     Anonymous | Friday, March 24, 2000 - 09:00 pm 
Hi, I just hired a lawyer to file a chapter 7 BK. I have been to all the sites and am feeling queasy about this decision. I am 31 and was brought up with the idea a BK IS A BAD THING. Here is my situation:
I have been involved with bad companies who say I am valuable. They pay me crap, as I don't have more than a HS diploma and SOME college. Over the years I have temped to get ahead between jobs. Because I was living check to check, I found myself living in my car so I can eat and not get evicted (fortunately the ONE GOOD THING is I have never NOT PAID my rent). As I thought things were getting better I got into business with a man who lied to me about pay and stopped paying because he wasn't making any money. I quit and took a job that pays me 8-10,000K less than what I am used to making. I let the CC go ($10K debt) and I lost my car recently in an auto accident where my insurance lapped (luckily I didn't hurt the other driver and it was only 2k in body damage) my car was totalled. I have about 10 overdue collections accounts that are just too much to pay (these collection agencies will NOT work with anybody). I owe the following:
$1500 to PAC BELL in overdue phone bills (I ran that up in my old commission sales job, but unfortunately, I fell behind and gave up).
$250 to the POWER CO. (in collections another thing I let go due to in between jobs.)
about $1000 or so in store credit cards (Circuit City I believe) which have been so old I gave up.
$2500 to the insurance co. (recent debt, can't pay don't make all that much).
$11000K to First USA on a credit card I paid religiously for 3+ years ON TIME!
$3000K on a lemon used car I refused to pay for after the credit company wouldn't repo it on my request. Now the city towed it away because I couldn't drive it.
And lest I forget my tax bill for this year of 2K for the feds and 1K for the state of California.
Don't think I am a total loser, please. I have paid off 2 cars, numerous credit cards that I cancelled and I cosigned for my mom to buy a house which she pays religiously and on time.
Last year I made barely 19K when previously I have made between 25-30K a year. Am I a loser, I want to hurt myself sometimes but all I can muster is depression. I excel at my low paying job and am looking at possible promotion (even though the pay might not increase by much). I owe my wonderful girlfriend money for helping me when I was down (to the tune of 3K). Am I worthy of BK or am I just a total irresponsible idiot? I can't even get a checking account because i bounced a check and was reported to chexsystems.
I pay rent currently, but live with a guy who rents me a small room and charges me the majority of the rent. I always give my girlfriend money as a reward.
I HAVE LEARNED FROM MY WAYS. All I want to do is start over. What can I expect? Will a BK judge tell me to go away? I heard there are tougher BK laws? I don't know if I could deal with the BK court telling me I am dumb and don't deserve to have this discharged. I AM SCARED AND AM AFRAID IF THIS FAILS I DON'T KNOW WHAT TO DO.
I figure I will pay the price of high interest and check cashing stores for years to come but it is better than never being able to live and save money for emergencies as I get older.
HELP?!? Has anybody gone through this too?
BD
PS-All of this mayhem has made me go to college and I am actually still enrolled and getting good grades. I am also planning to pay my girlfriend back ASAP and put more money away into investments and savings. |
| Anonymous | Saturday, March 25, 2000 - 07:56 am
You should have belly up a long time ago like a Mississippi catfish in a dried up pond on a hot summer day. |
| Lynn Whealer | Saturday, March 25, 2000 - 09:50 am
Well, whoever this particular anonymous poster is with the crack about catfish, let me congratulate you on your extemely helpful, but ever so sensitive post. I'm sure the person who asked this question really really appreciates your analytical and insightful advice and opinion. The original poster wants to improve his situation and not fall victim to a "loser" mentality...and you stepped right up to whack him. What a putz, you are.
To the original poster, look through the threads on this forum for BK topics (don't forget the "old" forum archives. I don't have any advice for you, but your situation looks similar to stories where others with more BK knowledge have given advice to do the BK. |
| Voigtkampff | Monday, March 27, 2000 - 11:56 am
My only experience in bankruptcy comes from Florida, but that is PROBABLY similar to every state.
You need not worry that a bankruptcy judge will call you dumb or say that you are not deserving. With 1.5 million new cases/year, they are too busy to be that judgmental. I really doubt that you will even see the judge. Typically, you only meet with the trustee, who is often/usually a layperson like yourself.
Your fears come from ignorance of the system. I do not see how you could have these questions if you have already retained a bankruptcy attorney. Either the attorney does not give a crap about you, or you never finished the consultation.
Your questions are too general for me to answer, so Lynn's advice is probably right. read other people's posts and you will get some understanding from that. At least enough for you to seek clarification - or to ask more general questions.
I do feel that you are asking the wrong questions. Rather than ask whether you will allowed to file bankruptcy, you might want to start asking whether you should file. Will you lose any property if you file? Also, ask whether it will help or hurt your credit, given what your situation is.
I did not even understand the catfish comment. Was it an insult or commiseration? |
| Sean (Sean) | Monday, March 27, 2000 - 12:05 pm
The catfish comment was a colorful way of saying the person should file bankruptcy.
I would tend to think that a person who makes $19,000 a year and owes $19,000+ in non-real estate debt is insolvent. |
| Anonymous | Monday, March 27, 2000 - 01:12 pm
She's lucky she didn't have a Navigator or she would've heard from me, too! |
| Anonymous | Monday, March 27, 2000 - 01:14 pm
Thanks...To Voigtkampff: My lawyer talked to me, she is always in court though. I am a co-signer on my mom's house but will be willing to reaffirm. Most of my debts have been in collection for between 2-3 years or have been charged off. I also owe Toyota Motor Credit $700 in late fees (according to my credit report it is paid off but not closed due to the overdue payment). I also owe the phone company $1500. What will happen if I decide to discharge that? Will they not do business with me again? The Toyota car was towed away by the city because I got in an accident. It was totalled and I didn't have insurance (my low point all these years). I wasn't drunk or the like but I was dumb. The damage to the other guys car is 2500.00 which his insurance company is billing me for.
Oh well, boy do I sound like a total loser. I just got a raise to 22000 a year will that be a problem for the court? My attorney says no, but I am still uncertain because I am stressed out to the point of ulcers (which I can't see a dr. since I have no insurance nor funds).
THANKS FOR ALL THE HELPFUL WORDS OF SUPPORT.
I hope everybody understands I plan to change after all this mess...This will not LET THIS HAPPEN TO ME AGAIN! I am 31 and just want to start over.
AGAIN THANKS! |
| Anonymous | Monday, March 27, 2000 - 02:47 pm
By all means, start over. My wife who only made 30k per year made some mistakes and ran up about 50k in credit card bills. There is no way she could have paid them off even with my large salary. The interest alone was more than the payments we could make. The option to go to "credit counseling" sounded good until I learned that this organization is funded by the credit card companies who want to keep you from you right to have a fresh start in life. Arranging "debt repayment" plan will still ruin your credit. Everyone makes mistakes and that is what the law provides for. My wife was a total wreck about having to declare BK but realized it was the only option. She is a much happier mom now and is thankful for the second chance. Do not feel bad, think of the interest you have paid over the years and know that they have made a profit off of you. Try to keep a positive attitude, people make mistakes, just don't let it ruin your life. As far as the details, trust you attorney (sound like a joke). In the case of the phone company they may require a deposit to reinitiate service but it is doubtfull that they will refuse service. Just one last word of advice, do not forget how you feel now. Realize that you will start to receive countless (almost daily) offers for credit. It will be tempting but just do not forget how bad this has effected you. Good Luck! |
| Anonymous | Monday, March 27, 2000 - 04:58 pm
I am certainly no BK expert, but I have seen a sibling go thru the process. I think you should go ahead and file then learn from the experience and move on. Also, if your income is too low (did you say @@K) why not get another job a few nights a week. I used to do waitressing a few nights a week for several years and work in an office during the day - if you work in the right kind of place you can easily make a couple hundred in tips a week by working maybe three nights. It can be physically tiring but sure beats the stress you have been under. I wish you luck in figuring out what solution is best for you. |
| Voigtkampff | Wednesday, March 29, 2000 - 07:15 am
Might want to warn you mother that since you co-signed on her mortgage, it might show on HER credit report that the account was involved in bankruptcy. Possibly some slight damage to her credit.
With respect to your phone bill, ask your attorney to review 11 USC §366 with you. It covers utility bills. Even though you discharge the debt, they have the right to demand "adequate assurances" of future payment. This is usually a security deposit. In my experience, the utility companies usually do not avail themselves of this right. When they have, the calculation IN FLORIDA was the average of the last 3 months of service, multiplied by 2. 20 days to provide the deposit.
I cannot tell you if $22,000/year income is a problem. It depends on whether you can allege that substantially all of that money goes towards basic necessities. To be safe, you should not have any money left after necessities to make even partial payments to any creditors. Even $15,000/year can be a problem if expenses are too low. On the other hand, if basic necessities are high enough, then $50 or $60,000/yr would be OK. |
| Voigtkampff | Wednesday, March 29, 2000 - 07:29 am
I see that someone already gave some advice on the security deposit. Not only is it doubtful that they will refuse service, they are prohibited to do so, unless you fail to pay the security deposit.
I had a client get their bankruptcy discharge 3 months ago. Just got approved at 4% on a car loan. So it's not that bad. SOMETIMES. I disagree that you should trust your attorney. He/she should earn your trust. I always speak to several attorneys before I trust what I'm told. But that's me. |
| senator | Wednesday, March 29, 2000 - 11:33 am
what car company? sign me up |
