341 Hearing Question

[dallasgal]

Hello, I am new to this site and can't wait to jump in and get to know everyone.Hubby and I have been married for 16 years and never filed before,nor thought we would have to.We are Real Estate investors and yesterday,had to turn in 3 houses as well as a vehicle and show $768,000 in debt.The 341 hearing had zero showings from any of our debtors.However,we are getting letters in the mail stating that the mortgage companys are filing a relief of stay.How long is all of this going to take until we get a discharge? Also how long does it take to get credit back in check?We really hate to have to file, but it was our only alternative.Thanks for any answers!

[JRScott]

Your discharge is typically 60 days from the first 341 date.

It is normal for them to file a motion of relief from stay, they can't take possession of the property even if you are surrendering it without such.

Most BK filers return to pre BK levels of credit within 2 years.

[PaKettle]

After you file bankruptcy I would NOT recommend building up credit to former levels.
No one really should have more than a few thousand dollars in credit in my - and many others' - opinion.

You should never use credit to make investments because investments are by nature risky and you don't want to end needing bankruptcy again from too much debt.

Not saying you did use credit to make investments, but I'm just saying that one shouldn't need tens of thousands of dollars worth of credit unless one is buying a home to live in or a car.

[JRScott]

I would agree with your general assessment, I myself have taken on no new credit. However many folks can return within 2 years of discharge to their former credit levels, though I wouldn't necessarily recommend it .

[dallasgal]

When I purchased the Real Estate homes last year, I had over $98,000 in the bank.I had Hard Money Loans, which require a large net worth.I had zero credit cards.I am meaning that we are going to need to get a loan to purchase a home in the next few years.

[JRScott]

A loan to purchase a home is usually doable 2 years after discharge at a reasonable interest rate

[dallasgal]

awesome! We shall wait till then
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3/31/08 Petition Filed for Chapter 7
5/2/08 341 Hearing ( no creditors showed)
?? Discharge still pending