Here is my Chapter 7 story so far.....

[gogetter76]

Hello,

Originally i thought about and signed on with a debt reduction program-company. After a couple of months of ill feeling i abandoned that and filed Chapter 7. Reasons for that are; for the 1st 18 months of my 440 payment little and i mean little, maybe 42 dollars were going into my account. Just seemed too long. Then, the real kicker that none of these ads or companies tell you is, after completing the thing, you will be issued 1099's for any unpaid back balances. SO as an example, you owe 50,000 in CC debt., they reduce it to 25,000. You will owe taxes on 25,000, as reported as income.

I called and interviewed abvout 10 attorneys, with price ranges of 800 to 3000 for their services. I went in the middle and paid 2000. I took 9 months to pay my attorney and he filed Dec 1st.

Got some paperwork form the banruptcy court stating no abuse was evident and all paperwork has been filed properly.

Jan 14th is my 341 meeting.

Seems like everything is ok now. Just hoping it will turn out ok.

Any questions, i will try to answer.

Thanks to all the fine people here and their answers to my questions.

[jjsmith]

Congratulations on filling! We filed on 12/2 and our 341 is Jan 11. I'm pretty nervous. I know most people have things go smoothly, but our finances are complicated and I'm afraid of the trustee putting us through the ringer because of it.

Can some of the guru's tell me is it typical to get paperwork from the court this early stating that no abuse is evident? I haven't seen any mention of that before on this site. I haven't gotten anything from my court yet.

[ForumReader]

Hello,

Originally i thought about and signed on with a debt reduction program-company. After a couple of months of ill feeling i abandoned that and filed Chapter 7. Reasons for that are; for the 1st 18 months of my 440 payment little and i mean little, maybe 42 dollars were going into my account. Just seemed too long. Then, the real kicker that none of these ads or companies tell you is, after completing the thing, you will be issued 1099's for any unpaid back balances. SO as an example, you owe 50,000 in CC debt., they reduce it to 25,000. You will owe taxes on 25,000, as reported as income.

I called and interviewed abvout 10 attorneys, with price ranges of 800 to 3000 for their services. I went in the middle and paid 2000. I took 9 months to pay my attorney and he filed Dec 1st.

Got some paperwork form the banruptcy court stating no abuse was evident and all paperwork has been filed properly.

Jan 14th is my 341 meeting.

Seems like everything is ok now. Just hoping it will turn out ok.

Any questions, i will try to answer.

Thanks to all the fine people here and their answers to my questions.

I am glad you got out of the debt reduction program and filed bk instead. I, too originally signed up with a debt settlement company (DSC) and stayed with them too long before receiving a complaint then summons from BoA. I did not realize that 1099's for forgiven debt would be issued until after I fled the DSC program. I am sure there are quite a bit of things that DSC companies will not tell potential clients what could happen behind their programs.

Anyway, I wish you the best with your bk process and I am sure your 341 will be fine as long as you answer the trustee's questions honestly.