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Thread: Bankrupt!

  1. #1

    Bankrupt!

    Sadly I lost my job a few months after a divorce and other problems. I managed to rack up $26,000 in credit card debt and made an appointment to see someone about filing for bankruptcy. I'm in school right now and have about 2 years left until I can start teaching and I'm on unemployment.

    What advice do you have for me? I would really like to have this debt off my head and start fresh with my life.

    Thanks!



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  3. #2
    Quote Originally Posted by BFranklin View Post
    Sadly I lost my job a few months after a divorce and other problems. I managed to rack up $26,000 in credit card debt and made an appointment to see someone about filing for bankruptcy. I'm in school right now and have about 2 years left until I can start teaching and I'm on unemployment.

    What advice do you have for me? I would really like to have this debt off my head and start fresh with my life.

    Thanks!
    Exercise your Constitutional right to get a fresh start-file Chapter 7 bankruptcy.

    I suggest that any bankrtuptcy lawyer you hire be a NACBA meber

    http://www.nacba.org/attorneyfinder/

    If you file pro se, I can give you materials for your state.

  4. #3
    rewritten history with armies of their crooks - invented memories, did burn all the books... Mark Knopfler

  5. #4
    Quote Originally Posted by BFranklin View Post
    Sadly I lost my job a few months after a divorce and other problems. I managed to rack up $26,000 in credit card debt and made an appointment to see someone about filing for bankruptcy. I'm in school right now and have about 2 years left until I can start teaching and I'm on unemployment.

    What advice do you have for me? I would really like to have this debt off my head and start fresh with my life.

    Thanks!
    Call those credit card companies and tell them that you are unemployed and can't pay.

    Start using cash, and avoid using bank accounts like aids, herpes, and VD.
    Maxed out to ALL of Ron Paul's campaigns.

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  6. #5
    If you file Chapter 7, it is usually wise to have received and spent your 2009 tax refund [if you are getting one] before you file the petition with the court--otherwise the trustee may be able to take it and give it to your creditors.

    Also check this out:

    Chapter 7 Bankruptcy, or Debt Settlement?

    “Don’t ruin your credit by filing bankruptcy!”

    “The secret the credit card companies don’t want you to know!”

    “If you owe at least $10,000 in credit card debt, you are eligible for our program!”

    “Recent changes in federal law require credit card companies bailed out by the federal government to settle their debts with you!”

    Hey, when something sounds too good to be true, it is.

    Most recently, the Minnesota Attorney General sued six of these debt settlement outfits

    My position has always been, bankruptcy is a last resort.

    Let me share some of the pitfalls my clients have hit with these miracle programs.

    First, this is how they operate.

    They are usually not located in the state you are in, so they are hard to chase for refunds or misconduct.

    Their ads and websites and phone calls trumpet their success, but the contract you sign guarantees nothing.

    You send them money, usually taken right out of your bank account, and they do not even talk to your creditors until they have a certain amount from you.

    It may take months, years, before they have enough from you, after deducting their fees, of course, to even answer their phone when your creditor calls.

    And, the creditors do not call often, they just sue you, garnish your wages in states that allow it, like Michigan.

    Of course, you are behind on paying the credit cards, because you are sending what you have left every month to the friendly debt settlement company.

    And/or, they told you, stop paying the credit cards.

    So, your credit report is taking the hit for being in default, the hustler/con man debt settlement company has your money, and you have no relief.

    In fact, you are getting harassed more than before you hired them.

    I represented one couple, in their 80s, who were so ashamed of their debt problems, they did not tell anyone.

    Their kids were helping them out, and they hired two of these debt settlement scam outfits, to handle one credit card each.

    After over six months of paying, all they had to show for it was a lawsuit against them by each credit card company.

    Sure, sometimes you send enough money that they can make a deal to reduce your debt.

    Then, you get a 1099 income tax form for forgiveness of debt income.

    Get your financial information in order and check with a lawyer before falling for one of these scams.

    Chapter 7 Bankruptcy, or Debt Settlement?

    http://www.bankruptcylawnetwork.com/...bt-settlement/

  7. #6
    ..
    Last edited by Jordan; 03-01-2010 at 10:54 PM.

  8. #7

    Declaring Bankruptcy Can Improve Your Credit Score


  9. #8
    Quote Originally Posted by BFranklin View Post
    Sadly I lost my job a few months after a divorce and other problems. I managed to rack up $26,000 in credit card debt and made an appointment to see someone about filing for bankruptcy. I'm in school right now and have about 2 years left until I can start teaching and I'm on unemployment.

    What advice do you have for me? I would really like to have this debt off my head and start fresh with my life.

    Thanks!
    Been there, done that, I cried all the way through the hearing.....condolences.

    Speaking from the other side.....what I would suggest is illegal. I'd find some way to take out more credit and pay off as much student loan as you can. Student loans aren't dismissed in bankruptcy, so if you can stick those balances on a credit card or something......just sayin'.....



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  11. #9
    Quote Originally Posted by angelatc View Post
    Been there, done that, I cried all the way through the hearing.....condolences.

    Speaking from the other side.....what I would suggest is illegal. I'd find some way to take out more credit and pay off as much student loan as you can. Student loans aren't dismissed in bankruptcy, so if you can stick those balances on a credit card or something......just sayin'.....
    True-student loans are not dischargeable in bankruptcy unless there exists and undue hardship on the debtor that prevents her from paying the debt like permanent disability--in which case they are dischargeable under 34 Code of Fed. Reg. 682.

    What Angela suggests used to be a legal way to pay of income tax debt but Congress enacted 11 USC 523(a)(14) to make such debts non-dischargeable. There is always 11 USC 523(a)(2) that deals with debt incurred under fraud may not be discharged if a creditor files a lawsuit in the bankruptcy case

    I know a few students who did what Angela said and it worked--Congress will soon amend the code I am sure

  12. #10
    First priority should be getting a job, any job. Sell as much as you can. Live on beans and rice, rice and beans.

    Call Dave Ramsey's radio show.
    Definition of political insanity: Voting for the same people expecting different results.

  13. #11
    Dave Ramsey filed bankruptcy

  14. #12
    I think Donald Trump went bankrupt 3 times.

    It would be no big deal to me, if i had to i would do it in a nanosecond

  15. #13
    Quote Originally Posted by BFranklin View Post
    Sadly I lost my job a few months after a divorce and other problems. I managed to rack up $26,000 in credit card debt and made an appointment to see someone about filing for bankruptcy. I'm in school right now and have about 2 years left until I can start teaching and I'm on unemployment.

    What advice do you have for me? I would really like to have this debt off my head and start fresh with my life.

    Thanks!
    Screw Chapter 7, go 11 all teh way baby! Screw it! I mean why not? Why should YOU be supporting ME? Why should you continue to try when so many others have just given up? Calling "Uncle" during a depression is nothing to be ashamed of.

    Seriously, it will cost about 1500 bucks (depending on the state) and how many assets you have, but if you have none, go rack those cards up with "living expenses", gas, food, utilities, etc (dont go buying big screen tv's tho, they will call bull$#@! on that) and max those $#@!ers out! They want to create the money out of nothing, lets show them we can spend that money on nothing and get nothing for it as well!
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  16. #14
    Id look into Dave Ramsey. Even though he is an idiot when it comes to macro-economics, he understands personal finance, and most of what he says is pretty damn simple.

    Sincerely,

    Slutter McGee

  17. #15
    If you have any credit remaining before maxing out your cards, be sure to donate it to Rand, Adam, Debra, and Gunny.
    CPT Jack. R. T.
    US Army Resigned - Iraq Vet.
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    Professional Hunter/Trapper/Country living survivalist.

  18. #16
    Quote Originally Posted by DamianTV View Post
    Screw Chapter 7, go 11 all teh way baby! Screw it! I mean why not? Why should YOU be supporting ME? Why should you continue to try when so many others have just given up? Calling "Uncle" during a depression is nothing to be ashamed of.

    Seriously, it will cost about 1500 bucks (depending on the state) and how many assets you have, but if you have none, go rack those cards up with "living expenses", gas, food, utilities, etc (dont go buying big screen tv's tho, they will call bull$#@! on that) and max those $#@!ers out! They want to create the money out of nothing, lets show them we can spend that money on nothing and get nothing for it as well!
    if everyone did this at once, it wouldn't throw the system into shock.
    rewritten history with armies of their crooks - invented memories, did burn all the books... Mark Knopfler



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  20. #17
    Quote Originally Posted by torchbearer View Post
    if everyone did this at once, it wouldn't throw the system into shock.

    Americas REAL "Shock and Awwwwww"
    "Liberty lies in the hearts of men and women; when it dies there, no constitution, no law, no court can save it; no constitution, no law, no court can even do much to help it."
    James Madison

    "It does not take a majority to prevail ... but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men." - Samuel Adams



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  21. #18
    If you have any money flowing into your account, withdraw it. Chap 7 your only allowed a maximum amount, and keep your balance low. Don't do chap 13. You'll just be the trustees bitch for years, all or nothing.
    Gold is the money of kings, silver the money of gentlemen, barter the money of peasants and debt the money of slaves.

  22. #19
    Quote Originally Posted by BFranklin View Post
    Sadly I lost my job a few months after a divorce and other problems. I managed to rack up $26,000 in credit card debt and made an appointment to see someone about filing for bankruptcy. I'm in school right now and have about 2 years left until I can start teaching and I'm on unemployment.
    BFranklin, first of all, my sympathies.

    My suggestions:

    1.) If you file bankruptcy, make sure it is Chapter 7. If you're currently unemployed I think you should qualify. Filing chapter 13 stays on your record just as long, and you STILL end up paying off all the debt WHILE you take the big hit on your credit report, etc. Check with an attorney and see if you can file Chapter 7.

    2.) IF - IF - IF you have any thoughts of moving student loan debt (which as others have stated CAN'T be discharged through bankruptcy) be *VERY* cautious. This can be considered illegal. As your attorney will probably tell you, your financial records will probably be checked for the last three or four months at least. Of course, if you do any financial shuffling NOW and then, say, four of five months hence, you THEN make the decision to file bankruptcy you'll probably be okay.

    3.) Establishing credit after a Chapter 7 can be a bitch. Check with your attorney, but I believe you should be allowed to exempt certain debts from your bankruptcy by choice. In other words, lets say you have a small credit card with a credit limit of $500 or so. You might want to agree to keep this card, pay off the amount you owe, and that way you'll have at least one credit card post-bankruptcy that will be a real credit card without having to be "secured" through a bank with a financial deposit.

    4.) Make sure the attorney you hire specializes in bankruptcies. It'll be worth your time to make sure you have an attorney who really knows the business....


    Best of luck to you!

  23. #20
    So you guys are all advocating theft? You people are no different than our so called political leaders and that's why you deserve tyrants. I know the banks are crooks but damn it someone has to stand for right in this evil country.

  24. #21
    Quote Originally Posted by Elwar View Post
    First priority should be getting a job, any job. Sell as much as you can. Live on beans and rice, rice and beans.

    Call Dave Ramsey's radio show.
    I totally agree. What are you doing in school??? Get a job, any job, immediately, you need income. As far as the credit cards, you can do Credit Counseling to repay the debt with little or no additional interest, or negotiate yourself or via an attorney or debt settlement agency. I would recommend Credit Counseling because it's a better fit for someone with low income. Find an agency that does not charge a fee but instead has a "monthly contribution" which you can opt out of, they do exist.
    I am not familiar with bankruptcy, but it looks like a good fit too based on the posts here. I am sure you are doing your research.

  25. #22
    Quote Originally Posted by jkm1864 View Post
    So you guys are all advocating theft? You people are no different than our so called political leaders and that's why you deserve tyrants. I know the banks are crooks but damn it someone has to stand for right in this evil country.
    How is it theft if you are the one who created the so-called "money" with your signature?
    Pfizer Macht Frei!

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