To: Garnuth

Discussion in 'Credit Talk' started by Jim, Aug 3, 2001.

  1. Jim

    Jim Well-Known Member

    I thought I would forward some info to you about doing a Chap 7 BK. Much like Hal did on credit counseling. I hope you read Hal's thread.

    Here goes:

    Issue #1
    I reluctantly filed a Chap 7 BK in Nov. 98 under California law not Federal law. I had the choice. California law granted more exemptions. The discharge was granted in Feb. 99. I carefully chose my attorney. He is a member of my church and guarded my privacy throughout the whole matter. The legal fee was $1,000.

    At the meeting of creditors, none of the 6 credit card companies bothered to show up. However, I and my attorney had to explain to the judge why I was declaring Bankruptcy. I explained that I had been injured, had very little income vs. expenses and that I might not work again. The spirited interrogation went on for 5 minutes. The judge also pulled items out of my file and questioned me about them. I said the right things and a month later the discharge arrived in the mail. BTW - 40 people in an open room got to hear the judge talk with me. Also, we were recorded on tape by the court.

    Other people at the hearing got turned down for discharge. I heard it happen. They were instructed to go back and justify things or fix paperwork was not done right. It was not pleasant.

    If you and your wife have income and assets - you need to see an attorney about a BK. Someone you can trust. You may find that you don't qualify for a Chap 7 BK.

    Issue #2
    Once I was discharged. Credit was easy to get. I bought a new Ford Explorer a week after discharge (FICO 530). Cap One approved me for a $1K secured card in Nov. 98 as I was filing. then I went to the credit union and explained what happened and got another credit card. I could go on and on.

    A BK can really hurt for a while if you try to rent or get a new job. I did not have to do this. You will pay a deposit for utilities etc.

    Issue #3
    I paid my bills right up to filing. I never received one collections call or visit from a bill collector. Don't put yourself in the position of having your reputation ruined by these guys.

    If you decide to BK - and I am not recommending it - see an attorney.

    Best wishes - Jim

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