I understand that new laws are on the books about filing bankruptcy. Has anyone here tried to file recently, and how did it turn out? Was it to your advantage, did it help you “wipe the slate clean” of your credit problems, or was it something you wish you had never done?
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June 26th, 2009 at 11:13 pm
From my understanding the only difference is that you have to take a financial education class..costs about $50 bucks and you can do it online…. It’s still pretty much the same to file…I haven’t filed but did talk to a lawyer bout 2 weeks ago…. Good Luck!
Also, was told that your credit will be wiped clean other than the bankruptcy showing… and in about 2 years you could build your credit back up enough to buy a house… Once the bankruptcy discharges then you start over with a decent credit score.
June 28th, 2009 at 5:54 pm
As the person above me stated, it is required to attend credit education classed, but there is a lot more to the new law as well!
But the new laws also eliminated the “wipe your slate clean” option – it’s all a re-payment plan (Chapter 13) where they garnish a certain amount out of your paycheck, and pay all of the creditors that respond to the bankruptcy notice at a certain percentage. Usually it lasts up to 5 years, depending on the amount of debt you have. You also have to get approval from the courts to obtain any credit or sell any assets you have. It’s very restrictive, and takes a lot more work on the person who is filing’s end.
The whole idea was to try and get people to be more responsible – have to go through classes and actually repay some debt – instead of just filing and forgetting about it.
June 30th, 2009 at 4:33 am
I’ve contemplated it… but haven’t done it… I know it can be a long an tedious process. I would think twice before doing. It stays on your credit profile for at least 7 years.
July 2nd, 2009 at 1:34 am
Will I Have to Go to Court?
August 1st, 2007
In most bankruptcy cases, you only have to go to a proceeding called the “meeting of creditors” or a “341 meeting” to meet with the bankruptcy trustee and any creditor who chooses to come. This meeting will take place about 30 or 40 days after the bankruptcy filing. The trustee is not a judge but an individual appointed by the United States Trustee to oversee your case. Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation. Occasionally, if a creditor or the trustee files a motion or an adversary action or if you choose to dispute a debt, you may have to appear before a judge at a hearing. If you need to go to court, you will receive notice of the court date and time from the court and/or from your attorney.
What Debt will Bankruptcy Not Erase?
August 1st, 2007
* money owed for child support or alimony, fines, and some taxes;
* debts not listed on your bankruptcy petition;
* loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan;
* debts resulting from “willful and malicious” harm;
* student loans owed to a school or government body, except if:– the court decides that payment would be an undue hardship;
* mortgages and other liens which are not paid in the bankruptcy case (but bankruptcy will wipe out your obligation to pay any additional money if the property is sold by the creditor).
Can I Keep My Home/Car?
August 1st, 2007
You will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt you may still be able to keep your property by filing a chapter 13 bankruptcy instead of a chapter 7 bankruptcy. In a chapter 13 plan you will be required to pay at least the equivalent of the non-exempt equity you have in your home or car and any amount you are behind on your home or car loan over the course of the three to five plan. You also will be required to continue making the regular monthly payments.
What Property Can I Keep After Bankruptcy
August 1st, 2007
In a chapter 7 case, you can keep all the property which is exempt from the claims of creditors. In determining whether property is exempt, you must keep a few things in mind. The value of property is not the amount you paid for it, but what it is worth now. Generally the trustee is interested in the resale value of your property so for most personal effects this is the garage sale value of your property.
You also only need to look at your equity in property. This means that you count your exemptions against the full value minus any money that you owe on mortgages or liens. For example, if you own a $50,000 house with a $40,000 mortgage, you count your exemptions against the $10,000 equity you have in the home. While your exemptions allow you to keep property even in a chapter 7 case, your exemptions do not make any difference to the right of a mortgage holder or car loan creditor to take the property to cover the debt if you are behind. If you are behind in payments and can afford to make the loan payment and to make the amount you are behind over a period of three to five years you should consider a chapter 13 bankruptcy.
In a chapter 13 case, you can keep all of your property if your plan meets the requirements of the bankruptcy law. In most cases you will have to pay the mortgages or liens as you would if you didn’t file bankruptcy.
What Does it Cost to File Bankruptcy?
August 1st, 2007
An estimate of what it may cost to file. These fees vary based on law office:
Chapter 7 – $200 ($170 filing fee + $30 noticing fee)
Chapter 13 – $185 – ($155 filing fee + $30 noticing fee)
The fee is the same when filing a joint petition with a spouse.
How Often Can I File?
August 1st, 2007
You can file for Chapter 7 bankruptcy again after six years has passed from the date of your last filing. A Chapter 13 bankruptcy can be filed at any time.
Why Do People File a Chapter 13 Bankruptcy
August 1st, 2007
Generally, people file chapter 13 if they have valuable property not covered by an exemption, like a home or car, but want to keep this property. If a debtor is behind on secured loan payments a chapter 13 bankruptcy can allow the debtor to make up these payments over time while keeping the home or car.
Why Do People File a Chapter 7 Bankruptcy
August 1st, 2007
Generally people file chapter 7 bankruptcy if they have a large amount of unsecured debt such as credit card debt or medical expenses that they are no longer able to pay. Often unemployment, unexpected medical expenses, or divorce prompt the cause the debtor to seek protection from creditors by filing chapter 7 bankruptcy.
Found this great info at: