What should I expect to happen when I file bankruptcy?
May.31, 2009 in
Bankruptcy
I decided to take the American route and file bankruptcy (chapter 7). I know my credit is gonna turn to $h!% but I’ll have a house in my bf’s name but anyways what else should I expect like when I go to court and how much does a lawyer cost to do this. My debt is basically credit cards.
Melli how is that true? through taxes?? well if that's the case I have paid taxes and so does my bf so what's the big fuss?
May 31st, 2009 at 11:55 pm
First off why doesnt everyone ask her the most important question… how did she end up like this? You guys seem to forget that thousands off people are getting laid off and finding it hard to make their payments. All of you who are talking crap dont even know if thats her situation! You people will never realize what it feels like to have that happen. Never know when your next meal will be coming. worring If you will be evicted or loose your home! It sickens me… Ask her first why she is filing BK. You are all jerks to just assume shes doing for the pure irresponsible. Man if you only knew what some of my friends are going through. yeah that might be one of the reasons that the economy is the way it is but dont forget the real theives.. the banks them selves..not to along ago everyone and their momma was getting a home loan… how about we be nice and ask cookie what happend. Do you think she would care to ask what will heppen if she was just a dead beat trying to mooch off of our hard earned money…this is sad when you guys just attack people without asking questions. Pathetic!
May 31st, 2009 at 11:55 pm
First, how much debt are you in? Credit cards aren’t really worth going bankrupt. But I guess if you owe about 25,000, then I see you don’t have a choice. The house in your boyfriend’s name isn’t a good idea. He can tell you to get out anytime because it is technically his house. Don’t ever depend on someone else’s credit. For a while, your credit won’t be good, but that would be just the same if you just stopped paying on your credit cards. I owe 5,000 in debt, but I didn’t go bankrupt. I however stopped paying on it because I couldn’t afford it. Rather I went to college and will hope to get a good job right after so I can pay that debt out without paying a whole lot of interest. But it was about 3 years later that I was given another chance for credit. My credit is actually good now, even with the debt. I want to still pay my debt out just as soon as I am financially stable.
May 31st, 2009 at 11:55 pm
This topic pi$$e$ me off!! What will happen?? You will get away with charging up your credit cards, living carelessly, with no responsibility! While the rest of us pay off your debt!
Thanks a lot!
Yes through taxes… and why do you think the interest rates keep going up on our credit cards??? because of deadbeats that live on their credit cards and then claim bankruptcy so they don't have to pay for their irresponsible lifestyle!
let me ask you this… does the amount you and your boyfriend have paid in taxes even come close to your debt??
If so, then you have no reason to claim bankruptcy. You make lots of money, so be responsible and pay your debt.
If not…… well I rest my case!!
May 31st, 2009 at 11:55 pm
The big fuss is that you are costing all of US money. Your credit rating should turn to $h1% because you are not taking responsibility for your actions. It wasn’t so long ago that to declare bankruptcy was considered shameful, as it should be. After all, no one twisted your arm and made you buy things with a credit card and not pay the bill. Your debt doesn’t just disappear, it gets paid by all of the rest of us through higher prices, and yes, higher taxes (especially because of these bailouts). Your debt get gets “folded in” to the price of the next car, the interest rate on credit cards, and on everything else since the entire economy is connected. The alternative would be when Customer A doesn’t pay her bill this month then Employee # 3472 doesn’t get paid this month or New Customer pays 11% instead of 10%.
By the way, after the last stimulus check (which equaled the amount of taxes that they paid last year for most people so most people paid no Federal Income Tax last year), did you REALLY pay taxes?
If you change your mind and decide to take responsibility here is a plan that can help you . If you work the plan, the plan will work for you.
A. Have a garage sale and sell whatever you don’t use or need and use that money to pay down your debt.
B. Consider getting a temporary part time job and use all of that salary to pay off your debt quicker. It is better to have a no fun year
than a no fun decade.
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an “emergency fund” category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don’t even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts, if you are not already, and make no more late payments, if you have had any. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3: minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for “fun” to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
May 31st, 2009 at 11:55 pm
How did you get into this situation anyway if you have a job and just decide not to pay your bills then this is why the US economy is in the situation it is currently in right now so if this is the case then you need to learn to be smart with your money and stop buying what you can not afford and do not apply for anymore credit card but try to get a part time job or work extra hours but if you do file for bankruptcy then it will be on your credit report for 10yrs is all I can think of for right now anyway Take Care and Good Luck
May 31st, 2009 at 11:55 pm
Be careful! Make sure you seek help from a trusted expert in the bankruptcy field. You don’t want to make a mistake that can harm your credit for a long time. Try visting a lawyer to make sure you understand the options. http://www.bankruptcylawyersite.com