I know bankruptcy is not a good thing...

[Deja Q]

But let's say I am compelled to go Chapter 13, before those fascists laws get changed, would I still be protected if I lost my job later on down the road?

It's silly. I've been paying interest rates for years and with these new laws they can still take everything and leave me owing just as much, with still the interest. Couple that with corporate america's social engineering and I'm pretty much toast.

My parents are against the idea of bankruptcy and I'm not fond of it myself.

I know a laywer is a dime a dozen yet costs around ten million dimes to get one (why hasn't that industry devalued?!), but what should I look for in a lawyer that won't try to screw me over?

Right now I'm staying afloat, but I'm VERY afraid.

Thx much!

[redqueen]

1. I've been considering it for a long time

still making payments... cut up my cards years ago.

Wish I could help!

[GOPisEvil]

2. I had to do it, too.

I went ahead and filed Chapter 7. It just wiped everything off and I started with a clean slate. Now, 5 years later, I have a house, I can get credit fairly easily and I lived through the initial pain of feeling like a loser.

Just realize when you see yourself falling into similar traps and avoid them. Never go back or it will all be worthless, and you won't be able to file again.

Look for a lawyer who specializes. I have pre-paid legal insurance, so all I had to pay was the court costs.

[ronnykmarshall]

5. I did it in 1994.

I had to, there was no other way out.

I now have a car, a house and credit. I learned my lesson the hard way.

[theivoryqueen]

3. Bankruptcy is not so bad

there are very good reasons the option exists. Do what you have to do to protect yourself and your assets and it's really none of anybody else's business. Should you decide to go that route, it's probably easier for you not to discuss your choice with those who would condemn you for it or disagree with your choice.

[smirkymonkey]

4. Depending upon how complicated the situation

is, you may not need a lawyer. I know a few people who have filed Chap 7 without one. Most of them don't regret it and it hasn't come back to haunt them yet.

There are some decent books by Nolo Press on various issues, and I think there is one on Bankruptcy and how to do it yourself. Also check out Auntie Nolo on the internet - you can just google, I don't remember the actual url.

Also, check w/ your local courts to see what the process is in your state - they can also supply the paperwork or you can download it if necessary. You might want to get the ball rolling just in case.

Good Luck! And remember, bankruptcy isn't the end of the world - just consider it to be one of your many options.

[proud patriot]

6. My husband and I just went through this

we were drowning .

[MikeG]

7. It sounds like you would be more interested in Chapter 7

The new law, if passed, would require a Chapter 13 repayment plan if you had too much disposible income. That law has been put on the shelf for the time being. Even if it gets passed, it has a six-month phase-in period.

Chpater 7 is for wiping out unsecured debt like credit cards, personal loans, and medical bills.

Most debtors lawyers are competent. Find one that's been doing it at least five years.

I've been doing it twenty years.

[Deja Q]

8. Ah. I do know from a credit counseling agency that the judge would demand

my case go to chap 13 given my current income. Besides, I do want to pay it back - but a lot of what I own has devalued (computers) and also deals directly with my line of work, both self employment and primary employer (IT - computer support, web design, photography.)

If I lost my job after that bill was passed, would I still be able to get chap 7? It sounds like it might be possible... I just don't know. (nor did I ever realize that society would get this BAD, I've had one hell of a wake-up call thanks to all this outsourcing and fleecing of America's future...)

Thank you (and all) for the advice. I'm just cynical right now as I watch my own industry (IT) go out the door and being devalued in the process if enough people whine that jobs should stay in the US, soon to take me with it and not be able to get a job elsewhere (this I know)...

[MikeG]

9. The new law allows Chapter 7 if you have no disposible income.

They use the IRS Collection Financial Standards to determine what your allowable living expenses are. If you have excess income you have to pay up to $200.00 per month to unsecured creditors over three years.

But again, passage looks unlikely unless Bush wins.

The Trustee will usually object to discharge now if you have over $500.00 in disposible income, live in a house with a four digit mortgage payment, or pay more than $500.00 per month in car payments.

Each district is different. You can usually find out enough by talking to a bankrupcy lawyer. Almost all offer free consultations.

[SW FL Dem]

11. It all depends on where you live and whether your expenses

are greater than normal. It's simple math, does your income exceed your reasonable expenses by more than a few $100 each month. If so, you should file a 13. If not, you should be able to file a 7. To find out what is reasonable for your area, you need to talk to a specialist.

[SW FL Dem]

10. Don't take the word of the credit counselor

Most work for the credit industry. Ask around for the name of a good BK lawyer, most give a free consultation. Even though BK is under federal law, what you can protect varies from state to state. You need good advice from a pro in your state.

Income is not the only issue, current law also takes expenses into account and many people don't realize what expenses they can claim (insurance, home maintenance, etc.)

[leftyandproud]

12. How much do you owe?

[Deja Q]

13. Prepare to sit down...

$26000. :spank: (Long story, embarrassing, am in therapy and have learned how to keep to a budget...)

[leftyandproud]

14. ok

income?
is it all credit cards?..

or do you have a car you can't afford?

Sell some stuff...including the car if you are making payments.
Buy a 4 year old ugly car with a decent engine for around 3-4k

Get a job tossing pizzas 3-4 nights a week...you should average $1000 a month with tips.

It won't be fun...but you can avoid killing your credit.
1k a month + garage sale money + money you save by getting rid of the stupid car = $30,000+ saved in less than 24 months.

Put your budget on paper...Spend every dime you make ON PAPER before it comes in. Do the things mentioned above and start putting every extra penny you have on the smallest debt you have...pay minimum payments on everything else. Attack the smallest debt with a vengeance and KILL IT@ Once the smallest one is gone, you free up cash to roll into the next smallest debt...ATTACK it...and KILL IT...keep it rolling...a debt snowball. Pretty soon you have an avalanche of cash knocking out bills left and right. You need to be systematic about this and get some momentum going by killing the smallest bills first..

You will be cutting back and working your butt off like a crazy person. Your friends will think you are crazy..but that's ok...They are normal. And normal is BROKE.

Be weird for a while.
Good luck ;)

[nini]

15. I filed chapter 7 in '92

I waited way too long to do it but there was NO WAY I was ever going to crawl out from all the debt I had after being unemployed after a car accident that kept me out of work for over 5 years.

It was tough for a while but I learned to live within my means. Within a couple years I re-established credit by getting an gas card first, then a small car loan through a credit union etc.. Nothing big at first, just something to re-establish credit.


I now have my own townhouse, good credit again and savings. I never would have been able to rebuild my life without doing what I did.

Don't let guilt ruin your chance at a stable life.

good luck.

On edit: I used a paralegal and represented myself in court.. I saved a huge amount of money doing it that way.

[Demonaut]

16. Go to the Dark Side , exploit the weak and innocent......all will be well

just kidding of course, hang in there. I would recommend a BK if the debt is greater than your yearly income. the debt management schemes only work if the company guarentees that no lender will post a late on your credit reports.