What should I expect?

[Batofpb]

I am considering BK. I have accrued about 150K in credit card and other installment debt and my income just declined rapidly by about 80%. I guess what I'm wondering is, what should I expect as far as impact to my daily life. I am worried that there will be embarrassment and shame, but I guess nobody will know I've BK'd unless they really go looking. Anything notable that people have experienced once they were in BK or discharged?

Also, I have not gone derog on any lines of credit yet. I don't plan to until we really decide to commit to a BK. Will a BK get approved if you are still current on all your credit lines but your income has been hit so drastically?

If I go finance a new piece of furniture or car right now, and then BK in 3-6 months, will that mess up the filing?

[justbroke]

Welcome to BKForum.

Anything notable that people have experienced once they were in BK or discharged?

The only thing is that some credit will be out of reach for some time. Other than that, the effect of bankruptcy will depend on whether you file Chapter 7 or Chapter 13. Chapter 13 can last 3-5 years and can put you in a tight budget. Though certainly challenging, a Chapter 13 will teach you to live within a strict budget. I did it over a 5 year period. It wasn't easy, but it taught me to budget and not use credit as a crutch.

Will a BK get approved if you are still current on all your credit lines but your income has been hit so drastically?

Bankruptcy is about insolvency which is not related to whether your credit is in shambles. Insolvency means that you owe more than your net worth. I don't even think bankruptcy is technically restricted to insolvency.

If I go finance a new piece of furniture or car right now, and then BK in 3-6 months, will that mess up the filing?

I would say that if you're going to be in a bankruptcy soon, definitely make sure you get a good vehicle that will last. If you're going to be in a Chapter 13 then definitely try to get a good (newer or new) vehicle so that it will last the entire length of the Chapter 13. Once you file, even if a Chapter 7, your credit is going to take a major dip and interest rates are going to be very high. As for furniture... only if you truly have a need for it (not a desire). Don't mess up your budget because the bankruptcy isn't going to fix the issue of affordability.