how does bankruptcy effect everything? will they take my house, belongings, etc? will my credit card debt be erased %26amp; my credit rating worse than ever? what does bankruptcy entail? I am to the point where my phone rings constantly from collectors. I am choosing betw paying a bill or buying food. My kids need dentist, doc visits, glasses %26amp; I already owe the dentist %26amp; doctor each at least $250 dollars.
I am just trying to find a way out of this hole I dug. Is debt management/consolidation a legitimate route? I do not trust these companies bec I have heard some charge more than your debts in the long run, also some are in consort with the credit companies. Please give me good advice, do not tell me I am getting what I deserve, you don't know the reason I am in debt...it was unavoidable. I now want to pay off and start over %26amp; need the most reliable route. I already am in 3 pay plans for some credit cards...I am not able to met these consistently bec of lack of $$, others not paid at all
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
If you are asking us to recommend bankruptcy. there simply is not enough info to recommend anything.
Generally, if you own a home and car, plus other property, you may not be in a position to file Chapter 7. They do not magically wave a wand and your mortgage is forgiven. The secured loans will have to be paid or you lose the property.
Bankruptcy works best when you are loaded with unsecured, credit card debt.
My advice...see if there is a local non-profit credit counseling agency in your area. Their fee isn't that great. You need to talk to someone knowledgeable with the BK laws, and other credit avenues. Then, after looking over your situation, they may recommend you talk to a bankruptcy lawyer, or if trying to consolidate your debt will help.
Good luck .
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
Wow, that sounds like a really tough situation..
To be honest, I don't know a whole lot about it, but I know that my parents filed for it about 7 or 8 years ago..
We didn't lose anything but my parents credit was basically crap for about 5 years..but if you have no debt and you have a home and reliable vehicles, it's really worth having the bad credit to get out of all the debt..
I've heard the same thing about debt consolidation places..more trouble than it's worth..
But I've also heard that bankruptcy is harder to file for now..they passed a bunch of news laws about it a while back..
I know I didn't help much but I guess I just thought you should know there's somebody that doesn't think you're an idiot for getting into debt. It happens to a lot of smart people..
Good luck hun..
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
I am sorry about your situation...you must be so stressed out. I would really really try to avoid bankruptcy....it will really mess you up for years to come. If it's your only viable option then do what you have to do and hold your head up high. Otherwise, I would look for an accredited credit counseling/debt reduction program. They will combine all of your bills, lower their interest rates, and then pay them each month. Work as hard as you can and save as much as you can. Evaluate yourself and your situation as honestly as possible and change whatever you can. Give yourself five years and work your butt off and you and your kids will benefit from your hard work. Five years seems like a long time but living the way you do now (avoiding phone calls) is a lot worse. Credit Counseling will take five years-- Bankruptcy will take seven to ten years. Good luck--it will get better.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
first off...relax...there are solutions. I have been there and done that.
Bankruptcy may be the best solution for you. But you really need to see a lawyer because each state has a %26quot;means test%26quot; that they do which pretty much is %26quot;do you make more or less than the median income for your state for your size of family%26quot;...that is all it is. If you make MORE than the means test, they will require you to go into a chapter 13 repayment plan which is not the end of the world either. They will not take ALL of your money but they will expect you to live on a budget and they only allow so much for phones, satellite, etc. So say they allow $45.00 for a satellite bill, and you pay $65.00 then they will require you to downgrade your service.
Now if you make less than the state median income level for your size of family...then you can file a chapter 7 fresh start bankruptcy. I paid off doctors and stuff like that that I like before I filed. I wanted to stay on good terms with them. I filed on 4 credit card accounts only. BUT you can include medical bills, credit card bills, all UNSECURED debt.
If you do not have any equity in your house (I did not since I still had a loan to value ratio of 85% meaning I still owed 85% of what my house was worth) then your house is safe. If you live in a huge paid off house that the trustee could sell to pay off your debts, then a chapter 13 would be best for you. But if you have recently refinanced or have a newer mortgage (say less than 10 years old) I would say MORE THAN LIKELY your house is safe.
Cars are safe too if they are not new and flashy. I did the kelly blue book on my car and I owed far more than it was worth.
So all I did after I filed my bankruptcy, was to %26quot;Reaffirm%26quot; my mortgage and my car loan. Meaning, I promised to keep repaying them and I get to keep them. It can take some time for the paperwork to go through and mine are still going through this process but my lawyer said they will reaffirm with NO problem. Mortgage lenders do NOT want your house back, especially in today's market. They WANT to work with you and they want you to keep making those payments. Same goes for an older car like mine (5 years old). I owe far more than it is worth like I said.
I filed chapter 7...kept my house and car...no problems and it was the best thing I did for my family. Even with my spouse making some extra money, we were able to pay off all our medical bills (had emergency surgery and bad insurance at teh time) and got everything else caught up.
As far as credit scores...my credit score is 600...I got that out of one of the lovely debt collectors trying to collect on me before I officially filed. He was trying to get me to refinance my house to pay them off...yeah right.
I still have 4 other %26quot;credit%26quot; accounts open that are on my credit report that I don't have the cards for . So I am sure that is one reason why my credit is higher. I paid off my small store cards too before I filed to help my credit. So after all that and a year of trying to work with a debt settlement place....my credit was as bad as it could get and my score after paying off my other 4 credit accounts was 600...yes, that is low, but it is not that bad when the average is 650 or something like that.
I would stay away from a debt settlement place. They will set you up with something you can not afford. They will want it all electronically withdrawn from your account as well. I tried one of the big ones out there. They were not there for me when I needed them most when I started to face a lawsuit and stuff when the program was NOT working for me. So they sign you up saying they will settle the accounts for 40% of the balance but they also take a 15% fee of all the enrolled %26quot;debt%26quot; you have signed up with them. So really that is 55% of the balance if you get what I am saying. So you are only saving 45% and NOT ALL COMPANIES WILL WORK WITH THEM which is why one started suing me.
So stay away from the debt settlement places. See a reputable bankruptcy lawyer in your area. First consultations are free....they can file stuff nearly immediately for you meaning all forms of collections can stop immediately. People will have to stop calling you and all that.
I had one place that was going to withdraw money so I contacted my bank and they were able to put a block on my account against those two places too. So they did not try to take money even though they were not supposed to due to my filing. The lawyer told me sometimes places will do this if you have %26quot;verbal contracts%26quot; with them. Legally they shouldn't take the money, but they will and then sometimes you can't get it back even with a lawyers's help. The bank did not charge me for doing this either.
So go see a bankruptcy attorney. I think you will be amazed at the relief you will feel when it is all over and settled. I felt like the weight of the world had been lifted off my shoulders.
I was in debt due to various reasons and took a killing on here too from people who don't understand and call you a loser and all that. YOU ARE NOT A LOSER, YOU JUST FELL UPON HARD TIMES...WE ALL DO AT ONE POINT IN OUR LIVES.
Just learn from the lesson. Don't get yourself into too much debt again. I am sort of like Ebeneezer scrooge now for fear of being in debt. My husband has a thousand dollar credit card bill and that freaks me out...it was nothing compared to what I declared on. Just learn from what has happened and don't let yourself repeat it. I have read that 50% of people who filed once file again. I will not.....I am staying away from credit now...living off of cash only. But I have a relative who filed 8 years ago and is in way over her head again and I have a feeling she will be filing again. She won't admit to it for shame.
But don't let it get you down. See a lawyer and let him or her help you. Bankruptcy lawyers can settle accounts for less then debt settlement firms as well and they will do it for a far less fee amount than these advertised and online places.
See a lawyer as soon as possible and they will tell you what is best for your situation.
But please don't feel bad about yourself. Trust me, you will feel so relieved to have all this end.
Also, I did change my phone number to a private and unlisted phone number and that took a lot of stress out of my life too...you will still get mailings but at least you are not scared to answer the phone.
Also, filing bankruptcy will also clear out any judgments and halt all lawsuits.
So lift your chin and see a lawyer, you will be so happy you did. I know I was.
You will be able to get a good rate on a mortgage and car loan in about 2 years. It is not the end of the world but that fresh start you need. Oh and the %26quot;Credit Counseling%26quot; you have to do is file is NOTHING. IT is so easy. I used Green Path. I think it cost me $75 or $100.00 total but they are VERY imformative and you can do all the reading and stuff online. IT is VERY easy to print off their %26quot;book%26quot; and the online test you take before you can get all your debts %26quot;discharged%26quot; (required by courts) is a breeze. I recomment Green Path Debt Solutions whole heartedly. I am not affiliated with them. I just know that the bankruptcy courts prefer them.
Good luck and God Bless you...
Also don't let people tell you that it is a sin....you know in the bible it said that all debts should be forgiven every 7 years....I had my priest tell me that when I was feeling down about all this after people were telling me it was a sin.
Edited to add: I forgot to tell you, YES, all the credit cards will be wiped out if you file bankruptcy. It will cost you about $1000.00 total to file BUT most lawyers will do a payment plan and it is SO worth it. But YES all credit cards will be discharged if they have not been used for 90 days. The lawyer will help you with all that. They may be on your credit report and will have a zero balance and will say %26quot;included in bankruptcy%26quot;. Then you can start disputing stuff in a few years....they will remove them sooner than the 7 year or 10 year time frame (depends on credit agency)- you will be surprised. So once the bankruptcy is final, a few months after get your credit reports free online...may be able to get yours free at annualcreditreport.com and just start disputing everything on there that you can. Old accounts can only be on there for 7 years. Just do that till they are satisfactory and then next year do the same thing and then keep doing it year after year and they will delete the bankruptcy stuff sooner than you thing. I know of a friends who filed who NEVER had it appear on their reports...their accounts just went to zero balances and then another family member had it on there but it was deleted after only 5 years. Nothing is written in stone...don't let people freak you out....just get a good reputable lawyer with a good reputation. Mine had been doing this for over 30 years was HIGHLY respected in the field and even teaches all over our state on the proper ways to do things with bankruptcies. The Trustee questioned some income stuff on my case but because my lawyer was so good after 2 minutes she understood and %26quot;closed%26quot; my first meeting (the 341 meeting that is required and is SO easy..mine was 8 minutes long total). The trustee was great...but it was also because she trusted my lawyer and because she respects him in the field so to speak. GOod luck.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
Ok, here is how it goes. You can keep the house so long as your plan includes continuing to make payments on it. You have to list all your assets with the court, and the court could order some of them to be sold in order to raise money to pay off the unsecured creditors. If you have significant equity in the house, the equity might be subject to the creditors' claims as well, and you really need to consult a lawyer. Eventually, the unsecured debts are erased forever after your assets, if any, are sold and distributed. Yes it will ruin your credit rating but if you're not paying your debts your credit rating is going to be ruined anyway so you don't have much to lose. The good thing about bankruptcy is that once it's final, you get to keep your income and get a chance to start over, instead of having to keep paying the mounting debts, especially all the credit card penalties and sky-high interest rates. You will need to hire a lawyer to handle the bankruptcy work but it's a worthwhile investment.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
Lots of people think that once they閳ユ獫e filed for bankruptcy they will be unable to ever get a loan again, and ultimately they are unable to do anything financial ever again. This isn閳ユ獩 always true, there are%26lt;!--always ways to improve your financial standing, and there are also ways to repair your damaged credit rating.
http://badcredits.awardspace.com/Bankrup...
In fact one of the best ways to improve your credit rating is to refinance your home mortgage, this--%26gt;will help to improve your credit history in a number of different ways.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
Bankruptcy should be the absolute last resort. Get another job, and make every dollar count.
Pay your mortgage, the light bill, put food on the table, and pay for basic clothing... the rest can wait for now.
Bankruptcy will ruin your credit, you can still be sued down the road, you could lose your house, you car, everything. Laws have changed, and bankruptcy is a horrible experience, and you should do everything you can do to avoid it.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
Bankruptcy resets everything financial in your affairs. There is a list of protected items exempt from proceedings. Car for work, normal clothing, basic furniture, tools for work, etc. While the States vary the basic form is modeled on the Federal practice. You don't lose the basics of life but all of the luxury items (airplanes, yachts, your Rolls, stocks and bonds, and savings accounts) will be applied to the debts.
You need to contact the collectors who are calling you and give them a valid mailing address where they my contact you in writing. Write down te name, contact phone number and address of each person whom you speak to and then send them a letter informing them of the same thing. The Federal Fair Credit Collections Act is available on the FTC (Federal Trade Commission) website. They cannot use your telephone to beat up up for collections if they have a valid address. They cannot threaten you with legal action that is prohibited or not available to them. They cannot send you to jail. They most commonly cannot tell the truth and they seem to be deaf when you respond to their demands. They really don't care if your kids starve so don't worry about them.
If you file bankruptcy the lawyer is going to want money up front since he knows that he cannot collect from a bankrupt client. After filing bankruptcy you cannot file it again for 7 years so be sure that you name every person on this planet that you owe any amount to as a listed creditor.
There are some debt consolidation companies that get paid by the creditors. If you file bankruptcy the creditor will probably get 1 to 3 cents on the dollar if that much so it is in their best interest to keep you in the dark and if you get serious they will start to really work out a plan with you.
When you send them the letter telling them not to call you at home or at work but that they must write to you instead you can also tell them that you are considering bankruptcy as a result of the obnoxious treatment that you have recieved in the course of trying to pay off your debts. You will be surprised at how fast they can pretend to be human (sort of).
Go to the FTC website and know your rights and how to control the collectors.
Check out %26quot;Secured credit cards%26quot; on the web. You can get some relief by useing secured cards to take the bumps out of your finances.
You can email me for some further discussion.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
i went thru bankruptcy 2 years ago.i reaffirmed my house,and kept making the payments.They cant make you give up your house,but you still have to pay for it.as for the unsecured debt,it would be completely gone.when i filed i went to an attorney,listed everything i own and all my debts,the lawyer then files with the court for bankruptcy protection.the attorney also notifies every debtor you listed in the petition,so the collection calls will stop as will any judgements,garnishments.when go to court for your hearing just answer the trustees questions(about 5mins)then i a couple of months your discharge will come in the mail.If you have tons of people calling you for collections then your credit is already ruined and each one lists on the credit report.after a bankruptcy,the only thing listed is the bankruptcy.I was able to finance a brand new car 8 months after my discharge came(and kept up my house payments-no late one)so you can get credit after bankruptcy.however it is more difficult to get credit cards,but that is ok-you dont need more than 1,and use it for gas purchases and pay it in full every month.Your credit can and will come back.I think what I can glean from your question is how bad will a bankruptcy affect me?I would stay away from the debt repair places,too many of them are fly by night or scams.I know the laws havr changed since i filed,but if you make below the median income in your state then i think a chapter 7 is the way to go.good luck to you and take care.Edit-I know you said deeply in debt -mine was in excess of 95000-and the fresh start was worth it
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
Today there are many debt solutions that can give you a reason to hope. When you think there is no hope, spend time to find out your choices. Look for the resources and use them to the utmost. The resources will guide you to your rights as a debtor, the law, constitutional rights, debt relief etc.
Many libraries are a treasure house of resources like debt relief guides. Use the guides to your benefit. Many libraries will have the required copies, or else you can request the librarian to get you a copy. These guides contain forms that you can copy and print. The guidelines will instruct you in writing effective letters to creditors to prevent liabilities, garnish earnings etc.
You can get many resources on the Internet. With Internet, you can select amongst the various choices. There are links to sites that teach you about your debtor's rights. Other links tell you how to ...
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? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
I did a chapter 7. It was the best thing I could have done. In case you don't want to do a bankruptcy, you can do credit counseling. For my bankruptcy I used a credit counselor recommended by my lawyer. (something you must do when doing bk). Anyway, the company's name was Green Path solutions. They were great and if you can't afford them, they will give you free counseling. Mine was free. I didn't own a house, so I can't tell you what they would do with your home. As far as childcare is concerned, I'm thinking if you post an ad in your supermarket, or local paper saying that you will watch someone elses kids for free, in return for them watching your kids for free. I know its a hard time, but you will soon be free of all this pain. Just give it a little more time. Any questions, feel free to email me at hansjill228@optonline.net. Oh, by the way, I am a mother of 3, that had the same decisions to make about paying my cc bills vs. feeding my kids.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
I feel your pain...whatever you do DO NOT listen to the people telling you to go to credit solutions.com, it is a huge scam and luckily I found out about it before I got in to deep with them. I am using a CCC service right now but before you go with one make sure that you research the company in depth because alot of them are scams. Try to go with a company that is backed by the BBB, actually go to the BBB site and check them out and make sure they are members in good standing. Also go with one that belongs to the NACCC. Most good Credit Consuling services will advise you on the best route out of debt for you. I hope this helps, just remember that everyone is having money problems right now--money is tight for everyone, this will pass and don't listen to people that are telling you to pay your bills, they are probably still living in mommy's basement. Good Luck and if you need to talk you can email me.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
Here is an excellent site with some wonderful options 4 U.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
It looks like you have a lot of weight on your shoulders. For some people bankruptcy can only help their credit. You're credit is probably already ruined, sometime the longer you wait the longer your credit is bad b/c your creditors keep dinging you. At least the bankruptcy wipes it away and you can rebuild your score and it stops the phone calls.
Having no equity in your home actually works in your favor when you file a bankruptcy.
You should speak to a couple of different Bankruptcy attorneys. If you decide to do it, go with the cheapest one b/c they all do the same thing.
Good luck!
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
if i were u i'll migrate to another country borrow aloan pay off my depts get two jobs to pay my loan and to feed my family.
? on bankruptcy...i am deeply in debt. i have a mortgage, 2 home loans, one secure, one unsecure.?
if i have learned anything about bankruptcy from reading all the comments on ansers i have come up with the first thing one must do is get a lawyer -- involved righ up front and listen to his advise!!!
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