341 Meeting Tomorrow-want to back out

[HOMEBODY]

I have my meeting tomorrow and I am seriously considering not going through. I know some days I feel its a good thing, but some days I feel so ashamed and dont want to have that black mark for 10 years and not able to have credit and buy another house. Also, I havent told my family or friends what I am doing.

Now my business is doing so well and I am making so much more money than I have been the last few months and with losing one house to foreclosure that I have rented, finances will be much better to handle.

What effect will it have on my credit if I back out now?

Thanks.

[ja181]

I don't know for sure, but I believe once you filed it, that is on your record as having filed and you get the same credit effect even if you don't follow through, and won't be able to file again for 8 years. I would continue with it.

Re: guilt -- you're not hurting people by filing. Bankruptcy losses are built into todays system of credit. You're only mucking with a few insignificant numbers on a few bank computers.

I wouldn't worry about credit after either. Once you get your discharge, it won't take long to rebuild some credit.

Re: Mortgages -- A few years ago when I was rehabbing houses, a few buyers had recent chapter 7's on their credit (within 6 months) but were discharged and were able to get credit again, easier than before their bankruptcy.

Times have changed a little, but I wouldn't worry about it.

[tay666]

You've come this far, don't back out now.
Don't worry about your credit, it is probably already a mess.
You've already mentioned a foreclosure. I'm sure you have several late pays as well.
BK isn't going to hurt you much more than what you have now.
Yeah, you get the note for 10 years, but the way things are now, it isn't nearly as traumatic as it used to be.
If they denied everyone with a BK, they would run out of people to lend to.

[ja181]

Sometimes having a BK can help you get new credit, since you can't file again for so long.

Someone else posted info about the "bankruptcy score" -- kinda interesting -- I bet having already filed greatly improves this score maybe?

http://www.bankrate.com/finance/debt/do-you-know-your-bankruptcy-risk-score--1.aspx

[LizardTail]

Here are my recent FICO's

11/09 FICO - 735 - before credit cards unilaterally raised their limits and my payments
01/10 FICO - 545 - just before filing BK ~ I gave given up trying to keep up w/credit card pmts
06/10 FICO - 606 - ONE day after discharge

[Wrightshawn]

The fact that you filed already is going to remain on your credit report. The Meeting of Creditors is usually easy and straight-forward. Just relax and listen to your attorney beforehand; I am hoping that your attorney has prepared you already. I am finding that clients of mine can re-establish decent credit scores within 2 years after their discharge orders are issued. A client of mine recently got a 5.5 per cent interest, fixed-rate mortgage two and a half years after her Chapter 7 discharge order was issued. Take care and good luck.

[HOMEBODY]

Went to my meeting today and it was very very quick..hardly any questions.

I guess I am feeling much better since this meeting..no going back now and no bills to worry about.

[helpmeout]

I have my meeting tomorrow and I am seriously considering not going through. I know some days I feel its a good thing, but some days I feel so ashamed and dont want to have that black mark for 10 years and not able to have credit and buy another house. Also, I havent told my family or friends what I am doing.What effect will it have on my credit if I back out now?

Thanks.

There is nothing you can do now to stop the BK damaging your credit. It was done the day you filed. And will be on your record for as long as it would be if you go through with the BK.

Take the emotion out of this, because when you let your emotions make business decisions for you, the decisions usually aren't the best ones.

[Fallonedward]

I don't know for sure, but I believe once you filed it, that is on your record as having filed and you get the same credit effect even if you don't follow through, and won't be able to file again for 8 years. I would continue with it.

Re: guilt -- you're not hurting people by filing. Bankruptcy losses are built into todays system of credit. You're only mucking with a few insignificant numbers on a few bank computers.

I wouldn't worry about credit after either. Once you get your discharge, it won't take long to rebuild some credit.

Re: Mortgages -- A few years ago when I was rehabbing houses, a few buyers had recent chapter 7's on their credit (within 6 months) but were discharged and were able to get credit again, easier than before their bankruptcy.

Times have changed a little, but I wouldn't worry about it.

This is what our attorney told us, that it will appear on your record as you filed even if you decide not to go.

[Wrightshawn]

Went to my meeting today and it was very very quick..hardly any questions.

I guess I am feeling much better since this meeting..no going back now and no bills to worry about.

Homebody---glad to hear that you went through with your Meeting. The usual sentiment of bankruptcy filers is that the Meeting is easier than expected. Good luck on re-establishing your credit as well!

[lmaosm]

Clean start is the best way to go forward!!!!!!!!!!

[HHM]

Just go, the 341 meeting is the EASIEST part of the case (for the most part). You are essentially 90% done.