No idea where to start, help?!! (Questions! lol)

[Priscillia]

I'm new to all of this, and have so many questions and concerns!

First, I have never had good credit. What little "credit" history I have is negative. It all started as soon as I turned 18 and opened a checking account, sadly I was very irresponsible, and have many regrets.

Over the years, I have been irresponsible and have also found myself in some desperate situations financially, and have had to let accounts go delinquent.

I am now learning more about credit, budget and finance - and planning to get my life straightened out! But, I have so much accumulated debt, mostly medical bills (but, not only), I can't get ahead! I can't purchase a home, can't purchase a car, can't even get one of those "easy to obtain" high interest credit cards to rebuild my credit! I need help!!

So, I have decided to file for chapter 7 bankruptcy, wipe the slate CLEAN and start over!!

I have some questions, and hopefully some of you who may have more experience can assist me. (Thanks in advance, by the way!)

◕ My first question - Where to begin? I know, it sounds silly. But, I have no idea what to do first!

◕ I was told by a relative, that I need to be 100% sure that I have a COMPLETE list of creditors, as if I leave anyone out, they will come back to get me later! It makes sense, but how do I do that? I am afraid I will forget someone and leave them out! =/

◕ Can I include utility bills? Will the utility (water, electric, etc) company shut off service, assuming I can even include them?

◕ If I include a debt owed to my bank, can they cancel my account, and not allow me to open an account with their bank? I am assuming YES, but please correct me if I am wrong! lol

◕ Can you include things like debts owed to a public library? As a silly teen, I allowed a friend to check out SEVERAL book on my library card, and she never returned them - leaving me responsible. Can this be included?

◕ Do I have to have an attorney for this process? How much can I expect the bankruptcy to cost?

◕ What do I need to do (step by step) before I file or contact an attorney?

ANY advice is MOST welcome!! Thanks SO much!!

(Located in Virginia, in case this matters)

[kartoons19]

Hi Priscillia, Welcome to the fourm. I'll try to answer some of your questions as best I can.

I'm new to all of this, and have so many questions and concerns!

So, I have decided to file for chapter 7 bankruptcy, wipe the slate CLEAN and start over!!

I have some questions, and hopefully some of you who may have more experience can assist me. (Thanks in advance, by the way!)

◕ My first question - Where to begin? I know, it sounds silly. But, I have no idea what to do first!

I would suggest gathering up your information - income, expenses, assets and creditor information and setting up some consultations with a few bk attorneys. These consultations are usually free. It is recommended to retain an attorney is only works on bks.

◕ I was told by a relative, that I need to be 100% sure that I have a COMPLETE list of creditors, as if I leave anyone out, they will come back to get me later! It makes sense, but how do I do that? I am afraid I will forget someone and leave them out! =/

One thing you can do is pull your credit report, this will list most of your creditors; however, certain creditors like medical companies will not show. I have heard that a bk will wipe out all of your unsecured debts regardless of whether you list them or not, but I'm not certain if this is correct. If someone comes after you once you filed, providing they are an unsecured creditor, then you can give them your case number. I didn't run into this situation, so I'm sure someone else will have more information on this.

◕ Can I include utility bills? Will the utility (water, electric, etc) company shut off service, assuming I can even include them?

Yes you can include utility bills. However, once you start up the service again, expect to have to pay a large deposit. A utility company (gas and electric) can not denied you service, but like I said, they will require a deposit.

◕ If I include a debt owed to my bank, can they cancel my account, and not allow me to open an account with their bank? I am assuming YES, but please correct me if I am wrong! lol

I would think that most banks will close the account. That happened to me. I would suggest opening a new account at another bank where you don't owe any money. It is best to do this before filing.

◕ Can you include things like debts owed to a public library? As a silly teen, I allowed a friend to check out SEVERAL book on my library card, and she never returned them - leaving me responsible. Can this be included?

I'm not sure about this, but I would think you could. Maybe someone else will have an answer.

◕ Do I have to have an attorney for this process? How much can I expect the bankruptcy to cost?

No, but unless you plan on doing a lot of reading, are very careful with your paperwork and have a simple case, it may be wise to use an attorney. The cost can vary greatly. I paid $1700 plus filing fees. My case was fairly simple, but I do have a side business. There are several books that can help you if you decide to file on your own. I would read the Pro Se section of this forum for more information about filing on your own.

◕ What do I need to do (step by step) before I file or contact an attorney?

As mentioned above, I would write out your income, expenses (just an approximation at this point), assets (house, car) and creditors and bring that to your attorney. I know there is a thread on this forum about what to bring to your first appointment. You just need to provide the attorney with enough information about your financial situation so they can determine if BK is for you and which chapter you would qualify for.

There is a lot of good information on this forum. I would suggest reading through some of the posts so that you can get familiar with the process.

I hope this helps. Good luck to you.

[tcreegan]

NOLO book

Hi Priscilla and welcome,

There is a book from an outfit called NOLO It is available online (www.nolo.com) or in bookstores. People on the forum highly recommend it. Kind of a "BK for Dummies" book.

Good for you getting your financial life in order !

Tom in Colo

[momofthree]

How much debt do you have in total? The tone of your post makes it sound as if you're filing bk to improve your credit rather than to get out from under debt payments.