Need advice - Considering Bankruptcy

Discussion in 'Credit Talk' started by adcgroup, Mar 30, 2009.

  1. adcgroup

    adcgroup Well-Known Member

    I had the pleasure of using the help I found on this board to improve my credit scores to the low 700's. My brother and I were in business together investing in real estate. Everything was going great until last year. The downturns in the economy and housing markets hurt, but my brother's wife started having an affair. To cover her philandering and divert attention, she began to accuse my brother of things and started souring relationships with many of our small group of investors. By the time her adultery was discovered, the damage had been done.

    I have essentially had no income since November 2008. My wife and I have taken on odds and ends while in a job search, but with 10% unemployment locally, I haven't had any takers. I'm getting ready to sell insurance or something that is full commission just to be working toward some kind of income.

    I thought we could stay afloat by working with creditors on secured lines and hoping for the best on the unsecured ones, but the wheels have begun to come off. I had successful conversations with a representative for my vehicle's loan, but then she was gone and another took her place. The new rep was not very understanding of our situation and sent to have my truck picked up. I wasn't able to talk them out of it without catching up the payments completely - which I couldn't do on the spot. Now with fees, I have to pay $2000 to get it back.

    It would save a repo on my credit, but without a reliable income stream, I don't know if I would just go right back into default. I had "equity" in the vehicle, but with it being a truck I doubt I'd be able to sell it even for the payoff amount. Now I'm really on the slippery slope.

    I have never filed bankruptcy before, but I had a few credit problems a decade ago and know how long it takes to rebuild. I've got some land assets, but other than that I'm in the same debt/asset situation as anyone else. I'm beginning to think that if I just went bankrupt, I could avoid possible judgments and maybe get back on my feet faster.

    One kicker: I'm going to have about $50,000 in taxes due. (I know bankruptcy doesn't do anything about that, but it's a significant consideration in the larger picture)

    Anyone been through it before who would offer pros/cons?

  2. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Thanks for your post, and I'm very sorry to hear about your situation. Hopefully some of our regulars here can provide some positive insight for you.

    Unfortunately, there is no magic formula that will tell you whether bankruptcy is the right option for you. Have you reached out to an experienced bankruptcy lawyer yet to get an opinion?

    Anyway, I thought I would bump this up to the top of the forum to allow some of our legal friends to see it and chime in with their thoughts.
  3. jjgross

    jjgross Well-Known Member

    While I'm not a legal type,I've had to file bk because of medical on my husband.To be honest if you can find another option take that option.While a bk stays on your credit score for 10 yrs the stigma drops every year where you will see it has less of an impact.The actual credit reporting falls off after 7 yrs just leaving the bk where you might be able to dispute it off.If you want peace of mind then you should file bk.I think 5 yrs from now with the business climate as it is now many people will be in same shape you are.Plus the way the government is operating who knows what law they will put in effect.I hope that someone else chimes in.
  4. cap1sucks

    cap1sucks Well-Known Member

    Maybe BK is an option or at least it is if you can't find someone to give you some solid reliable advice on how to do anything better. Personally, I would never file BK. There are far better options out there. As far as I am concerned the judgments are far more desirable than BK. I can deal with judgments if I have to but BK would stay on my public record for the rest of my life and far beyond that. Most people who file BK seem to say they wished they had never done that. A few say it is a great way to go. You just have to figure it out for yourself.

    You say you had your credit built up to the low 700's. Lots of good that did you. Your experience is proof positive that what I have always said about credit repair is true. Waste of time. Get sued and all your time and money spent trying to fix your credit goes down the tubes when they file a lawsuit on you.
  5. jjgross

    jjgross Well-Known Member

    while it is true bk stays for a long time so can judgements .I think its a matter of whats best for the person and his family.Unlike corporations bk affects a person more so then a business.Many companies have filed and are able to get credit much quicker then the single person.But anyway you look at it its a blight on your record.Now as a person at an age when i should be enjoying life i had to file bk because of illness which amounted to 500,000 in bills after insurance could i pay it,NO so i had no choice.Now that i've settled down i've tried to settle some small accounts but they refused full payment with deletion.Also they refused full payment with no strings i guess they would rather screw me then show a illness can be forgiven.So what i learned is they can foad
  6. woofer

    woofer Well-Known Member


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