can i file bk?

[mike2006]

hi,

i am mike,just registered today.

i have big debt but maybe this figure is small for others.

unsecure credit cards=us15k.
bank acount overdraft=us10k

i am from new york.
i don't have a house or car at this moment (sold out the car some time ago )

i have been jobless for many months and i received many calls/ letters from collection agencies, i have changed mine phone number recently.

i am thinking to file bk but can i still do it under the new law? i heard that the new law that make it harder for ppl to do it. is it?

should i go to lawyer to file bk ? how much i need to pay the lawyer? how long it will take ? will the collection agencies call me again ? what will happen to mine credit score? will it remain bad in the report for 7 years?


sorry for so many questions.

thanks and happpy new year

mike

[BKTango]

Welcome to the forum Mike. With the amount of debt you have, although yes it is lower than some have, since you have been jobless it is a good idea you are looking into your options on whether to file or not. You will not have to worry about protecting assets i.e. home and car. Do not worry about the new laws making it so people can't file this is a trick the collection agencies tell you in order to "scare" you into paying them, I've heard that line many times myself.

One question. Do you live with someone? Family or such? You stated you do not have a home that you own and you are jobless, so I assume you are either staying with someone or you have income from somewhere? It might help us to give us a little more information on that.

Now for your questions, most definitely set up free consultations with 2-4 bk lawyers in your area and they will give you an idea of how things would proceed. It is a good idea to know how much debt you have, income if any, monthly loving expenses etc. when you meet with them. Most of the free consultations are about 30 minutes long, and they will let you know how much they will charge should you retain them to use. Most let you pay it out.
A CH7 bk will take anywhere from 3 months to 6 months in some cases. A CH13 can be 3-5 years, this is the payback bk and you must have income to do this one.

The collection agencies and any other form of collection will immediately stop once you file bk, do not worry about that. On that note, yes your credit score will drop, but if you are in collections hasn't it already? Credit scores are the LAST thing you need to worry about, they can easy be brought back up within a couple of years or less after bk. The bk will or should remain on your credit report from 7-10 years, however some have successfully had it removed well before then.

[Viper]

Depending where you are in NY, I could recommend a good lawyer. He handled my BK7 and was very reasonably priced. I filed under the old BK laws, so I don't know what he charges now, but he is very good, did what he said he would, when he said he would.... no regrets with my choice.

PM me if your interested in his info.


- Viper

[mike2006]

hi,

i forgot to add this:

one of mine friend pulled mine credit report for me free and these are the score:

equifax=500
(serious delinquency)
transunion=479
(serious delinquency)
experien=489
(serious delinquency)

i stay in a good friend 's house free...atm..

few days i tried to open a boa account but i was rejected due to the bad credit apperance....
so far 2 cards showed "collection" status but i haven't receive any leter/calls yet.

[Grace]

Don't bother trying to get more credit cards. As you've discovered, you won't qualify.

If you're not working now and have no job prospects for the foreseeable future, you should file bankruptcy to get rid of the debt. You'll then need to find other sources of income to cover expenses since you won't be able to use credit cards.

[mike2006]

hi grace..

i heard that all mind bank acocunt will be closed by the collection if they can't get the money they want, is it true? when they will do it? will i receive a warning letter before they do it? after they close mine bank account, can i still open a new one in future?

thanks

mike

[lrprn]

i heard that all mind bank acocunt will be closed by the collection if they can't get the money they want, is it true? when they will do it? will i receive a warning letter before they do it? after they close mine bank account, can i still open a new one in future?

Not true, Mike. Creditors and collectors cannot close your bank accounts just because you can't pay them. If they could, none of us here would have bank accounts!

However, there is one situation where a bank or credit union creditor might remove money from your accounts without asking your permission or getting a judgment first, and that's if you file bankruptcy and your bank or credit union houses both your checking and/or savings account and also owns one of your credit cards or other non-secured loan with a cross-collateralization clause. If your non-secured debts aren't owned by your bank or credit union where you have your accounts, then this can't happen, so no need to worry about it.

[hansky]

Not true, Mike. Creditors and collectors cannot close your bank accounts just because you can't pay them. If they could, none of us here would have bank accounts!

A clarification - a bank can close (or refuse to open) an account because someone filed for bankruptcy. A bank, for example, may have a general policy of not providing accounts for people in bankruptcy.

[mike2006]

hi hansky,

do u knw what are those bank that currently have that policy to close/not open accoutn for ppl in bk? thanks

happy new year

chong

[GoingDown]

hi hansky,

do u knw what are those bank that currently have that policy to close/not open accoutn for ppl in bk? thanks

happy new year

chong

The best thing to do is to sit down with your local phone book and call the banks in your city and ask them if they check your credit report before they will open an account for you. If they say "Yes", then keep looking for a different bank. The banks that don't care about your credit report, won't care about whether you file BK or not, either.