Preparing and Deciding-Need Advice

[LadyInTheRed]

Actually, resolving your debt problem by filing BK will probably make it easier to get a security clearance than if you don't resolve the problem. Read my blog post on the issue.

There is a lot of misinformation out there about how BK will ruin your life forever. Plenty of bkforum members have come back several years after discharge to say how well they are doing and how much it has improved their life.

[Northstar]

That is certainly my hope. This is a chance to learn and make a brighter future. In regards to the autopay issue, I just called them and said I will be switching banks so I had to turn off autopay. This will actually be happening-the bank in my town is closing the local branch so I will need to find somewhere else. Glad I didn't have to make something up

[soscared123]

Northstar, from all that I have read, you are making the right decision. It's sort of a no brainer!
you're life is about to get so much simpler. Hang in there......it does get better!

[Northstar]

Hello again everyone! I will be able to pay the final installment of my legal fees by July 3. So excited and anxious to put this matter to bed. I set up Google Voice and it has been so helpful. Creditors call and leave messages. I received a call from a Chase Rep, stating that I should call them back and discuss the "options" available for my account. I have yet to return the call. Barclay's has sent me text messages with similar overtures. Out of curiosity I clicked the link in the message and logged on to my account. After a request to update my information, I quickly logged off and haven't looked back. At this point I am betweeen 10-55 days late on cc payments. By far, Citi, has been the most aggressive. I am only 10 days late and I get constant calls, and emails from them about my past due payment.

Otherwise, things are looking up. Fortunately, I have two job interviews next week for positions that have the potential to be much more lucrative. Additionally, my wife may soon be offered a great opportunity to work from home. Time is of the essence and I am glad to be close to filing. Obviously, I wish I wasn't in this predicament, but there is hope. I always pray for our compromised financial situation, and others in similar or worse positions. I am so grateful, and thankful to all of you who are so supportive and reassuring to others. Thanks so much!

[Northstar]

Update....

My case has been filed, the automatic stay is in place, and my 341 hearing is 9/3. My mortgage remains my biggest issue. Suntrust is HORRIBLE. The other issue is that I have been getting notices left in my door from lenders that I have no accounts with i.e. Bank of America(Or is it/was it Bank owned by America?) The letter referenced that a local representative from NCCI wants to contact me and verify my identity and ensure my security. This letter has been forwarded to my attorney. Otherwise, I wish the meeting was sooner, as I am anxious for it to happen. Still waiting for that new sweet job offer. I really appreciate this forum and everyone here.

[Northstar]

Another update....341 meeting is tomorrow(Wednesday 9/3). Super nervous, but hope all goes well! Need some positive reinforcement from others! Any advice that I haven't already read on here? Thanks!

[LadyInTheRed]

You've probably read it all: Don't forget your ID and SS card (or other evidence of your SSN) and anything else you have been told to bring. Get there early so you aren't late because of traffic or parking. Leave your cell phone in the car. Answer only the questions you are asked without offering any additional information. Tell the truth. Try to relax and get a good night's sleep. Everything will be fine. You'll be in a room full of people who (1) are going through the same thing as you or (2) are attorneys or the trustee who are human and do this every day. There may be a creditor or two, but they aren't likely there because of you. There are unlikely to be any mean monsters!

Good luck!

[Northstar]

Well the meeting went well. I was first up for the day. Trustee asked 10-15 questions with mostly yes or no answers. I was concerned he might probe about my wife who did not file but nothing out of left field in regards to the questioning. Glad it is over and thanks for all the support!

[LadyInTheRed]

Yey! Glad it went well!

My trustee didn't even mention my non-filing husband.

[Northstar]

It has been just over 1 year since my initial post. What a year it was! I've been lurking in here since, replying to a few threads, and reading most. I think it is so great that this forum exist to help others going through hard times, giving opinions and advice, in a mostly non-judgmental manner. I wanted to help others who might read this by going over some things I have learned this year. I filed in July 2014, 341 meeting was in September 2014, and the chapter 7 case was discharged in November 2014.

1) I wish I would have filed sooner! My situation was that, I would have not been able to ever pay my way out of the deep mountain of debt I incurred(Barring a financial windfall or huge increase in pay). When I finally met with my attorney in May 2014, I had amassed 45k in CC debt. It would have been wiser to not deplete my limited savings, and throw away my earnings after a lost cause. Thank God I didn't bleed through retirement savings though.
2) During the course of my case, my second mortgage was forgiven. Still not entirely sure why(I think it was a government settlement with Suntrust). Nevertheless, it wiped out 30k and it makes us nearly even, or slightly profitable, if we were to sell our house now.
3) Credit hasn't been a given, nor has it been that bad post bk. I have one credit card with a $600 limit(unsecured). I applied for an auto loan, but am having a hard time convincing myself that it is a need. One of our credit unions declined-saying I need a year after filing, and the other will finance us a tremendous rate with 10% down. I'm trying to manage credit wisely, while building up my score, and learning to live on cash. I'm also opening up a credit rebuilder loan just to have another item reporting positively on my credit report.
4) I am blessed to have found a better job. Much more fulfilling, better schedule, and boss!
5) I told no one that I filed. This was a personal business decision that in the long run made the most sense. I'm not proud I had to file, but some people assume things and judge, thus I didn't feel the need to let everyone know.
6) Bankruptcy was stressful, but not overly so. It was more stressful worrying about how I was going to pay everything back while providing for my family.
7) My attorney was good through the process and up to the 341 meeting, after that he was much harder to get in contact with, and seemed to have "checked out" regarding my case. Overall it was fine, and I'm not sure if this is the exception or the rule.
8) Unfortunately, student loans survive bk, but I'm working diligently to repay them.
9) We are hoping to be able to buy another home in a couple of years. We have some money already saved up, and my wife will be returning to the workforce soon.
10) It has been a challenge to not put purchases on plastic. Although, it was a great feeling this Christmas season to pay for everything up front, and not have to dread the January credit card statements as in years past.

In conclusion, I look at bankruptcy as what it is, a fresh start. It was a bump in the road. Did it have its negatives? Yes, but it also provided a great opportunity to start anew. Some things will be harder to do with this event on my record, and that's okay. In time, as I rebuild my credit score, and prove that I'm capable of managing credit and my finances, things will improve. All the best to others considering their options, I and others here, no what it's like.

[brokehmowner]

Excellent post Northstar! We also had our 2nd forgiven, after our case was discharged. We had resolved that if the 2nd decided to take our chances with the 2nd, because even the 1st mortgage was underwater. We decided to "stay and pay". Soon after our discharge, and just before Christmas of 2013, we received notice of the 2nd loan forgiveness. Merry Christmas to us!

We also got a credit card with a $3k limit (Capital One), but the interest rate is 24%! Needless to say, we pay it off every month. We spent quite a bit this Christmas on the credit card. We have really been living way under our means since our discharge in 2013, and we decided to splurge for this Christmas. The difference -- we actually have the money in savings to pay it off. We waited till near the end of the season to do most of our shopping, so we only had to pay a small amount on January's bill, and the big payment will be February. But as I said, we already have the money in savings to pay it off. We have resolved to never again pay interest on anything other than our house. We are saving to pay cash when we need another car (ours are 6 and 7 years old respectively and in tiptop shape).