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Posts Tagged ‘filing for bankruptcy’

I am re posting this question in the hopes of a few more answers….

Desperate…Credit Card Debt; Bankruptcy Law in Texas?
Ok, I am buried in credit card debt and medical bills and I really need some advice from someone who isn’t biased by trying to sell me their service.

I stopped making the payments on my cards in 2007, and my debt has since gone up over K.

I have looked into consolidation, but they want K a month which I can’t afford. I have already changed my financial habits and gotten rid of the majority of extras, but I still can’t afford it. From what I gather consolidation is only mildly better than bankruptcy.

I am now in the process of filing for bankruptcy to try to clear my name. In fact I have a meeting next week to finalize and file the paperwork. This is going to cost me roughly 00.

1. If I choose not to file bankruptcy, will my debt continue to be re-sold to collection agencies and continue to grow? Is there a limit to this or can they just keep twisting the knife??

2. I have been told that they will try to sue me,and I assume I would likely lose a second house that was willed to me, but what else can they take? What can they do if I sign the house into my brother’s name?

3. I know they can’t take my primary residence or my or my wife’s work vehicle, and I don’t have anything else other than my mom’s house. They can’t garnish my wages but I have been told they can take my tax return? Also, I was told that they could write it off and send me a 1099 that would make me responsible for the debt. Is this true?

4. I keep hearing these commercials about how Obama has changed the laws to help people in my situation, but I think they are just consolidation companies trying to scam me?

Can anyone please help me?

I can ask my lawyer but my lawyer stands to make 2000 so is she biased? I really want to know what happens if I don’t file bankruptcy or make any attempt to pay the debt. Will it continue to be re-sold to creditors and continue to grow? What happens if they write it off and hit me with a 1099?

I have recently lost my job after being in the telecommunications industry for ten years. I have had no luck finding a new 9-5 job with a regular salary. I have been forced to take a job full time at a restaurant.

I have over ,000 in credit card debt most with APR’s in the high 20′s. I have done my best over the last 6 months to keep up with my minimum payments but am finding it impossible recently to balance my debt along with my living expenses. By living expense, I do mean the bare minimums. Rent,utilities, gas, food etc.. I have not wasted funds on entertainment or purchases other than does required for work.

I had an hour long conversation today with a debt consolidation company. It is has been in business since 1965 and is non-profit. I actually used their services in the past to consolidate debt that I managed to pay off about 8 years ago. They analyzed all of my assets, income, debt and overall financial situation. They determined that I was running at a 65% deficit between what I am brining in and what I owe. They recommended that, although it may sound harsh, my best option was to file for bankruptcy. They determined that I would not be able to keep up with any type of repayment schedule that they would negotiate with the banks and that a fresh start may be my best option.

I have avoided the thought of filing for bankruptcy in the past for several reasons. But now that my income is at an all time low and my job prospects do not seem to be sorting themselves out in the near future, I do not now what other options I have available to me. Needless to say, the stress of the whole situation has been making life extremely unpleasant.

I am single, have no kids, and will not be purchasing a house in the near future. The only asset I own, is an 8 year old car.

I have five questions:

1) Other than having a bankruptcy ruling on my file for the next ten years and not being able to secure credit, what are the other disadvantages of filing for bankruptcy?

2) I do not have disposable income. I am making enough to pay for essentials. Would my chances of having the entire debt excused be good? Or would I still be responsible for paying a percentage?

3) I know from my corporate experience that my credit file would be reviewed during the job applications process. I am considering a career with the Federal Government. How would a bankruptcy ruling be looked upon by the government during the job application process?

4) How much with a reputable bankruptcy lawyer cost me?

5) I have also read that another option is to do nothing and ignore my creditors. The following excerpt below is from http://bankruptcy.findlaw.com/ . Is this plausible?

Do Nothing
Surprisingly, the best approach for some people deeply in debt is to take no action at all. If you’re living simply, with little income and property, and look forward to a similar life in the future, you may be what’s known as "judgment proof." This means that anyone who sues you and obtains a court judgment won’t be able to collect from you simply because you don’t have anything they can legally take. (As a famous song of the 1970s said, "freedom’s just another word for nothing left to lose.")

Except in unusual situations (being a tax protester or willfully failing to pay child support) you can’t be thrown in jail for not paying your debts. Nor can a creditor take away such essentials as basic clothing, ordinary household furnishings, personal effects, food, or Social Security, unemployment, or public assistance benefits.

So, if you don’t anticipate having a steady income or property a creditor could grab, bankruptcy is probably not necessary. Your creditors probably won’t sue you, because it’s unlikely they could collect the judgment. Instead, they’ll simply write off your debt and treat it as a deductible business loss for income tax purposes. In several years, the debt will become legally uncollectible. And in seven years, the debt will come off your credit record.

I am planning on contacting a bankruptcy lawyer for further advice but wanted to get an idea as to what I am dealing with before I further the process.

I appreciate any feedback the Yahoo community is able to provide!

Thank you in advance!!

I am currently trying to get my life back on track and recover from a disastrous past when it comes to financial matters ( and some personal problems). I am not sure where to even begin to try and pay off all my debt since did not keep track of anything.

Any advise would be helpful. I am trying to avoid filing for bankruptcy or going with one of those credit repair places.

I apologize this is going to be a long one.
Past May I lost my job and was not able to get unemployment. I abandoned my apartment since I was very honest and informed my landlord I don’t think they ever filed anything against me, haven’t seen anything on my credit report yet. Anyways I was well off in my job, had 4 credit cards, a car loan and a loan for my furniture set. All of these had never had a late payment, my credit score was at 720 something. Obviously afterwards everything except my car loan is now at least 180 days overdue, all but 2 of the cards are in collections. About ,000 in debt and I owe my dad ,000. I owe my dad ,000 because he drove out and helped me move back across country with all of my stuff since I had no place to live. Well, I took a phlebotomy class and after 3 months of applying the only place that was offering me a job was back in my original state so I packed my car up and I am living rent free with my long time boyfriend who I had moved away from… I hope that wasn’t confusing. So I’m out where I began, all of my furniture that I owe 00 on is 1000 miles away. I’m only making 00 a month. I have 00 in credit card debt. I’m trying to pay off this debt and I’m wondering the best way to go about this while keeping my credit score in mind. Since May it has dropped down to 516. I’ve thought about filing for bankruptcy but I think that would be a bigger scar on my credit. Also I think it’s a moral issue, I made this debt and it’s my responsibility. I’ve thought about trading in or selling my car, but even if I did I’d still be paying on it since it would resell for so much less. I’ve also thought about selling my furniture but I don’t think I would get that much money from it. It’s all in my parents basement not getting any use and I’d love to have it out here but from what I’ve found it costs a lot of money to transport it across the country. So does anyone have any advice?
The credit cards were cut up as soon as I lost my job, all of my extra money is going towards the debt. I am not spending on anything extra at all.

I’m contemplating filing for bankruptcy. I live in a house that I do not own and I basically have nothing of great value in my name (no car, no house), and I’m currently unemployed. How do they determine what to take and how can they prove what belongs to the owner of the house (not me) and what belongs to me? Do they actually send someone to your house and check or evaluate? Because that would be more humiliation than I can handle as the people I live with are not aware of my debt. If I have an overseas bank account, could they go after that (can they even locate it in the first place)? Thanks for any help!

I’m trying to not file for bankruptcy. Overdraft protection is the only thing keeping me from making late or no payments at all on my bills and that’s nearly maxed out. I’m in huge cc debt, apppr 35k, and bankruptcy seems like the easiest way out and to feel like a person again. I want to try and fight my way out of this mess if I can. I would like to see if a service can help me but know there’s a lot of scams out there. Is CCCS a debt consolidation service like Debtco or are they two different things? How do I go about finding a fair and reputable service? What types of questions should I ask? I’m near Portland, OR. Anyone have a suggestion of where to find a good service or lawyer (if bnkrp is in the future)?

Also, is a charge off really that much better or different than filing for bankruptcy? What’s the difference when it comes to your credit report and how it is viewed by potential lenders?

TIA