Discharged 1 million today :)

[HHM]

Well, if $750K was secured, you didn't really "discharge" it. I assume we are probably talking about real estate mortgages and you surrendered the property in the BK, correct.

[biotechsolution]

Hey guys/gals, I'm not one to rain on a party, but I'm not hear to "stiff" anyone who loaned me money. I got into my situation due to stupid and other reasons. I'm not proud I'm here, I only am pleased if and when I get a new start in life. I don't revel in taking anyone "to the bank". My opinion. 'Hub

ACH,
I don't think anyone is taking it the wrong way.
I'm pretty sure Ugh07 had a business BK, although it sounds like a number of rental properties that were surrendered back to the bank, not discharged. The 250K unsecured most likely the amount upside down amount.
Mine was a business bk, all unsecured. I sure wasn't doing the happy dance at the point I filed. It was after I had sunk in an additional 200K of my own money before I finally pulled the plug after 8 years. If 401K and retirement accounts weren't protected I may have tried to ride it out even more and then would have lost everything.
Bankruptcy courts have always made exceptions for business bk's and they should. If people aren't somewhat protected when starting a business no one would be willing to take the risk and small businesses employed a lot of the workplace.
You are somewhat protected if your debt is business debt. I was almost 2X the income for MD and sailed through my Chapter 7 without a peep from the UST. What I should have done was structure my company to where I had no personal liabilities but you live and learn and that wasn't my area of law at the time I started it.
I don't feel like I stiffed any of the business lines of credit and debts. It was strictly a business for them and me. It was very good for them while it lasted.

[Help!]

Congrats - hope you really burned some of the big ones like Citi, Chase and B of A.

RIGHT ON!

[Help!]

I can see where you are coming from, I don't want to "take" anyone either, but there are a couple of creditors that can kiss my ass. I tried to work things out and they were not willing to until it was just impossible to do so. It went from "it's impossible"..to "no, we didn't really mean that" to "you only need to pay pennies on the dollar now" when all I wanted in the first place was to lower the monthly minimum.

The practice of predatory (yes predatory) creditors to keep lending us money when we are already deep in debt is wrong too. Yes, we are all responsible for accepting these offers but it should be illegal to send these offers in the mail. And the fact that our interest rates can skyrocket on one card because we are late on a different card...shameful. That should also be illegal, IMO.


Don't get me wrong, I am not one of those people who think that I am entitled to anything more than the average joe, but it just seems to me that if some creditors were more willing to lower payments so that people could afford them, a lot of us would just pay them until the ends of our lives if that's what it takes.

Instead, here we are.

PS--don't confuse replies for retorts...I saw only conversation here.

Totally agree! All three of those banks... Citi, Chase and B of A refused the payments offered to them through a credit counseling agency proposal. If they had been just a tiny bit more flexible six months ago we might have been able to keep afloat.

Also sickening that the government came up with $29 billion to bail out Bear Stearns at a 2% interest rate. How many of us would have liked to have had a 2% interest rate on anything - a house, a car... a credit card?! No, you only get that kind of interest rate for having good lobbyists.

[banca rotta]

You know, when you think about it, you're really not taking the banks to the cleaners, though... when the Fed lowered the rates to save the banks, they took US to the cleaners in the process by sticking us with inflation that otherwise wouldn't exist. So if those costs cripple anyone to the point of BK, it seems more like self-preservation, I think...

Not to be one of those "wishy washy" people on the fence but I agree with AngelinaCatHub that we are here to get a fresh start and a new beginning on life and NOT stiff anyone but I also always felt as pizza states that these stupid banks and the fed are causing all or most of the inflation woes we are suffering. They are both printing money backed by nothing!

[JRScott]

Congrats on your Discharge

I do agree with AngelinaCatHub some though

[Ugh07]

Congrats!

When you had your 341 did you get any grief from the UST about the high debt?

UST was not there

[Ugh07]

Ugh07 Where Are You From?? Congrats

FL, Middle District

[Ugh07]

ACH,
I don't think anyone is taking it the wrong way.
I'm pretty sure Ugh07 had a business BK, although it sounds like a number of rental properties that were surrendered back to the bank, not discharged. The 250K unsecured most likely the amount upside down amount.
Mine was a business bk, all unsecured. I sure wasn't doing the happy dance at the point I filed. It was after I had sunk in an additional 200K of my own money before I finally pulled the plug after 8 years. If 401K and retirement accounts weren't protected I may have tried to ride it out even more and then would have lost everything.
Bankruptcy courts have always made exceptions for business bk's and they should. If people aren't somewhat protected when starting a business no one would be willing to take the risk and small businesses employed a lot of the workplace.
You are somewhat protected if your debt is business debt. I was almost 2X the income for MD and sailed through my Chapter 7 without a peep from the UST. What I should have done was structure my company to where I had no personal liabilities but you live and learn and that wasn't my area of law at the time I started it.
I don't feel like I stiffed any of the business lines of credit and debts. It was strictly a business for them and me. It was very good for them while it lasted.

~750k in mortgages(rental properties) ~200k in Business loans ~50k in personal debt

[Ugh07]

1 strange footnote to this story. It was a pretty complicated filing involving an S-corp and 2 rental properties. Throughout the entire process, nobody ever once reviewed my Bank Statements, Tax Returns, or Pay-stubs. My attorney used the income info I gave him and put it on the application, the Trustee never asked to see anything at the meeting, it was pretty weird. I wasn't concerned because I used all the correct info, but in such a large case I was surprised that nobody verified anything. Guess I have an honest face

[biotechsolution]

1 strange footnote to this story. It was a pretty complicated filing involving an S-corp and 2 rental properties. Throughout the entire process, nobody ever once reviewed my Bank Statements, Tax Returns, or Pay-stubs. My attorney used the income info I gave him and put it on the application, the Trustee never asked to see anything at the meeting, it was pretty weird. I wasn't concerned because I used all the correct info, but in such a large case I was surprised that nobody verified anything. Guess I have an honest face

It was because you were discharging business debts. There's really not much the trustee can object to when you take 707(b) out of play.
Unless you are hiding assets or not reporting all income you're usually safe.

[epiphany]

But ya know what HUB, they are not being "nice". They are businesses trying to make money, and some are downright ruthless about it. Thus, you need to treat your dealings with them as business decisions as well.

It is admirable to want to live up to your obligations, God knows I did, and I tried and tried. But if it is just not possible and if you decide that you have to file BK, it is a business decision (I can't credit MinnyMouth enough for that) and you need to step outside of your emotional self. There is not one of my creditors that has been "nice enough" about this process. A lot of their reps have been civil, some even sympathetic, but it is clear, they understandably want the money and that is the bottom line. It is strictly business with them and it should be with you too if you have reached this point.

This is a hard process for a nice person....as most of the people here can confirm.

ep

[Needing Help]

What is 707(b)?