Why Are/Have You Filed BK?

[cj0203]

Well we are mostly filing because of CC debt. We were doing OK until spring 2007 when I had to have surgery and we had horrible insurance (that we paid over $600/mo for in the first place...) We have been digging a hole in the bills, but we bought a new house shortly before my medical issues and the costs associated are higher than we expected so we started putting things on the credit cards, like Oil and Propane. Then the circle started. Pay the CCs then use them for groceries and gas. We even borrowed from my mom, which I never thought I would do. Then last week the used car we bought for $5k last May died, with $6500 repair cost. We can't afford to fix it. So now we have over $30K in debt that is killing us, some of it for a dead car we can't do anything with. We met with a lawyer and we are going to discharge the CCs, the dead car, and the medical bills. The car was the last straw. We just looked at each other and said "that's it, we have no choice now." We will never dig out of this hole without some help. Yeah I know it goes on your credit for 10yrs, but we'll be vigilant about rebuilding right away. We'll reaffirm the house and other car, and start fresh on everything else. We have a 19m old and another one due in April. We can't live like this anymore.

[NightShade]

Our downward spiral was years in the making .. We used credit cards to pay doctor bills, med's. etc., then DH landed in the hospital with a blood clot, which meant more debt, the final turn of the screw is when we relocated with DH's job and the company was supposed to buy our home via a relocation company, we had left the one state and arrived in our current when we were told that the relocation company had brought in their own appraisers and inspectors and they assessed our home for nearly 25 K less than what it had a appraised for a year earlier with a FHA appraiser and the inspector they had said we had foundation damage when it was found perfectly fine a year before with the FHA inspector, needless to say my DH's company said they would not buy the house so that left us in another state already paying rent and living expenses and we could not afford to pay the house payment in the other state. The company tip toed away from the problem and we were stuck having to go through a foreclosure. So that is our tale of woe, but it has been a learning experience. Our new motto ... "Owe no man but love".

[6ftladycop]

I like that motto. Hey, are you guys stil paying two locations?

[NightShade]

It's actually a short version of a verse in the Bible that I say to myself constantly now.
No, we are not paying in two states, we lost the house in our former state and filed in our current one. We just found out we will be moving yet again later this yr. so its a relief that all this will be done and over with before that.

[TabulaRasa]

Poor financial planning on my part, plus college, plus a recent divorce, but mostly being irresponsible and living outside my means for too long.

[mamatyson74]

For us it was alot of things happening at the worst time of our lives. Back in 2000 We had our first home built and at the time we could afford it easily. We were both working and making good until my husband decided to change his job. At first things were ok, but commision isnt always good. He made good per hour but wasnt getting the hours. I was having a hard time during my 3rd pregnancy and was put on maternity leave earlier then expected. 12 weeks of no pay was not something we could afford if hubby wasnt making it! Things started going downhill and we were about to lose our only vehicle. After our baby was born our second car died, beyond reasonable repair so that left me at home and couldnt return to work. We filed chapter 13 and started to see a light at the end of the tunnel. That was until my husband made his boss mad..... my husbad was trying hard to atleast make 40 hours a week of commission work but others were making 60+ hours and he was getting 20-30. Trustee payments were getting behind and we were losing everything AGAIN......this time there was no way out so we had to let everything go. We had only been in our house for a little over a year and we were moving out. The bank sold it and got what we owed them. I called the company that had our vehicle loan and gave them our forwarding address so if we owed them anything they could contact us. After all this time I didnt know what was going on. I never thought to pull our reports, actually I was afraid. In the summer of 2006 I went on our banking website to check our balance and we were negative 8,000!! I freaked out and called the bank. After talking to 3 different people they told me we were garnished from jaguar credit. No, we didnt have a jaguar, thats the company name LOL I contacted them and they said they want 8,000 now and they will not lift the garnishment unless we send them the money. OK sure, let me pull it out of my magic hat........They didnt give a care that I was the one that contacted them years ago for them to let us know if we owed them anything. If they would have we could have made payments but nooooo thats not how they work. After crying and fussing at eachother all evening we contacted an attorney. Within 2 days we were able to get our money back into our account. At the time of our bankruptcy we were doing ok, we had debt that was under control but in no way did we have the means to fork over 8,000 :-(
So long story short, we originally filed a 13, lost jobs, no money, trustee was mad, it was dismissed.....years later we are haunted with our past and file a 7
So thats my story........... and Im sticking to it

[lovescats1956]

My husband lost his job in 2001. We refinanced our home a couple of times just to keep our heads above water. The last time, we got an ARM and was told "no problem - just refinance before it adjusts." We needed lots of work on our house so I took out a home equity loan. Chase Bank over-appraised our property so I ended up owing more than the house was worth. Therefore, when I tried to refinance out of the ARM I couldn't. We lost our home to foreclosure so I filed Chapter 13 to protect us from the mortgage company. It's been a roller coaster ride (and not a fun one at that).

[Dante]

Overwhelmed and Just So Tired

My soon to be ex cut me off in September of last year because he could not find a job. The last time I spoke to him was in January - after that he changed the number on his cell again. He abandoned me 4 years ago for a woman he met in an online chatroom. I know where he lives incredibly only 4 miles down the road. I won't even bother going over there. The very last time I saw him, it looks like he didn't lack for food.

Got briefly back together with my ex-husband #1, we were to make a go of it again, for two months he paid my rent, my utilities, and food. It helped alot and I was very grateful, little did I know he was going to bail because he couldn't afford to take care of me after all. He still lives at home and he's 52. BTW I never asked for his help.

I am on disability and now there is no other income coming in. I have so far borrowed money from 7 payday advance companies. I'm selling as much as I can on ebay. The washer and dryer the former fiancee' bought for me in November need to go up for sale to pay for January's rent.

I've also been using his cc as he did gave me the numbers to buy what I needed before we broke up. I'm ashamed to say I have been still using one well...for food for my pets and myself. He knows my situation...where is the compassion? He knows I am so desperate.

I am backed up into a corner now and cry every single day with my stomach in knots. I had to use the cc again tonight so there could be food in the house. I'm waiting for the store to call and say declined cc. Then what do I do? My animals are literally out of food. I may have to find another payday advance company.

My disability check is coming in next week. I must close out my checking account and then file for bankruptcy before the payday advance companies start putting through the post dated checks. I need all of that money to pay bills because I am now on my own.

My truck has expired tags and no insurance. Filing Chapter 7 will let me get up to date on the truck. It's pretty bad always having to look in the rear view mirror and pray you don't get caught.

I'm at a loss and this is the only solution for me. I don't know where to start in filing or how to proceed with the checking account and and and....that's why I did a search tonight for this type of forum.

Thanks for the ear and cross your fingers that cc goes through.

I just want to breathe again.

D.

[triednotto]

Why?

VERY LONG--But ity is our BK story....My family and I have personally experienced a loss of 40K in income due to jobs being taken out of the country. In order to save my pension I was forced to relocate several states away. I was only given a 3-week notice to move.

I ended up not selling my home even though I tried for 1 1/2 years. Other property in the neighborhood foreclosed and the hard hit neighborhood declined further. I attempted to work out a short sell; my lender would not return calls, or said they had not had a chance to review the file. The investor also repeatedly mailed, and phoned and was given the same response. I tried to get a deferment of payment and was even told no.

We attempted for 5 months to get some response to the offer and was told for the last time they had not reviewed my file. One week later I was sent a notice foreclosure was beginning. Fraud may not be the case with the lender but they certainly did not try in good faith to work out an arrangement. I phoned them even before I was 1 month late to work out some kind of arrangement and was never assisted.

I went to an attorney and was advised that bankruptcy was the only available option I really had. I make above the median income, so had to file ch. 13. The problem I encoutered is the way the new law determines your income. My company paid me money to assist with moving. A one time event; I also received a bonus when the UAW signed the contract this summer, in addition I worked a considerable amount of overtime the last part of the year. The end result was the courts show me making $15,000 MORE then my actual W-2's for the year reported(yes that included the one time payments).

Now the problem occurs that I make to much to file ch 7 but not enough to afford the payments that I can supposedly make. I am actually in the whole by almost $1400 and if I do not get to work overtime I am severly short. I have to try to find another job that will not conflict with my main job, and never know when I am going to be required to work overtime. If I worked a normal shift it would not be a problem but I leave for work at 3:30 in the afternoon and if work over I get home between 3;30-4 AM. I have to sleep sometime. I also am required to work some weekends and do not ever really know what my schedule will actually be since they change dates so often. So the law has put me in an awkward position.


I would never have filed bankruptcy if it had not been the Mortgage co was foreclosing and trying to get a deficeincy judgement that I just can not afford to pay. But to add insult to injury the mortgage co has contested me just "giving" the home back and are getting the forclosure plus a deficiency judgement even though they have no idea when the house will sell. So that means it could take another year to sell, I am supposedly liable for upkeep, although they did not give me the money in my budget to upkeep as our attorney said do not worry or include funds for the house your giving back! There is over 3 acers there and in a few months grass will be growing.

The bankruptcy has also put an additional hardship as I am paying back my debts but I have a vehicle I pay 0% on. With the bankruptcy I have to pay 8% and then the 10% trustee fee on every payment! Actually giving the creditor more money then the contract they had signed with me! I was not allowed to continue to even pay on my own, and had to pay through the trustee. This is the case with a few creditors.

The way the law has been written is hurting the middle class in a major way. It is ironic that I do contribute a considerable amount of taxes each year that is used to help people in need; but when I am in need I am almost crippled. I used all my saivngs and ended up borrowing against my retirement hoping and praying the home would sell. If I was trying to abuse the bankruptcy law I would never have borrowed against my retirement. I also supported my parents and paid for burials, and had added expenses commuting 3 states away every weekend I did not work to be with my father (he was diagnosed with terminal throat cancer 3 weeks after I was transfered-my mother passed away prior to this) So this also contributed to my financial stresses.

I was forced to live on credit to survive. I do not regret taking care of my family and if in the same situation of getting food, medical ect...I would charge it again. I have always had good credit and always paid my bills when due...Life just happend and I did what I had to do to survive. It was not like my family was excesive or splurging...my wife did not get her nails done, we did not go to buy name brand clothing or splurge on luxeries.

Just because there are some who repeatedly file or abuse the system should not prevent those who are in situations they have done everything to avoid to be prevented from getting the relief and help they need. It is also interesting, what started my journey into this mess was because my employer was allowed to file bankruptcy and also told us we were going to take 50-75% wage cuts. Yet they paid the top executives Millions of dollars in bonuses-for taking the company into bankruptcy at the time they were filing.

[Penny Less]

I was a website programmer with a pretty good job in Los Angeles. But the cost of living was high and my boss wouldn't spring for health insurance since it was a small company. I got private insurance and started putting the payments on credit cards. But all was well and I was making enough to pay down some of the cards.

I got tired of living in LA - the smog was disgusting - so I decided to move back home last year to be closer to my family and work online. Things were going well until I started having trouble breathing and was eventually diagnosed with asthma. Even with my $300 a month private insurance I had to put copayments for the inhalers, office visits and xrays on credit cards etc.

Things started snowballing over a year and December was the beginning of the end. Thanksgiving and Christmas are slow periods for me and I didn't have enough savings and used more cards to pay basic expenses. My health insurance payments went up, and then I got hit with a flu and was too sick to manage anything.

I will probably use my tax refund and stimulus check for the attorney fees heh.

[MotherTrucker]

Hubby got laid off and the IRS came a'knockin...

We filed Ch. 13 because my husband got laid off from his computer job back in '01 and we couldn't pay off the credit cards, and still hold onto our home and put food on the table. We really should have filed Ch. 7 back when things were really bad, but we couldn't afford it. Man, I wish I'd known about this website then, I'm sure a helpful soul would have given us advice on how to pay for it!

THEN the IRS came and sucked all the light from the world...

LOL

So when hubby got back into his career field, we decided it was time to clean up our mess and get our "fresh start". It's been an eye opener, to say the least! But not all bad...

[rickisbroke]

Excessive credit card debt led me to bankruptcy.
I was living above my means. When my girlfriend (who was pitching in about $400 a month for bills etc) moved out, I tried going it on my own for a while. I would charge utility bills, gas, groceries, whatever I needed. I bought a $3500 motorcycle with a credit card check...put over $1000 into repairs and upgrades, then sold it the next year for $3000. I did send that money to that credit card to pay it down.
Other than that, I got into about $48k of debt over little things, going out to dinner, and paying bills etc. I don't have squat to show for it. It took about 7 years for it to get this bad. I filed Chapter 13 when I was at my old job in November. That failed because I couldn't afford to make the plan payments with my new job and salary.
I guess that was a blessing, though, because I qualified for a Chapter 7 now and things are looking good.

[PoorGrammyinBK7]

Business closed years ago. Personal guaranty became judgment. Very little credit card debt. Current on everything else mtg, cars etc.

[laurannm]

For us it was nothing more than bad money management. Lived way above our means for way too long, always thinking that eventually we'll get ahead and turning a blind eye to our financial problems. Eventually it all came to a crashing halt as the harsh reality of being $1700 in the hole every month finally caught up to us. But none the less, we are looking forward to whatever Ch we end up with knowing that there is finally a way out that will help us provide a better future for our kids and a life-long lesson in financial responsibility.

[peanut514]

Please take a moment to participate in this non-scientific controlled study.

We have decided to file due to so much debt, less overtime @ work, and honestly GAS and FOOD has doubled for us in the past year! Gas is costing nearly 1k a month for just 1 of us to go to and from work.