Life during & after

[beachgirl]

We're still debating on if bankruptcy is right for us. More than likely we'll have to file Ch. 13. We are so strapped for money we don't know where grocery money will come from each week. Bills are getting paid, weeks late, but getting paid. This seems like the only help we may get. How bad or good is it after and during bankruptcy? We're no stranger to being broke, but always have had a credit card to fall back on. Will we be able to budget more without paying our cc debt? What are some of your goods and bads since you have filed? Do you regret it? Is life easier?

[13inOR]

Trust me, you will still be better off, and you will notice relief immediately.
We had a chapter 13 with a pretty large payment (over $1300) and we still
seemed like we had more money to last the month than before, not to mention no more stressful unrelenting phone calls.

If your attorney is good like ours, they will make sure you have a good workable budget. For example, ours maxed everything to the point she knew was prudent and allowable for our family size. Like maybe we didnt always spend $550 on groceries, but if something unexpected came up like a washer repair or something, we were able to compensate for it without ending up short elsewhere, because we had a little cushion in other areas.

Its really not that bad, and I will tell you I would rather live in a chapter 13 the rest of my life than live with the terrible cycle of payday loans , nasty calls from creditors, and just in general, feeling helpless and out of control.

As soon as we filed we felt a huge sense of relief and satisfaction, because
we were taking charge and doing something about our financial issues. As odd as it sounds, its actually quite empowering to finally take that step.

[Minnymouth]

Life during and after bankruptcy HAS TO BE BETTER than the struggling you are doing right now.
With all your payments being late already, its destroyed your credit score anyways....

Once you file bankrutpcy creditors are no longer allowed to bother you over a bill unless they petition the court. They stay under this "court conrol"until you are discharged. If your debt is included in the discharge and they do not object they can no longer bill you for this debt or try to collect it. The debt is forever forgiven by the Court.
For approx 4-6 months you are financially under the control of a Trustee appointed by the Court. You cannot obtain more credit, buy, sell, or give away anything you own until your case is settled.
After you file you pay nothing else to the creditors you owe unless you plan on keeping your home, auto, etc. You must pay your utilities and keep them current.
If you are surrendering your home/auto then you no longer pay on them either.
You will have to attend 1 day of credit counseling by law. There will be a meeting of the creditors which you are required to attend (here you and your attorney will meet with Trustee and go over your petition).
The Trustee will determine by the "means test" (income vs expenses) whether you qualify for a Chapter 7 or 13.
Creditors are given 60 days to object to dismissing the debt you owe them. If they don't, it is discharged in 60 days.
All assets, everything you own will be under the control of the Trustee the entire process of your bankruptcy.
If you have assets that the Trustee can take from you and sell to pay your creditors, he will.
Many of your assets are exempt under law and they cannot seize them to sell. Home, auto, personal belongings, 401K programs, etc are exempt up to certain amounts.
The only debts not dischargable are student loans, taxes (IRS etc.), child support, certain personl injury lawsuits.
If you are in a Chapter 7 your bankruptcy is usually over in 4-6 months. If your in chapter 13 your payment plan can last 5 years.
After you complete your case your discharge is granted.
After that - YOUR LIFE IS YOUR OWN AGAIN.......debt free.
Filing bankruptcy is a serious Federal decision that we make when there is no other way to solve the problem. It has it's good things and bad things.
After bankruptcy, yes you can still buy a home, an auto, get a cc card again..... the interest rate will be a little higher than before bankruptcy.
When you case is closed - your case is over.

Many people have started new lives again after bankruptcy... debt free... Some, thru Chapter 13 had to pay the creditors back a % of what they owed them because of their high incomes.

I've never heard of anyone being "worse off" after bankruptcy, just having trouble getting credit established again. This takes time.... and effort.

Most people are overwhelmed at the RELIEF THEY FEEL when their case is over and they realize they are debt free!!

Most people talk to at least 2 or 3 attorneys about filing bankruptcy to get an idea of what they are up against depending on their circumstances. This is advisable.

Hope this helps, any more questions, please just ask or go under search here on the forum and look up different things.

Minny

[AMISLANDER]

It's better because the cc companies & their entourages are not harassing you. However, you'll still be broke, especially in a 13..as remember if you've got $100 over what your bills are, you're in 13 & it's all going to the trustee.

If you file a 7, all cc debt is forgiven (usually) and you will not be making any payments to any trustees like you would in a 13...

Either bankruptcy will be on your record...but you'll be paying for, I think five years??? (help me out here, board) in a 13...

Go 7 if you can...it's all bankruptcy just the same...

[annikasaunt]

I feel so much better since just filing! It is a huge relief to not have to find money to pay everybody each month. I haven't even had my 341 meeting yet, but life already is much easier. It was a heartbreaking decision to file, but there was no other option left. It was to better my life 100%.

[aa06a47]

I am like annikasaunt, just filing brought a tremendous relief. I too haven't had the 341 meeting. The next four months will be hell for me I'm sure given my particular circumstances. I am confident I'll have more than 1 adversary hearing due to my cash advances taken in the past to support my gambling habit. But, I feel confident that 4 months of hell, and 5 years of payments, I'll emerge better off than before. My debt was such that I would never pay it off if I lived to be 120.

[Minnymouth]

aa06a47,

YOU MAY BE SURPRISED AT THE OUTCOME OF YOUR BANKRUPTCY.....

If your fortunate, all you'll have to pay will be a % of the unsecured debts and if the Court see's you in "good favor" the debts could be discharged........

Here's a little prayer for you............

[beachgirl]

What are considered legit expenses that we can claim? Also what happens to any recent credit card transactions we may make up until we file?

[SinkingFast]

The New Law has a 70/90 day rule.

70 days on cash advances, and that includes convenience checks as well, greater than $700 on luxury items.

90 days on CC purchases greater than $500 on luxury items.

That's line of credit by line of credit. Not cumulative.

If you file before the 70/90 day periods, the burden of proof falls on you that you didn't know you would file BK. After the 70/90 day period, the burden of proof shifts to the Creditors. Meaning the Creditors have to prove that you knew you intended to file BK when you made the charges.

Start out here:

http://www.usdoj.gov/ust/

There's info there about the Means Test, Median Income, and allowable expenses limits.

Then in this thread is a link to a BK Expense Calculator:

http://www.bankruptcyforum.com/showt...?t=5526&page=2

Page 2, Post #24. It'll help you as you try to think about what you spend money on each month.

[aa06a47]

aa06a47,

YOU MAY BE SURPRISED AT THE OUTCOME OF YOUR BANKRUPTCY.....

If your fortunate, all you'll have to pay will be a % of the unsecured debts and if the Court see's you in "good favor" the debts could be discharged........

Here's a little prayer for you............

Thanks for the prayer Minnymouth, I always feel prayer is a very helpful. God may not give me the answer I want, but in the end, he never has put me through something I couldn't handle. Even this bankruptcy, I have a small peace about it. Keep praying for me and others on this board, it help!!!!

BTW, you know the friend I have at work that has the attorney wife that represents Chase that talks about people at work who file bk............just out of curiosity I put his name in pacer, and what did I find...yes, he filed bk in 1999. I couldn't believe it....the golf pro, preppy dude, always brags about money, talks about other people.... Unbelieveable.

[13inOR]

AA:

Isnt that interesting--looks like he badmouths others to make himself feel better..... Sounds like hes throwing a lot of stones from his GLASS HOUSE!!

[debtisbad]

aa,

your preppy friend doesn't suprise me at all. Matter fact, seems more the norm.

[aa06a47]

Yes, I know, but I cannot help liking him. He just get's on my nerves with the money stuff. Guess it is nice making all that money (I mean having a wife that makes all that money!! )