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    My Chapter 7 experience

    Hello,
    I thought I would share my experience as I know I was on these forums seeking others advice and experiences which helped.

    We filed a joint chapter 7 in 2018 with around 250k debt including IRS taxes, all debts were successfully discharged around 4 months later.

    The whole process whilst it went smooth no issues, was a pretty stressful time given the amount of debt ( mainly worrying about not being succesful )

    What I did to make it as smooth as possible, before filing I did lots of research it really helps !

    Here are my tips

    * Research before filing, things like state exemptions, credit card activity before filing etc..
    .
    * Under no circumstances try to file yourself unless you simply cannot afford a lawyer, it is stressful enough with one, and doing it yourself without knowing the system and not understanding the forms and procedures would be like walking through a minefield.

    * Get a well established bankruptcy lawyer with excellent reviews, these guys will have processed many claims and know the system people in courts etc..

    * Even with aid of lawyer, stay on top of everything ( bear in mind most work is handled by clerks ) for example I scanned in docs provided for me by lawyer and edit typed everything in rather then handwriting to ensure accuracy.

    * Plan your filing around your finances.

    * Quit ALL credit card activity at least 3 months before filing, do NOT cash and credit card cheques within 6 months of filing.

    * Do not go on any spending purges before filing, spend as like you have normally been spending.

    * Do not miss court appointments or lawyer appointments for that matter, you want this over ASAP.

    * Do not over stress yourself, if you need go Dr for some temp Xanax or something do it.

    If you guys have any questions or worries I'm happy to answer based on my experience and knowledge of Chapter 7, I am not a lawyer so my advice is what it is advice, you should always ask your lawyer before going forth with any actions.






    #2
    Originally posted by celticswing View Post
    Hello,
    I thought I would share my experience as I know I was on these forums seeking others advice and experiences which helped.

    We filed a joint chapter 7 in 2018 with around 250k debt including IRS taxes, all debts were successfully discharged around 4 months later.

    The whole process whilst it went smooth no issues, was a pretty stressful time given the amount of debt ( mainly worrying about not being succesful )

    What I did to make it as smooth as possible, before filing I did lots of research it really helps !

    Here are my tips

    * Research before filing, things like state exemptions, credit card activity before filing etc..
    .
    * Under no circumstances try to file yourself unless you simply cannot afford a lawyer, it is stressful enough with one, and doing it yourself without knowing the system and not understanding the forms and procedures would be like walking through a minefield.

    * Get a well established bankruptcy lawyer with excellent reviews, these guys will have processed many claims and know the system people in courts etc..

    * Even with aid of lawyer, stay on top of everything ( bear in mind most work is handled by clerks ) for example I scanned in docs provided for me by lawyer and edit typed everything in rather then handwriting to ensure accuracy.

    * Plan your filing around your finances.

    * Quit ALL credit card activity at least 3 months before filing, do NOT cash and credit card cheques within 6 months of filing.

    * Do not go on any spending purges before filing, spend as like you have normally been spending.

    * Do not miss court appointments or lawyer appointments for that matter, you want this over ASAP.

    * Do not over stress yourself, if you need go Dr for some temp Xanax or something do it.

    If you guys have any questions or worries I'm happy to answer based on my experience and knowledge of Chapter 7, I am not a lawyer so my advice is what it is advice, you should always ask your lawyer before going forth with any actions.




    Thank you for this information... this helps a lot. We are wanting to file chapter 7 and I am very worried. Many here have been awesome at helping ease my mind and letting me know I am over thinking things way too much. I am mostly just worried about them finding that we have too much disposable income, but our lawyer seems to think and in his own words, "if we aren't making 100K then we can file a 7". We are below median, thank goodness, but the last 6 months include my husbands over time and this year we have made more money than we ever have because of the over time. My husband doesn't seem worried, but my nature is to worry. We have one credit card that we racked up $3000 on since July and I used it for several purchases in October and two in November. I called the lawyers office and she told me as long as it wasn't luxury charges like a vacation then not to worry about it. But I still do. It was mostly Walmart and Target shopping and Groceries.

    One thing I am curious about is, on the day we file and we have X amount of money in checking/savings and the very next day my husbands check goes into the bank, what does that mean or what happens? Because his check goes in every week. I also get paid weekly too, but i have to deposit my check in.

    Comment


      #3
      Originally posted by lkhmom View Post
      We have one credit card that we racked up $3000 on since July and I used it for several purchases in October and two in November. I called the lawyers office and she told me as long as it wasn't luxury charges like a vacation then not to worry about it. But I still do. It was mostly Walmart and Target shopping and Groceries.
      Heed your attorney's advice and stop worrying asb out this. A creditor could only complain if it were for luxury goods, and living, feeding yourself and family, while providing a roof over the heads is never ever ever considered "luxury" to any court. I accidentally even used my gasoline cards days after filing. Not a word. The bankruptcy code is pretty clear about this and, again, is why your attorney says to stop worrying about that.

      Originally posted by lkhmom View Post
      One thing I am curious about is, on the day we file and we have X amount of money in checking/savings and the very next day my husbands check goes into the bank, what does that mean or what happens? Because his check goes in every week. I also get paid weekly too, but i have to deposit my check in.
      Chapter 7 bankruptcy is based on what you had in your checking account the day you filed. If you live in a State where you can exempt any other money, your attorney will do that. Your attorney is not just licensed to practice law, but they are admitted to practice bankruptcy cases in the Federal Bankruptcy court and they are skilled. I don't believe there is anything I would tell you to help you relax, but you have an attorney that is telling you not to worry.

      Just let your attorney know exactly what is going on and when money will appear in your bank (or when you get paid). They will take appropriate steps to strategically file or they will exempt the money.

      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
        Understand the worry, been there, given my amount of debt I did everything to make this go through without issue,
        I wanted trustee glance through my paper see no avanues of further exploration get his fee and move on to the next one.
        As far as your points of worry Justbroke's post above should be helpful.

        Comment


          #5
          Originally posted by justbroke View Post
          Heed your attorney's advice and stop worrying asb out this. A creditor could only complain if it were for luxury goods, and living, feeding yourself and family, while providing a roof over the heads is never ever ever considered "luxury" to any court. I accidentally even used my gasoline cards days after filing. Not a word. The bankruptcy code is pretty clear about this and, again, is why your attorney says to stop worrying about that.

          Chapter 7 bankruptcy is based on what you had in your checking account the day you filed. If you live in a State where you can exempt any other money, your attorney will do that. Your attorney is not just licensed to practice law, but they are admitted to practice bankruptcy cases in the Federal Bankruptcy court and they are skilled. I don't believe there is anything I would tell you to help you relax, but you have an attorney that is telling you not to worry.

          Just let your attorney know exactly what is going on and when money will appear in your bank (or when you get paid). They will take appropriate steps to strategically file or they will exempt the money.
          Thanks again! I have done better today and starting to feel a little normal again. Since we haven't paid our creditors the stress of making sure they were paid before my children had enough food is gone. And my daughter needs leggings or tights for her dresses for church and I am going to have money this weekend to go and buy her leggings so her legs aren't freezing anymore. The burden and stress is finally lifting.

          Comment


            #6
            You'll get through this, just as we all have. Take comfort in knowing that we have been there too and that we understand exactly how you're feeling. We don't need to guess, wonder, or empathize since we've been there. I don't know if there's a worse feeling than not being able to provide for your children and you feel the weight and pressure of paying creditors.
            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

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