Before CCCS let me sign anything, I was advised to call my creditors and make payment plans. None would budge, but Citibank gave me some advice...do NOT use CCCS because it WILL ruin my credit. The guy did not come right out and say go bankrupt, but he said there are other existing and better options. He did agree to waive late and OTL fees and reduce my interest back down for 3 months. No one else will do anything. Maybe because I've not even been 30 yet. I read the CCCS documents carefully. I realized that some of my creditors are going to count me late anyway, or say I paid partially. So why am I going to sacrifice myself to death to pay, not be allowed even a secured card, and waste four years of my life with NO credit, NO money, and still have rotten credit? Now that I realize I need BK7, I am a little puzzled. OK, I have NO assets and LOTS of liabilities. I am fully aware my Stafford loans cannot be BKd away, but these are deferred due to my half-time student status. I do not think I need a lawyer. It costs $185 to file a BK7 in my state. I last used some of my accounts this year, however. Here is my question: Will anyone come take back the few "luxury" items I bought like books and a computer? I've made temporary arrangements on my car. If in the meantime I do turn it in or get it repoed, what will happen? I've read some of the BK posts. Will I ever be able to get credit again, carefully? Any advice is appreciated. I need to know where to begin. Thanks for the support. I think my credit and life will be better off using BK7.
I can't tell you how many people I have seen who have screwed up their lives and costs themselves thousands of dollars by drafting their own legal documents and/or representing themselves in court. Their only solace is that they "saved money in attorney's fees." Take my advise -- Hire a lawyer to handle your bankrupcy.
If you can, get a lawyer. DIY bankruptcies can do much more harm than good if done incorrectly. Beg borrow and steal, but having a BK attorney is critical and absolutely worth it. I say this as someone who contemplated DIY BK, and then was talked out of BK by an attorney because I actually didn't owe the money creditors said I did. Also, in rare circumstances, student loans CAN be discharged. Just not usually. Perhaps a lawyer might help you here. Hope this helps, HDAlex
My problem is if I had $800-1000 to hire a BK lawyer, I would pay chunks of the bills. I did call a few lawyers who said they wanted cash upfront, and if they found out later it came off a credit card (funny, mine are all OTL) it could be seen by a judge as BK fraud.
If you have no assets and are a part time student what makes you think you need to go bankrupt? If you truly have very little in the way of assets the main advantage is it will stop phone calls and letters. I have always had good luck getting the advice of an attorney and then representing myself pro se. If you have significant assets then I would definately hire an attorney.
To be quite honest, (and I mean this in all due respect), if you didn't need a lawyer, you wouldn't need to ask these kinds of questions. I'm not knocking you here, just telling you that as someone who HAS filed a simple "no asset" ch. 7, I had questions at EVERY meeting I had with my lawyer. Filling out the forms is the easy part, it's knowing how to apply the law and codes for your state to your own situation that can be confusing. The fee is usually less than $1000 and it's worth it IMO since they WILL know the answers these issues for your specific jurisdiction. Things vary a lot from state to state and for the amount of debt most of us discharge, it's not much in comparison. They usually don't want things like your household goods, most of that type of stuff is exempt. Find out your states exemption allowances at sites like bankruptcyaction.com. Read up more also the chapters at sites like lawdog and nolo.com. No matter what happens with your car, you can probably get any fees/amounts discharged if you'll be filing soon. Section 523 of the code covers the rules on "luxury good and services" and non-dischargeable debts. You can read about it here: http://www4.law.cornell.edu/uscode/11/523.html If you're going to file pro-se, at least have a consult to get some advice on some of this stuff. Most attorneys say right in the phone book if they offer one for free. Wishing you luck. I know how nerve-wracking it can be to finally decide to go that route, here I am two years later and I think we're doing pretty good considering. You'll be alright, just hang in there!! Sometimes we just have no other choice and we just do what we have to do. Newstdt
Not sure what you mean? Are you paying these bills now? If you're going to file, they usually tell you to stop paying these creditors and use those funds for payment to your lawyer. Mine offered to let us make payments, a lot do do that. I'd keep calling around. Some even let people pay up until the 341. Also depending on your usage of your cc's, it could give you time to come up with those funds. I know we saw our lawyer in Jan and didn't file until March due to the 60 day rule on recent purchases/cash advances over a certain amount. Don't give up!! Newstdt
I have not paid anything lately to A) Stop my car from getting repoed. and B) Not get evicted. and C) Decide between official BK, walk away BK, and CCCS. I am over $26,000 in debt. I will keep hunting down a lawyer. I just don't know what to do anymore. I own nothing much at all, besides a computer bought on credit about 19 months ago. I sold virtually every book, electronic, to try to pay bills.
Re: Re: OK, going chapter 7 now... Do you think you might be "judgement proof"? If you have nothing creditors can attach, maybe the "do nothing" approach may buy you some time or be another option. I didn't go that route but members here have for sure. I bet you'll get more feedback on that approach. I think that's where charge offs and possibly judgements come into play. Maybe check out Why Chat's website for more info. I think at the least, try to have a consult and see what they say. Just to explore the bk route. If you do file pro-se, Nolo has a kit with the forms that is supposed to be good. Check out your own states bankruptcy website also for your court info and local rules. The bankruptcy clerks office can't give you legal advice, but they sort of help you with the forms and such. I know Prairielaw has a bankruptcy message board that a lawyer sometimes answers on and that you can do some research on. I know it's tough, just hang in there and research all you can before you decide so you're sure it's what you want to do. It is a drastic step but it also can get you back to square one with no debt except maybe your student loans. Newstdt
Re: Re: OK, going chapter 7 now... Have you looked into free (pro bono) legal aid at all? If you can't fine the pro bono listings in your phone book, try to find a lawyer referral hotline in there. They can help you find a lawyer who will help you. IMO that would be a great option for you. Good luck!
Re: Re: OK, going chapter 7 now... author_22 -- I just saw a book on the new release rack at Hastings Bookstore entitled "Personal Bankruptcy for Dummies." It costs about $20.00 and it might answer a lot of questions for you. Good Luck!
Re: Re: OK, going chapter 7 now... By judgment proof, I assume you mean there are no wages they can garnish or personal property/homes/stocks/bank accounts they can seize. If that is the case, then yes. I am judgment proof. I own nothing now except some used novels, an old TV, old stereo, 2 year old computer, and a few college textbooks. My furniture isn't even mine...my landlord loaned it to me for $20 a month because she felt sorry for me. It's good furniture she just had sitting in storage, but I have it in writing that it is not mine, but hers (though I can buy it later if I want.) I sold my bed. I sold my VCR/TV. I sold everything you can imagine (well, not myself LOL) I go around to garage sales on Saturdays buying 10 books for a dollar and then selling them on half.com to get a small profit. I was thinking of selling my computer on Ebay but I decided against it. My Internet is free, thanks to being a college student with a school that offers Internet for its students. Now I can even get free basic health care and if needed, counseling services. Going back to school half-time has saved me a good deal of money. I considered taking out a student loan to pay off some of the credit cards, but that would just make things worse in my opinion. I don't want to borrow from one lender to pay others. I live in California, where the 2 year college system offers classes for $11 a credit hour. I'm not even paying those fees because of my financial situation. A small Pell grant pays for books and a few living expenses. My loans can be deferred indefinitely as long as I take six credits a semester (summers not necessary) Yesterday Toyota called wanting to know if I wanted them to take my car....she said it would take problems off my hands. I told her no, I was going to catch up. I am sincere about that. I do not want a repo on my record. Even she suggested I just let them take the car and then "exercise my option" to not have to pay the balance. I just don't think this is a good idea. I cannot afford to go find another car, even a cheapo, and no one would finance me with no job, fair credit. Well, now I'm back to square one. I was firm in my bankruptcy decision, but now changing my phone number and disputing it off/suing it off seems like another option. My brother says if I file, some companies will never hire me. Is this true?
Re: Re: OK, going chapter 7 now... There may be companies that won't hire you, I don't know for sure. I would think that places like banks and insurance companies would frown on it. I don't think you can get a securities license with a bankruptcy. Government jobs that require security clearances can deny you for bankruptcy, but they don't always. My husband filed when he got divorced in the early 1990s, it was still a problem when we refinanced the house four or five years ago. Of course, I didn't know about anything like this site or the disputing/suing options. That would probably make a difference. Can you get any kind of part time job to help pay some of the expenses? You mentioned not wanting to take out a student loan to pay off the debt. But in a few years will you be able to get a job that pays rather well? If so, that may be a good option. When you have to pay off the loans, you'll have the income to do it. Debt and interest isn't always bad if it gets you over a hurdle and to a better place in life.
Re: Re: OK, going chapter 7 now... I saw someone on another site who is a Ca. resident say they used a service called "we the People". Apparently it is a network of paralegals that can fill out forms and give limited advice. I don't recall the exact fee but it was well under a $1000. I've no idea if they're connected with former Gov. Brown's group.
Re: Re: OK, going chapter 7 now... Do you have a regular and steady stream of income? If so, you may want to try CH.13. Of course, if you really have no assets (no car, etc.) you have nothing to lose. In Ch. 7 you lose all non-exempt assets, including this year and next years income tax refunds. In Ch. 13, you keep everything. Plus Ch.13 looks better than CH.7, and you have more credit rebuilding options. IOts worth considering. In Ch. 13, your attorneys fees can be part of your payment plan.
On your schedules you have to list everything you own and the trustee decides whether to take it and sell it in a Ch. 7. So yes, you could potentially lose all these things. See my previous post about a Ch. 13. I'd get a lawyer for a 13 though.
Re: Re: Re: OK, going chapter 7 now... Your thinking about all options which is good. Your student loan payoff will be a lot lower of an interest rate than your current debt load I would assume. I took out a student loan to pay off all my credit debt a while back and it bailed me out, I am fixing to graduate from law school now. By taking out that loan I was able to defer paying for a few years. It would only work if you exercised self-control with the plastic though ;o)
Re: Re: Re: OK, going chapter 7 now... Unfortunately, creditors usually care less whether the BK was a chapter 13 or a chapter 7. In today's score driven world, the FICO score only takes into account the derogatory status of a BK, and doesn't differentiate between the type of BK that was filed. The score goes in the tank regardless. Personally, I would go chapter 7 if you are going to file BK. Going chapter 13 is nothing more than a glorified credit counseling program and will destroy your credit as much if not more than that type of program. Why not get rid of the debts once and for all and then worry about rebuilding instead of dragging the repayment process out over time and then still being left with bad credit at the end of it all and a BK on your credit report?
Author, I have been away from the board for awhile. I remember when you were getting all those cards and some of the vets warned you. Nuff' said. How are your employment prospects going? Did you get a tax return? I would try to save the car at all costs, but getting some means of employment will help you with the Chapter 7 and enable you to being the re-building process. I would also consider a loan as a SHORT-TERM fix, but only if you had some type of employment. I think getting this behind you is so important to your future. You cannot get a federal job with credit issues and they re-investigate every five years. It is sad to see highly qualified applicants come in and be denied employment because of credit issues. I hope that you do get everything resolved, push come to shove you can start a HelpAuthor_22. out of debt.com. Just a lil'humor to lighten your load. Hang in there, they can't eat you. !!!
Re: Re: Re: Re: OK, going chapter 7 now... Well I would agree if it would not be for the fact that author WILL lose this years and next years income tax returns. He will just have to hand them both over to the trustee. Also, he will lose anything of value he owns thats not exempt. If he has a car -- gone. If he has a computer - gone. Its a fresh start all right. A fresh start with very little, if anything. He will be in for a rude awakening next year (and this year) when the trustee says ok those tax refunds are mine.
