Anyone else still poor after filing?

[francoboy]

I had my 341 last week. As you all have said, very painless.
I stopped paying my cc last June because we literally had no money to pay. My husband lost his job years ago and we have never been able to recover. He is working but at 1/3 of previous salary.
Since almost all debt was in my name, I filed alone. So here I am, a person who has filed bankruptcy, and I am no better off than previously. The only positive is that Discover can no longer sue me.
Is this the experience for others?
Thanks.

[justbroke]

I don't understand the statement "no better off than previously". Here's a few things that make it better.

First, no one can personally sue you for any of the debt you accumulated prior to filing. That's a whole lot better than being sued and then having garnishments and levy actions taken against you (based on the State in which you live). In fact, judgments can be renewed in most States and can haunt you for as many as 20 years after the judgment is recorded. If a creditor did hound you about discharged debt, you can actually take real legal action and ask for sanctions against that creditor. Filing bankruptcy stops these creditors in their tracks or they suffer the penalty.

Second, within six (6) months after you are discharged, your credit score will increase (and be in the low 600s or better). With a little discipline, you could get your score back into the low 700s within two (2) years of discharge. You'll also be able to purchase vehicles at a much lower rate, and generally you will be back on your feet within one (1) year after discharge. Your credit report, for the discharged accounts, should show them all with $0 balances. Try that through inaction and see what happens.

Third, and finally, Bankruptcy doesn't fix systemic problems. Bankruptcy is a tool to deal with personal liability related to debt. It will not find you a new job. It (itself) will not allow you to buy a new home. It will not fix medical issues. It will not hold you at night and tell you that everything will be okay. It is simply a scalpel to remove debt from your life; it will not fill any voids.

Technically, if you're poor before filing you will be poor after filing. If you were unemployed before filing, you'll probably be unemployed after filing. The list goes on. Bankruptcy, even by Congress' definition, is only a tool to give a debtor a fresh start; not a "head" start. Hopefully a Chapter 13 debtor learns to budget and use little credit in the future; Chapter 13 bankruptcy will not cure the appetite of a compulsive shopper who loves credit. A Chapter 7 debtor, however, typically learns nothing in the process since they aren't forced to budget.

(Disclaimer: These are my personal thoughts. They aren't meant to be harsh, but these are the realities of bankruptcy.)

[LadyInTheRed]

I agree completely with justbroke. Bankruptcy alone does not solve poverty. It can help, but not without an increase in income or a large gift.

[bcohen]

So here I am, a person who has filed bankruptcy, and I am no better off than previously. The only positive is that Discover can no longer sue me.

That in and of itself is a huge positive! Discover is a very litigious creditor--they will sue anyone (who hasn't filed for bankruptcy), regardless of income or ability to pay. They also like to wait toward the end of the SOL, and load the balance with years of late fees and interest before they do sue.

Out of all my creditors, Discover was the only one who sued, and they waited more than 3 years to do so. I fought their lawsuit all the way, and ran up their attorneys' fees, but in the end they got their judgment. Hence, why I filed.

[TXskyblue]

I don't see how you can say you are no better off. You had debt before that you could be sued for, and soon you won't. That is huge.

My finances improved with BK because I no longer had to worry about making those minimum payments.

[spidge]

I recently completed a ch13 with lien strip and have been working much fewer hours lately, so of course much less pay. We are getting by but barely. I make the average wage, have no car payments, and my mortgage is about $700 lower than a respectable two bedroom apartment in the area. I am quite annoyed by the fact that I cannot do crap to maintain my cars or help my kids. That was the main reason for filing. It is mostly caused by much less overtime at work to the tune of about $1,200 per month. I have been reducing expenses and we have not ate out for quite a few weeks now. I have been considering more prosperous employment, but it is hard to walk away from the 5 weeks of vacation I will have soon. Even after over 16 years my loyalty and others like me have not been given any kind of retention bonuses or wage increases to keep up with inflation.

Signed, Front Line Peon

PS. I know its up to me to make the decision to move along, but I am at that F*** it stage and have much to consider as retirement is not far off.

[francoboy]

Thank you for all your replies!
What I meant was this. Every debt that was discharged has not been paid for a year. So technically, there is no increase in available funds. I know there are some people who make payments up until filing. We literally had no money to make even limited payments.
I completely agree that not being able to be sued is huge!
We have learned a huge lesson in this past year. We have had to live on what we make. We did not use any credit at all. I feel we are well prepared to move forward in a healthy financial future. I think I was just feeling sorry for myself at the moment!
Thank you!