Has anyone ever filed bankruptcy?

[freshwaterfishing]

I declared bankruptcy when I went through divorce. I simply couldn't manage the debt load we had incurred as a couple and I was strongly advised by a bankruptcy trustee to file. I'm not going to go into all the details and I did declare in Canada so there will be some differences in the process where you live.

I will say this much and I know it to be fact:

If you write off a certain debt with say, a credit card company and they lose several thousand dollars, you can bet that they will NOT give you credit ever again.

If a bank loses money, they will keep the fact on record for ever and ever and while they may be prepared to lend you money again, you will not see anything close to the prime lending rate. They will punish you.

The bankruptcy goes on your credit report for a period of 7 years, but there is nothing to prevent a creditor who was burnt by you to continue to keep their info on your credit report for much longer than 7 years. They just have to pay a few bucks to keep the info there after 7 years.

You can expect to pay several thousand dollars to file bankruptcy. Trustees make very good money.

While the bankruptcy trustee may present as being "your friend" through this ordeal, they really aren't. Their job is to represent the creditors.

You can expect the bankruptcy judge to make you pay some of the debt back as part of your discharge plan. If you're currently working, plan on it. Except for the rarest of circumstances, you will be viewed as someone who was irresponsible with credit and money and they will not easily let you off the hook.

In Canada, student loans cannot be written off through bankruptcy.

If you do decide to file for bankruptcy, make a very thorough list of current assets and ask what happens to them before making the final decision. I "misunderstood" what was said about a car I owned outright and lost the car to seizure. It was worth about $8K and they seized it and sold it for $1200.00 and thats what was credited against my debt. Had I really known, I would not have declared bankruptcy.

All in all, my non-legal advice to you is to avoid declaring bankruptcy if it's at all possible. You can get relief through loan consolidation.

I hope that helps.

Sounds like it did not go good for you at. My parents after paying thier debt got offered credit cards their follwoing year and they also owned a truck which they still were able to keep but they had to keep up on all their payment and if they didnt then they were told the truck would be seized. So of course they made sure there payments were paid. Also they were in an accident not long ago and had to get refinance for a new truck and there was no problem what so ever and there paying the exact same as they were on their old truck. I guess its who you go through and also how much you owe. You usually always get a free appoinment withthem aswell to look over everything and dicuss which is best. Just remember awwell that if you need to then you just need to its not worth your life getting turned upside down with the stress of debt.

 

[Morledzep]

i filed for bankruptcy in 1995. and i had credit cards (some with interest rates over 16% but most were not, i was never offered a credit card with higher than 19% interest, EVER), and i was ably to purchase a home less than 2 years later.

Bankruptcy is BAD.. there is no doubt, but life after bankruptcy is possible. You won't get any credit offers for awhile.. but in about 6 months, or a year.. you'll start getting credit card offers.. do yourself a favor and DO NOT be tempted by these.

in 2 years.. BY LAW, you are elligible to apply for and recieve a home loan if you haven't forked up your credit even worse since your bankruptcy. And there are very strict guidelines for how much they can charge you for interest in these situations. when the going rate for home loans for folks with good credit was aroudn6%, i got my home loan at 7% because they weren't allowed to charge me more.

MD123MD, someone has fed you a lot of nonsense.. or has actively been trying to scare you away from filing.. or you're 60 years old and haven't been paying attention to the bankruptcy laws for awhile.. like 30 years..

One thing i should add.. is that every time you make a significant purchase from this point forward, you WILL be required to prove that your bankruptcy was charged off, NEVER lose your final charge off papers.

 

[Miguel]

All valid points ( I am a lawyer )...but each case is a case. And of course bankrupcy is not the end of life, UNLESS ( at least in Europe ) it is considered FRAUDULENT, which, I am happy to see, must not have been the case with the examples of our MFK friends.

You really should look for professional advice. But CHaitika made a very good point. Give debt consolidation some thought before going into the bankrupcy venue, Nick.

 

[Nic]

i have no assets( house anything ) to go for consolidation i looked into a few companys that do it but i have nothing and they cant help me.... nothing fraudulent about what im doing i just cant find a good job local and my bills are really adding up and there is no money to pay them... i can get the money to file for bankruptsy loaned to me... and im my credit score has already gone from 730 to 500 so im not too concerned with my credit anymore as i have to rebuild it anyway... i put a call into my credit union for there people to contact me as well as my attorney.... maybe i can find another option through them...

 

[Miguel]

You will find a solution. You want to solve the problem in a serious and straightforward way, so you'll get there, I am sure.

Start by erasing that "I'm not worthy" bull**** you have above your Avatar.. You are worthy. If you weren't you would not be worried with solving your temporary problem.

Unworthy guys don't give ****...they just jump ship, regardless...

you are doing quite the opposite. Chin up, Man!

 

[Nic]

You will find a solution. You want to solve the problem in a serious and straightforward way, so you'll get there, I am sure.

Start by erasing that "I'm not worthy" bull**** you have above your Avatar.. You are worthy. If you weren't you would not be worried with solving your temporary problem.

Unworthy guys don't give ****...they just jump ship, regardless...

you are doing quite the opposite. Chin up, Man!

thanks miguel..... the im not worthy was from another thread nothing to pertain to this...

 

[BigJ]

I have it's cake! Three months later i bought a new car 4 months after that a house... But as said before my problem was WAY over spending not zero cash? Hope that helps if you want to talk pm me I'll do what i can bro!

 

[Ash]

I have a co-worker that filed bankrupt and they took his house and 1 of his 2 cars. They only took car's woth more then 3k. His credit went down the tube and it was a mess. I know he still has problems. I dont know full details other then that. I would talk to people first and see if you have other options. I know someone else who is in a similar situation and they have asked for help and they have gotten extensions on things and help.

Best of luck =]

 

[Fish Room Plus]

It will not forgive tax ownings or judgement against you. The laws changes a few years ago to make it more difficult to go under. You will have CC's within the month. Just start building your credit slow & steady.

 

[Yanbbrox]

thanks miguel..... the im not worthy was from another thread nothing to pertain to this...

I read that thread and it was quite funny how it came about, nothing to do with situation.

All I can say on the subject as I don't know how works over there: is hope it all works out for you