Scared That I Messed Up My BK

[Delesh]

So, here is my story:
First, I have been very financially responsible my whole life. Never had a late payment, never ran up credit card debt I didn't pay off in a timely manner, etc.

10 years ago I helped a family member start a business by cosigning for a loan. They increased the loan to a huge $100k behind my back. A few years later the loan became a judgement against me (without me even knowing because it was being hidden from me by my family member). I have had my wages garnished for the past 4 years.

Recently I began getting calls from collection agencies. Thought they were wrong numbers. Checked my credit report and found over $150k in credit card debt that was in collections from cards associated with the business I helped the family member start. I contested them, but because I had signed my name to those accounts long ago, not all of them were removed. So I was left with over $100k in debt plus the remainder or the judgement.

I consulted an attorney about BK because I didn't know what else to do to get out of this nightmare. My wife has not worked in 4 years and recently got a job so we filed quickly so as not to show as much income in the last 6 months.

During this time we were using a credit card as we normally do and there were some purchases from the holidays. I should have researched more but I somehow got the idea that I should use my credit cards as "normal" until I file (stupid). So even during the week of filing there are some charges because it was linked to some online shopping accounts and such. I had no idea that I would be filing for a BK until I consulted. Now that I am reading everything on these forums I feel very nervous that I may have screwed myself again and made it so that I will have problems with my BK because of these purchases.

I am tired of everyone treating me like I am a criminal. I was the only one who had good finances and didn't hide money, like a criminal, when the judgement happened so they attacked me. I have been the only one paying on the judgement the last 4 years (over $50k worth). Now I feel like I am going to get raked over the coals again in this BK. The judgement creditor lawyer has even forced me into a 2004 exam and an inspection of my house and I am sure will have an objection to the BK. I am their cash cow and he seems to have a personal vendetta against me.

Should I be worried? The last years have been hell and it just seems to get worse all the time. I have no faith in the law or lawyers to help good people anymore. I am very scared. Any advice is appreciated.

[kornellred]

There is no possible way that you could be responsible for any more than the original loan amount you co-signed for. Never heard of increasing a loan amount without a complete restructuring of the original loan itself. There is some kind of disconnect in your story. Ten years is a long, long time ago - you could not have been that naive.

[tobee43]

me either, each loan increase needed to be resigned or should have, and you should have had some type of notification. i don't know, for certain though, it could have been some type of line of credit that anyone authorized on the account could ask for a line increase?

[justbroke]

Your bankruptcy should be fine. The creditor will probably seek to avoid the discharge as to the judgment itself, but unless there was actual fraud, there is no way the creditor could stop the discharge of that debt (period). Best wishes. Please keep us up to date!

[Delesh]

There is no possible way that you could be responsible for any more than the original loan amount you co-signed for. Never heard of increasing a loan amount without a complete restructuring of the original loan itself. There is some kind of disconnect in your story. Ten years is a long, long time ago - you could not have been that naive.

Yes, I was naive and a complete idiot (21 and dumb). I just never thought my family would do that to me. I was trying to help them. I am paying heavily for it now. I'm sorry if the story doesn't sound right to you, but it is what happened and the way the whole thing played out associates me with those criminals and does make me look bad, which is even more painful to me. It was a line of credit and it was increased (doubled). The loan/line of credit was being paid until 5 years ago when they stopped paying and the judgement was entered. Even now I don't know the whole story because they did so much. At this point my whole life seems ruined because of it and I seem to just make stupid mistakes that make it worse. I'm sort of at the end of what I can handle now.

[justbroke]

You will be fine. Just worry about getting through the discharge and then you can start over again with your fresh start. In the future, you will probably heed the words "never cosign a loan for anyone; especially family." This happens a lot more than you think, and it is not your stupidity. You were trying to help a family member, and family should be an important part of your life.

[lillymarlene]

Hi Delesh, Welcome. Unfortunately, I believe it could happen. My brother found all kinds of credit cards many paid off, on his credit report that he had never authorized. My father (deceased since 2006) had used up all of his own credit, then helped himself. He would simply just forge the other family member's name to applications.

Justbroke is right, "just worry about getting through the discharge and then you can start over again with your fresh start."

[Delesh]

Thank you. It has been hard as you all know. The encouragement definitely definitely helps. I hope that this is just the final push to finally be free.