I wanted to share my positive ch 7 experience and ask two questions.
Earlier this year I decided I couldn't dig myself out of the hole, swallowed my pride and filed Ch 7 in May. The case went through the process smoothly and was closed and discharged by the end of August. There were a number of questions at the 341 but it wasn't too bad.
After I filed my wife and I were under a lot less pressure and life has been much better. I wonder some days what we were fighting for in trying to live with huge debt and more in monthly expenses than we made. We had to surrender our house and boat but we have moved on to a much lower expense lifestyl\e. Six months later things are good.
The best thing I did was hire a good attorney who knew the trustees in my area, knew the law well, and was able to handle a case like mine with some complicated issues. I had to talk to 7-8 lawyers before I found one who would listen and take the time to really figure out my situation and help me with chapter 7. This web site was also a big help in terms of good information.
Two questions I had that others may know.
1. When I gave back my boat to the bank they sold it for a loss (substantially less than the amount of the outstanding loan at the time I filed.) Given that the debt was discharged will I get a 1099c form from the lender I had the boat with? Will I get a 1099c from any of the other creditors if the debt was discharged by the court like credit card companies? I am unsure if I need to file a seperate form because of my chapter 7 discharge. My tax advisor seemed unsure and I was going to ask my attorney (or get a better tax advisor) but just wondered if anyone here knew the answer based on their experience.
2. I gave back my house to the lender (Freemont Investment and Loan) but apparently they are bankrupt themselves. They haven't foreclosed or done anything for six months. Most people have told me since I have moved and the lender took out insurance on the property don't do anything. Just let it go. But I wonder if the bank does nothing should I do nothing? I guess mayube they don't even have money to foreclose and maybe the market is bad so they don't even want to try to auction it? I am just wondering if they fire sale it for a low price will I get a 1099c from them in the future or have negative tax issues if they show a huge loss on it?
Any informal thoughts appreciated. I realize I really need to talk to my tax advisor and lawyer but just thought people here might have some practical thoughts or could tell me the right questions to ask.
Earlier this year I decided I couldn't dig myself out of the hole, swallowed my pride and filed Ch 7 in May. The case went through the process smoothly and was closed and discharged by the end of August. There were a number of questions at the 341 but it wasn't too bad.
After I filed my wife and I were under a lot less pressure and life has been much better. I wonder some days what we were fighting for in trying to live with huge debt and more in monthly expenses than we made. We had to surrender our house and boat but we have moved on to a much lower expense lifestyl\e. Six months later things are good.
The best thing I did was hire a good attorney who knew the trustees in my area, knew the law well, and was able to handle a case like mine with some complicated issues. I had to talk to 7-8 lawyers before I found one who would listen and take the time to really figure out my situation and help me with chapter 7. This web site was also a big help in terms of good information.
Two questions I had that others may know.
1. When I gave back my boat to the bank they sold it for a loss (substantially less than the amount of the outstanding loan at the time I filed.) Given that the debt was discharged will I get a 1099c form from the lender I had the boat with? Will I get a 1099c from any of the other creditors if the debt was discharged by the court like credit card companies? I am unsure if I need to file a seperate form because of my chapter 7 discharge. My tax advisor seemed unsure and I was going to ask my attorney (or get a better tax advisor) but just wondered if anyone here knew the answer based on their experience.
2. I gave back my house to the lender (Freemont Investment and Loan) but apparently they are bankrupt themselves. They haven't foreclosed or done anything for six months. Most people have told me since I have moved and the lender took out insurance on the property don't do anything. Just let it go. But I wonder if the bank does nothing should I do nothing? I guess mayube they don't even have money to foreclose and maybe the market is bad so they don't even want to try to auction it? I am just wondering if they fire sale it for a low price will I get a 1099c from them in the future or have negative tax issues if they show a huge loss on it?
Any informal thoughts appreciated. I realize I really need to talk to my tax advisor and lawyer but just thought people here might have some practical thoughts or could tell me the right questions to ask.
Comment