Bankrupcy

[Guest bigb]

Just a question...has anyone ever had to file for bankrupcy (chapter 7) or have expertise in this area b/c of their profession. If so, how long did it take u b/f u were able to buy another home, etc., etc. I don't care about car loans b/c that will be reconfirmed, but I am especially concerned about purchasing a home. I need to get feedback from people who have actually had to deal with this. Not just hear say. I will be grateful for any input.

[evan9381]

I sorta deal with it at work daily. i do collections and quite a few people declare bankruptcy. it will stay on your credit for 7-10 years and will basically ensure you dont get any major loans until it is gone...bankruptcy is serious and (not knowing your situation) shouldn't be done unless there is no possible way to repay any of your debts. also, realize that bankruptcy laws changed in october of 2005 and makes it much more difficult for people to file now.

 

what you may want to look into is filing a chapter 13 bankruptcy which will allow you to repay your creditors. it still shows on your credit report as a bankruptcy but doesnt look "as bad" as a chapter 7. chapter 7 is basically running away from all your debts

[NOS50]

My neighbor did something called a "fresh start".He walked away from $100k in credit card debt and negative equity from a repossessed car but kept his house.I guess that was the only payment he had been making.He got a loan on a car about 2 months later but I bet the interest rate is ridiculous.I say call your creditors and work out a payment plan and pay them off then get the house.

[wnaplay1647545503]

Consider a consumer credit counseling type service. They will work with the people you owe. Of course they tell people you owe money they will get part of their money back and the creditor pays them a portion as a collection fee. But you dont pay them anything. I wouldn't pay anyone with first asking that all records be cleared from your credit report upon payment.

[Guest powers]

Consider a consumer credit counseling type service. They will work with the people you owe. Of course they tell people you owe money they will get part of their money back and the creditor pays them a portion as a collection fee. But you dont pay them anything. I wouldn't pay anyone with first asking that all records be cleared from your credit report upon payment.

Very bad advice. Most all creditors view Consumer credit counseling as a chapter 13 BK.

 

You can buy a home 1 day out of discharge. Your credit history since your BK is looked at closely. Once you have gone through a BK your acutal credit scrore is what most people use to determine credit worthyness. Carry a few small credit cards through and make sure your credit report is 100% accurate and you will have a score in the high 500's low 600's within a few months. As long as your score is over a 580 middle you can buy a home no money down.

[wnaplay1647545503]

=powers]Very bad advice. Most all creditors view Consumer credit counseling as a chapter 13 BK.

 

Why would they? My buddy went to a credit counseling service and told his creditors that he would pay them their money only under the stipulation that they immediately remove any negative information in regards to his business with them. And they agreed. No record of him dealing with a credit counseling service went on his credit record. He told them that was the only way they would ever see a dime from him. And since he had current credit with other creditors, and was in good standing, he was able to purchase land once it was all taken off. The only reason he went to a counseling service was because he wasn't able to directly get any results from contacting them himself. The counseling company worked out a deal that week.

[CJINOHIO03]

I wotk in the field too. I doubt your buddy had everyone delete his negative history. Why would anyone do that? I have worked at a few banks/credit card companies and never heard of that. The only credit counseling company I or most people in the field would recommend is CCCS. They are non profit and do not charge for there sevices. They work a budget out for you and works a repayment plan with your creditors. Most creditors do work with them. Beaware of any places you see online or in the phone book. Most of these places are crooks charge you money and do not do anything except wait for your credit to go to shit (charge offs) and then make redicolous settlement offers which you can do yourself.

[yellowsnake]

a buddy of mine with filed bk just before the deadline. all his papre work was final on a thursday and went out on friday and bought a brand new, 23,000$ jeep with no money down and has a 7.9% intrest rate. he filied on a condo, 80,000$ in credit card debit, 2 car loans, one just over 31000. only thing he kept was a house he had just bought. he was "leaseing" the condo when he purchased his home. house loan was for 180K.

[Guest powers]

Why would they? My buddy went to a credit counseling service and told his creditors that he would pay them their money only under the stipulation that they immediately remove any negative information in regards to his business with them. And they agreed. No record of him dealing with a credit counseling service went on his credit record. He told them that was the only way they would ever see a dime from him. And since he had current credit with other creditors, and was in good standing, he was able to purchase land once it was all taken off. The only reason he went to a counseling service was because he wasn't able to directly get any results from contacting them himself. The counseling company worked out a deal that week.

Becasue chapter 13 is a court apointed trustee that does the same thing. You pay them and they pay your bills for you because you suck at it.

 

I am not telling you opinion I am telling you a fact. ALL CCC is viewed as a chpt 13, it is the same thing. Someone else had to manage your bills for you. And to add to that the only reason you would do a 13 is to protect your home from forclosure.

 

BTW according to the fair credit reporting act if your creditor knows you are in CCC they have to report it.

[Guest hotrodmama024]

listen to powers. We have been dealing with bankruptcys for a long time now. Well i know he has and i have for about 7 years. By the way, since i know you arent doing mortgage anymore powers, refer all your buisness to me! lol I am working at Multi-Fund now as a Loan officer.

[MaverickGrabber1972]

http://www.bankruptcyaction.com/questions.htm

[Guest bigb]

Thanks everyone. I really appreciate all the input. I am at the tail end of a divorce from a marriage that never should have happened...my bad judgement. I really don't care about keeping my house right now b/c there is a home equity line of credit attached to it. There's not really any equity in my house b/c I will be taking everything out of it that caused the value to go up upon leaving. I will be reconfirming my car which prayerfully will last another 7 to 8 years if I keep up on the maintenance. I've been told by my attorneys and my creditors that if I file after my divorce is final my ex (who is attached to quite a few of our joint ventures) will still be responsible for the loans unless he too files bankrupcy as well. And I doubt that will happen. My credit score is 702 right now so I will be able to get an apartment b/f my house actually goes into forclosure. This is the plan anyway...just wanted to know if my attorney was accurate about taking as long as it does to be able to purchase another home. Which right now isn't really a big deal to me. I'm not sad about this b/c I know I'll be back on top soon...did it b/f...will do it again. I am a survivor. Once again, thank u all for the input.

[GRN96WS6]

Thanks everyone. I really appreciate all the input. I am at the tail end of a divorce from a marriage that never should have happened...my bad judgement. I really don't care about keeping my house right now b/c there is a home equity line of credit attached to it. There's not really any equity in my house b/c I will be taking everything out of it that caused the value to go up upon leaving. I will be reconfirming my car which prayerfully will last another 7 to 8 years if I keep up on the maintenance. I've been told by my attorneys and my creditors that if I file after my divorce is final my ex (who is attached to quite a few of our joint ventures) will still be responsible for the loans unless he too files bankrupcy as well. And I doubt that will happen. My credit score is 702 right now so I will be able to get an apartment b/f my house actually goes into forclosure. This is the plan anyway...just wanted to know if my attorney was accurate about taking as long as it does to be able to purchase another home. Which right now isn't really a big deal to me. I'm not sad about this b/c I know I'll be back on top soon...did it b/f...will do it again. I am a survivor. Once again, thank u all for the input.

 

 

If you signed jointly on loans and you file bankruptcy your ex will assume the loan whether she wants to or not. My g/f right now is dealing with this and it sucks for her, I feel for her. If she gets off of the loans which would be hard since you sound like you are hurting financially then she could escape it but not unless that happens. Are you sure you have exhausted all your other options? Filing bankruptcy is a major thing and not something to be taken lightly.

 

 

Eg in court my g/f was ordered to pay her car note and her ex was ordered to pay his. He stopped paying his and she was stuck with it because the bank didn't care that they were divorced and that he was supposed to pay his and she was suppsed to pay hers. Personally if you are getting divorced then I would not have any joint loans period. If you sell the house or incur any debt together the judge will obviously order each of you to pay a certain amount of percentage but as far as the bank is concerned you are a cosigner you owe money to them.

[evan9381]

Eg in court my g/f was ordered to pay her car note and her ex was ordered to pay his. He stopped paying his and she was stuck with it because the bank didn't care that they were divorced and that he was supposed to pay his and she was suppsed to pay hers. Personally if you are getting divorced then I would not have any joint loans period. If you sell the house or incur any debt together the judge will obviously order each of you to pay a certain amount of percentage but as far as the bank is concerned you are a cosigner you owe money to them.

 

yep. this is also the crap i deal with daily.

 

your divorce decree is a civil agreement. any joint loans you have are contractual (sp?) agreements that were signed prior to your divorce. while you CAN sue your ex for the money, you will have to take care of the loan to keep your ass above water and then sue him later down the road. the agreement you have with say the car finance company overrides your divorce decree.

[Kohones]

Powers speaks the truth, I was a Banker for 30 years. If you take the bankruptcy route or even CCCS you will pay in the end. Credit is the american way period. If you take the bankruptcy route, eventually YOU WILL NEED SOMETHING IE home, car, new woman (that will make you get things), just life changes in general. THEN----- watch out, you'll gladly pay interest rates indicative of your previous bankruptcy, ie 5-600 basis points more than people that stuck it out & paid their debts in a timely manner. Your bankruptcy atty will tell all kinds of things like what I've just said wrong / why? Because they could care less. They'll take their % for filing & getting your bankrptcy & they're done & your f---. Sooo think seriously before you take the bnkrptcy walk. Much higher rates & being treated like crap for 5 - 6 years with the bankruptcy record showing in your file for 10 years!!!! Is it truly the best way out for you? Only you can answer that. Sorry if I've come across tough, but these are the real facts --

[Guest bigb]

I am not working full time anymore and I have exhausted all my allowance for student loans (I am in graduate school). I have been paying my mortgage with student loan money over the last 3 months. I now have close to 55K in student loans and have 2 more years of grad school. My attorney is telling me I can't include the student loans in the bankrupcy b/c they r federal loans (some subsidized and unsubsidized). My ex is living at home with parents and making close to 100K a year. The courts done care about debt to income ratio though. The system sucks.

[Guest bigb]

yep. this is also the crap i deal with daily.

 

your divorce decree is a civil agreement. any joint loans you have are contractual (sp?) agreements that were signed prior to your divorce. while you CAN sue your ex for the money, you will have to take care of the loan to keep your ass above water and then sue him later down the road. the agreement you have with say the car finance company overrides your divorce decree.

Oh and by the way...I would be the one getting sued b/c I can't afford to pay the loans. But if I file bankrupcy this is my only protection. I just can't make all the bills anymore...plus, I have incurred quite a few extra medical issues since the separation which will be money out of pocket after I lose my insurance I have from my spouse.

[thorne]

from my experiance my ex files bankrupcy i did not my credit bottomed out in high 400's buy paying things off and letting the house jsut I have climbed to a pathic 589 but its climbing i just try to pay on things and the 1 credit card igot o buy things pay it off 3-6 months buy something else . I am trying its rought. The courts told me i made to much money

[desperado]

it will stay on your credit for 7-10 years and will basically ensure you don't get any major loans until it is gone

 

I have to disagree with this statement, my bankruptcy discharged in 02 and I just bought my second house. More over I kept the old house and refinanced the mortgage on it to bring the payment down on it and leased it to someone.

 

I did have to have a signed lease agreement for the refinance, but the mortgage for the house I am in had no such requirement.

Not to get to far into personal business, my net worth owning two homes probably something to do with it, but I refinanced the old house out just below the level that I would need to pay PMI on the mortgage and took that money out for the down payment for the new house.

 

Here's the thing that you need to be damn careful of. The lenders that you are filing on may attempt to give you credit right after the discharge, and in the fine print you will be reaffirming on the old debt. This can not be gotten out of and you will be responsible for the dept again. There are also things that you can't file on.... those being any legal findings, child support, medical debt, and any money that is owed to the government, including federal student loans.

 

Once your discharge comes in you will quickly begin receiving offers for loans and credit cards at silly high interest rates. Get one, but bear in mind what I said about old debt above, don't screw yourself. Use the credit sparingly, buy something that you have the money to pay for and put that money away. Make the min payment the first month and pay it off the next. (Paying it off the month the credit was used will not show up on your credit as much.) Also keep in mind, you can NOT file again for 7 years. Do NOT get in over your head again. I personally was in debt to the point I could have bought a house with the money I owed. Speaking of that, you have to have a minimum amount of debt before it's even possible to file. The amount was $20000. You also will have to show your debt to income ratio, meaning the amount of money you take into your household as opposed to the amount that your bills add up to each month. There is a minimum ratio that needs to be meet before you can file. I believe it's 75% but that might have changed, an attorney will be able to tell you. Your attorney will want paid up front for this, legal fee's can be discharged, so he wants them up front, so he doesn't get screwed. You can reaffirm on some things, but there strings attached to that. You must owe more than the item purchased is worth, and in the case of a house you can 't have more than X amount of equity in that home. If there is any equity you may have to relinquish the item in the bankruptcy. I was able to reaffirm on my house but that's not always the case. Any owned property over a certain value is also subject to seizure as well to cover the debt. Your bank accounts, savings accounts, stocks bonds and other nest eggs are also subject to seizure to cover your debt.

 

I am not telling you any of this to scare you off. I tell you this so you have some idea of what to expect. I will also tell you that some people will look down their nose at you for it, fuck em. I didn't pay any specific attention to your age but I was 24 at the time I filed, and had a 6 figure debt. Banks at the time, and still today will loan money to people that have no business borrowing the money. Builders are the worst offenders at this point offering new homes for $400 to $600 for a monthly payment, hiding in the fine print that you have to refinance in two years and pay off the note, pushing the $400 up to $1400 and leaving the owner holding the bag. At which point it's not there problem. Franklin County is the 3 highest county in the country for bankrupsy's, because of MI and Dominion homes, and these deals and 'other creative financing' that gets people into homes that couldn't afford to paint the fucking thing much less buy it.

All I can say is if you have specific questions PM me, or contact an attorney, and above all good luck.

[Guest bigb]

I have to disagree with this statement, my bankruptcy discharged in 02 and I just bought my second house. More over I kept the old house and refinanced the mortgage on it to bring the payment down on it and leased it to someone.

 

I did have to have a signed lease agreement for the refinance, but the mortgage for the house I am in had no such requirement.

Not to get to far into personal business, my net worth owning two homes probably something to do with it, but I refinanced the old house out just below the level that I would need to pay PMI on the mortgage and took that money out for the down payment for the new house.

 

Here's the thing that you need to be damn careful of. The lenders that you are filing on may attempt to give you credit right after the discharge, and in the fine print you will be reaffirming on the old debt. This can not be gotten out of and you will be responsible for the dept again. There are also things that you can't file on.... those being any legal findings, child support, medical debt, and any money that is owed to the government, including federal student loans.

 

Once your discharge comes in you will quickly begin receiving offers for loans and credit cards at silly high interest rates. Get one, but bear in mind what I said about old debt above, don't screw yourself. Use the credit sparingly, buy something that you have the money to pay for and put that money away. Make the min payment the first month and pay it off the next. (Paying it off the month the credit was used will not show up on your credit as much.) Also keep in mind, you can NOT file again for 7 years. Do NOT get in over your head again. I personally was in debt to the point I could have bought a house with the money I owed. Speaking of that, you have to have a minimum amount of debt before it's even possible to file. The amount was $20000. You also will have to show your debt to income ratio, meaning the amount of money you take into your household as opposed to the amount that your bills add up to each month. There is a minimum ratio that needs to be meet before you can file. I believe it's 75% but that might have changed, an attorney will be able to tell you. Your attorney will want paid up front for this, legal fee's can be discharged, so he wants them up front, so he doesn't get screwed. You can reaffirm on some things, but there strings attached to that. You must owe more than the item purchased is worth, and in the case of a house you can 't have more than X amount of equity in that home. If there is any equity you may have to relinquish the item in the bankruptcy. I was able to reaffirm on my house but that's not always the case. Any owned property over a certain value is also subject to seizure as well to cover the debt. Your bank accounts, savings accounts, stocks bonds and other nest eggs are also subject to seizure to cover your debt.

 

I am not telling you any of this to scare you off. I tell you this so you have some idea of what to expect. I will also tell you that some people will look down their nose at you for it, fuck em. I didn't pay any specific attention to your age but I was 24 at the time I filed, and had a 6 figure debt. Banks at the time, and still today will loan money to people that have no business borrowing the money. Builders are the worst offenders at this point offering new homes for $400 to $600 for a monthly payment, hiding in the fine print that you have to refinance in two years and pay off the note, pushing the $400 up to $1400 and leaving the owner holding the bag. At which point it's not there problem. Franklin County is the 3 highest county in the country for bankrupsy's, because of MI and Dominion homes, and these deals and 'other creative financing' that gets people into homes that couldn't afford to paint the fucking thing much less buy it.

All I can say is if you have specific questions PM me, or contact an attorney, and above all good luck.

Thanks for the info. Again, it's so informative to hear what the attorneys and courts won't tell u. My debt to income ratio is well over 75%. When my previous spouse left I was stuck with a lot of bills not including all the money and material items that was stolen from the house. Although his friends have told me his story is completely different and they all believe me...LOL. I am normally not in this kind of predicament. I bought the home I am in 5 years ago and have NEVER had an issue paying my debt or mortgage, but my wedding last year was close to 18K (all paid for by me except about 750) and now grad school, and now divorce attorneys, and now bankrupcy attorneys, etc., etc. U get the point. I am wiped out. I don't care what people think b/c after grad school and after my medical issues are taken care of I will be in a very nice position to get my finances back on track. The job I am going to school for has just increased the base salary by 30K where I have already been offered a position after graduation. I am very excited about that one!!!!