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Bankruptcy

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BetweenTheLines

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Joined
Nov 3, 2011
Messages
34
Any resources/tips for someone who almost surely needs to go this route? Am curious to hear from others who may've done the same (chp.7 is most likely)
 
I'm in FL, and it's probably impossible for me to even do a Chpt.13 bankruptcy. For many years I had great credit and great income, and as a result there'd be times when the outstanding balances were pretty high, though they'd be paid down quite quickly. Then <insert boring, personal story here>, and it happened while balances were high, so the combination of no more large income + a large debt when it happened means it's virtually impossible to work them out right now (without getting into #'s, I'll say that, at a "normal" income level, I'd barely be able to make *installment* payments on the "write-off" levels the CC companies would offer).
I will not be able to attain my previous income level for 2-3 years, as everything that made it possible is no longer available to me.

What I'm looking for is just generic info, I've been hesitating on this for months and know I need to do it; does the process take long? Do I need to shell out for a lawyer? How shunned is one after going through with it?

PS- without getting into an ethics discussion on the issue, I'll just mention that, yes, I do feel horrible doing this and it is 'last resort' in every sense of the term, there's just no way I could pay minimum payments on my debt even if I were making TWICE as much as I am now, the debts were accrued when I was making a much larger amount than I can hope to match in any foreseeable future.
 
Best bet is to contact a local lawyer/accountant/professional debt manager type person and seek their advice.
 
To be more specific, see an insolvency practitioner. Choose a reputable, registered practitioner. Regarding costs, generally they are paid out of the net funds available for creditors, so in a way no cost to you. Its important that you be the one to appoint the liquidator rather than the bank, things will tend to work out much better for you this way.

If you are an existing client of a good accounting firm, perhaps ask for a referral.

To the meeting you will need to bring details of the debts you owe, how much, to whom, details of any security interests. You will also need rough market values for your assets, house and car for example.

Who's name the assets are held is also important particularly for real estate.

The particulars of time frame and likely outcome, you will need to discuss in your meeting.

Hope this helps.
 
BetweenTheLines said:
I'm in FL, and it's probably impossible for me to even do a Chpt.13 bankruptcy. For many years I had great credit and great income, and as a result there'd be times when the outstanding balances were pretty high, though they'd be paid down quite quickly. Then <insert boring, personal story here>, and it happened while balances were high, so the combination of no more large income + a large debt when it happened means it's virtually impossible to work them out right now (without getting into #'s, I'll say that, at a "normal" income level, I'd barely be able to make *installment* payments on the "write-off" levels the CC companies would offer).
I will not be able to attain my previous income level for 2-3 years, as everything that made it possible is no longer available to me.

What I'm looking for is just generic info, I've been hesitating on this for months and know I need to do it; does the process take long? Do I need to shell out for a lawyer? How shunned is one after going through with it?

PS- without getting into an ethics discussion on the issue, I'll just mention that, yes, I do feel horrible doing this and it is 'last resort' in every sense of the term, there's just no way I could pay minimum payments on my debt even if I were making TWICE as much as I am now, the debts were accrued when I was making a much larger amount than I can hope to match in any foreseeable future.
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As the proper advice was already given for the bankruptcy itself was already given, I feel it would be a good time to also tell you that during times of prosperity you should be saving for times of misfortune. To put it simply, I hope you learned from this mistake that that should have not extended your debt greater than what you are actually saving. You should always save in a greater amounts than you are extending your credit for.
 
BetweenTheLines said:
How shunned is one after going through with it?
Click to expand...
I have never done a bankruptcy, though I wish we had years ago, when we first sold a home to pay off debt. We are still in the process of paying off an old debt and getting our credit clear. Had we filed bankruptcy, we would have been fine years ago. Anyway, never done it, but knowing people who have, they were immediately able to purchase vehicles, and able to buy a home 2 years later. Their ability to gain credit from smaller stores was hindered, but the biggies are not an issue, so I would say unless you need to purchase a home soon, there is nothing to worry about. Your ability to gain your financial footing again will happen quicker with a bankruptcy. Good luck.
 
lol will NOT be purchasing a home anytime soon, purchases in the FL market were a major part of the catalyst that started this whole debacle :/
 
BetweenTheLines said:
lol will NOT be purchasing a home anytime soon, purchases in the FL market were a major part of the catalyst that started this whole debacle :/
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that is a shame, because now is a fab time to buy here in florida! since writing my last post, our last debt, a judgement, has been satisfied, and we are eligible for a mortgage and are finally house hunting. there are a few we are really excited about. one in particular that is very large, everything is brand new, upgraded appliances, beautiful granite, screened in pool...and on and on....and it is sooo cheap. and not a short sale. it is a great time to buy, no doubt. if you can do it, you should. it is worth living tight for a while, has been for us. but if it will take a lot of time and money to get back on track, may as well do the bankruptcy and just rent for two years.
 
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