Filing soon and freaking out

[blackitalian]

Im planning on filing chapter 7 and Ive got to admit im pretty scared about it. I never thought in a million years Id ever do this or get myself to this point. Im driving myself crazy thinking this is going to be horrible and that my life is going to be very hard after this. I dont know what to expect and thats what scares me. Am I worrying for no reason or is it that bad?

[BobMango]

Generally speaking the time before filing is really the most emotionally draining. Most folks sail through the 341 meeting and can't believe how much they stressed over nothing. That being said, there is always the possibility for complications, but provided you have a decent attorney and are honest about disclosing everything it really is a non event. In my case, I wish I had filed sooner and preserved more of my assets.

I filed in Washington using the Federal exemptions. I did have several thousand dollars of cattle that I couldn't exempt but the trustee decided he didn't want to house and feed them so he abandoned them and that was that. I reaffirmed my truck loan because the credit union was willing to lower my payment if I did and I have lots of equity in the vehicle. So basically all of the things I worried about turned out to be non events. Transitioning to all cash was less painful than I expected.

Here I am 3+ years post BK, new job, relocated and just purchased a new house. It wasn't all rainbows and unicorns, but life is definitely better now. Just follow the process and don't worry about things you have no control over. Good luck!

[Blossoms]

Im planning on filing chapter 7 and Ive got to admit im pretty scared about it. I never thought in a million years Id ever do this or get myself to this point. Im driving myself crazy thinking this is going to be horrible and that my life is going to be very hard after this. I dont know what to expect and thats what scares me. Am I worrying for no reason or is it that bad?

No, it's really not so bad. My husband and I are in the midst of our second (and last, I hope) Chapter 7 bankruptcy. First one was in 2003. We never planned to file again, but multiple job layoffs for the two of us, plus high medical bills forced us into it.

This filing has been much harder, well, really more complicated, for us, largely due to all the bankruptcy changes, with the 2005 bankruptcy reform act. Our attorney thought we might possibly get forced into a Chapter 13, due to our income over the past 6 months before we filed, being above our state's median income, due both of us being employed, and my husband and I both working a lot of overtime. But I got laid off just before we filed, so our income going forward has dropped enormously. And also we are surrendering our only vehicle in the bankruptcy, so I am worried about trying to get another one, before the lender comes to repo this one. That has made this bankruptcy more stressful than our first one. When we did our 2003 bankruptcy, we had an old, paid off vehicle, so we didn't have to worry about trying to scramble to get a new one asap after the bankruptcy.

But overall, it's not as frightening as it seems. We had our 341 meeting last Thursday, and it lasted less than 10 minutes, and was relatively painless. I spent several hours the night before, gathered a pile of stuff we were told by the trustee/our attorney, to bring to the meeting - pay stubs, bank statements, etc., only to not be asked for any of it by the trustee. The only thing he asked us for was an ID/driver's license, and our Social Security cards. I had a printout of my Social Security number from the SS office, since I had lost my card years ago, and that was fine.

The only other thing he asked for was proof that my husband is no longer paying child support (for his son from a previous relationship). He was still paying it back when we filed in October, but it's ended since then, due to his son having turned 19, and the small arrearage balance he had being paid off. I had a copy of the termination notice from the CSEA saying that his child support case is closed, so I gave that to the trustee.

There was a lady ahead of my husband and I, at the 341, who got grilled a lot more than my husband and I did, and I think it was because of her attorney. He looked very young, and seemed inexperienced. The trustee mentioned quite a few mistakes the attorney had made on the lady's filing. The trustee also asked her for bank statements, whereas he didn't for us, and told her that her income tax refund next year is going to be taken to go towards her debts, if she gets a large refund again - I heard him say she had a $9,000 (!) income tax refund last year (due to her being a single mother of 4 kids).

My husband and I had to surrender our 2003 income tax refund (paid in 2004) during our first bankruptcy filing. But now we haven't gotten an income tax refund since 2010, and currently owe money to the IRS, so we won't be getting one next year, either. So there's not going to be a refund for the trustee to take. As long as you have a competent attorney, meet the Chapter 7 means test, and have and no signficant assets, your 341 meeting should be a breeze.

Now I'm just waiting for our discharge, and praying for a problem free one!

Good luck with your filing - try not to worry too much about it! I know so many people, personally, friends, acquaintances, etc., who have had to file for bankruptcy in recent years, due to job loss, medical bills, etc. it's nothing to be ashamed of. My only regrets about filing is that I didn't know about forums like this back in 2003, so I never reestablished my credit as well as I could have, back then.

[jleissler]

Im planning on filing chapter 7 and Ive got to admit im pretty scared about it. I never thought in a million years Id ever do this or get myself to this point. Im driving myself crazy thinking this is going to be horrible and that my life is going to be very hard after this. I dont know what to expect and thats what scares me. Am I worrying for no reason or is it that bad?

I was just like you last year when I had filed my Chapter 13. I'm switching to a 7 as Pro Se (moved to another state for work) and this time around, no stress, worries or jitters. Literally no creditors ever show up at the 341 or even file anything unless you pulled some serious fraudulent stuff. Try not to stress about it. Its really not as bad as people think it is.

It is possible to get credit cards, loans, etc after a 7. Depending on your score now and post discharge will really effect the rates. Most banks are more willing to work with someone with a discharge now since you can't file again for a very long time. Just a suggestion but also head on over to the MyFICO Forums and go to "Repairing Your Credit After a Bankruptcy". They have a ton of useful information and some guides. They also have information on what to do to fix up your credit report and how to handle some situations. Good Luck.

[Blossoms]

I was just like you last year when I had filed my Chapter 13. I'm switching to a 7 as Pro Se (moved to another state for work) and this time around, no stress, worries or jitters. Literally no creditors ever show up at the 341 or even file anything unless you pulled some serious fraudulent stuff. Try not to stress about it. Its really not as bad as people think it is.

It is possible to get credit cards, loans, etc after a 7. Depending on your score now and post discharge will really effect the rates. Most banks are more willing to work with someone with a discharge now since you can't file again for a very long time. Just a suggestion but also head on over to the MyFICO Forums and go to "Repairing Your Credit After a Bankruptcy". They have a ton of useful information and some guides. They also have information on what to do to fix up your credit report and how to handle some situations. Good Luck.

Good advice! Creditboards is another very good forum, for credit repair after bankruptcy, too.

[jleissler]

Good advice! Creditboards is another very good forum, for credit repair after bankruptcy, too.

I did a couple suggestions on the MyFICO boards and since filing my 13, I've seen a 45 pt increase in 19 months.

[Blossoms]

I did a couple suggestions on the MyFICO boards and since filing my 13, I've seen a 45 pt increase in 19 months.

Yep, the op will definitely want to make sure that all of his/her debts that are included in the bankruptcy are reporting correctly after discharge. I wasn't aware when I did my first bankruptcy, that I needed to do that. Then when my husband and I went to try to buy a car, we had a very difficult time, and got a higher interest rate than we should have. If we had known to get our credit reports cleaned up first, we'd have had done a lot better when we went car shopping.

[blackitalian]

Thank you guys! This forum has turned out to be really helpful and made me realize im not alone. I dont have any significant assets, pass the means test and have not used my credit cards. I guess its the fear of not knowing how the process works since this is my first time that has me freaking out. I appreciate everyones feedback

[Pjmax]

Keep reading as much as you can. For most of us 'worry-warts,' it turned out to be quite painless. It sure does help a ton to have the support system here at BKF. If you have to make a decision on something, and you're not sure which way to go, just come here and ask.

Your life should be better after this. No more harrassing creditors calling, no more fearing that walk to the mailbox.