Tell me about declaring Bankruptcy

In My Humble Opinion
1

Looks like I have no choice. Honestly, I’ve waited too long. I’ll be calling attorneys on Monday trying to get it arranged as quickly as possible.

If you’ve done it within the last two years; how easy was it to get it filed? how much time did it take? (I can’t afford to take a bunch of days off work to deal with it either) What kinds of things did you have to do, expense wise? (like losing your internet or anything like that) how long did it take from start to finish? Were you grilled? Did you have to surrender property? What else important can you tell me about it?

2

Are you going for Chapter 7 (total) or reorganization Chapter 13 (reorganization)?

3

I just sent you a PM.

4

Well, I’m set for at least one (and hopefully two) free evaluations next Monday.

I hate this.

5

Hang in there. It will get better. :slight_smile:

6

I don’t know beans about bankruptcy but I just wanted to say I’ll be thinking of you on Monday, Chimera. I think you’re a good guy and I’m sorry to see you have to go through this.

7

A good attorney will make your see it as a “business decision” not personal and that you are not a bad person or a failure. It will offer you a fresh start and you will feel soooooo much better.

This economy sucks and a lot of people are having to do things they normally wouldn’t. You have to survive. And you will.

8

Please don’t do it like this.

Good luck, and I’m sorry you’re in this situation.

9

I went through it last year, through changing circumstances, I ended up converting a 13 to a 7.
It wasn’t a horrible process, I had far worse things going on in the middle of it, so really it was more of a relief than anything else.

This forum Bankruptcy Forum made a world of difference for me, for understanding the process and being prepared for it.

There was a ton of copying I had to do, I had to have six months of paycheck stubs and bank statements, getting that stuff together was the biggest headache. You should not have to take a lot of time off, I ended up going to court three times, but it should have been twice (once for the 13, once for the conversion. My lawyer, however, didn’t get my conversion paperwork over to the trustee, so I spent one day there for nothing. Luckily, I didn’t have to wait long that day.

I think the most anxiety I had was whether any of my creditors would show up or the trustee would be awful. The experience was opposite of that- I saw no creditors showing up and the trustee just had me answer very basic questions and we even joked about my sheep, who luckily qualified as pets LOL. My last 341 literally lasted 30 seconds, he asked me my address and the reason why I was declaring bankruptcy and then, game over. While I was watching other parties, I only saw him get a little snarky with one couple who had some ridiculous amount of credit card debt.

The expenses you are allowed are comparable to the IRS national standards, I was actually surprised at some of them. My rent happens to be very low, so my 13 payment was much higher than it normally would have been for my former salary range. It was all for nothing, when I was laid off, I had to change it to a 7 anyways.

I got my discharge a few weeks ago- I kept my car, actually just paid it off and have the title now. I’m glad for a fresh start. I would have rather done the 13, but there was no way I could make the payments this year.

Everyone I dealt with was understanding and mostly helpful. I did have to nag my lawyer’s office a bit from time to time, it seemed like I would go weeks without hearing from the regarding the conversion and they weren’t the clearest on what things would cost (but very clear that it would be up front LOL).

Good luck, I hope it works out for you!

10

I just finished up a Chapter 7, and it was scarcely harder than rounding up everything for filing income taxes.

When I had the 341 conference, it actually took me longer to wait in line to get through security in the building lobby than the meeting itself. They run the conferences in batches, and there was not a single creditor in the room for any of the filers. As for the questions asked - you are under oath, but you’re not being interrogated. I believe the trustee asked about the source of my income (regular paychecks) and what I intended to do with the house (work with the bank to negotiate a loan modification).

As long as you don’t have anything extraordinary such as a safe deposit box full of jewelry or multiple houses, you may not need to surrender or give up anything. Internet service is not considered a luxury these days - if anything, it’s considered a basic utility like electricity. What assets you’re allowed to keep does vary by state and by whether you’re doing a 7 or a 13.

11

I’m sure that your attorney has filled you in, but generally each state has its own list of exemptions: property that you are allowed to keep. For example, in Florida, you can keep all of your equity in a primary home, $1000 of personal property, and $1000 of equity in a vehicle. If you own more than that, then you either surrender the property, buy it back from the trustee, or enter into a Chapter 13 and make payments.

The process itself is painless. You have to show up once at the 321 hearing, and as long as your paperwork is legit (no hiding assets, and your attorney will make sure of this) then you will be in and out… Best of luck.