Chapter 7 and starting over

[nick]

hi,
i am currently thinking to file chapter seven i have around $25,000 in credit card debt and was not able to make payments for 7 months. My previous employer did not pay me for 2 years since they were a non profit and were waiting to get funding. Hence, to support myself i took up a small job which was not sufficient to regulate my expenses, therefore my credit card debt increased due to above mentioned circumstances. Currently, i am able to make payments for my car loans and handle other expenses fine, but can't make upto the settlement on the credit card debt that i mentioned.
I consulted an attorney and he advises i file chapter 7 since it will start me fresh. Is this true , that i can start fresh with chapter 7? where can i get more information about advandtages and disadvantages on chapter 7, also what happens to my car if i file chapter 7, i want to keep it and i am making payments regualrky?
I am really unable to make up my mind on this, will appreciate any adivise from people who have already filed chapter 7 or any other members of this forum.

[Dawn1970]

Hello Nick,
You are the only person who can decide if bankruptcy is right for you. You probably already know it has some tempting advantages. Do you think that you will be able to catch up the credit card accounts and eventually pay them off? If you are 7 months behind on the monthly payments your credit is probably pretty bad right now. But if your income were to increase to where you could catch them up, you might not want to opt for bankruptcy. I have no idea what your income potential is. Just going on what limited information you've shared-
Yes, it is "starting over" with a clean slate but of course it takes a lot of years to regain 'trust' in the credit world. You didn't mention home ownership so I assume you have a secure place to live but you should know many potential landlords have a problem renting to people with bankruptcies. As for your car, as long as you are current on it and have it properly insured I'll bet you could reaffirm on it and keep it.
If you punch in "bankruptcy FAQs" into any search engine you'll undoubtedly find several free sites that offer generalized information about the bankruptcy process. That would at least answer some questions you may have about it and perhaps you can think it over and reach a decision. Good luck to you, whatever you decide to do.

[nick]

Dawn 1970,
thanks for your reply,
I donlt think i will be able to catch up with the credit card accounts eventually and pay them off in the near future.If i delay in filing chapter 7 the interest on my cards keeps on adding up every month and in current scenario i can't afford to pay them, even if i settle with my credit card accounts i have to come up with a lot of money which i don't have. No company wants to settle less than 65 to 70% of the amount i owe.
How much time it takes to regain trush on the credit world after filing chapter 7?
I do not have a home ownership, won't landlords have problem when they see that i owe crdit cards and have not paid them?
Please respond...will appreciate.

[StartedOver]

Nick,
Wether filling for Chpt 7 or not is up to you....Is not as bad as they make it sound...it actually might be better for you mentaly and less stressfull from the bill collectors contacting you....I filled Chpt 7 in 6/99 and it was discharged on 12/99. Since then I have restablished credit with 2 cards and I bought a home on 2/2004. I was able to get credit within the year. As too the landlords of which I'm also....when we rent we look at the ability to pay for the apartment...which means how is your record with your passed landlords. I due a credit check but this is not the only thing I use to decide if I rent to you..The more truthfull you are about your credit to your future landlord the better he would accept that you have bad credit.....Remember the most important thing I look at before I rent to anyone is their payment history on their rent thet the current and last landlord tell me..and ofcourse..their criminal record...I hope this helps...I have rebounded and it's not bad at all...

[Dawn1970]

I found a place to rent with absolutely no problems by doing just what you said, being honest about my situation.

As for 'settling' with the credit card companies, your credit would still have bad marks on it afterward, since they would be settling for less and because you had an absence of payments for 7 months so I can definitely see where you'd see Ch 7 as the answer.
Good luck!

[trish92]

Hi Nick,
I filed a Chapter 7 and it was discharged last October. My advice to you if you want to re-established your credit get a secured credit card don't max off make a payment on time use it at least once a month and believe me you will get a high credit score again and once you established that again you can get a loan for a home in the near future as long that you don't have any new collection or charged off .. Good Luck !!!!

[Deana]

Nick

Please email me at (Deleted)

This post has been edited by Todd.

[nick]

My lawsuit against employer and chapter 7

hi members,
any idea what happens to the lawsuit that i have against my employer for unpaid wages and tution upon filing chapter 7? will i loose this? if yes how to do i get my degree from university i have already completed my coursework there and due to a balance they won't let me graduate. The balance is suppose to be collected from my employer.
will appreciate any response,
thanks

[laleena]

hi i have had a discharge since march 2001 i got my credit report and it said i still have one of my credit companys making reports on it .can they still check up on me even though ive been discharged. also when should i start to get my credit back without applying to credit card companys and hoping someone gives me chance. wont applying for cards and getting turned down bad once again for my credit scoring.also imfrom canada are the rules the same as some of the posts ive read here