File or wait to fall off report?

[Beeheery]

Hi all,
As some of you know, I have been contemplating filing ch 7 bk for awhile now. However, last night i checked my credit report on all 3 bureaus and all of my debts say they will fall of in 2014/2015. Since filing BK stays on your record for 10 years, would it be smarter for me to not file? I am no asset, do not own a home etc. I would like to hold out since I do not have health insurance and in case something happens and I land in the er, i need to know that i can add it to the rest of my debt. It seems to me that waiting would be the best bet but maybe not since so many people file rather than wait it out. Any advice would be appreciated. Thank you.

[ready2puke]

2014/2015 seems like a very long wait to me Bee...I couldn't live like this for more than another 4 months..

[spidge]

You will likely be sued by one of your lenders before that time expires. If you think you have half a chance of settling with them be carefull as once you get one or two of them aligned someone else will turn around and sue you and ruin all your effort and waste all those payments to settle.

[ready2puke]

Also as soon as you even say you're are to pay them the time starts all over again..

[kathy4530050]

Hi all,
As some of you know, I have been contemplating filing ch 7 bk for awhile now. However, last night i checked my credit report on all 3 bureaus and all of my debts say they will fall of in 2014/2015. Since filing BK stays on your record for 10 years, would it be smarter for me to not file? I am no asset, do not own a home etc. I would like to hold out since I do not have health insurance and in case something happens and I land in the er, i need to know that i can add it to the rest of my debt. It seems to me that waiting would be the best bet but maybe not since so many people file rather than wait it out. Any advice would be appreciated. Thank you.

I don't know Bee . . . 4 or 5 more years of calls from creditors, scary letters, and, as someone mentioned, maybe a lawsuit or two. The whole "fresh start" concept of a Ch.7 just feels like a big breath of fresh air and a new lease on life. In just a few months this difficult period of time could be behind you. Do you really want to miss out on this opportunity?

[Beeheery]

Thank you all for responding. I guess the only thing that scares me about filing now is if I end up in the hospital w/ an illness or accident etc. I have ZERO health insurance and I would hate to file now and then something happen afterwards and I do not have the protection of BK. I guess maybe I could file and then after the 341 pay for private health insurance until I get a full time job w/benefits?

[StartingOver08]

Since you are not working now, you have time to make this decision to file or not. Take your time to make sure it is the right decision for you. You might feel more comfortable waiting until you have a full time job with health benefits before you file...

One of the things you will run into is, if you do get sued and work out an agreement, once other creditors see that you have paid someone - they will come after you for payment too.

[Beeheery]

Hi Starting, I am not going to settle at all w/ any of my creditors. Not a single one. Its either going to be filing now or filing later. I see you are in SE FL. I am in S FL too. Was your case easy? What did you have to bring to your 341? Was it scary? Sorry for all the questions but I just saw you live where I do and am trying to find out what I can expect. Thanks!

[StartingOver08]

Well, my case was large ($1.M) and I have a small business and I was over median income substantially so they really looked and looked for assets. Since I gave up my homes and one of the cars, they really couldn't find any - so I was discharged Jan 09. I had a 341 and a continued 341. I supplied 2000 pages of documentation to the attorney and he supplied everything imaginable to the Trustee. So, by the time I got to the 341 they only needed the SS card, my DL and a copy of my bank statements as of the filing date to check balances. Make sure you have no money in the bank because Fl's exemption is extremely small. They had a 2nd 341 because they needed additional time to review the documentation! LOL

It really is Starting Over for me!

You will get thru it - I think the key is having everything ready for review.
If you have a good attorney it is worth it - a bad attorney really can hurt you in ways we do not even know until we file. (Mistakes on the petition are a big one with an attorney that either is inexperienced or in a BK mill.)

[Beeheery]

Starting,
How many months of bank statements did they need from you? Also, if you dont mind me asking, how much $ did you leave in your account on the day you filed. So many people say the least amount the better, but doesnt that raise some flags if you account is zeroed out because they will think that you are hiding it? I am not sure if I should have 0.00, 10.00, 100.00 or what. Also, do you know if the trustee can see your debt BEFORE all the late fees/collection agency fees were added? I was about 35K in the hole when I stopped paying but now its over 50K and if I wait long enough to get a full time job w/ benefits it will go even higher. If my debt shows 80K by the time I file, would the trustee get suspicious or can they see me "true" debt? Thanks!

[StartingOver08]

I provided 2 yrs bank statements, 3 yrs cc statements, 4 yrs tax returns, 10 yrs of real estate purchases and sales where I was a principal, 12 mths utilities, all insurance policies, copy of trust docs, lawsuit copies (for foreclosures), etc. etc

I had $100 in my bank account the day I filed. LOL

If the trustee reviews the cc statements, they can see that the last debits are for interest and penalties and not purchases. Don't worry about the amount - it does not matter to the cc co the actual dollar amount so much as when your charges occurred.

[Beeheery]

Geez that sounds like alot! Is that only because you were trying to discharge over 1 million and had a small business? I am just filing myself- no business. I wonder if I would have to supply the same amount and go back so many years.

[StartingOver08]

I think that if you have a small business and large debt you have to supply more info.

If you are a normal no asset Ch 7 you do not have to supply so much - there are some districts that require very, very little documentation from what I have seen posted on this board. That is why an attorney is helpful, he knows your personal situation and knows the Trustee's so he can best guide you.

[Beeheery]

Also as soon as you even say you're are to pay them the time starts all over again..

Wait, just SAYING you want to settle starts the time over? I was thinking about sending debt validation letters to each of my creditors and then offering 10% and saying I will file BK if they don't accept. I was thinking that might be too low and MIGHT offer 20% at the most. What do you think??????

[LuciluS]

Beeheery:

I see 2 probable events:

1. What happens if you don't get ALL creditors to agree to settle. Our Attorney said: A Judgement bites the Credit Report same as BK.

2. 1099s will be issued for the difference. People say 'well you can prove insolvency'. As a disabled Accountant, I don't buy that. How can you prove insolvency if you had funds to settle. Sure you can file this year or next years tax return and complete the Form# ____ required for Insolvency. I'm too tired to find the form number & the ole memory isn't the same as it used to be.

IRS has at least 4 years (in some circumstances, up to 10 years) to request and audit of a specific years tax return from date you file. However, any Amendments, correspondence may/can will start the clock over. Burden of proof is on the Taxpayer...not the IRS.

Just my thoughts.

Luci