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    My Updated Story

    It's been a long while, since October, that I posted anything lengthy, but I am going to do so now. I have finally filed, so I figure this is a good time for an update. I am going to give my background again, which I did back in October when I found this forum. I am so thankful for finding everyone here, too. I know others have said it, and I have said it, and I will say it again, but everyone here is great, and words cannot do this forum justice, so I will not try - at least not right now.

    I am one of 'those people' that quite literally has made every single payment on my credit cards since I was 18. I do not exagerate when I say that. Every last payment has been made and always on time. I have never been late. Not once time. Still, my credit card debt was massive, close to $50,000. A vast majority of that was from my early to mid-20s when I spent, obviously, quite a bit going to Italy, Greece, and other places. Add to that some large purchases, and, well, I think everyone gets the idea.

    Fast forward to late 20s, and I realized that I would be paying my debt back for the rest of my life. Even my parents recommended bankruptcy, and I can only guess how that made them feel. Nevertheless, I went on and made minimum payments every month for years. As a majority of us here, I had been living paycheck to paycheck for over a decade. Then September of 2010 something snapped in me. I took my car in for a regular servicing, expecting to simply use the debit card, and they come back saying I need all new brake pads. I did, of course; they were not lying. Some other stuff needed to be done, and that ran my total to over $600. At that exact moment I said to myself, "I'm done." Any progress I had made on any credit card was gone just like that. By 'progress' I mean nothing more than paying down a hundred dollars on one, twenty bucks on another, etc. Again, all of us know how that is.

    It killed me to even think of bankruptcy. I did not know much about it, only a little here and there. Oddly, and this was the strangest thing, a co-worker and I were talking a week later, and he said he went through chapter 7 about a year ago. To say I asked him a billion questions may be an understatement. He probably wanted to smack me after days of questioning. Around that time, I found this forum, and poured over what I could. Most of the stuff posted here agreed with what he was telling me. I decided it was time to find an attorney, and I am *BIG* on word of mouth, and I soon found out another co-worker went through chapter 7 a few months back. Both of them used the same attorney, one who focuses on bankruptcy, so I researched him, and I went in.

    Long story short, I went with him, and the first day I met with him, he, like everyone here, said to stop paying my credit cards immediatley. I would not be able to file for at least three months due to having just used the credit card for the car payment, groceries, etc. I also found out that day that I am below the median income for Florida, so I pass the means test automatically. Again, everything he said concured with what I had found out here. I was given a rather huge packet and asked to fill it all out, given a list of information needed (pay stubs, etc.), and was advised that my case would be extremely easy.

    About me: I'm not married, and I have no children. I rent an apartment, so I do not have a house or anything of the sort, and all of my debt is credit card debt. I do have a car loan through USAA, and I was advised to keep paying on that. I also have nothing that is of any real value. An older TV and computer, etc. And again, I'm below the median income.

    I won't go into detail on this, a search of my older posts will turn them up, but to say I was beyond nervous, scared, frightened, etc. to NOT make my first CC payment is a gross understatement. I was sick to my stomach. When that day came to make a payment, I nearly lost my dinner when the deadline came and left. The nerves were nearly destroying me. Looking back, I truly don't even think I slept that night. Attorney advised that the phone calls would start coming sooner or later and in most cases, probably sooner. I was advised to simply give them his name and number and volunteer nothing else.

    Sure enough, within a week BOA began to call. For over a month and a half, I was not able to speak to any of the callers. I ALWAYS got a message or was asked to hold, etc. I would not do this, so I decided to answer maybe once every few days. I know the calls bug a lot of people, but the phone ringing, for me, is not that annoying. Nevertheless, after quite some time, I finally had a real live person on the other end, and after giving them the information (name and number of the lawyer), the calls stopped completely. All of the callers were, oddly, extremely nice and not once argued or tried to get anything out of me.

    So late last month the final day came when I got the phone call to come in and sign the actual paperwork. I went in, and was quite surprised at how thick everything was. For those that do this on their own, and in much more complicated matters than I find myself in, my respect goes out to you. I read every single page and signed and dated where told to.

    They filed for me on the fourth of this month (so about a week ago), and I now have my case number. I have not even looked at Pacer as of yet, so I will probably do so tomorrow (as I type this, it's 3:00am my time). When I signed my paperwork, I was again told that my case is one of the easiest there can be, and there should be zero issues. I was advised that my meeting with the trustee should last around three to five minutes, so I sincerely hope that is true.

    I did ask him about my car. Told him I had continued to make my payments, and I did just make my payment right before I started this message. I was told that if they wish to reaffirm, they would contact his office. He asked who I had the loan with. I told him USAA, and he said he's never dealt with them before. To be blunt, the car issue is scary. I have one car, it's a 2004 Accord, and my loan is through the middle of next year. Is it possible I will wake up and the car will be gone? I would hope they would first call or do whatever else there is to do, but, again, that is very scary for me.

    Anyway, that's that. I'm told to now take my pre-discharge course online, so I'll get to that in a few days. I want to truly thank every single person here, especially those that helped me from my first post up until now. I know my situation is not nearly as awful as some others here, but this was all new to me, and it has been a struggle from time to time. However, I will say this: it's amazing to have money. I can actually see a movie every so often, go out to eat once every couple of weeks, I've purchased better food, and I even managed to take a day long trip to St. Augustine, something I had been wanting to do since I moved to Florida at the end of high school. I never managed to do so, but now I actually was able to do so and pay for it with no credit card, and I still have money. True, I am not rich, not by any means (as I said, I'm below the median income), but to actually not have to wonder if I will have money for tooth paste or something as simple as that is almost indescriable.

    So again, thank you to everyone here, and for those lurking, let me say this: it gets better. We're all here to help you, and when all is said and done for me, when all of this is over, I will still be around even if only to post messages of encouragement.

    With that, I'm off to bed... finally filed, a long journey since that $600 servicing on my car that truly was the beginning of all of this.
    Decided on Chapter 7: October 13, 2010; Retained Attorney: October 20, 2010; Filed Chapter 7: February 4, 2011; 341 Meeting: March 23, 2011; Discharged: May 24, 2011

    #2
    {{{{Pika}}}} I am so glad you have finally filed!!! Yay!

    Our car situation is somewhat similar - we are with USAA, too. I have an 06 Camry with only 20,000 miles on it and only owe 14 more payments at 4% interest. We decided to reaffirm it because it is worth more than we owe and I am a worrywart.

    Congrats again!! Sleep well, my forum friend...
    ~~ Filed Over Median Income Chapter 7: 12/17/2010 ~~ 341 Held: 1/12/2011 ~~ Discharged: 03/16/2011 ~~
    Not an attorney - just an opinionated woman.

    Comment


      #3
      Figures, right before bed I check the good old e-mail one last time, and I already have a response. Thank you so much for the kind words. Mind if I ask how it all went with USAA? Do they, in fact, contact the attorney or you directly? How did the reaffirmation work, if you don't mind going into a little detail? Did you have to show up in court or can the attorney take care of it? How quick were they to ask you to reaffirm? Wow, here I go with questions again.

      Really now, off to bed. Early day tomorrow. Again, thank you, ValleYum. Oddly, looking at your signature line I noticed you initially filed one day before my birthday.
      Decided on Chapter 7: October 13, 2010; Retained Attorney: October 20, 2010; Filed Chapter 7: February 4, 2011; 341 Meeting: March 23, 2011; Discharged: May 24, 2011

      Comment


        #4
        Thank you very much for sharing this. I have just started this process and am finding the info here immeasurably helpful. Like you I have always paid everything on time, have cc total at $55k, I worked seven days a week to pay everything. Last October I took my car in for proactive service and replaced the timing belt and more, and of course, put it on a card. I was thinking it would last another 100K miles, and I just loved my vehicle (a 2004 Kia Sorento, very well taken care of). Working seven days a week for a year and a half had me about numb, though, and I was always tired. I was just resigned to never doing much and never retiring. I am in my mid-late 50’s and can’t save anything. Then I rear ended a bigger vehicle and totaled my car. When people said to me, “Thank goodness you were not hurt!” I said, “Yeah.” But what I was thinking was it would have been better if I’d just been totaled too because there really wasn’t anything to look forward to but paying bills. Part of me felt (and still does) that I got myself here and deserve to pay for it, but when it got to the point I was half wishing a car accident had done me in I realized that I needed help. Like you, a co-worker shared she’d gone through BK7 and recommended an attorney. I met with him and have been in planning stages, though I have not defaulted on anything yet. My cc’s have not treated me badly, as some here have experienced. As a result I feel almost sick at the idea of not paying them – something you describe as well. I stopped the PT job the end of December, which will put me just under the median by June. I plan to file in July. Even though my attorney is very experienced and I am in good hands, I like to really know the details of how things work and have been doing a lot of investigating on my own to insure all goes well. I do have a mortgage (house is underwater), car loan, and a daughter in college, and I am just a hair under the median income so I have to be careful to do everything exactly right. Reading your story was truly helpful to me – thank you, again. Please continue to share as the process continues.

        Comment


          #5
          Ahhhh QT. I'm glad you were ok too. It's amazing where all the stress of trying to keep your head above water can put you emotionally.
          I saw the documentary "MAXED OUT" a bunch of years ago. Long before i was even close to being in this financial situation. Could not even fathom how someone could commit suicide because of CC debt.
          My eyes were opened pretty wide last yr. I'll be 60 in a few months and the beginning of last yr i found myself saying...What's the use!
          My BF (now my DH and sweetheart) helped me get my head on straight. And told me about him filing BK some 35 yrs ago and it wasn't a fate worse than death. That you can get thru it and be a better person, life is great and i can say i am glad i made the choice that i did.
          filed: 8/10 ...341:10/8/10 ... Discharged & Close: 12/9/10
          "Nothing is easy to the unwilling" Thomas Fuller

          Comment


            #6
            Whew. You know, I have been trying so hard to just stay calm, stay focussed, and get through this - after the accident I have felt almost numb, though not working seven days a week has been helping. I have not really allowed myself to feel much, other than terribly worried that there is some little thing I am not seeing that will blow me out of BK7 water. And guilt - I may not have been wise in handling money, though some of what put me here was circumstantial due to a poor choice in a relationship that ended two years ago, but I have been proud of having really good credit and paying the bills on time. But that pride will not do much for me down the road. I would not have it paid off by retirement age, and if any little thing came up - an illness, say - all my efforts will have been for almost nothing. Your post felt like a warm 'hug' and actually brought me to tears - good ones. Thank you.

            Comment


              #7
              Soo glad it was a warm hug.
              I sure felt the guilt too. like, every time my attorney met with me i was crying. (sorry to say, at my 341 too) I felt like i didn't deserve to be able to cry.
              QT, my profile pic has our wedding pic from nov.....He's my rock!!
              filed: 8/10 ...341:10/8/10 ... Discharged & Close: 12/9/10
              "Nothing is easy to the unwilling" Thomas Fuller

              Comment


                #8
                Hi Pikaroth, my wife and I are in the same boat, slightly older at 35 with two kids who are 4 1/2. 85k in cc's. We've never been late on anything, ever. We'd sent $2000 a month before the kids were born and $1600 since and, of course, had not made any kind of dent, needing to keep using the cards after sending all that money to them. We decided as of 2/1/11 to be done with it. We just had the credit reports done for the lawyer, score 750. There is something not right about that. Gave him all the paper work he asked for and I guess we are on our way.

                Good luck!

                Comment


                  #9
                  Thanks for all the replies, and I want to say thank you to everyone on their stories. They have helped me through this, too. I can only hope my story assists others, even if only a little bit. Some mentioned the word 'guilt,' and I felt that more than I can describe. I realized that I would not be able to ever repay my debt years ago, but as I said, I continued to pay because, to be blunt, I earned that debt. Again, then I had that car payment to get my brakes and such done, and the world came crashing down. jeep75 is dead on in saying that while you make the minimum payments, you then have to turn around a day or two later and use the same card to simply purchaes needed items. It's a never ending cycle and barring getting a job that would give me a massive raise, there is no way I can pay them back. The guilt was huge. Nevertheless, it has passed. When I thought about it, read posts here, and spoke to others, the guilt slowly vanished. I mean, the credit cards themselves basically went bankrupt a little while back as we all remember, so why should 'little 'ol me' feel bad about it. It's a business decision, is not against the law, and will allow me to live my life for the first time in over a decade.

                  As I said in my posting, the *only* thing I am now worried about is my car loan. I don't know much about reaffirming or how it works or what I need to do, but I will look into it, ask questions here, and of my attorney.

                  I wish all of us the best of luck, and it does get better. SilverQT, I also did not have a bad experience with the credit cards, even when I stopped paying them, once I finally spoke to them (it is hard to get them on the phone when they call you, if you can believe that!), they took my lawyer's info and number and that was that. No arguments or anything. On the other hand, I truly consider myself lucky in that I knew BK7 was the way to go, paid for the attorney immediately, and started the process. My heart goes out to others that have been forced to stop paying and some have done so for months if not years and still no BK in the near future. Probably a terrible feeling.

                  Again, thanks to everyone, and I fully intend to keep everyone here posted up through the 341 and beyond. Once I figure out this USAA issue, i'll be updating on that, too.
                  Decided on Chapter 7: October 13, 2010; Retained Attorney: October 20, 2010; Filed Chapter 7: February 4, 2011; 341 Meeting: March 23, 2011; Discharged: May 24, 2011

                  Comment


                    #10
                    Hi Pika, and Congrats on your filing! Once your BK papers are filed in the Court, you will be issued an Automatic Stay, which means that the phone calls will stop, and nobody can "come and just take" anything without requesting it from the U.S. Bankruptcy Court. You can begin to sleep better now! Do keep us posted as your case progresses!
                    Chapter 7 filed 10/8/10...341 Meeting 12/6/10....Discharged 2/16/2011....Case Closed! 3/1/2011

                    Comment


                      #11
                      Originally posted by pikaroth View Post
                      Figures, right before bed I check the good old e-mail one last time, and I already have a response. Thank you so much for the kind words. Mind if I ask how it all went with USAA? Do they, in fact, contact the attorney or you directly? How did the reaffirmation work, if you don't mind going into a little detail? Did you have to show up in court or can the attorney take care of it? How quick were they to ask you to reaffirm? Wow, here I go with questions again.

                      Really now, off to bed. Early day tomorrow. Again, thank you, ValleYum. Oddly, looking at your signature line I noticed you initially filed one day before my birthday.
                      USAA has a new company - NBS Default Services - that will contact your attorney due to the automatic stay. They sent the info about 10 days to 2 weeks before our 341. My family had said they would gladly help us financially to retain our cars so our attorney did not have a problem approving the reaffirmation.

                      I did call NBS Default Services - didn't give my name and asked what the policy was on not signing the reaffirmation agreement - she said their new policy is to repossess the vehicle, period, unless you sign. Of course, that could be their standardized answer, too. YMMV. Like I said though, with so few payments remaining on a car that is worth significantly more than we owe at a great interest rate and only 20k miles - it was a no brainer in our minds. The other vehicle an 06 pick-up has fewer payments and only 40k miles so we decided to reaffirm it, too. We think it was the smart thing to do since we certainly need vehicles and couldn't replace these for what we owe.

                      We did not sign the reaffirmation before or at our 341 because we wanted to wait and see if we got a POA from the UST since we were over median income before committing ourselves in case we landed in a 13. Since the attorney signed it, we did not have to appear before the judge.

                      Hope that helps you, pika!
                      ~~ Filed Over Median Income Chapter 7: 12/17/2010 ~~ 341 Held: 1/12/2011 ~~ Discharged: 03/16/2011 ~~
                      Not an attorney - just an opinionated woman.

                      Comment


                        #12
                        ValleYum - thank you so much for the information. I have a little over a year of payments left, and the car is basically at 100,000 miles now. I have heard nothing from my attorney about being contacted, but like you said, it may take a bit. Question about the reaffirmation - do you actually have to show up in court or how does that work? Do they just contact the attorney, send something to be signed, and that is that? As I said, I have continued to make payments this entire time and made a payment just yesterday. I won't even need help in maintaining my payments. Without all my CC debt, my car payments are no longer an issue.

                        Nevertheless, I'm now scared about this step. As I said, it's something I have not looked too much into, and what I have looked into, it seems I'll now have to go to court and all that. I hope that's not the case, but if it is, well... it is.
                        Decided on Chapter 7: October 13, 2010; Retained Attorney: October 20, 2010; Filed Chapter 7: February 4, 2011; 341 Meeting: March 23, 2011; Discharged: May 24, 2011

                        Comment


                          #13
                          No, no, no it is not scary at all. If you lawyer thinks you can afford your car payment (and your schedule J shows it) - he will sign the agreement and there is no court! Even if there is court, you just go and stand there... several folks have been to RA hearings and it is no biggie. Read BrokeinMD's post about their RA hearing experience!! I was trying to reassure you not make you worry more!
                          ~~ Filed Over Median Income Chapter 7: 12/17/2010 ~~ 341 Held: 1/12/2011 ~~ Discharged: 03/16/2011 ~~
                          Not an attorney - just an opinionated woman.

                          Comment


                            #14
                            Again, thank you for the very rapid response! While I am assuming my lawyer will contact me, I want to ask now, on the off chance he doesn't due to, perhaps, USAA not contacting him, would I then contact USAA or call him and have him do it? I may have come off at more scared than I am, but while I'm nervous, I am not nearly as upset as I was when, say, this all began. It just seems as though my car issue is my final thing to actually 'worry' about, if that makes any sense.

                            I also did some quick research, and I now have another question: my renter's insurance and auto insurance is through USAA. Will this change in any way? Some of the items I read online seem to say that once you go the BK route, USAA drops you like a brick in the water, but I sincerely hope this is not the case. I've been with USAA since, well, I don't even know the exact year, it's been quite some time.

                            This, though, leads me to ask something else that I found VERY odd last night but am just now putting two-and-two together. Most of the posts I read said that as soon as BK is filed, USAA shuts you out of their site for all but the most basic of functions. Like I said, I did make my payments last night (insurance and car loan), but when I logged in, it was NOT normal looking. My accounts did not even come up, and I literally had to look around the site and, how I would describe it, find a workaround to get to my accounts and make my payment. It eventually worked out, got confirmation numbers and all that, but I wonder if my BK had something to do with that.

                            So, fear not ValleYum, while I am a little nervous, I would not say I am outright scared. You, and everyone else, has been, and continues to be just outright awesome, and I cannot describe it any other way. My main concern now is keeping my car that, as I said, is close to 100,000 miles and has a little less than a year and a half before it should be all mine. I love the car, have taken outstanding care of it, and from what you have said, USAA should allow me to keep it.

                            And on a seperate topic: just made a PACER account but cannot log in yet. Gave me a password and everything, but I suppose it is not yet 'active.' I am continuing to try!
                            Decided on Chapter 7: October 13, 2010; Retained Attorney: October 20, 2010; Filed Chapter 7: February 4, 2011; 341 Meeting: March 23, 2011; Discharged: May 24, 2011

                            Comment


                              #15
                              Ok... here goes what I know:

                              Re: Car Reaffirmation

                              I have been a USAA member since 1988. I do understand about the worry. Trust.

                              But, if you checked the Reaffirm box on your BK Petition, I feel very confident that USAA's BK folks will be contacting your attorney. If they haven't by the time of your 341, then ask your attorney or you can call them. The only part about calling them is some companies get weird-ed out about talking to the debtor due to the automatic stay. The reaffirmation agreement we got from them is 10 pages long (LOL) and was fairly simple to fill out and sign. They didn't try to add any fees or change our terms or interest rate. We have never been late on the car payments so we didn't need to have them roll any past-due payments to the back of the loan or anything like that. You are the same, I am sure.

                              Re: Insurance

                              We have homeowners and both cars with USAA. Homeowners is paid thru August 2011. Our cars JUST expired and there is information on the USAA Mobile site with our new payment data for the 6 months beginning in March. So we weren't dropped. Our premium did go up - but only $25 over the 6 month period. From what I have read, you can keep what you had as of the day you filed BK but can't get a new policy - like renter's insurance for example. I don't know how they would handle any changes to a policy.

                              RE: Website for USAA

                              Now when I log to usaa.com in I get a message saying I have filed bankruptcy (LOL like I didn't know that?) and then it tells me to click here to continue - which then takes me to the USAA mobile website. It is so funny that there is a cellphone sized corner of my computer screen that I have to stare at to find what I am looking for. It is oddly organized - but once you have made payments there a month or 2 - it gets easier.

                              Re: Pacer

                              I used the sticky with the "Ultimate Pacer Guide". It is great just to check my status - then if the date changes on that screen - I spend the $$ to look at my docket report and see what has changed. I think it took me about 2 hours to be "live" and enter the site. I wonder if it being the weekend makes a difference? I do log into pacer from the local Bankruptcy Court website - I saved it to a bookmark. I promise it is really easy once you do get in there. One trick to remember, though, is you may have to initially look up your case by your SS #. The case number that the attorney's office gave me was different than the one they used in Pacer here.

                              Hang in there, my forum friend. We will all get through this together. I love that about this place - such caring and concern.
                              ~~ Filed Over Median Income Chapter 7: 12/17/2010 ~~ 341 Held: 1/12/2011 ~~ Discharged: 03/16/2011 ~~
                              Not an attorney - just an opinionated woman.

                              Comment

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