Starting Anew

[StaciMM]

I am looking forward to being able to build a 'safety net'. We got lucky... Dh was out of work for 1 1/2 weeks, just went back last night. Fortunately it came at the same time as our income tax refund, which wasn't huge but was enough to cover his lost time. Of course, we'd had plans for that $$, but it wasn't anything problematic.

[concerned]

- will it really take 10 years for my credit report to be clean?

No! It used to be the case that bankruptcy hurt your credit for many years. The number of bankruptcy cases has risen and times have changed. It is now much easier and quicker to turn your credit around after bankruptcy. You will still be able to get credit after bankruptcy, but things will be at a higher interest rate. I imagine this wouldn't make much difference to you because you are already paying a high rate to start with. I have also heard that you can buy a home within as little as 2 years from filing.

- will they take possession of my car which has little value

Not entirely sure here, but I doubt it! They only want things they can convert to cash to pay off other debtors. Do you owe anything on the car? If not, you should be able to keep it. I think you should go with Viper's advice on this one and check out your states exemptions. Our cars actually were worth something and they still didn't take them OR ask for money, which is unusual.

what is the bankruptcy ch. 7 hearing like, I'm actually dreading that

It was a piece of cake. We were so stressed too--couldn't sleep, etc., but in the end, it lasted 2 minutes. Just make sure you don't try to give someone your car, or do anything shady. If you are honest throughout the process, most trustees will not give you a hard time! At least I didnt'


It is very scary and overwhelming. The gurus on this site have been a wonderful source of support. Best of luck to you! Keep us posted!

[swanworks]

I finally got back to the bk forum today to read the posts. Really, it is a really sick feeling when I ask myself, how will I keep up with the mounting interest? I have what I feel is a simple but good life...yet the impending rush of interest hangs over me like a .... well, its like I live next to a hillside where a mudslide is any day going to gush forth. I wonder, will the cc company's attorneys tear into a person who declare bk?

Thanks again for all your discussion!

[swanworks]

I called the credit card company and told them I may file bankruptcy. They asked me why and I explained that for 3 years now, I've been living an outward appearance of normalcy but in actuality have had deep financial struggle. And I can see the finance charges will soon tip me over the allowable balance. They offered me something called a BLP, balance liquidation program, 2% interest, $284 for 60 months/5 years. My visa account would be closed by the bank, as well. So i guess it is this, or bankruptcy. I am soul searching. I don't know if this is do-able. My earnings are so small. I went thru credit counseling today and found out that on paper, monthly expenses were $6 more than mo. earnings. I feel uncertain, because I don't know if it would be easier to live with trying to make the fixed payment as they suggest, or declare BK & start over. Chase/Visa told me I have excellent credit, have never late with payments and asked if I could live with ruined credit. Does anyone have any experience with this BLP decision? Thank you for any views on this.