Monkspider's girlfriend: Questions about declaring bankruptcy

[Ishtar]

Hi.

I've done bankruptcy before. I did Chapter 7, I think, the total liquidation one. There is also a Chapter 13, I think it is, where they do some type of "reconstruction and repayment" of your debt. I survived just fine and even purchased a car and a mobile home the same year my bankruptcy was discharged. Sometimes it is indeed the only answer. Yes, it does stay on your credit report for 10 years and that makes it difficult to obtain some types of credit and, in the chapter I filed, you cannot file again for 6 years. I am in South Carolina and that was in 1994.

I suggest you start by going online and searching for the bankruptcy laws for your particular state and reading up on it a bit. Then find an attorney who does bankruptcy. Not all do. It is a specialized area. Normally, they do not charge for a consultation visit. Some do, some don't.

If your stress level is extremely high, the creditors are calling constantly and there is no other way out, look into it.

The peace of mind outweighed the negative effects for me.

Hope this helps a bit. Good Luck. I know how you feel!

Ishtar

[Ishtar]

Start Here:

http://www.kansasbankruptcylaw.com/

And, again, Good Luck!!!

Ishie

[Zkribbler]

Yeah, Ishtar is right. Bankruptcy is not the total anvil-around-the-neck most people think it is. Some future creditors are even happy to see you because they know you can't declare bankruptcy again for--whatever--6 or 7 years.

Student loans, as a practical matter, cannot be gotten rid of. There is an "extreme hardship" exception, but a law school professor once told me that exception had been granted only once.

But credit cards, those are evil. Sky-high interest rates, handed out like Kleenex to innocent young people (and sometimes to goldfish and dogs ).

You might try renegotiating with your creditors. You might trink about Chapter 13--which merely reorganizes your debts. Or you might think about Chapter 7--liquidation.

But most of all, you should really think about talking to a lawyer. They know about stuff like this.

BTW: A lot of these loan considation services you see advertized are rip-off places. Either stay away or approach with extreme caution.

[Tuberski]

Bankruptcy can only be discharged in federal court, as far as I know.

That is where I went. I had a good credit rating before the bankruptcy and it got worse after, but I can still get credit, albeit at higher interest rates.

ACK!

[chequita guevara]

First off, if creditors are hounding you day and night you should know you're allowed to tell them to stop harrassing you, and by law, they must stop.

Next, make a budget, all your debts, all your income, then figure out what expenses can go. Get rid of them. Figure out what you can pay. Then, talk to your creditors and tell them you are thinking about filing for bankruptcy. Once you say the magic word, they will bend over backwards to come up with a plan that will fit into your budget. They want their money, and they'd prefer some of it to none of it, and all of it if you can do that over a much longer period.

Oerdin, I'm surprised your girlfriend can't sue to have that bankruptcy removed from her credit rating. If she was legally seperated, she shouldn't be held legally responsible for his debts or credit screw-ups.

[Skanky Burns]

If you haven't already, take a pair of scissors / knife to your credit cards. You don't need that temptation to spend constantly around you, and you certainly don't need the high interest rates they provide.

[Swissy]

This is were you start http://www.ksb.uscourts.gov/

Note that it will cost you around $200-250 to do it yourself. Add about $150-250 if you use an attorney. The process is simple enough, you should be able to find a "How to do your own bankruptcy" book at your local library. Chapter 7 is a complete liquidation of all your assets. As freightening as this may sound, you are allow to exempt much of your assets by Kansas state law. Chapter 13 has you paying a portion of your debts over a period of time, with the remainder being discharged. You must have income to use chapter 13.

Bankruptcy is not the taboo it once was. You will not be able to qualify for the best rates for any credit. But, you will be able to get credit rather easily, just that you'll be paying more to get it. If you do file bankruptcy, you should have a valid reason for it if you plan on buying a house within ten years. Mortgage companies will accept long term unemployement, substansial medical bills, or adverse court judgments as good reasons.

Also, your student loans can not be discharged by bankruptcy. Best to file soon, congress will again be looking to change the bankruptcy laws with an eye at making it more difficult to discharge consumer debt (credit cards).