Bankruptcy

joe4speed · 01-09-2002, 03:15 PM

Anyone know anything about bankruptcy!? I have found myself over my head in CC bills, and I lost my job last month, and there is no way out!!!!! I went through the Credit Councelling, but it's too much too... I just wonder if you know anyone or have gone through it yourself. Any advice??

mustangdani55 · 01-09-2002, 03:27 PM

yeah, my BF is going thru bankruptcy as we type...he filed chapter 13..reorganization, with all the bills his payment would be 533. monthly, plus indiana tax dept got him for an additional 200. thats 733. so i told him, you can't afford that and you know it. so he is calling his attorney and changing it to chapter 7. Which is total bankruptcy.
Just be careful man, cause as soon as credit card companies get word of you filing, they will send you more credit cards... no kidding. They know that if you just filed, that you can't file again for 7 years.
ITS A RACKET MAN
believe that

Coupe Devil · 01-09-2002, 05:08 PM

DO NOT FILE BANKRUPTCY

Dont do it your will sorry for the rest of your life. I have never done this. However I know several that have and it has almost ruined all of them. There has got to be a better way. I know you lost your job. Go get another. So maybe it wont be as good or high paying but its income. Credit companies will work with you as long as there is income. No matter how little. You can get through this. Its a big deal, a long hard process, but it can be done. Just think 7 years of no credit. For get buying a different car, If you have a wreck your car insurance will be cancelled because teh premium will go up and you cant pay it so they will cancell you. Do what ever it takes to not file.

Good luck

Brad

Mr 5 0 · 01-09-2002, 05:22 PM

Tough call.

I know people who've done a bankruptcy and came out fine but I can't recommend it as a solution.

Contact a bankruptcy attorney. You can find them in the Yellow Pages. They will usually talk to you for free (consultation) and give you the facts. It's not free to file; I think it's around $250. plus attorneys charge around $500. to do the work. You can do it yourself but I imagine it's quite a hassle...still, it might be worth it to save the attorney fee but if I were doing it, I would use the attorney just to protect myself from some legal screwup.

I know that after being discharged from bankruptcy you can get credit but it's a rather expensive process. You can start with a 'secured' credit card (you deposit money in the bank and they give you a credit card with a limit that equals the amount you have on deposit). Some car dealers and small stores will extend credit if you come up with a BIG down payment, first. Of course I would avoid using credit cards once you get past this difficulty. Use a debit card and only buy what you can actually pay for. Saves a lot of grief.

Bankruptcy is not the end of the world, especially when you're young and don't have a house to lose.
I would recommend talking to the credit card companies first and trying another way to resolve this but if all else fails and you are willing to suffer the possible consequences (bad credit record for seven years) then at least look into it. Of course, you're defaulting on an agreement where you promised to pay back what you charged but if you have no moral problems with bankruptcy (some do) and cannot possibly repay this debt in a reasonable time-frame then you'll have to do something so bankruptcy may be the way out...or maybe not.

There are bankruptcy websites with lots of information. Use your search engine; just type 'bankruptcy' and see what you get. At least it's a start - and free. You may get some fresh ideas.

Credit counciling is a great idea but it can't do a lot for your situation if you have zero income and no real assets. Creditors want some kind of payment; reduced, stretched out or whatever, but going to them empty-handed won't cut it. Perhaps one of the credit counciling services can aid you with this aspect and get the repayments put off until you're working again. Clearly worth looking into, as I'm sure you will.

Hope this all works out for you and that a job comes through soon.

Good Luck.

joegodfrey · 01-09-2002, 07:57 PM

I would definetely say don't go bankrupt, I know many people who have. My father went bankrupt 13 years ago, they won't take it off his record he pays 20% or more interest for everything. 13 years later!
I had a friend went bankrupt at 22, only had about $7,500 of debt, he always says he wishes he had just found a way to get the money.

srv1 · 01-09-2002, 09:55 PM

i agree with PONYPOWER. do all that you can to stay out of Bankruptcy! work with creditors. i believe that they have to accept some sort of payment, as long as you keep it consitant. im not sure. good luck, and hope you find a job.

tireburner163 · 01-10-2002, 12:34 AM

How much CC debt do you have? I know this it a last resort, but it's better than bankruptcy, have you thought about selling the GT or the Ninja?

OnMy3rdStang · 01-10-2002, 02:43 AM

I have never been in a bankruptcy but my parents have,They were about 20 grand in the hole OUCH they had to file for a Chapter 13 and later on got down to a Chapter 7 and about 2-3 years ago they finally got out of it (Thanks to me

I was in a car wreck, that was caused by the other person, and the car;moms car; was totalled. The car was almost half of the bankruptcy and that paid it off)

I am glad I am on top of things and my parents tell me everyday to make sure I have the money to pay for what I want or need. And put my more important priorities first!!!!

Just try to find an alternative to bankruptcy. My parents credit is shot to all hell. Seeing my parents all stressed out and fighting all the time was hard.

I have ran across some ads that say there alot like bankruptcies but you dont file for it. I wish I could remember what the company was but i dont

joe4speed · 01-10-2002, 03:13 AM

Thank you all for the replies! I am very confused and lost as what to do. So many people tell me to file, and so many tell me not to. I owe about 24,000.00. It is very hard for me to try to find a way out! Unfortunately trying to sell my GT (worth 1,500) or the ninja (worth 4,200 owe 5,000) don't seem like viable solutions to my problem. If I never lost my job all would be fine. I have my jerkoff boss to thank for this. I will call my CC companies and see what they say, but I almost know in the long run I will ahve to do what I have been trying so hard to avoid this past year. I just can't keep up. I don't know what to do!

scott93gt · 01-10-2002, 08:42 AM

I would encourage you to look up the local chapter of Consumer Credit Counseling Services (CCCS). This is a nonprofit organization that works with your creditors to 1) reduce your interest rate, 2) set a monthly payment that you can afford and 3) help you get out of debt without bancruptcy. Don't be fooled by alot of "imitation" credit counceling services, because they will charge you to do the same thing CCCS will do for free. CCCS is supported by the credit card companies.
You will be required to do some things to enter the program:
1. Take ALL your bills and credit cards with you to the counselor.
2. They will cut up your credit cards and establish the single amount of payment you will pay to CCCS monthly.
3. Send this amount by money order only payable to CCCS and they will distribute the money to the various creditors. Once one account is paid they will take the amount that was ging to that bill and apply it to the next lowest bill. In other words, you pay the same amount each month til all your bills are paid.

Your credit file will then reflect each of the bills as being "managed by a credit management service". They will also be reflected as "closed account by subscriber". This is much better on your credit report than "BANCRUPTCY".

I have been through this some ten years ago (divorce and lay off from my job). It wasn't easy but I got out of debt and I have restored my credit to A+ rating. It is worth looking into anyway. I hope this helps.

Maroon 5.0 LX · 01-10-2002, 12:06 PM

As many of the folks suggest, try your best to avoid bankruptcy.

First off, looking at your sig, you have three vehicles. Sell the two most expensive ones. That'll give you some cash to work with. It will also lower your insurance premiums.

Contact some of the counciling agencies, there's got to be some near you. They will contact your debtors and inform them you are at least trying to work this thing out and get the heat off.

Good luck!

Coupe Devil · 01-10-2002, 12:42 PM

Go to www.DaveRamsey.com He is a professional money man. He helps people get out of debt and ITS FREE. He has some books and other things to help you get out ofdebt and stay there on your way to financila freedom. I recommend everyone do this Not just you man. He as really helped me out. Email him. he has a radio show but not sure what stations it would be on around the country. He can help. Trust me.

Crazy Horse GT · 01-10-2002, 04:43 PM

do not go chapter 13 -i did i got screwed out of my harley -davidson & a car -aahh it was only an oldsmobile if you do just go the 7 then you can negotiate,taking back over payment's on what you want to keep,just my .02 worth good luck

01-09-2002, 03:15 PM	#1
joe4speed He said Member...heh, heh Join Date: Sep 1999 Location: Jupiter, Florida U.S.A. Posts: 3,718	Bankruptcy Anyone know anything about bankruptcy!? I have found myself over my head in CC bills, and I lost my job last month, and there is no way out!!!!! I went through the Credit Councelling, but it's too much too... I just wonder if you know anyone or have gone through it yourself. Any advice?? __________________ *Joe!* 1988 GT, 13.58@101mph Check out my listing! Click here! Or my website:www.joe4speed.com

01-09-2002, 05:08 PM	#3
Coupe Devil Moderator Join Date: Mar 2001 Location: Myrtle Beach SC Posts: 1,643	DO NOT FILE BANKRUPTCY Dont do it your will sorry for the rest of your life. I have never done this. However I know several that have and it has almost ruined all of them. There has got to be a better way. I know you lost your job. Go get another. So maybe it wont be as good or high paying but its income. Credit companies will work with you as long as there is income. No matter how little. You can get through this. Its a big deal, a long hard process, but it can be done. Just think 7 years of no credit. For get buying a different car, If you have a wreck your car insurance will be cancelled because teh premium will go up and you cant pay it so they will cancell you. Do what ever it takes to not file. Good luck Brad __________________ 1990 GT, 347, TFS TW Heads, TFS Cam, TFS Track heat, Twin turbos, FMIC, T5. Built Ford Tough Moderator

01-09-2002, 09:55 PM	#6
srv1 Get down..... Join Date: Apr 2001 Location: Room 103 Posts: 2,095	i agree with PONYPOWER. do all that you can to stay out of Bankruptcy! work with creditors. i believe that they have to accept some sort of payment, as long as you keep it consitant. im not sure. good luck, and hope you find a job. __________________ Cobra brakes are on! Finally..... ------------------------------------------------

01-10-2002, 12:34 AM	#7
tireburner163 It's a lot like a race car Join Date: Aug 2000 Location: Meridian, MS Posts: 4,130	How much CC debt do you have? I know this it a last resort, but it's better than bankruptcy, have you thought about selling the GT or the Ninja? __________________ 1987 Buick T-type 1998 HD Electra Elide

01-10-2002, 02:43 AM	#8
OnMy3rdStang Registered Member Join Date: Nov 2001 Location: St. Louis, MO Posts: 644	I have never been in a bankruptcy but my parents have,They were about 20 grand in the hole OUCH they had to file for a Chapter 13 and later on got down to a Chapter 7 and about 2-3 years ago they finally got out of it (Thanks to me I was in a car wreck, that was caused by the other person, and the car;moms car; was totalled. The car was almost half of the bankruptcy and that paid it off) I am glad I am on top of things and my parents tell me everyday to make sure I have the money to pay for what I want or need. And put my more important priorities first!!!! Just try to find an alternative to bankruptcy. My parents credit is shot to all hell. Seeing my parents all stressed out and fighting all the time was hard. I have ran across some ads that say there alot like bankruptcies but you dont file for it. I wish I could remember what the company was but i dont __________________ Danica Patrick is my homegirl Last edited by OnMy3rdStang; 01-10-2002 at 02:48 AM..

01-09-2002, 03:27 PM	#2
mustangdani55 Registered Member Join Date: Nov 2001 Location: Indianapolis, Indiana USA Posts: 334	yeah, my BF is going thru bankruptcy as we type...he filed chapter 13..reorganization, with all the bills his payment would be 533. monthly, plus indiana tax dept got him for an additional 200. thats 733. so i told him, you can't afford that and you know it. so he is calling his attorney and changing it to chapter 7. Which is total bankruptcy. Just be careful man, cause as soon as credit card companies get word of you filing, they will send you more credit cards... no kidding. They know that if you just filed, that you can't file again for 7 years. ITS A RACKET MAN believe that

01-09-2002, 05:22 PM	#4
Mr 5 0 Conservative Individualist Join Date: May 1997 Location: Wherever I need to be Posts: 7,487	Tough call. I know people who've done a bankruptcy and came out fine but I can't recommend it as a solution. Contact a bankruptcy attorney. You can find them in the Yellow Pages. They will usually talk to you for free (consultation) and give you the facts. It's not free to file; I think it's around $250. plus attorneys charge around $500. to do the work. You can do it yourself but I imagine it's quite a hassle...still, it might be worth it to save the attorney fee but if I were doing it, I would use the attorney just to protect myself from some legal screwup. I know that after being discharged from bankruptcy you can get credit but it's a rather expensive process. You can start with a 'secured' credit card (you deposit money in the bank and they give you a credit card with a limit that equals the amount you have on deposit). Some car dealers and small stores will extend credit if you come up with a BIG down payment, first. Of course I would avoid using credit cards once you get past this difficulty. Use a debit card and only buy what you can actually pay for. Saves a lot of grief. Bankruptcy is not the end of the world, especially when you're young and don't have a house to lose. I would recommend talking to the credit card companies first and trying another way to resolve this but if all else fails and you are willing to suffer the possible consequences (bad credit record for seven years) then at least look into it. Of course, you're defaulting on an agreement where you promised to pay back what you charged but if you have no moral problems with bankruptcy (some do) and cannot possibly repay this debt in a reasonable time-frame then you'll have to do something so bankruptcy may be the way out...or maybe not. There are bankruptcy websites with lots of information. Use your search engine; just type 'bankruptcy' and see what you get. At least it's a start - and free. You may get some fresh ideas. Credit counciling is a great idea but it can't do a lot for your situation if you have zero income and no real assets. Creditors want some kind of payment; reduced, stretched out or whatever, but going to them empty-handed won't cut it. Perhaps one of the credit counciling services can aid you with this aspect and get the repayments put off until you're working again. Clearly worth looking into, as I'm sure you will. Hope this all works out for you and that a job comes through soon. Good Luck.

01-09-2002, 07:57 PM	#5
joegodfrey Registered Member Join Date: Dec 2001 Location: Syracuse, NY Posts: 39	I would definetely say don't go bankrupt, I know many people who have. My father went bankrupt 13 years ago, they won't take it off his record he pays 20% or more interest for everything. 13 years later! I had a friend went bankrupt at 22, only had about $7,500 of debt, he always says he wishes he had just found a way to get the money.

01-10-2002, 03:13 AM	#9
joe4speed He said Member...heh, heh Join Date: Sep 1999 Location: Jupiter, Florida U.S.A. Posts: 3,718	Thank you all for the replies! I am very confused and lost as what to do. So many people tell me to file, and so many tell me not to. I owe about 24,000.00. It is very hard for me to try to find a way out! Unfortunately trying to sell my GT (worth 1,500) or the ninja (worth 4,200 owe 5,000) don't seem like viable solutions to my problem. If I never lost my job all would be fine. I have my jerkoff boss to thank for this. I will call my CC companies and see what they say, but I almost know in the long run I will ahve to do what I have been trying so hard to avoid this past year. I just can't keep up. I don't know what to do! __________________ *Joe!* 1988 GT, 13.58@101mph Check out my listing! Click here! Or my website:www.joe4speed.com

01-10-2002, 08:42 AM	#10
scott93gt Registered Member Join Date: Oct 1999 Location: Saltsburg, PA USA Posts: 468	I would encourage you to look up the local chapter of Consumer Credit Counseling Services (CCCS). This is a nonprofit organization that works with your creditors to 1) reduce your interest rate, 2) set a monthly payment that you can afford and 3) help you get out of debt without bancruptcy. Don't be fooled by alot of "imitation" credit counceling services, because they will charge you to do the same thing CCCS will do for free. CCCS is supported by the credit card companies. You will be required to do some things to enter the program: 1. Take ALL your bills and credit cards with you to the counselor. 2. They will cut up your credit cards and establish the single amount of payment you will pay to CCCS monthly. 3. Send this amount by money order only payable to CCCS and they will distribute the money to the various creditors. Once one account is paid they will take the amount that was ging to that bill and apply it to the next lowest bill. In other words, you pay the same amount each month til all your bills are paid. Your credit file will then reflect each of the bills as being "managed by a credit management service". They will also be reflected as "closed account by subscriber". This is much better on your credit report than "BANCRUPTCY". I have been through this some ten years ago (divorce and lay off from my job). It wasn't easy but I got out of debt and I have restored my credit to A+ rating. It is worth looking into anyway. I hope this helps. __________________ Scott 1993 Mustang GT Silver CC/Titanium Accent GT, Black Clothe interior. 5 speed, Hurst Competition Plus, 3 chamber Flows, 3.08's. 2010 VW GTI 2dr 6MT (no pictures yet) 2012 Jeep Grand Cherokee

01-10-2002, 12:06 PM	#11
Maroon 5.0 LX Registered Member Join Date: Mar 2001 Location: Southern Maryland Posts: 471	As many of the folks suggest, try your best to avoid bankruptcy. First off, looking at your sig, you have three vehicles. Sell the two most expensive ones. That'll give you some cash to work with. It will also lower your insurance premiums. Contact some of the counciling agencies, there's got to be some near you. They will contact your debtors and inform them you are at least trying to work this thing out and get the heat off. Good luck! __________________ '89 LX 5.0 - 5 speed. Original Owner '94 E-150 4.9 Hi-Top Conversion Van '06 Mustang V-6, 5 speed

01-10-2002, 12:42 PM	#12
Coupe Devil Moderator Join Date: Mar 2001 Location: Myrtle Beach SC Posts: 1,643	Hey man Do this Go to www.DaveRamsey.com He is a professional money man. He helps people get out of debt and ITS FREE. He has some books and other things to help you get out ofdebt and stay there on your way to financila freedom. I recommend everyone do this Not just you man. He as really helped me out. Email him. he has a radio show but not sure what stations it would be on around the country. He can help. Trust me. __________________ 1990 GT, 347, TFS TW Heads, TFS Cam, TFS Track heat, Twin turbos, FMIC, T5. Built Ford Tough Moderator

01-10-2002, 04:43 PM	#13
Crazy Horse GT Registered Member Join Date: Aug 2001 Location: Sale Creek, TN. C. S. A. Posts: 4,652	do not go chapter 13 -i did i got screwed out of my harley -davidson & a car -aahh it was only an oldsmobile if you do just go the 7 then you can negotiate,taking back over payment's on what you want to keep,just my .02 worth good luck __________________ 95 gt vert, lot's of stuff, it aint slow. 04 sonic blue v - six my beater 89 rs camaro iroc turbo hood, other stuff, my wifes ride 84 lx stang cammed up 289 hi po, etc 65 falcon, maybe by the year 2020. black 00gt, gone but never forgotten. R H C- member # 1 o.b.c. da prez- member # 1 if your under 40 dont ask. goodbye for now odie,r.i.p. 11-27-03