Just a curious question from me.

I know it is a personal question type thing so you don't need to reply.

I filed Chapter 7 earlier this week. I'm hoping that it will go as good as I hope.

What are your experiences with the process?

 

I think Chapter 7 is where you pay it back slowly right with monthly paments?? My dad did this and its a PITA.. He wishes he would of files 13 but he would of lost his truck then.

 

Chapt. 13 is where a judge sets up payments & you pay it back slowly.

Chapt. 7 if granted by the judge discharges all the debt you have notified the court about.

I'm still trying to figure out Chapt. 11.

 

The subject was discussed last fall/winter in the PP or OTL. It's a subject that raises the hair on many peoples back.

 

I'm not sure how to answer this. We all know there are circumstances that cause people to get behind the "8 ball" if you will. No matter how you sugar coat it, if you're one of the creditors that has to write off your bill, a loss is a loss. On a larger scale, our company has had to write off substantial amounts of money for customers that have filed for bankruptcy. Unfortunately, our employees and suppliers still want to be paid. Like CowboyBilly said, your opinion probably reflects what side of the transaction you've been on, debtor or creditor.

 

I would use bankruptcy as an ultimate last resort, and only after all other methods to regain "financial stability" (or whatever you wanna call it) have been exhausted. I am not sure of the specifics, but I understand that if you still owe money on somthing, and can continue to make the payments, you sign some kind of form (forget the name), that says that you will still make payments, and they won't "automatically" take it away from you when you file. It's always good to consult with an attorney on whats best for you to do, in your specific situation. Many attorneys, at least the ones around here, give free consultation.

Hope this helps.

 

I agree with the timbre of these few responses....

It's is etihcally wrong if you use it to get a "fresh start" and don't need to do it...
but sometimes it is the ONLY thing that can be done if you've lost your income, etc...

The REAL problem is that we've gotten to the stage that we ALL overextend and depend on that future income... instaed of saving and getting what we want with cash... we all have relatively expensive trucks and other than a house, it is probably our biggest outlay...

I know that we can't pay cash for our houses --- if we could we wouldn't be having this discussion --- and not our trucks... but other than that we need to reign in our purchases....

We are in a fortunate place were we can even have this discussion....
I would not think many in the middle east ever discuss bankruptcy...
they just discuss survival !


on edit - good thoughts in here - wish I followed some of these suggestions

 

I filed a Chapter 13 two years ago and have realized that the only two parties that are getting any money paid to them in the lawyer and the trustee. Every year I got a statement showing where my $400 a month goes and I have noticed that the lawyers were paid off 100% first and now the creditors are getting paid. I filed mine because it was the only way to keep from having my house foreclosed in due to a lay off.

Chris

 

I use to work in the bankruptcy department for a mortgage lender and now I work for the foreclosure department.

Chapter 11 is for buisnesses that file bankruptcy. We never did Chapter 11's because it was a mortgage company that deals with personal home loans not businesses. Some people file a chapter 7 and list all there credit card debt because its unsecured debt meaning you aren't going to lose anything if you don't repay them. Then if they are behind on there house payments they file a chapter 13 to organize repayment of their house with the mortgage company and the court. This is called a Chapter 20 bankruptcy.

 

......Ch7 will remove All UNsecured debt from your balance sheet. All secured debt like House and vehicles will be retained if you can continue to make the payments. Other secured debt like ATV's, Travel trailers , etc. that have a Market Value greater than the Payoff will probably BE sold and the Excess above the payoff going towards the amounts owed to the UNsecured creditors.
......The house and senate are trying to pass a Ch7 bankruptcy revision bill that was Written by the Lobby for the Visa\M.Card folks. It will turn the current law into a Creditor law and Destroy the Favorable treatment that Individuals Now receive under Ch7. So.....if you know anyone who needs the help available under the CURRENT Ch.7 law you tell them to get themselves to a Competent bankruptcy Attorney and have their situation evaluated because this revised Law will probably BECOME LAW before the election in Nov of this Year......... s.kuteman.........

 

> What are your experiences with the process?

Seven to ten years of bad luck that haunt you the rest of your life.

 

..........Your Friendly , home grown Mafia Loan Shark that use to be prosecuted and thrown in the slammer has BEEN REPLACED by the Current bunch of LOW LIFE , High Interest Rate, Legalized Loan Sharks called Visa\M.Card. They, are totally unregulated for the Most part and are currently running Amuck issuing credit cards with $1000 limits to folks who have NO business with any kind of credit. Their Modus Operandi(mode of operation) is to wait for you to make a "late payment" of one day or so.....and then use this as a pretense to raise your interest rate to something like 24% and start hitting you with 30 late fees and then your playing the game by THEIR Rules. They're the kind of folks who will sell a fatman a chocolate cake who has diabetes and hasn't eaten in 3 days or so.
..........Their predatory lending strategy(s) need to be brought under a well defined body of federal regulatory law that transcends the Mismash Mess of individual State Laws that were basically written by the Credit Card lobbyists FOR the Best Interests of their own companies........s.kuteman :- ...Oh Fuzz..where art Thou??

 

I'm pretty sure that once you file for bankruptcy you can usually never get financing for a car for like 7 years. Now that really bites.

 

I can tell you from personal experience that Chapter 7 is not the end of the world. I am in the airline business and ever since 9/11 we are a hurtin industry. Two major airlines have gone bankrupt and others have threatened it to get concessions from thier employees.

I work for one of the two major bankrupt airlines. My airline closed two major maintenance bases and went from 105,000 employees to 62,000 through furloughs, early retirements and normal atrition. I was lucky enough to keep my job but had to move 1000 miles from home. My house was worth 70,000 less than the mortgage due to the housing market collapse due to the base closure. I made payments for five months while trying to sell it. The mortgage companies did not want to work with me on a short sale (where they take whatever I can sell the house for and forgive the rest) so after not making any payments for another five months I had to file for personal bankruptcy. No they are getting even less.

I filed Chapter 7, liquidation, BUT, because of the personal exemption (you are allowed to keep a certain amount of money and property to continue living, it differs from state to state) I did not have to sell ANYTHING, did not give up any property and kept both of my cars because they were paid for. It cost me about $1300 in lawyer and court fees. I wiped out all of my debt, first mortgage, second mortgage and all of my credit cards. I was in front of the trustee for about five minutes and after a two month waiting period my bankruptcy was discharged (approved) and I was debt free.

I have no payment other than normal living, food, utilities, rent etc... and I actually get credit offers in the mail all the time. Remember, your bankruptcy is a public record, and plenty of creditors consider you a good risk because you can't file agian for seven more years. YOU HAVE TO PAY, they like that. I was able to keep one of my credit cards at a zero balance through all of this so I still have that card, I just didn't include them in the bankruptcy.

I don't feel bad about filing bankruptcy. I tried, tried hard, to work things out with my creditors, they did not want to work with me. I even prepaid the realtor to try to sell my house faster, nothing worked.

As I said I work in the airline business. I would not suggest it to anyone, even though I love my job. I just found out a few months ago that my current assignment is ending in June and I will move another 1400 miles in a different direction to keep my well paying job. That's two trans-state moves in one year. We all make our choices in life and I am living with mine. I have 16 years into this company and want to stay to retire with it.

I am getting to see the states, that's one nice thing.

 

Bankruptcy stays on for 10 years.
You can get car loans either in or out of bankruptcy w/higher interest rates. Little harder to get a home loan unless you somehow come up with alot of cash. It's not a good idea, it will haunt you, I'm speeking from personal experience.. "Chapter 13" I had no choice the wonderful ex cranked up about 40k in debt right before we split. I had to do it in order to keep my house... But it worked, I payed it off in two years instead of the five year plan.