Ugh..anyone have experience with personal bankruptcy?

[ehh]

Maybe MassNole can help out on this since he's Mr. Lawyer. Unfortunately I think I've come to a point where I realistically need to starting looking at personal bankruptcy. I don't feel like I've been irresponsible with money, my situation is just craptacular.

- $600/mo in student loans

- My father and I have a small business that's been struggling the last four years. I don't have benefits, never get paid on time (still haven't got paid for April) and work too many hours to get a real 2nd job to add income. With my loans I never had a chance to "get ahead" and get some money in the bank to pay my bills on time so I'm pretty much three weeks late on every payment each month while living paycheck to paycheck.

- I'm about $10k in CC debt and have no assets outside of a 2005 Nissan that is paid in full, it's mine. There is nothing outlandish on these CC's, pretty much basic living expenses. I've been working for my father's company for about 48 months, so $10k over 48 months is about $200/mo I've racked up in CC debt, basically my monthly gas bill for my car. The only "luxury" purchases I've made since I got out of college are a 50" HDTV which I paid off on an 18 month, no interest plan so that didn't hurt and a PS3 & Wii.

Does anyone know if my case would have a chance to get approved even if I did file? I'm trying to find a sample bankruptcy case online but somehow can't find one. All in all it's pretty much a horrible extistence that I'm tired of dealing with. From everything I've read online bankruptcy isn't as horrible as most think it is or make it out to be. All of those ads on TV are bogus spots put on by credit card companies who don't want people to file because it means they lose out on more money.

[ExtremeGamer]

Re: Ugh..anyone have experience with personal bankruptcy?

I don't know much about it, but a few things I'd look at are those credit counseling agencies.

Do you own a house? Or planning to? If you file, it's going to kill that dream.

Are you fine with your car for the next 4-5 years?

The bankruptcy will stay on your record for up to 10 years, so these are things to think about before jumping in.

I know I hear stories of people being able to get credit after filing, but I thought the rules changed a year or 2 ago, and you don't have all your debts wiped out any longer like you did before. I could be, and probably am, wrong about that.

Either way, good luck man.

[Trevytrev11]

Re: Ugh..anyone have experience with personal bankruptcy?

Have you contacted your creditors? Maybe you can either consolidate your debt, neogotiate your rate or even see if they will work with you on another repayment plan.

Where do you live? If you live on your own and pay rent, maybe you can stay with a family member for a few months to save some money.

It sounds like the small business you own may be a money pit. If you file for bankruptcy, are you going to keep the business? If so, what are the odds of you falling into this same situation in 4 or 5 years down the road? Maybe it's time to say good bye and go find a job that gives you steady pay and benefits.

Finally, do you own a lot of crap you can sell? Obiously it's not likely going to raise you the thousands of dollars you need, but it may help. If you've got things you are hanging on to that your not using, it may be time to say good bye. Desperate times call for desperate measures and it may be time to say good bye to your DVD collection or baseball card collection, etc.

[KG]

Re: Ugh..anyone have experience with personal bankruptcy?

Damn ehh, that's some serious stuff and a serious life decision you have coming up.

I don't think Mass can help you out. I think he's banned.

One thing I would really advise you of is to buy some kind of health insurance. The quickest way to get in trouble financially is to get sick and not have health insurance. Bankrupcy should only be a last ditch effort because it sets you back big time if your goals are credit related (new house or car). If you're set in those 2 departments then I would still do everything in my power to avoid it.

How is the companies future (short & long-term)?

Would it be able to survive w/o you?

Is your father in the same situation as you? (probably not the student-loans I'd assume)

If you were to move on it would probably hurt your relationship with your father but he should recognize how much damage it's doing.

GL man, I hope everything works out for the best.

[bluengold34_OS]

Re: Ugh..anyone have experience with personal bankruptcy?

Ehh,


The BK laws did change a couple of years ago. Now, unless you can prove that you have no ability to pay it back, they will set you up on a CH 13( you will have to do a "means" test). I believe that the minumum payment on a CH 13 is $100 a month. I would personally stay away from the counseling agencies. They tend to worry more about taking their cut first, and paying off your bills 2nd. All they do is set up an escrow account, in which you pay into every month. They then contact each of the company's and try to settle for typically 30 to 60% of the balance. They get the interest shut down and freeze the account, but each month your credit takes another hit for late payments and will be destroyed anyways.

What the Bk courts will do is look at your income, vs the median income for the avg household of your size. If you are at the avg are below, they will allow you to file chapt 7. If you are higher than the median, than typically they you have to go Ch 13.....BUT

From what I have read and understand, is that they are still pretty liberal on the BK. Meaning that there is still a record # of Ch 7's being filed.
If you file BK now, under the new laws, you have to seek counseling before hand.

If you are married....make sure the Wife does not have a job, and does not get one within 6 months of filing. The BK could be thrown out. I use to work with BK lawyers all the time in my job, and its amazing what you learn through the course of the conversations and interactions.

Also, if the student loans are Gov't Loans, you rarely can file on them. If they are private, its much easier. I have done personal and mrt'g loans for people who have filed bk just 2 to 3 years prior. If you file file ch 7....my suggestion is getting a secured credit card, with a very low credit line, and buy some gas....pay it off, buy a shirt, pay it off. Start to rebuild your credit and very small increments. Please keep in mind, this is not an option until the BK is secured and closed. Obatining credit from a sub-prime lender such as First Premier with a very low credit line is not as hard as you think. The interest will be crazy, like 24%, but they also know that a person cannot file for another 7 years.................so the chances of them recouping their money is very good.

[baumy300]

Re: Ugh..anyone have experience with personal bankruptcy?

Ehh,


The BK laws did change a couple of years ago. Now, unless you can prove that you have no ability to pay it back, they will set you up on a CH 13( you will have to do a "means" test). I believe that the minumum payment on a CH 13 is $100 a month. I would personally stay away from the counseling agencies. They tend to worry more about taking their cut first, and paying off your bills 2nd. All they do is set up an escrow account, in which you pay into every month. They then contact each of the company's and try to settle for typically 30 to 60% of the balance. They get the interest shut down and freeze the account, but each month your credit takes another hit for late payments and will be destroyed anyways.

What the Bk courts will do is look at your income, vs the median income for the avg household of your size. If you are at the avg are below, they will allow you to file chapt 7. If you are higher than the median, than typically they you have to go Ch 13.....BUT

From what I have read and understand, is that they are still pretty liberal on the BK. Meaning that there is still a record # of Ch 7's being filed.
If you file BK now, under the new laws, you have to seek counseling before hand.

If you are married....make sure the Wife does not have a job, and does not get one within 6 months of filing. The BK could be thrown out. I use to work with BK lawyers all the time in my job, and its amazing what you learn through the course of the conversations and interactions.

Also, if the student loans are Gov't Loans, you rarely can file on them. If they are private, its much easier. I have done personal and mrt'g loans for people who have filed bk just 2 to 3 years prior. If you file file ch 7....my suggestion is getting a secured credit card, with a very low credit line, and buy some gas....pay it off, buy a shirt, pay it off. Start to rebuild your credit and very small increments. Please keep in mind, this is not an option until the BK is secured and closed. Obatining credit from a sub-prime lender such as First Premier with a very low credit line is not as hard as you think. The interest will be crazy, like 24%, but they also know that a person cannot file for another 7 years.................so the chances of them recouping their money is very good.

Gawd'am you're one intelligent man!

[bluengold34_OS]

Re: Ugh..anyone have experience with personal bankruptcy?

Gawd'am you're one intelligent man!

LOL...I ownlee sawnd mart!!!

Ehh, if you have any personal questions bro...just shoot me a pm.

[superjames1992]

Re: Ugh..anyone have experience with personal bankruptcy?

Call Dave Ramsey.

[Cane_Mutiny]

Re: Ugh..anyone have experience with personal bankruptcy?

I don't much about this stuff, but it seems like your business is the root of your problems. Unless you think things are going to start looking up soon in terms of profit, I'd try to cut back on time spent there and try to find another job.

What kind of business is it that you own, by the way?

[Gotmadskillzson]

Re: Ugh..anyone have experience with personal bankruptcy?

Yeah sorry man, you should have bailed on your father's business years ago and got you a job somewhere else. I can understand it's your father's but, if the ship is full of holes and half way under water, makes no sense to remain on a sinking ship.

[stewaat]

Re: Ugh..anyone have experience with personal bankruptcy?

Yeah sorry man, you should have bailed on your father's business years ago and got you a job somewhere else. I can understand it's your father's but, if the ship is full of holes and half way under water, makes no sense to remain on a sinking ship.

He's asking for help and you come in here to tell him he should've done this/that. The part in blue is all you needed to say.

[BrianFifaFan]

Re: Ugh..anyone have experience with personal bankruptcy?

Maybe MassNole can help out on this since he's Mr. Lawyer. Unfortunately I think I've come to a point where I realistically need to starting looking at personal bankruptcy. I don't feel like I've been irresponsible with money, my situation is just craptacular.

- $600/mo in student loans

- My father and I have a small business that's been struggling the last four years. I don't have benefits, never get paid on time (still haven't got paid for April) and work too many hours to get a real 2nd job to add income. With my loans I never had a chance to "get ahead" and get some money in the bank to pay my bills on time so I'm pretty much three weeks late on every payment each month while living paycheck to paycheck.

- I'm about $10k in CC debt and have no assets outside of a 2005 Nissan that is paid in full, it's mine. There is nothing outlandish on these CC's, pretty much basic living expenses. I've been working for my father's company for about 48 months, so $10k over 48 months is about $200/mo I've racked up in CC debt, basically my monthly gas bill for my car. The only "luxury" purchases I've made since I got out of college are a 50" HDTV which I paid off on an 18 month, no interest plan so that didn't hurt and a PS3 & Wii.

Does anyone know if my case would have a chance to get approved even if I did file? I'm trying to find a sample bankruptcy case online but somehow can't find one. All in all it's pretty much a horrible extistence that I'm tired of dealing with. From everything I've read online bankruptcy isn't as horrible as most think it is or make it out to be. All of those ads on TV are bogus spots put on by credit card companies who don't want people to file because it means they lose out on more money.

I'd try to call the CCC, whatever it's local agency is in your area. We have one called Graceworks locally. They are through the Luthren Church and have done really good by us. I know how you feel. When the auto industry first started to tank a couple of years ago I had to swallow the pride and find ways to get things manageable. Don't go for the quick Bankruptcy. See if there is any way you can go the long road and see your way out of debt. It's hard, but better in the long run. Good luck!

[baumy300]

Re: Ugh..anyone have experience with personal bankruptcy?

I'm not trying to scare you or anything man, but listen to these guys who are giving you other options than bankruptcy.

My parents had to file on a business back in 92, and it sent them into a downward spiral for many years and still has some ramification's on them today.

[superjames1992]

Re: Ugh..anyone have experience with personal bankruptcy?

I'm not trying to scare you or anything man, but listen to these guys who are giving you other options than bankruptcy.

My parents had to file on a business back in 92, and it sent them into a downward spiral for many years and still has some ramification's on them today.

Yeah, bankruptcy is a last resort and should be treated as such. Do everything you can to avoid bankruptcy because the long-term ramifications can be painful.

[PantherBeast_OS]

Re: Ugh..anyone have experience with personal bankruptcy?

Maybe MassNole can help out on this since he's Mr. Lawyer. Unfortunately I think I've come to a point where I realistically need to starting looking at personal bankruptcy. I don't feel like I've been irresponsible with money, my situation is just craptacular.

- $600/mo in student loans

- My father and I have a small business that's been struggling the last four years. I don't have benefits, never get paid on time (still haven't got paid for April) and work too many hours to get a real 2nd job to add income. With my loans I never had a chance to "get ahead" and get some money in the bank to pay my bills on time so I'm pretty much three weeks late on every payment each month while living paycheck to paycheck.

- I'm about $10k in CC debt and have no assets outside of a 2005 Nissan that is paid in full, it's mine. There is nothing outlandish on these CC's, pretty much basic living expenses. I've been working for my father's company for about 48 months, so $10k over 48 months is about $200/mo I've racked up in CC debt, basically my monthly gas bill for my car. The only "luxury" purchases I've made since I got out of college are a 50" HDTV which I paid off on an 18 month, no interest plan so that didn't hurt and a PS3 & Wii.

Does anyone know if my case would have a chance to get approved even if I did file? I'm trying to find a sample bankruptcy case online but somehow can't find one. All in all it's pretty much a horrible extistence that I'm tired of dealing with. From everything I've read online bankruptcy isn't as horrible as most think it is or make it out to be. All of those ads on TV are bogus spots put on by credit card companies who don't want people to file because it means they lose out on more money.

Bro don't feel bad. Everyone is going throough tough times in this country and around the world. But as a man of faith. I trust in God almighty. I believe he is in charge of everything that happens in this world. Everything will urn out to be ok in the long run.