Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do: (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.

Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Advice on whether I should or should not file

  • Filter
  • Time
  • Show
Clear All
new posts

  • Question: Advice on whether I should or should not file

    I'm a 27 year old college graduate with a job at a 501(c)3 nonprofit where I make just under $50,000.00 annually/net $3,100 a month. I'm in quite a predicament and looking for advice or feedback on others who have experienced a similar situation...

    Age: 27
    Current Credit Card Debt: $30,000 (monthly minimums are approximately $650-700, all current but struggling to stay afloat)
    Federal Student Loan Debt: $113,000 (participating in the public service loan forgiveness program already where my debt will be forgiven after 10 years. Monthly Payment: $345)
    Private Student Loan Debt: $103,000 (monthly payments are $840)
    Current Car Loan: $19,900 (monthly payment is $370. Financed at 0.9% for 55 months. I need to keep the car and hope to keep it out of bankruptcy)
    Necessary Expenses (rent, utilities, groceries, etc.) total approximately $1,500 a month.

    While I understand student loans cannot be forgiven, the main thing I am looking to take care of is the credit card debt since I also want to keep my car. The credit card debt was largely accrued while I attended undergraduate and graduate school (no lectures about reckless spending required, I know) and am barely staying afloat making the minimums. I met with an attorney here in Chicago for a free consultation this afternoon and he's recommending that I file Chapter 13 and do a 5 year program for $430 a month that would include the credit card debt and the car. I'm apprehensive about including the car and do not like how tied down I'm going to be with the 5 year program. I was really hoping for Chapter 7 to discharge the debt and start fresh. When I asked about Chapter 7 he really didn't give me a direct answer and kept focusing on Chapter 13.

    Another caveat is that I am on a joint checking and savings account with my parents. The savings has approximately $50,000 but that is a significant portion of their retirement to live off of in addition to pensions and SS. The attorney said that if I went to take myself off the account (because it's truly not my money) it would be viewed by the courts as fraudulent activity.

    My questions to members here in this forum are:
    - Were you in a similar financial situation where Chapter 7 worked for you?
    - Whether it be chapter 7 or chapter 13 will the courts go after my parents accounts if I'm on it? I'm not the primary account holder but I do have access to the money (figuratively).
    - Can I reaffirm my car loan in chapter 7 without them affecting my interest rate? I really hope to keep the loan at 0.9%.

    Any other general thoughts and advice are appreciated. Been considering bankruptcy for a few months now but really starting to consider it but am naïve to many aspects so constructive feedback is welcome.

  • #2
    I think you should consult with at least 2 more BK attorneys. Many have been told by one attorney that they can't qualify for a Chap 7 to later hire a different attorney and get a Chap 7 discharge. That said, as I will discuss later, I can see why a Chap 7 may be problematic.

    You say the account with your parents is a joint account, but then you say you are not a primary account holder. If it is a joint account, it is considered your account as much as it is your parents account. The account may or may not be an issue. If your parents are the only ones who make deposits to the account and you are a joint account holder for convenience, then an attorney representing you might argue that you have no equitable ownership in the account. I have a joint account with my mother. It was listed on my petition as containing only her social security payments. It was not questioned. So, if your parents have SS payments deposited to that account, those payments might be exempted in your BK, even if you do have to list the account as an asset. If attorneys you consult with say that the account will be considered your asset, ask what will happen if, without your involvement, your parents withdraw the money from the account and deposit in a separate account without your name on it.

    If it is not actually a joint account, but just an account that you have signatory authority on, it is not an issue.

    Yes, you can reaffirm the car loan without changing any of the terms of the loan. Depending on the lender, you may not have to reaffirm the car loan at all. Ask attorneys about doing a ride through where the loan is discharged by you continue to make monthly payments. If a ride through is not allowed in your district, you may also be able to indicate on you Statement of Intentions that you intend to reaffirm the loan, but then change your mind and not sign a reaffirmation agreement. The lender may still allow you to continue to make payments. Remember, the lender wants the money, not the car. There is no advantage to reaffirming a debt if the lender and court will allow a ride through.

    The reason you will have difficulty qualifying for a Chap 7 is that, assuming you are a one person household, your income is above median and your student loans will probably not be allowed on the means test. So, you have to pass the means test without including those debt payments. I did find some old articles saying that there are some decisions allowing student loan payments on the means test. But, everything I found that is more recent says that you can't. So ask attorneys about the current state of law in your area on that issue.

    Your car payment is part of your plan even if you pay it directly to the lender. Why are you so resistant to including the car payment in a Chap 13 plan payment? The loan would get paid off in full and then your unsecured creditors would get the balance. I am 51 months into a Chap 13, the car I bought right before filing is now paid off. Because my DMI was so low, my attorney said that including the car payment in the plan payment would help avoid an objection by the trustee because it would give her something to earn a fee on. That is fine with me because if that DMI wasn't going to trustee fees, it would go to unsecured creditors. This is usually true if your Chap 13 plan does not pay 100% of unsecured claims.

    If you have to be in a Chap 13, it is not the end of the world. You will be replacing your car payment and credit card payments, at least $1,020 per month, with a plan payment of $430 a month. You will pay $25,800 to eliminate a $19,900 car loan and $30K in credit card debt. Even when you add whatever attorney fees aren't included in the plan, that is a great deal. Can you eliminate your credit card debt and car loan in 5 years without BK? Chapter 7 is preferable if you can do it, but don't be afraid of a Chap 13, especially when your plan payment will be significantly less than the payments it will replace.

    Before you file BK, weather a Chap 7 or a Chap 13, make sure that it will resolve your problems well enough to allow you to go forward without having to use credit cards to cover living expenses while paying off the student loans.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!


    Unconfigured Ad Widget