Personal Bankrupcy Qustions???????

[slayer]

My wife and I are barely keeping our heads above water and owe a ton of money for our House-Equity Line and Credit Cards. We are thinking of filing for Bankrupcy. I know the laws have changed for this. Basically, we don`t care about the bad credit rating for 7 years as we are tired of lving with that drowning feeling. What kinda Bankrupcy are we looking to do if we want to get rid of the House-Credit Cards and Equity Line payments? I know we would lose the house, but that is cool, we would rent off of a relative. Also, what can they take from you for equity other than the house? Both cars are paid off, I have a boat, guns and my guitars and amp. Are you allowed to keep your cars? If not my boat, I can sell it before I try for Bankrupcy. Are there any Bankrupcy Lawyers on the board here? Even better if you are in or near Pittsburgh,PA. If not, we have a name of someone close by. any help would be apprectiated. we would be moving and renting the first of July, so we nead to get things rolling. If you feel more comfortable PMing me, please feel free to do so Thanks fellas-Jack.

[Jason1212]

This is something that you want to consult with a lawyer about. I went through this 6 years ago and the laws have definetly changed. We kept our house actually we did not give up anything but good credit and the debt. 7 years doesnt seem long, but it is so make sure this is your best option. They really only look at items you owe money on but they will want an inventory of all assets. They generally will not take cars as that could prevent you from working. Again the best recommendation I can give is to get a good lawyer.

[toejam]

I filed within the past two years, in Chapter 13. I had a lot of debt due to my ex-wife leaving and just leaving me with all the bills, and all the credit cards were in my name. Basically, since I own a house and have equity in it, they made me pay my debt off through a court-appointed trustee that works with my lawyer (so I didn't have to sell my house). I send a money order to the trustee every month, she puts the money in an escrow account and makes monthly payments to my creditors. The bankruptcy proceeding can only last for 5 years, so you've got that amount of time to pay everything off. I'll basically be all paid off within the next 6 months because I had a great lawyer.

My lawyer got my debt from the two major credit cards I had expunged in court when they failed to prove exactly how much I owed. Either the other lawyers didn't show up or they didn't have sufficient proof of the claims I was denying. I was saved from having to pay another $15- $20,000 back. I'm not sure how Chapter 11 or whatever else works, but Chapter 13 was the best way for me.

[hippietim]

Jack - get a lawyer.

[buzzsaww]

I filed about 3~4 years ago. Definitely get a lawyer and ask every question you can think of.

[markD]

i am going through that now. get a consultation from a lawyer. they will spell out your options. mine was free.

[yard dawg]

Dude Do Not File Bankrupycy. Go To Dave Ramsey.com And Get His Information About Getting Out Of Debt. You Wont Regret It ...

[MBreinin]

They (our current administration and their cronies at banks) have made Chapter 7 virtually impossible with the change in the law. If you make any kind of income, you will be going through Chapter 13, which requires a structured payoff of a percentage of the debt. I would avoid 13 if you have any other options.

Mike

[Spivonious]

If I had a lot of debt, I wouldn't have a boat, even if it was paid off. But definitely talk to a lawyer. I believe they look at all your assets and sell what they need to. I'd imagine anything expensive and not needed for life/work.

[BTB007]

They (our current administration and their cronies at banks) have made Chapter 7 virtually impossible with the change in the law. If you make any kind of income, you will be going through Chapter 13, which requires a structured payoff of a percentage of the debt. I would avoid 13 if you have any other options.

Mike

Not really true. You have to take a "means" test and if you pass (or fail really) you can file ch. 7.
The credit card companies have required filers to go through classes before and after filing and that is pretty much the only real difference now.

[xenophobe]

1 thing to take note of, even if you plan on filing bankruptcy, keep paying your important bills. Your mortgage and utilities... Your immediate residence should be protected, but you will not be cleared of all your bills, especially any owed to the government.

Consider a debt consolidation... and research your options heavily before waving the bankruptcy flag...

Check out what the Federal Trade Commission says about debt consolidation.

http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.htm

Also the wiki article on Bankruptcy in the US.

http://en.wikipedia.org/wiki/Bankruptcy_in_the_United_States

[slayer]

I appreciate the info fellas. Classes and Means Tests, ugh, that sucks I would want to do Chapter 7. I want out of all of this Debt, no exceptions. I am going to be renting and don`t nead this house I have. we can`t afford to pay on both. I don`t know what the Means test is, but I dought we would pass as we are not behind on anything, but just making it. I can`t believe these current fuckers in government actually made the new laws, they are making it really hard on people. My mother and father in law just walked away from their current house and they just lost it and it went to shrrifs sale or something. believe me, if we have to, I will just walk away from this house, because we are moving July 1st or abouts and we owe way more than the house is worth plus that Equity Line loan. I would never get a personal loan for like $43,000 and personally, I don`t want to pay on something like that, it is like throwing money down the toilet. If I sound desparate, I am As for the boat, I am planning on selling it pronto in the next few months, definitely before we do something drastic and I will hide as much as possible for sure!! Thanks-Jack.

[Thrust]

Hey Jack--

Sounds like tough times. I wish you the best which ever way you decide to go.

[DonP]

From what little I know, they will check your banking statements well before you go into bankruptcy, so if you want to hide the money you get for selling the boat, keep that in mind.

I think I know that sinking feeling you are feeling Jack - I've been making 2 house payments since Nov 2005 and it's getting old.

[xenophobe]

I've looked into bankruptcy recently myself... times are tough and I'm living month to month without a full time job, but I've decided to try to pay my bills off (11,000+ in defaulted student loans and +$10,000 accident and $4500 in medical bills).

I've realized that in my situation, bankruptcy would not be a favorable option as just trying to slowly pay off the bills.