will I be approved for anything? Will apartment shopping become impossible? A BK lasts on a report for 7 years, correct?

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 26 of 29
Established Member

Re: Self-Inflicted Credit Destruction - Need some serious advice

Chap 13 is a repayment plan (5 years but I believe they also have a 3?).

First off, They will make you take a means test, which is pretty much an incoming and outgoing cash flow analysis on everything you spend on. After that it will determine if you qualify for a chap 7 ( complete wipe off) or the chap 13 which is repayment.

Chap 13 is kind of like what you can afford per month (according to means test) and you pay that amount for 5 years.

Ex. You can afford $200 per month.
$200 × 12 mo x 5 years = $12000

If you have 20k in debt, you pay the 12k and the other 8k is wiped.

If you have 10k in debt, you are going to be a 100% repay and they would adjust the amount to reflect how much it would take for you to pay that amount in the 5 years.


I spoke to an attorney here in Vegas a few years ago about a BK, and decided to try to dig my own way out. But it definitely doesn't hurt to speak to them and get all of your options.
Message 27 of 29
Frequent Contributor

Re: Self-Inflicted Credit Destruction - Need some serious advice


@Dhar33 wrote:

In all honesty, I'm worried how much harder things like securing an apartment and getting an auto loan once I've decided to go the route of bankruptcy. I know I'm not gonna look great to anyone right now. But, after BK, will I be approved for anything? Will apartment shopping become impossible? A BK lasts on a report for 7 years, correct?


In all honesty your credit will recover quicker & you will be approved for more things than if you try to tackle the debt alone with all the negatives still on your reports. Go to a lawyer. Ask questions. Then decide what is best in the long run. GL!



Starting Score: Nov 3, 2018: EX 597 TU 599 EQ 616
Current Score: August 1, 2019: EX 674 TU 697 EQ 689
Goal Score: Dec 31, 2019: EX 700 TU 700 EQ 700

Take the myFICO Fitness Challenge





Message 28 of 29
Moderator

Re: Self-Inflicted Credit Destruction - Need some serious advice

CH-13 remains for 7 years, CH-7 10 years. There are income limits to doing a CH-7 a BK atty is going to know what they are for the area you live in as I do believe they are based on median incomes for the area and they are different all over the country.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 29 of 29
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