Who's been through Chapter 7?

[DTReed]

I'm new here, so excuse me if this is redundant.
We are considering filing for Chapter 7? Has anyone done this? What was it like? How was it on the other side? I have had several wise counselors recommend to me that we should file. My wife filed Chapter 7 about 23 years ago and does not want to go through that again. So, we are at a stalemate. I have been told it is much different now and yes, it's not a walk in the park, but it is something that we need to do. So I am seeking experiences on what it is like, not the actual filing or procedure but personally what is it like on the other side.
Tanx!

[kymgirly]

For me it was a hard decision but one I'm glad I made. I was sued several times and on the verge of garnishment after a lay-off and then getting a job with a HUGE pay cut. It was stress free after that IMO.

[angles]

Read, read, and read everything you can on this site. There have been several posts from people who have completed the process so do a search. I think once you educate yourself more about the process it wont be so nerve racking...

[ironpirate]

It's a very easy and simple process. I would recommend doing it to anyone I know that was in financial difficulty.

[Dougie011]

I went through it, and was so nervous and scared. I had so many things I was worrying about and knew something was going to go wrong. After everything was done, it was an easy process and nothing I worried about happened. I would recommend it to anyone having difficulty financially. It has helped me tremendously.

[DTReed]

Thanks for the input. What about the nuts and bolts on the other side? Will declaring Chapter 7 mean that a person will have problems with for example, going to a dentist or a doctor if they don't currently have insurance? Or will other things that we take for granted be eliminated because of the filing? What about applying for jobs? Etc....

[tobee43]

i don't understand what you mean when you asked about problems with going to a dentist or doctor...what would or could that have to do with filing of a chapter 7. i have undergone 4 surgeries while in chapter 7...so i really don't exactly understand what you are asking.

filing is an absolutely personal decision ...one that can only truly be made by the individuals involved.

the questions you asking as far as "after" the fact...well, frankly, i cannot answer as our chapter 7 is too newly discharged.

[JoePlumber]

In todays times the instance of those who found themselves either out of work for an amount of time that has never happened before, its something that causes us to look at options. Yet many of us wait too long until we are out of savings and even borrow from our retirements, only to find that the laws regarding todays bk are so abundant that if your truly in a hardship and your income has changed for the lesser, your surely to be a successful fresh start candidate like many of us.

Its not easy and at times it make your gut feel terrible, yet when circumstances don't allow you to pay your bills as many of us always have and we find ourselves months behind with NO end in sight of falling deeper in debt, hopefully you choose BK before your totally down and out, your allowed to exempt around $20K of cash / assets or combination of both. BK is for those who find themselves without options to gain a new beginning. Go ahead and you'll find living a Cash only lifestyle is old fashion but the best way to be.

[tcreegan]

Hi DTReed,

You will immediately get loan/credit offers from predatory, sub-prime financial outfits, used car sales, etc.
Don't fall prey to these, research on the forum for legit offers and ways to rebuild your credit.

Best to you w. your decision making process,

Tom in Colo

[DTReed]

How does filing Chapter 7 affect your bank account, your electric bill, your gas bill, your cable bill, your water bill, your phone bill, etc...? For example, one bk lawyer said that cable service was cut off because they considered the monthly charge, a debt that could not be collected. Again, I am trying to understand all the idiosyncrasies that we may run into. Any experiences would be appreciated.

tobee43, my wife said that she had problems getting services from a dentist among other things because she filed Chapter 7, about 23 years ago. Did you have to pay in cash for your surgeries or will you pay them over a period of time on credit?

Thanks all.

[kartoons19]

I'm not quite on the other side yet, as I still have 27 days until discharge, but I can tell you that my bank account is fine. I did move my money from the credit union where I owed money to a new credit union prior to filing. So as long as you don't owe them money and it is not a Wells Fargo bank, because they will freeze your account, you'll be fine.

To date I have not had any problems with utilities, cable, water, phone at all. I was never late with these bills and none of them were notified that I filed, of course they can still find out if they want to. I think if I were to move in the near future, then they may check my credit and would probably require a deposit, but the electric company can't deny service because of a bk.

If you live in a state that allows credit checks for insurance then your car/home insurance may go up. I do live in one of those states, but my insurance was renewed shortly before filing, so I haven't run into that problem. Even so, an increase for 6 months to a year, when hopefully my credit would improve, is minute compared to what I went through before filing.

As for a job, if it is the banking industry or requires high security clearance, there may be more of a challenge, although many still have been able to land these types of jobs. Employers are not allowed to discriminate because of a bk, although proving the discrimination is another issue. I am currently in the process of going through a background check with an international company (not in finance or requiring a security clearance). I told HR about my credit issues and she said they don't check credit. I am anticipating that I will get the job. So getting a job is not impossible.

If you owed a dentist or doctor money and had it discharged in a bk, then maybe they would deny you service, but I can't say for sure as I didn't discharge any medical bills. I would doubt that they would check credit prior to providing service, but again I'm not sure.

BK is a last resort but if you feel your life is crumbling and you don't have any chance of getting back on your feet without filing, then go for it. The process is fairly simple, although the hardest part is dealing with the emotions. For myself, once I realized that I did the best I could under the circumstances, I found peace with it. I have also learned some lesson which will hopefully prevent me from going down this path again. As was suggested, do a lot of reading on this forum as there is a wealth of information. You also may want to get some free consultations with a few attorneys, that way you can get answers specific to your situation.

Good luck to you.

[tobee43]

How does filing Chapter 7 affect your bank account, your electric bill, your gas bill, your cable bill, your water bill, your phone bill, etc...? For example, one bk lawyer said that cable service was cut off because they considered the monthly charge, a debt that could not be collected. Again, I am trying to understand all the idiosyncrasies that we may run into. Any experiences would be appreciated.

tobee43, my wife said that she had problems getting services from a dentist among other things because she filed Chapter 7, about 23 years ago. Did you have to pay in cash for your surgeries or will you pay them over a period of time on credit?

Thanks all.

DT first we went through ins...then monthly payments...then cash payments. but most all of them worked with us and understood what was going on. yes, some of the surgeries we paid cash for....that and job loss is why we filed. on our filing date we had over 200K worth of medical expenses....mostly to hospitals but many to doctors. and many of those charges were actually on credit cards.

before filing i still needed a number of surgeries so we made certain they were all covered prior to filing. (the ones we listed on the bk i knew we were NO going back to). all of those doctors worked with me...not against me.

prior to filing bk...we rented out place....got our electric turned, etc...phone.... on while our credit was still good...opened another bank account at a small community bank.

on our means test and sch j we included our cable, dsl and phone...cell phone...etc. however we have ZERO in entertainment....so that may have helped us. and believe me it's been ZERO entertainment other than the dancing i did in the living room the day we rec'd our discharge and order from the trustees of no asset distribution.


also..we were even questioned by the trustees office because they thought our food cost were TOO LOW!! go figure!

[pathfinders]

DTreed


Before we filed and were in the ( should we file Mode) the best thing is to read read read on this Forum, chapter 7, 341 meeting, Re Building your credit.

this board will have about 99% of all your answers.

write down all your concerns and just plug them in and hit enter.

Best thing we ever did was file, we struggled for years, Once it went from a emotional decision to a pure Business decision it became a no brainer.

OH, Maybe set up a consultation and go out and meet a BK Lawyer, most will give a free consultation.

[pathfinders]

It seems you are falling for the myths about BK, ( they say will never get CC or loan for a home or car for 10 years) not true at all, Once you are discharged you can work on your credit, get a small credit line on say Cap 1. I was approved just 3 weeks out of discharge. I have read plenty of posts where the person has in 1 to 1.5 Years out of discharge got there FICO scores close to 700 or more.


Knowledge is key to making a informed choice and feeling in control of the process.


PS in 2010 there will be about 2 million people in this country that will file BK and that amount or more in 2011. you are not the only person thinking or has filed