Current Events > anyone here ever file for bankruptcy?

(+) Yeah! (+)

im weighing my options right now and unless i win the lotto, it might be the only way

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something to do with all of those credit cards, maybe?

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It's not the end of the world but also shouldnt be done lightly. Some debt is not forgivable, plus it costs a fair amount of money to file. If you have any assets (metal, firearms, anything) you will have to forfeit or pay a portion of their value. They'll also take tax returns, property tax returns basically any "extra" money you're due.
You can keep your home and car though. All told mine cost me about $3500

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Don't you have to go through a period of trying to pay stuff back and having some budget, before your can enter the liquidation phase of it?
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What the hell dude, I thought you were financially stable collecting credit card points and investing?

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Did you lose your job and was left in credit card debt?

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I did many years ago. Hit a rough patch with some investments not panning out like they should have and some unexpected family medical expenses. I filed Chapter 13, which is essentially a reorganization where you pay back all your debts to one trustee for a period of five years as a percentage of your annual income. Then, whatever you owe after those five years is forgiven.

Most people are familiar with the Chapter 7 bankruptcy, which is the liquidation one. That one causes you to lose most fixed assets you won except for your house and primary vehicles in exchange for all your debt being erased after 3-6 months. But a Chapter 13 bankruptcy is basically consolidating all your secure debts into one manageable payment plan over five years, and then forgiving some (if not all) of your unsecured debts (i.e. credit cards, medical bills, personal loans). Keep in mind that student loans are not dischargeable in either of those scenarios.

Let me know if you want to know anything about either process.

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I probably would have done so if you could get out of student loans that way.

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PoundGarden posted...

It's not the end of the world but also shouldnt be done lightly. Some debt is not forgivable, plus it costs a fair amount of money to file. If you have any assets (metal, firearms, anything) you will have to forfeit or pay a portion of their value. They'll also take tax returns, property tax returns basically any "extra" money you're due.
You can keep your home and car though. All told mine cost me about $3500

thanks for sharing. yeah im deep in the hole. every month im coming out in the negative by nearly a thousand dollars. i dont have any assets i dont think. my bitcoin? i dont mind giving that up.

thats good that you keep your car. i was worried id lose that since yeah its an asset, but i mean its only worth 2000 dollars.

Zanzenburger posted...

I did many years ago. Hit a rough patch with some investments not panning out like they should have and some unexpected family medical expenses. I filed Chapter 13, which is essentially a reorganization where you pay back all your debts to one trustee for a period of five years as a percentage of your annual income. Then, whatever you owe after those five years is forgiven.

Most people are familiar with the Chapter 7 bankruptcy, which is the liquidation one. That one causes you to lose most fixed assets you won except for your house and primary vehicles in exchange for all your debt being erased after 3-6 months. But a Chapter 13 bankruptcy is basically consolidating all your secure debts into one manageable payment plan over five years, and then forgiving some (if not all) of your unsecured debts (i.e. credit cards, medical bills, personal loans). Keep in mind that student loans are not dischargeable in either of those scenarios.

Let me know if you want to know anything about either process.

thanks for this reply. yeah i was confused on the two types, so that helps. who determines what you get? do you apply for a specific type or does a judge decide?

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PMarth2002 posted...

I probably would have done so if you could get out of student loans that way.

yeah i already know you can't discharge student loans sadly. oh well maybe biden will help

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BignutzisBack posted...

What the hell dude, I thought you were financially stable collecting credit card points and investing?

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yunalenne10 posted...

Did you lose your job and was left in credit card debt?

pretty much. things were fine with my cc stuff then covid

snowballed quickly.

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TheBlueMonk_ posted...

pretty much. things were fine with my cc stuff then covid

snowballed quickly.

I'm sorry to hear that...

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You have a kid on the way right? Wishing you the best man
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emblem boy posted...

You have a kid on the way right? Wishing you the best man

this is why im doing this. i dont want to be full of anxiety cuz of my debts

i want to be able to live and raise my child.

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sucks. hope it works out for you, tc.

unless congress gets their shit together, a lot of people will have to do this.

TheBlueMonk_ posted...

my bitcoin? i dont mind giving that up.

Is it enough to cover it? I would imagine the interest is just getting worse and worse.

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yunalenne10 posted...

Is it enough to cover it? I would imagine the interest is just getting worse and worse.

lol its like 250 dollars worth.

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TheBlueMonk_ posted...

lol its like 250 dollars worth.

Oh, okay...

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TheBlueMonk_ posted...

im weighing my options right now and unless i win the lotto, it might be the only way

Which you need to know about, Chapter 7 or Chapter 13?

and LOL look what pops up when you type this into Google

personal bankruptcy

Bankruptcy: How it Works, Types & Consequences - Experian
www.experian.com ask-experian credit-education
Bankruptcy is a legal process overseen by federal bankruptcy courts. ... discuss possible alternatives to bankruptcy, and help you create a personal budget plan.

Like asking a drug dealer how to get off drugs.
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TheBlueMonk_ posted...

thanks for this reply. yeah i was confused on the two types, so that helps. who determines what you get? do you apply for a specific type or does a judge decide?

You choose which one you want. Each has their own requirements to qualify. You may qualify for one or both of them, but you can only choose one.

The Ch 7 is more stringent since it is straight up immediate loan forgiveness. You have to make under a certain amount to qualify. There are a few other small requirements too.

Some people opt for Ch 13 because they have assets that could be liquidated with a Ch 7. With a Ch 13 you get to keep all your assets through the program. Other people who make too much and don't qualify for Ch 7 usually qualifies for Ch 13.

Lastly, a huge benefit of Ch 13 is that your student loans are automatically deferred for the five years you are in the program. So if your student loan payments are killing you, then this allows you to focus on all your other debts while pushing back your student loan payments until those are the only loans you have left five years later. Just keep in mind interest continues to accrue on them. With a Ch 7, ones your loans are forgiven, you are back to paying your student loans within a few months.

One more difference is that a Ch 13 bankruptcy disappears from your credit report much quicker than a Ch 7.

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Zanzenburger posted...

You choose which one you want. Each has their own requirements to qualify. You may qualify for one or both of them, but you can only choose one.

The Ch 7 is more stringent since it is straight up immediate loan forgiveness. You have to make under a certain amount to qualify. There are a few other small requirements too.

Some people opt for Ch 13 because they have assets that could be liquidated with a Ch 7. With a Ch 13 you get to keep all your assets through the program. Other people who make too much and don't qualify for Ch 7 usually qualifies for Ch 13.

Lastly, a huge benefit of Ch 13 is that your student loans are automatically deferred for the five years you are in the program. So if your student loan payments are killing you, then this allows you to focus on all your other debts while pushing back your student loan payments until those are the only loans you have left five years later. Just keep in mind interest continues to accrue on them. With a Ch 7, ones your loans are forgiven, you are back to paying your student loans within a few months.

One more difference is that a Ch 13 bankruptcy disappears from your credit report much quicker than a Ch 7.

I didn't know about the 5 year deferral on student loans. Can you provide a link to a good source on that?

My BK7 disappeared about 7 years after filing it. But Pacer.gov will forever have it on file. So... has @_BlueMonk decided if he's going to PM me or not? Not only did I go thru it, but I'm familiar with how to find the ins and outs of protecting your assets.

If you live in pro-creditor states like Tennessee and most of the South, the bankruptcy trustee is going to want their FEE and to SELL whatever of yours they can to make more money.

If you live in a pro-filer state (Connecticut, other blue states) you get to keep a lot.

In Florida, you just sell everything you have and pour that money into your homestead. Homesteads are nearly 100% protected in bankruptcy, in Florida.
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Cornhuskers posted...

I didn't know about the 5 year deferral on student loans. Can you provide a link to a good source on that?

https://www.nolo.com/legal-encyclopedia/student-loans-chapter-13-bankruptcy.html

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I did in July, was discharged officially in October. Chapter 7.

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this is depressing

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Student loans are the biggest scams and predatory they should be illegal.

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You can skip post #22 and #27, but I archived them below the video if anyone wants to read.

INSTEAD, watch this video. He's a bankruptcy and a social security disability attorney. Sharp guy. He mentioned even the finer points of how the process works. Including the "5 year plan" and how the trustee gets paid.
https://www.youtube.com/watch?v=12bVbJCoo6Y
Differences Between Chapter 7, Chapter 13 and Chapter 11 Bankruptcy
14,713 views // Sep 1, 2016

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Post #22 from me:
I didn't know about the 5 year deferral on student loans. Can you provide a link to a good source on that?

My BK7 disappeared about 7 years after filing it. But Pacer.gov will forever have it on file. So... has @_BlueMonk decided if he's going to PM me or not? Not only did I go thru it, but I'm familiar with how to find the ins and outs of protecting your assets.

If you live in pro-creditor states like Tennessee and most of the South, the bankruptcy trustee is going to want their FEE and to SELL whatever of yours they can to make more money.

If you live in a pro-filer state (Connecticut, other blue states) you get to keep a lot.

In Florida, you just sell everything you have and pour that money into your homestead. Homesteads are nearly 100% protected in bankruptcy, in Florida.

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Post #27 from me:
@pres_madagascar posted...

I did in July, was discharged officially in October. Chapter 7.

You filed it in July, the judge approved the app, trustee looked everything over, (took whatever the trustee was able to), trustee said the case was closed, judge said the case was closed, officially discharged in October.

It will take about 7 years to disappear off your credit Report.

In the meantime, the BK7 applicant can open up some secured credit cards to rebuild credit.

Important note! In another post for Chapter 13 I forgot to mention you are on a payment plan. Until enough of the debt is paid off, you continue making payments. (Maybe you're only going to pay 30% of the total debt off... or maybe 10%... or even less. But you do pay back what you owe just a very, very small amount of it.)
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