What is bankruptcy like?

[cthulu2016]

I honestly don't know and I think it's a topic of potential interest to many.

Have you declared bankruptcy? What was the process like? What were the effects down the road? And what about other credit-damaging procedures sort of bankruptcy, like getting credit card issuers to forgive debt or reschedule terms?

(This thread is not offered to solicit financial advice. Merely to encourage sharing of information/experience/opinion.)

[rustydog]

1. Snarky reply: Ask Donald Trump, he's filed 3 times I believe

[Egalitarian Thug]

10. 4. And he screwed his partners every time. n/t

[Liberal Veteran]

2. It is a good question. I look forward to the answers.

I've been considering it myself.

[jwirr]

3. And what were you able to keep from your belongings?

[Wait Wut]

4. It's been about 15 years, and things have changed, but...

...it was pretty painless. The one thing that I was grateful for was the compassion and courtesy of my attorney. He had seen and heard it all before, but I got the impression that he was truly understanding. I had a typical downfall after both parents became unable to work, their water heater and furnace went out and I lost my job...all within about 3 months. I was also a single parent. Taking care of everyone really took its toll on my credit, which had been spotless forever.

You need to do some research. Don't be afraid of the "big name" bankruptcy attorneys. At the same time, don't discount the small guys, either. It's a stressful and embarrassing situation to be in and your relationship with your attorney will be important. I went with a big name company with a pretty lobby and comfy chairs. It turned me off at first because I felt like they were vultures making money off my misfortune. They are, but they were good at their job and took damned good care of me.

[BlueCaliDem]

5. Filed last year. It takes a HUGE burden off and you get a fresh start.

I filed Ch.7 last year. Did it myself, actually. It cost me less than $500 dollars.

Even before I received the Notice of Discharge, I was getting credit card offers in the mail and was able to buy a new car for my daughter (2011 Honda Fit Sport - but she's making the payments since she earns $2100 after taxes per month). I'm rebuilding our credit.

Contrary to what you might have heard, Bankruptcy Laws are the ONLY consumer friendly laws in this country - so far. It isn't difficult to do. There's no shame in it. Remember, your creditors have been paid over and over again (at least, ours were since we had credit cards as old as ten years) and you're not harming them.

I wrote an almost step-by-step how to do it here: http://www.democraticunderground.com/?com=view_post&forum=1002&pid=658608

Oh, and we got to keep my husband's 1967 Porsche 912 (market value $2000 but could sell for $7,000), his 1976 Porsche 912e (rare car, under 300 left world wide, but market value is only $3000 but can sell for around $21K), my 1997 Toyota Previa (popular Van around here, could sell for $3500 - low miles at less than 140K), my 1998 Honda Civic (for my son), and exempted ALL our belongings. Got to keep everything, actually.

[PearliePoo2]

6. Did you have a home mortgage?

Did the bank take your house?

[BlueCaliDem]

8. Yes. I was underwater and the house wasn't worth it.

I had been behind, but I took that, the property taxes and insurance bill in with BK7.

Now I rent a larger home in a better neighborhood and with a lower payment.

Why do you ask?

[cthulu2016]

7. ...

[cthulu2016]

9. .

[LibertyLover]

11. It sucks under the new and "improved" bankruptcy laws -

especially if you have to go Chapter 13. I will probably never own a house again and be at the whim of a feckless landlord. There are dogs who will die because I can't offer them a home. Of course, if my asshole of a husband had gotten a job like he promised, I probably wouldn't have had to file. It would have been difficult but I would have managed. But he dug his heels in and refused to work. Now he's finding life isn't so good - no vacations, little extra spending money for him to buy his stupid model train stuff and having to drive a used car. He had the nerve to tell me the other day that things would be better if only I made more money.

[Puzzledtraveller]

12. I appreciate the honesty, genuine, no pretense.

Saying how you feel and what you think, no apologies.

[ipfilter]

13. Filed Chapter 7 last year.

If your assets are exempt, and this varies greatly by state, it can be a painless process. A BK case is handled by a trustee of the BK court. They make their money by liquidating assets. If you don't have any they don't stand to make any commissions from selling your assets and are not likely to spend much time messing with your case.

Anyone considering should use an attorney who practices personal bankruptcies on a regular basis. They are most likely to be familiar with the particular judges and trustees in their district. They will know, based on their experience, what the path to a discharge is going to be like in that particular court.

[RebelOne]

14. Yes, I have declared bankruptcy twice, once in 1989, a Chapter 7 where all

my debts were wiped out. Then in 2006, I declared a Chapter 13, where I had to make monthly payments through the court to all my debtors. I had to file a Chapter 13 at that time because my assets were more than the debts. Anyway, you file and then have to go to the bankruptcy court and confirm that all you filed was correct. If you owe payments on a car or a house, you are allowed to keep them. You just have to reaffirm those loans.