How is your life different post BK?

[Exployer1234]

I have not been discharged yet, but I have the peace of mind that the only debt I have is the neccessities. I will still have my student loan debt, but that is it.

I now stick to my budget. I have not used my CC's in over 2 years, so learning to live on cash is not a problem. Understanding that I have to stick to only things I need has been a change. When I go grocery shopping I only get things on my list. I do not buy extras. I also do comparison shopping now and wait till there are great sales on things that I use all the time. I have learned to now compare and price all items. It is amazing how much I have started to save.

I also watch my usage in electricicty, water, and gas. I make all my meals now and freeze various foods and for for the first time in a long time I planted a garden.

Other things are instead of sinking my money in a car payment I have been fixing up my car that is paid off. It is the first time in a decade that I have not had a car payment.
I am also going to pull out the ole' sewing machine and finally learn how to make my own clothing. I have been saying it for years, but now I could use that extra money on other things.

I also do not have to listen to the phone ringing every day and now can sleep well at night.

I also have started saving for my rainy day fund. It is not much, but it is a start!

[brad10281]

It all depends on how you look at it. I had a house, a boat, a truck and a car...oh, and credit card debt. We were your typical american family. We loved spending time together (me, wife & two kids) at the lake on the boat. I used to be able to take my dad and my father-in-law out on fishing trips. I used to wonder how I was going to pay for gas for the boat...and truck...and car. Oh thats right, I had credit cards...fill'r up! Life was great!

One day my boss pulls me into his office...YOU'RE FIRED! ok, thats not really how it happened but you get the idea, I lost my job. Several months go by and I'm running out of money. Then, out of nowhere, I land a job...making 31% less than before. We're now out of options, we stop paying on everything and file for BK. First they come for the truck. Now I have a boat sitting in my garage that I can't pull around but it's winter time so no problem. Couple weeks later they come for the boat...oh well, it was great while it lasted. We use the money we saved from not paying bills, a $4k tax return and a little from the IRA to replace the truck. Now I have two vehicles free and clear. Well, the car has 200k miles and is starting to fall apart. We pull a little more out of the IRA for a down payment on a nice used small SUV and finance the rest...this is good, after all I'm rebuilding my credit...right. Ok, now I've got a small debt but actually have positive equity in the SUV...never had that with a vehicle before. I keep telling myself its ok.

For some reason we still can't seem to save any money...doesn't help when everything in my house decides to break at the same time. Just paid $322 to have two appliances repaired (paid cash, NEVER would have done that before) and my lawnmower still sits in the garage waiting to be repaired.

For some reason I can't find the bright side in this BK. It's great not having all the debt I once did but I have a family to provide for and I have no idea of where we will be living once the house is gone. There just aren't any rentals in my town. Waiting for foreclosure is STRESSFULL! We are WAY better off than we were before but I still liked the before better than the after. Our debt was manageble at my old income level, I'm now making under $50k/year and wondering how anyone can live off of so little.

It's definately a learning experience though. I will never go back into debt like a I was. I will not take on anymore debt until the truck is paid off. I've learned to save for the little things instead of using credit cards. I have one cc that survived the BK somehow. I charge a little to it each month and pay it off to help build credit. Guess I'll stop whining now...it's bedtime.

[calgirl67]

Life after Bk for us is truly liberating. In a screwed up way its the best thing that could have happened to us.

No more stress. No more nasty creditors calling. No more dreaded credit card statements in the mail. No more robbing Peter to pay Paul. No more wondering how the hell are we going to pay all this off before we die?

I realized the other day we were paying $1,100 per month in interest payments alone to credit card companies. That's over $13,000 a year just in interest.

Funny enough we have not used a credit card in any form whatoever since January 2009 and we now have plenty of money to live, pay our other bills (not very many of those these days) and put into savings. All that rediculous interest we were struggling to find each month now goes 1, in our savings account, and 2. to buy our necessities, and I mean things we NEED, not crap we don't.

Living on cash certainly does make you appreciate the true value of a dollar. I think twice now before any purchase, we have more or less stopped eating out and I am back in my gorgeous kitchen cooking up yummy meals.

Funny how life teaches you important lessons.

[BCA2009]

I agee with Calgirl67. Soooo much less stress. We have about the same discretionary money as before (not much), but no credit card payments, no boat payments (2 of them). No new truck payment. I to took out some IRA money to buy a 13 year old used car.

We still have our house, but can walk away anytime if we decide to stop making payments. We re-affirmed one car that is almost paid for and owe the trustee 8 more payments (asset case). We live paycheck to paycheck but are so much happier. Once we get the car and trustee paid for we will have a little more breathing room in our budget. Also my wife is out of work, so if she can find a decent job, that will be great. Plan on saving, saving, saving. But so far the job prospects have been very slim. She has an MBA and when the unemployment comp runs out she may have to go back to waiting tables like she did in college 16 years ago. But she has a great attitude about it and we know it won't be forever.

The hardest is part is dealing with the 8 year old. He knows his mom is out of work but really doesn't know about not being able to afford stuff. Like why we can't go on a vaction this year, why we don't go to movies every weekend like we used to (put it on credit cards). Not getting video games and stuff. He is not deprived in any way, but his lifestlye has changed alot and he doesn't totally understand why.

But other than that, I've have had no issues what so ever. It was the greatest thing that could have happened. (except for never gettig into debt in the first place).

[Over our heads]

I laugh now at how sick I felt doing the bk stuff.

Were in way over our heads w/ CC, and some medical bills, the BK took care of that. Were in over our heads with our house, but wanted to ride it out. Then, just before our discharge he got laid off. 6 months later, still laid off. Just closed on our short sale, so we avoided the foreclosure axe. Did I mention that our lawyer filed a re-aff on our first mortgage even tho we explicitly told her not to?

So, the end of this week, we are moving in w/ my mother, and praying that one of the jobs he applies for will hire him. It is quite clear that we are going to have to move out of state, as this seems to be the worst place to be a PE these days.

Our life sucks! BUT!

Once he does get a job, we will truly start over. The only bill we have is our car payment, and that will suffice to get my credit back up, albeit slowly. As long as we make it through still married, then it is all AOK.

[BCA2009]

I laugh now at how sick I felt doing the bk stuff.

Were in way over our heads w/ CC, and some medical bills, the BK took care of that. Were in over our heads with our house, but wanted to ride it out. Then, just before our discharge he got laid off. 6 months later, still laid off. Just closed on our short sale, so we avoided the foreclosure axe. Did I mention that our lawyer filed a re-aff on our first mortgage even tho we explicitly told her not to?

So, the end of this week, we are moving in w/ my mother, and praying that one of the jobs he applies for will hire him. It is quite clear that we are going to have to move out of state, as this seems to be the worst place to be a PE these days.

Our life sucks! BUT!

Once he does get a job, we will truly start over. The only bill we have is our car payment, and that will suffice to get my credit back up, albeit slowly. As long as we make it through still married, then it is all AOK.

Wow, I assumed you signed it, sent it to her, then changed your mind? She couldn't file a re-aff without your signature. I'm glad it worked out for anyway.

But Just FYI for anybody else reading this, you can cancel a re-affirmation within 60 days of the time it was filed, even if it is after discharge. In the OP's case, they might not have realized it in time, but it's good to know that you can change your mind if you make the decision soon enough.

[JackBondLove]

Carrying 40K in credit card debt may not like much to some, but that took it's toll on me during the years that I had it. I always had a plan for getting rid of it, but life 'events' kept getting in the way. After the last job loss, I finally gave up caring whether I ever paid the banks back. My only regret now is that I did not file for BK sooner. It was a real mistake to wait until I was practically destitute.

But wouldn't you be destitute right after being discharged in Chapter 7 either way?

[JackBondLove]

It all depends on how you look at it.

<snip>

One day my boss pulls me into his office...YOU'RE FIRED!

<snip>

Then, out of nowhere, I land a job...making 31% less than before. We're now out of options, we stop paying on everything and file for BK.

<snip>

Our debt was manageble at my old income level, I'm now making under $50k/year and wondering how anyone can live off of so little.

I think that BK is nothing more than a financial cramdown of the middle class. As our jobs have been shipped away, and Corporate America has taken aim at our wage levels, we simply have a much lower income than we used to, relative to the income that we have counted on to be able to finance our lifestyle. Had I been able to command the level of compensation in my consulting business, I would have been able to swing everything and hot had to have file BK.

This is similar to the situation with GM, which had large legacy costs that at the time the costs were incurred, were considered to be manageable. But until GM filed BK, it had to incur the costs at great cost, which caused it to manage its business in a poor way. Now that GM has been relieved of its debt, it can become a great company again, as a business for the 21st Century.

So must we all become consumers for the 21st Century, which means that we will not allow the Corporate Marketeers to dictate us that to be cool, we need to buy X. Or that we need to buy a home now before it becomes more affordable. I myself am going to live in a lesser developed country (where my retirement account will go a bit farther) and resolve to not date women that require me to spend $200 on a night out.

[helpmeout]

My life is different in that I am no longer as worried about getting through the summer financially (it is the highest childcare time for me) like I have for the last 4 years. And I was able to take a vacation, which I haven't been able to do for the last 4 years. The next one will be planned and saved for. But flexible in case something comes up and I don't have the money.

Once I am no longer in the house, money will be more tight, but still better than what it was before BK. I had planned on reaffirming my car loan and using that to rebuild my credit, but the paperwork was never completed. I plan on getting a secured credit card in a few months to rebuild my credit. It's only important to get it to a certain level for purposes of renting an apartment. After that is accomplished, the card is gone.

[feelingnutsy]

Hi---Over our heads---what is a PE?

[bakergrl]

Things are just simpler now. We have money to do things every once in a while, I was able to buy a new vehicle.

The best thing is I do not have to figure out each month which bills to pay and which are going to have to wait for a while, everything is now paid on time.

The thing that bugs me the most out of all of it is that I have to rebuild my credit. It is aggravating because if the CC would have worked with us we would never have filed in the first place. I lost my job and we had a few late payments and the rates jumped from a low one to almost 29%. That meant my $400 a month payments jumped up to almost $1200. I called the companies and most of them would not work with us or they said if we "were good" and paid all of our payments on time for 6 months they would lower the rates down to 18%. Well guess what, now you get nothing because you would not work with us.

Besides that things are great, it is a huge relief to not have to worry about losing our home or having our car repossessed because I had to pay the $1200 in credit card bills instead so we would not get sued.

[LostinTX2]

while we haven't actually filed bk for various reasons...we simply stopped paying anyone except our mortgage a few years ago. Trying to get BK done soon, but something always comes up.


BUT, how we live differently:

*6 years ago, 6K a month didn't cover our bills and we never had anything.
Now we live on less than 3K.

*Both our cars are PAID FOR - 10 year old cars, but in good condition.

*Once the BK is finally done, we can start SAVING again.

*We live on a CASH basis. If we can't afford, we can't afford it. There is no credit card option. It's amazing how a few days distance from the MUST HAVE makes it not so much of a MUST.

*Craigs List and ebay are WONDERFUL things. Just bought (CASH) a 2500 cash from $300. Our old one broke. (PS, we sold a bunch of stuff at a yard sale and used YS money for new couch)

* We recycle things more and rethink what we toss. We always ask "can we use this somewhere else?"

* Coupons are a good thing.

* Restaurants are overrated.

* When you put $10 here and there in a money jar to save for a big purchase (like kids xmas). It feels really great the day AFTER xmas when we're not worrying about he credit card bills.

* Kids don't NEED nearly as much as society and mass media make us believe.

* Movies in a movie theater are WAY overrated. Spend a little extra on a big TV (used on Craig's List of course), pop some popcorn and enjoy a movie at home!

* Who knew a 10 year old van (paid for with CASH and even repaired with CASH) could feel sooooo good to drive knowing there isn't at $400 payment due on it each month.

* We're not losing our 1400 square foot house. We would have lost our 4000 sq foot house we ALMOST bought 5 years ago when we had stellar credit (but owed EVERYONE).

* Our kids (teenage boys) value a sale and don't see the need to spend $60-$100 on jeans.

* Our LUXURY is cable/internet (we also use if or business). We don't have HD or DVR or Movie Stations...but we can't live without Discovery and ESPN