I have been lurking around this site for a couple years, and, until now, have had great credit. I moved from the midwest to the east coast for a job. I have to admit i didn't do my homework very well, and, in a nutshell, the cost of living difference was just too much for my income (although my income went up, it didn't go up enough). I had plenty of credit cards, and used them, and now I find myself with around $25k in credit card debt, and $60k in student loans (which are in deferment right now). I joined a credit counseling service, but 2 of my creditors won't participate. I am seriously considering bankruptcy (chapter 7) and starting over fresh. I'm wondering what to expect in the first few months/first couple years after filing...I'll need a credit card for travel only, but what about getting a car (my lease through Toyota Financial is up in September, and I'll turn the car back in and do without for a while)? Will I have a hard time buying/leasing a car (never had a repo -- paid off 3 car loans)? Will I have a hard time renting a house/apt? Will I have to pay deposits for utilities and a cell phone (my contract with Verizon expires soon...)? Quite frankly, I am so stressed out, and tired of never having any money, and feel filing may provide me with some relief, at least in the short term. I would appreciate any comments/suggestions from someone who has been in my shoes.
I'm not advising you to file or not to file but you will find out that a few people will say you should not file no matter what and a great majority who said once they began to think about it, they waited entirely too long to file. Just look around and see what others had to say. Each scenario is different. Good luck and STAY AWAY FROM CCCS. I wasted about 6-7 grand through them. Painful, costly lesson.
Here is the site that I found to be best for answering bk questions http://www.prairielaw.com/messageboards/board.asp?channelId=25&mbId=7 It is actually moderated by attys and they are very good about responding. Read the posts first and then do a search on your specifics...like "keeping a car lease".... In answer to your questions what will be looked at first is what you did 90 days immediately preceding the bk...charges, payments, transfer of assets. Then they look out a little farther to 180 days...and then they ask abount gifts you made, accounts you closed one year preceding the filing. Chapter 7s usually last from date of filing to discharge about 4-6 months...and it will only discharge debts that were acquired pre-petition. Make sure that you have all the info...do a google.com search on Chapter 7 bks and you will have hours of reading...once you file it is on your credit record....even if you change your mind and decide to have it dismissed...it still shows up on your credit report. Another time frame to be concerned about is the status of the Bankruptcy Reform bill...as when it passes the laws will be markedly different and Chapter 7 discharge of cc debt will be tougher to do. This is not advice to file or not file...just some info you asked for...hope it helps. clc
Definitely! Absolutely! Positively! Stay away from CCCS! ! ! ! ! ! If you think you are in a difficult situation now, CCCS and similar type operations will plunge you into a quicksand tar pit that you will regret stepping into. Unless you have a lot of money to pay them per month ( avg 400-700+) for the next 2-3 years and are 100% sure you will never miss a payment to AVIOD THEM like the plague. Understand that, even though you have entered into an agreement with one of them, after you have paid the last penny, your credit record will still look like the the third world has broken out. Here is a quote that I read months ago from one of our Creditnet members. I saved the quote, but, unfortunately I do not know who to credit it to. Take a few seconds and think of the letters CCCS before you read this. Some people here can attest to the fact that I and the wife walked the "moral and ethical high ground" during our time of financial stress; what I didn't know during our walk was that Satan was waiting at the exit; I clearly remember now--held up his hand and said "now that you've paid everybody back and got your bills current, do me a favor--bend over".
I FILED BK13 OVER 6 YEARS AGO. IT WAS NOT EASY DECISION. IF I HAD TO DO IT ALL OVER AGAIN I WOULD NOT HAVE FILED. I HAD A HARD TIME GETTING AN AUTO LOAN. I GOT ONE BUT WITH AN INTEREST RATE OF 21%. I HAD A DIFFICULT TIME GETTING A MORTGAGE. VERY TIME I NEEDED SOMETHING I HAD TO PAY CASH. NOW I THINK I AM ALMOST OUT OF TROUBLE. BUT I HONESTLY DON'T BELIEVE I MADE THE RIGHT CHOICE IN THE BEGINING. BUT EVERYONES SITUATION IS DIFFERENT. I HOPE FOR THE BEST FOR YOU. JESSICA
It is a well-known FACT that they (CCCS) can cause LATE PAYMENTS...(you pay early, they DON'T)... NOT THAT BK IS GOOD, BUT some have been able to get a decent rate mortgage and unsecurred credit cards 2 YEARS POST BK...some CCCS customers CAN'T get a 100% SECURRED credit card or even a "ROTTEN" rate mortgage 2 YEARS POST CCCS... JUST FOOD FOR THOUGHT... YMMV
If you do decide to file, you might wish to check this site out before you do anything else. http://www.blackmarket-press.com/articles/financial/banking/bankruptcysecrets.htm
Some people here can attest to the fact that I and the wife walked the "moral and ethical high ground" during our time of financial stress; what I didn't know during our walk was that Satan was waiting at the exit; I clearly remember now--he held up his hand and said "now that you've paid everybody back and got your bills current, do me a favor--bend over". That was me--thanks for the publicity! BTW--ours was a Ch. 13--not CCCS--but, they are essentially the same plan with the same nuclear fallout affects on your credit report. David
