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Chapter 7 - now what

Discussion in 'Credit Talk' started by chrisb, Aug 20, 2010.

  1. Aug 20, 2010 #1
    chrisb

    chrisb Well-Known Member

    I recently filed a chapter 7 bankruptcy on about $40K in debts. The mortgage is current, the car loan is current, and both are being retained through the BK. I just wanted some information from any of you out there who have gone through this as to what I should expect going forward (over the next 2-4 months until discharge).

    Thanks,

    Chris
     
  3. Aug 22, 2010 #2
    JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    I've never gone through a BK myself, but your next step should involve notices being sent out to all your creditors and potentially even a meeting of your creditors (most don't attend). The trustee will then review all your paperwork and try to make sure you're not hiding any assets. If all goes smoothly, you should receive your discharge within 4-6 months.

    In the meantime, make those mortgage and car loan payments on time every month. Best of luck to you!
     
  4. Sep 9, 2010 #3
    doubled

    doubled New Member

    Well, I can speak to this one. Your meetings with the trustee will only last about 10 min max unless you have something of great value he can sell to pay back the 40k. It would have to e something he could net about 55to 60k for. Your trustee looks at not only selling it but paying himself a fee to sell it and whomever else he uses to sell it. I had a boat and trailer worth about 28k with no debt on it, (Trustee did not want it) a Suburban no debt on it worth about 30k Gold and silver coins face value about 1000.00 (face value is all you have to show with coins) worth about 45 to 50k he did not want. and many firearms. If you are getting my point, trustee's don't want anything they have to work to sell. The only time I saw a trustee take interest in something was real-estate that had little to no money owed on it.
    You will be in and out. My issue is around building my credit back up after discharge. If you are keeping the house and cars and paying on them you will have no problem building credit back. I had no debt other than investment properties so had nothing to keep paying on. :( thought I was doing the right thing by having no debt???
    Oh well life goes on. Good luck and if you have any questions i can help with let me know.

    Dan
    doubledapps@gmail.com
     

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