Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Chapter 7 Diary

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Chapter 7 Diary

    Hello! I’ve been on the board a while, planning my bankruptcy. My divorce is the cause; my wife suffered a life-threatening illness and even though she survived it, her personality changed. She went crazy spending money, changing her W4, taking out massive student loans, and expecting me to bail her out time and time again. Then when emergencies hit, she always depended on me to pay for teh fix. The IRS put us on backup withholding.

    After selling most of my assets (including almost all of my investment properties) to bail her out, I tried to talk to her, refuse to spend so much money. Her response was to divorce me. I guess I wasn’t of use anymore without money to spend on her. But I had seen it coming, and a local friend (who had found this board) recommended it to me. So I’ve been asking questions a while, learning, preparing.

    The divorce is final. My bankruptcy attorney’s paralegal has been sending me the schedules to proofread, then in the next few days come to the office and officially file. I’d like to say “thank you” to the people on this board who have talked to me, and helped me. And to offer something back, I would like to offer this thread, a “diary” of sorts. Maybe people following me can see what happened, learn from it, avoid my mistakes, and most of all, start over!

    (To the mods: if this is a bad idea, please lock the thread and send me a message.)

  • #2
    Pre-filing:
    The paralegal and I have been emailing PDFs of the schedules. With so many complications, it’s taken a couple of iterations to put everything in order. Fortunately, she is excellent to work with, and very patient with me. I'm frustrated with the way investment properties are listed on the schedules, but it's also the way the local trustees and judges look at it. I have one house that is seriously upside down in value, and I wish I could use it to offset the equity in the other houses. I can't. And I wish my divorce settlement would allow me to abandon it. But I can't. So I have to carry this albatross forward. Fortunately it cash flows enough to break even. And I have enough in my wildcard to apply to the other houses.

    I'm waiting for a call with my attorney. I have some questions to ask to make sure I don’t shoot myself in the foot. Based on cash flow (regular pay, rent income and expenses going out), the best time to actually file is within a 3 day window, and it starts today. I know a bankruptcy is a marathon, not a sprint, but if we miss this target, the next window is two weeks away. And I really want my 341 before the Thanksgiving holiday throws everything into holiday chaos.

    About two months ago, I updated all my creditors to use a Google Voice number, which I am not answering at all. A couple of them were brave enough to call my office, and I politely reminded them to only contact me through the other number. No creditor has called the work number twice.

    As of 9 days ago, unsecured accounts are starting to go net-30 days late.

    Comment


    • #3
      ( Vandervecken this is what the community is about... sharing experiences! Thank you. )
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog


      I am not an attorney. Any advice provided is not legal advice.

      Comment


      • #4
        This thread is a great idea!

        I'm glad to see you are finally able to get the BK files so you can start looking forward instead of back.
        LadyInTheRed is in the black!
        Filed Chap 13 April 2010. Discharged May 2015.
        $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

        Comment


        • #5
          The day before filing:
          Just for grins, I deleted the entire call history in Google Voice at 6 AM local time. During the business hours today, I received over 100 phone calls. Half of them were from Synchrony Bank; apparently, their computers were war-dialing me every 15 minutes. I cannot say this enough to others: USE GOOGLE VOICE!!!

          The paralegal sent the final schedules to me. The only assets we could not exempt were the rental houses. All but one have "some" equity in them; there is one albatross that has negative equity, but we’re not allowed to use that negative to offset the others. This truly frustrates me, just like not being able to use student loan payments on the means test. But the sales costs for the houses will wipe out any gain, so maybe the trustee will abandon them. And they cashflow positive.

          And now I plan to relax this weekend. Monday is signing day. I know, bankruptcy is a bad thing and I'm treating it like a high school football player signing with an SEC team... somewhat tacky on my part I guess. But as LITR says, I'm moving forward. Just a few months to go.

          Comment


          • #6
            Signed and filed
            Not really a lot to say here. The paralegal, attorney and I went over the schedules. We made a couple of tweaks, brainstormed a bit. I'm above median and I don't pass the basic means test, but the expenses from the divorce are what qualifies me into a Chapter 7. So I signed, and it's filed. I have the case number, and I'm wondering how long it takes to show up in PACER.

            It's strange how I feel at the moment. This has been a long road, a lot of stress and late night worries. But right now I feel a little empty and hollow. Maybe even a little last-second remorse at filing. But it's too late to back out now! And my head knew this was the only viable path forward.

            Comment


            • #7
              And then, there was quiet...

              Yesterday, suddenly there were (almost) no more calls to the Google Voice number! The lone caller now is Citibank... somewhat like a persistent puppy...

              PACER has my case now. The 341 is scheduled for mid-December. I checked the creditor mailing matrix, and yep! my ex-wife is on it. She should get the latter today, so I'll watch my phone blow up tonight. I have to admit, I have a slight sense of delicious delight in knowing she'll panic. I know I shouldn't feel this way, but after the last three years of hell living with her, this will be a small way to even the scales. She's completely protected of course, the only debts we have in common are in the divorce agreement and the CH-7 follows it.

              All my online access to the accounts is gone now. I've called the mortgage servicers, and my November payments were credited on November 1. They received the BK notice on November 2, including the intent to reaffirm. I called both mortgage services to ask about what their procedures are going forward, and their BK departments were surprisingly friendly and forthcoming. In short nothing to worry about for now, call them to make the December payments. (Yes, I have a phone recorder, and yes, I used it!)

              I have two VISA accounts with security interest through Wells Fargo (air conditioning systems). In the divorce agreement I took them on, so they're being reaffirmed as well. I spoke to them as well, their BK person said to wait on any payments until after the 341. I'll double check that with my attorney, of course.

              As far as the rental houses, one tenant has moved out, so I'm cleaning the house and trying to get it on the market. That, plus the regular day job, keeps me busy right now.

              Comment


              • #8
                Originally posted by Vandervecken View Post
                The day before filing:
                And now I plan to relax this weekend. Monday is signing day. I know, bankruptcy is a bad thing and I'm treating it like a high school football player signing with an SEC team... somewhat tacky on my part I guess.
                I was very excited when I filed. When friends asked me how I was, I couldn't help but tell them about it. I felt no shame and wasn't worried about judgement. I couldn't help but talk about it, because it was what was on my mind. I was so relieved to be able to get a handle on my financial situation before it spun completely out of control, which would have happened about 9 months later if I hadn't filed. If the excitement that goes along with that relief is tacky, be tacky!

                Originally posted by Vandervecken View Post
                Signed and filed
                It's strange how I feel at the moment. This has been a long road, a lot of stress and late night worries. But right now I feel a little empty and hollow. Maybe even a little last-second remorse at filing. But it's too late to back out now! And my head knew this was the only viable path forward.
                I like tacky Vandervecken better than remorseful Vandervecken.

                Originally posted by Vandervecken View Post
                I have to admit, I have a slight sense of delicious delight in knowing she'll panic. I know I shouldn't feel this way, but after the last three years of hell living with her, this will be a small way to even the scales.
                Is it tacky that I kinda like vengeful Vandervecken too?

                Congratulations on getting your petition filed! I look forward to following your diary.

                Last edited by LadyInTheRed; 11-03-2016, 06:52 PM.
                LadyInTheRed is in the black!
                Filed Chap 13 April 2010. Discharged May 2015.
                $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                Comment


                • #9
                  Originally posted by LadyInTheRed View Post
                  Is it tacky that I kinda like vengeful Vandervecken too?

                  Congratulations on getting your petition filed! I look forward to following your diary.
                  Thanks, LITR! You, JustBroke, AngelinaCat (and Hub!) and others were kind and patient with me, and taught me a lot. I had two attorneys want to do a cookie-cutter C-13, but kept looking until I found my current one. My current attorney does nothing but bankruptcy, clerked for a BK judge, etc. At first she said I would be in a C-13 as well, but after looking at the divorce settlement said, "Yes! You qualify for a 7!" And I had structured the property settlement based on all the advice I had read here!!! As an example: I have to make the payment on my son's car (still titled in my name and the ex's name.) That's all it says in the settlement, just the payment. But it also qualifies me to deduct the operating expenses on the means test!

                  This site is fantastic! So if my little diary helps, I'm glad to do it!

                  P.S... the remorse didn't last long!

                  Comment


                  • #10
                    Happy Thanksgiving!

                    Not a whole lot going on right now, but some interesting items have popped up.

                    About half of the reaffirmation agreements have come in, and I signed them. Something of interest here: my ex-wife and I had taken out a "Home Projects" credit card from Wells Fargo to replace the central air conditioner in my house. It was 9.9%, 60 month. The reaffirmation agreement dropped the rate to 0%, and will cut a year off the repayment time for the same payment amount! Believe me, I'm not complaining!!!

                    Also, found a creditor had been left off the mailing matrix: BillMeLater (PayPal Credit.) To be honest, I simply missed it when reviewing the schedules, and since they do not report to the credit bureaus my paralegal didn't see it either. I spoke to them by phone, gave the docket number, and everything is fine. I was a bit worried at first, but again, taking the time to find a good paralegal and attorney is paying off.

                    On the other hand, one bad thing has happened: my LLC (rental houses) has a separate EIN and credit file with Dunn and Bradstreet. The idea was for the LLC to build credit in its name and future house purchases would be under its credit, not mine. The LLC has three credit lines for running the rental; two of them were at $0 balance when I filed. The third had a balance and in our paperwork we noted this was a business account, the business was NOT filing bankruptcy, and the account would be paid as normal.

                    BUT... the creditor involved closed the account and charged it off, and reported it to D&B as derogatory... thereby trashing my LLC's credit. I called the creditor and their representative said they don't consider a single-member LLC to be a "real" business (yes, I did record the conversation.) So, my attorney has sent them a little letter... if the creditor will back down, reopen and fix their reporting, I'll pay the balance in full. If not, then we'll review the reaffirmation agreement so they are a general unsecured (in other words, nothing.)

                    Happy Thanksgiving, everybody!

                    Comment


                    • #11
                      One week to 341

                      Since it's been 6 weeks since I filed, I thought there was enough time to pull a 3-bureau report from MyFICO and start looking at it. Obviously it's too early to dispute anything, but I wanted to make sure the joint accounts with my ex are reporting a correct status. My TU score is 551, Equifax and Experian are both 593. The joint accounts look correct, and I'm continuing to make payments on them, as per my divorce agreement. Believe it or not, when I make the payment, the people on the phone are actually nice and professional!

                      My 341 is a week from tomorrow. I checked PACER today, no changes or updates.

                      Comment


                      • #12
                        Hi Vandervecken,

                        I am glad things are moving along, mostly as expected. I am not surprised by the issue with the LLC. Even if it weren't a single member LLC, lenders often require a personal guaranty from an LLC or partnership. I bet you signed personal guaranties when the LLC obtained credit. Those guaranties are discharged in your BK. Without somebody else to guaranty the LLC's debts, the creditors close the accounts. The same thing happens if the guarantor dies and there is no qualified person to sign a replacement guaranty.
                        LadyInTheRed is in the black!
                        Filed Chap 13 April 2010. Discharged May 2015.
                        $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                        Comment


                        • #13
                          341 Meeting Day

                          So today ended up being a mixed bag. My 341 meeting was this morning, and no, I did not sleep well. My attorney had assured me everything was fine, but we all know that being nervous is part of the process.

                          Before going to the meeting, I did a last-minute check of PACER, and saw a new flag: MEANSNO. Yay! I know my attorney had told me several times not to worry, the means test was straightforward and in my favor, but still it was very good to see the status.

                          Then it was on to the 341 meeting. Several people went before me, so I was able to get a good feel for the trustee. He comes across as fair, expert in the cases, and absolutely no-nonsense. Perfectly fine by me. After about 30 minutes it was my turn. Everything was straightforward, until he came to the rental houses. As a reminder, I have two left: one has some equity, the other is significantly upside-down.

                          He asked some specific questions about the legal structure, especially the title being under a single-member LLC. They were not in the tone of being accusatory; rather they were in the tone of trying to put the numbers into the correct column. But at the end, he looked at my attorney and said “there seems to be significant equity in this rental house. I’m going to continue the meeting, so I can look closer at the numbers.”

                          To be honest, this was not a surprise. Here are the numbers:

                          Appraised value: 156,000
                          Mortgages: 132,000
                          Wildcard exemption: 3,000

                          -------
                          Equity: 20,000


                          Against the equity we have the expenses to sell:
                          Agent commission: 9,300
                          Closing costs: 2,000
                          -------
                          12,300

                          Amount to trustee: 7,300


                          So yes, there is some equity, if the trustee chooses to pursue it. The numbers above do not include any costs of breaking the current tenant's lease, cleaning up the house, etc. That's a lot of effort for the trustee. But in case the trustee wants to pursue, I have an IRA that I can withdraw cash from in order to buy back the equity from the trustee. The frustration will be in waiting to see his response, then make our offer. And of course we have the holidays to slow things down more!

                          But, it was another step forward.

                          Comment


                          • #14
                            The 341 continuation was earlier this week. My attorney told me I was not required to be there, so I didn't go. Her paralegal told me my case didn't come up.

                            I checked PACER last night, and the trustee has continued the 341 meeting AGAIN... the new date is now in February, a few days before the original 60 day deadline for objections to discharge.

                            This is seriously frustrating... I know that bankruptcy is a marathon, not a sprint, and I know we've had Thanksgiving, Christmas, New Years and now MLK holidays to disrupt the work schedule. But I really want to put this behind me.

                            Comment


                            • #15
                              Out of curiosity, is your trustee asking for any additional documentation (e.g. bank statements) while your meeting is being continued? My trustee has asked for bank statements up to the date of the 341 meeting. This has been a little challenging b/c some statements will not be produced until after the meeting (e.g. Jan statement available Feb 4th, but 341 meeting scheduled for Feb 2nd). I can only imagine what will happen if I don't have everything she is requesting -- it could be continued, requiring more statements. My attorney says she is unique in asking for statements after filing.

                              Comment

                              Unconfigured Ad Widget

                              Collapse
                              Working...
                              X