     David Temkin (Dtemkin) | Monday, July 10, 2000 - 03:45 am 
I'm sure that you get this question all the time, but I'd just like to paint a quick picture of my life and get some input on whether to destroy my credit completely for the next 10 years, and ask a couple of questions...
My debts:
Approx $8000 to Bell Atlantic (in collections) (don't ask, it was a horrible mistake).
Approx $9000 (past due - about to go chargeoff) to AMEX Optima
Approx $3500 (chargeoff) to Sovereign Bank for a personal loan
Approx $3500 (past due) MBNA
Approx $1500 (collections) to the power company
I do have another personal loan that's issued through the credit union that I have my car loan through, so I don't know how including that would affect anything (It's got about $2100 left on it).
I make a decent living, but there's no way I can keep up with the payments to pay all of that off AND live even close to comftorably. I enrolled in a CCCS program, but it seems just as futile as paying everything off myself. Should I just go Chapter 7? What about buying a new car, how long do I have to wait for something like that? Just curious.
Thanks,
-Dave |
| Shylock (Shylock) | Monday, July 10, 2000 - 04:50 am
You should file bankruptcy. After bankruptcy it takes about two years to be considered an 'A' Borrower. Be certain to keep your discharge papers when you get them from the court or your attorney and mail copies of them to each of the credit bureaus to ensure that everything is marked correctly on your credit. |
| David Temkin (Dtemkin) | Monday, July 10, 2000 - 04:58 am
A couple other questions as well - How exactly *should* it reflect on my credit report?
How do I deal with the personal loan that's cross-collateral'ed with my auto loan? Can I include that, or should I just continue to pay that? What are my chances of getting an auto loan within the next 2 years (I'm going to have to trade my car in soon because of high milage)
Thanks,
-Dave |
| David Temkin (Dtemkin) | Monday, July 10, 2000 - 06:01 am
One final question (sorry for the flurry of messages, I'm just glad I found this forum). Am I forced to relinquish any of my possessions, or is that only in Chapter 13?
-Dave |
| Mitch (Voigtkampff) | Monday, July 10, 2000 - 07:10 am
When a debtor's property is surrendered to the bnk trustee so that it can be sold, with the proceeds being distributed to creditors (after the trustee takes a percentage), that is a chapter 7. In chapter 13, no property is surrendered because you are actually paying creditors at least the non-exempt value of that property (so there is no need to take the property if creditors get the cash equivalent). To determine whether property will be surrendered to the trustee, one must consider the local laws on exemptions. Some federal laws apply on the exemptions issue as well.
As to the cross-collateralized loan, if there is a valid cross-c provision, I have never seen a credit union make the wise economical decision and be willing to cut a deal. They always insist that you pay off both loans or surrender the car. |
| Shylock (Shylock) | Monday, July 10, 2000 - 03:57 pm
Everything that is included in bankruptcy should show as included in bankruptcy and show as RUR (Revolving/Unrated) as opposed to R09 (on a scale of 1 to 9, 9 being the worst).
At the very least you'd get relief from the $8,000 owed to Bell Atlantic, $9,000 owed to AMEX, $3500 to Soverign Bank and $3500 to MBNA. If that doesn't put you on much more solid financial ground then I don't know what will. |
| David Temkin (Dtemkin) | Monday, July 10, 2000 - 06:13 pm
In reality, though, if noone takes any aggressive collection tactics, am I better off just letting the accounts 'die' off my report in the 7 year period, or should I go all the way? Friends are trying to steer me away from bkrpcy, telling me what a horror story they had, or this friend or that friend had... Yadda yadda yadda :-) Any insight is appreciated. Also, if anyone knows of any good attorneys in the Philly area, that would be great
Thanks
-Dave |
| Christine Baker (Admin) | Monday, July 10, 2000 - 09:52 pm
"Friends don't let friends go to the CCCS."
Go for a Ch.7, unfortunately I don't know any attorneys in Philly.
Getting your good credit rating back isn't easy, but it beats not being able to get good credit at all, as in when you do nothing and wait for charge-offs to go away.
You can read right here how people are being harassed for bills 7 or 8+ years old. Give yourself a break and start over.
And I just recently posted how to (re)establish credit under "Links .." |
| David Temkin (Dtemkin) | Tuesday, July 11, 2000 - 10:03 am
Final question, promise! :-)
Am I going to be required to verify my income when I go to the trustees meeting (or at any other point)? Can they deem that I make 'too much' to declare Chap. 7?
Thanks,
-Dave |
| Mitch (Voigtkampff) | Tuesday, July 11, 2000 - 11:54 am
Yes, they can so deem. The trustee can object to a chapter 7 if you have too much disposable income (income left over after basic necessities are deducted from net income). In such case they can allege that it is a "bad faith" filing - that it would be more approriately filed as a chapter 13. It is in the trustee's discretion, but they are supposed to object. In my district, the trustee's often miss this. As to whether they will verify income, that will be determined by local practices. Here in the So. District of Fla. the trustee's do not ask for verification if income. But that could just be local practice.
As to your earlier questions, the problem with waiting for the debts to filter off automatically after 7 yrs or so is that it is not so automatic, and often requires some policing. On the other hand creditors seem not to mess with the bankrupt on pain of death. I feel that if a debt is supposed to fall off in around 2 or 3 years, then do NOT file bnk. Even if the creditors hassle you after that period then you know that can eventually prevail. You are in the right. But the key word is "eventually." It also depends on whether or not you are in dire need of immediate credit improvement.
If someone already has a house and car, and does not plan on making any large credit purchases for at least 5 or 6 years, than I feel that they should strongly consider ignoring the debts. Even if their credit is ruined by R9s and I9s for the next 5 or 6 years, who cares? They don't need the credit right now. If the credit card is high interest, then don't use it.
With a little effort policing the FCRA, I would prefer that such a person who does NOT need credit right now simply wait out the 7 years. Of course, if a creditor sues and obtains a judgment, then you might end up suffering several years bad credit, and then filing bnk anyway. In a worst case scenario, you could have R9s lingering for 5 years destroying your credit, and just before the SOL runs out, creditors sue and obtain judgments. Now you are forced to file bnk anyway. Such a person would kick themselves for not filing bnk earlier and using that 5 years to re-establish credit.
But if another person needs credit immediately, and cannot wait 5 or 6 years, then I strongly believe that chapter 7 is a very quick way to improve credit. I've seen it, though no guarantees. |
| Mieko (Mieko) | Tuesday, July 11, 2000 - 01:52 pm
Hi all, I have a question. I am in the process of filing chapter 7. I got a letter from an attorney today concerning my citibank card that has been sent to collections. I called the attorney to inform him of my intentions to file and to give him my attorneys phone number when he became very rude and irate with me. He then began asking me all of these questions I didn't have answers for. I told him that he would have to speak to my attorney and he then got even more irate and told me that they have entered a judgment against me and that they will garnish my earnings.
He then wanted to know my employers name and phone number. I told him that I was not going to continue arguing with him nor was I going to give him my work phone number, and he could discuss this further with my attorney. And he said fine, if you want to do it the hard way.
"CAN THEY DO THAT???????" I got no notification to appear in court due to a judgement being set against me? Can they do that without me even being there?
I called my attorney and told him what happened and he brushed it off like I shouldn't be concerned as if it was normal procedure. But aren't I filing for bankruptcy protection because of situations like that?
What should I do? |
| Mieko (Mieko) | Tuesday, July 11, 2000 - 01:58 pm
Also another question, I was advised to stop paying my car note because the bankruptcy I am filing will be completed pretty soon. I only owe $1500 on the car, which is a 1995. But the Kelly Blue book value for it right now is over $7000. I was told to notify the car loan people of my intent to file bankruptcy but that I would be reaffirming the balance due on my vehicle. The reason I was told to do this was because the Trustee could make me sell my car because it would be considered an asset on my personal books. Is this true? And don't I risk the danger of waking up one morning and attempting to drive to work but finding no car sitting outside because it has been taken in the middle of the night by the repo man? |
| paule (Paule) | Tuesday, July 11, 2000 - 02:40 pm
My experience was that I was able to reafirm both cars and a loan that was secured by household furniture. My situation may have been different since I think I owed more on the cars than they were worth. I don't think they can take your car during the bankruptcy, until it is decided by the trustee or judge. I think you should file as soon as possible and then let the car loan people know what you plan to do.
Also, I got served papers by household finance after I had filed my bankruptcy and my attorny just drafted a letter to them indicating I had filed bankruptcy and would need to bring any proceedings up during the bankruptcy. No creditors except the ones I reafirmed ever showed up. |
| Christine Baker (Admin) | Tuesday, July 11, 2000 - 03:15 pm
Mieko, PLEASE start a new topic and repost.
It takes forever for me to do that, I don't have the time.
There's the "New Conversation" button at the bottom of this page.
PLEASE make it a new DESCRIPTIVE topic.
Thanks much, Christine |
