Golf from Tx

[golfgolf]

Hello everyone. I retained a bankruptcy lawyer yesterday to begin the ch 7 process. I am now having second thoughts. I have been trying to educate myself on the pros/cons of filing and have decided to talk to individuals who have gone through it. That is why I am here.

How do I know if I am doing the right thing for my future?

[HeatherB]

more info

We kinda need more info from you first. How far in debt are you? What kind of bills are you behind on (if any)? Do you see yourself being able to pay your bills in the future? Have you come to a point in your life that you know you "have" to change things? What are the reasons you thought about filing to begin with? What are your concerns/worries?

Pretty much, filing bankruptcy is a very personal decision and it isn't always the best for some people.

So, if you ask more specific questions/concerns about your situation and fill us in more about the "who/what/why" then you'll get better responses.

[JollyGG]

Take all of your income from every source and add it up.
Then add up all of your everyday bills - utilities, gas, groceries, rent/mortgage. Be sure to include every single necessity you can think of - insurance, tags for the cars, ect.
Now figure out how much money you should be putting aside for home repairs, car repairs, gifts, ect. Look at your averages for the last year to get an idea.
Subtract the two catagories of expenses from your total income. Do not include unsecured debt payments here.
Is there anything left? If no, you really don't have an choice, you need to file.

If yes, there is money left? How much?
Now take all of your unsecured debt and total it up. How large of payments would you have to make to pay it all off in a resonable period of time. Five years is a good goal.
Is the money left after paying all of your neccessary expenses enough that you will ever pay off your debt. If the answer is no you need to file. If the answer is yes you need to work on budgetting and controlling your spending. If the answer is somewhat gray you may be a canidate for working some sort of payment plan out with your creditors or consumer credit counseling.

[golfgolf]

I have figured my take home income per month. I have also added up all my expenses not including my lines of credit and a debt consolidation loan. I am close to $1000 in the hole every month that I cannot hope to pay concerning the credit lines. I am wanting to make positive changes in my life and I have. Filing for BK is the last on my list. I seem to be at a turning point and just cannont effectively manage my debt due to overall amounts due. Losing credit does not concern me at this point because staying where I am financially will demolish it anyway. I just cannot see a way to keep up and break even and it is time to make a move.

What can I look forward moving forward.....

[Boscoe]

Go see a couple of bk attorneys and lay it all out for them....my guess is that you probably need to file.......

[golfgolf]

I retained a BK attorney yesterday but again have been having second thoughts. He suggested that I quit paying on my debt consolidation, 2 credit lines, credit card, and the mortgage on a investment home I have. I am renting at this time and waiting on my investment home to sell.

Is it ok to just continue to pay on the utilities and rent and basic expenses and forget the rest? I am responsible and feel bad about it.

[keepmine]

Is it ok to just continue to pay on the utilities and rent and basic expenses and forget the rest? I am responsible and feel bad about it

Just because you file for bk, does not mean you don't have ongoing expenses. Of course it's ok to keep the lights on, gas in the tank, rent and food.etc.
Paying on debt you will discharge in bk anyway is a waste of money.

[Granny]

I just cannot see a way to keep up and break even and it is time to make a move.

What can I look forward moving forward.....

The answer to that depends on which Chapter you file. The future is very different for each chapter.

Ch 13 has 5 years of payments, living on a shoe string budget before they feel the true joy of being debt free. But in those 5 years you have the opportunity to learn to live within your means, to evaluate every purchase as to necessity.

Ch 7, while not painless either, is over and done with relatively quickly compared to a Ch 13 but I question whether one truly has the opportunity to learn from their mistakes.

That being said, I fully understand that some of us here are not here because of our mistakes, but are here due to circumstances beyond our control, such as illness, divorce, job loss etc.

You indicated that you are in Texas. You could just walk away from your debt without the help of BK, but you will have to put up with the collection efforts and worthless judgments. BK will end all of the phone calls and harassment. Without bk, the negative stuff will stay on your credit for 7 years. With a ch 7, the bk filing will be there for 10 years, but you can start rebuilding credit right away and will be back in good standing within a couple of years if you do it right. If you were current on your payments when you file, you will get that score up quicker than most.

With a ch 13, it's only on your credit report for 7 years, 5 of which is while you are making payments. I've heard it's easier to rebuild with a Ch 13, but I don't know that for sure.

Remember, filing bk is a business decision. Take the emotions out of the picture and make a business decision that is in your best interest.

Good luck!

[golfgolf]

Thank you all for your time and considerations. I will continue to use this site to have questions answered and concerns lessened.

[SinkingFast]

Deciding if BK is right for you is as individual as each person.

One way is to take the amount of your Dischargeable debt and compare it to your annual income. If you owe 2x or more than what you earn, then BK is probably a viable option.

Another way is to look at the payback time frame of your Dischargeable debts. If you can live decently well and pay off your debts within a reasonable time frame, say 5 years, then BK may not be a viable option for you.

Be sure to consider all factors while making this decision. Health, job stability, insurance or lack thereof, etc.

If you have an on going medical condition and no insurance, you may wanna wait as long as absolutely possible to file. Especially if you qualify for Ch 7. BK can only be used once and then you're done for 8 years. You'll want to be able to include as many debts as possible when you do file.

[JRScott]

I am a person that was raised to pay what I owe. I belong to a church that discourages debt and bankruptcy. I struggled long and hard for 2 years trying to get my head above water. It was the hardest 2 years I've ever had. My physical and mental health suffered greatly.

This year I had enough. After some prayer and consultation I decided this was the path forward. It was the only way to get myself on a better road. Given my debt and income there was just no other way out with my ongoing medical troubles as well.

I was nervous during the process. We all are. It is natural to wonder if we did the right thing.

If we were able to pay our debts we would have. I understand the dilemma in your soul for I struggled with it a long time.

I have found though since filing renewed hope. I have found a peace long since forgotten.

I hope your path will bring you peace.

[golfgolf]

I am beginning to fill out the necessary paperwork required to file Ch 7. There is a lot of it and I am already feeling overwhelmed. I have a couple of quick questions.

1. What will become of the balance of my outstanding 401K loan?
2. Will my bank accounts and those of my children become frozen?
3. Will I have to give up my personal possesions?
4. I have an investment property that I remodeled (trying to flip) and it is up for sale. If it sells before I file do I get to keep the money earned?
5. I have business partner that invested half of the money needed to remodel this house, everything we agreed upon was verbal and there was no contract or paperwork. How do I protect his investment in this property? The property is in my name and not our companies.

[golfgolf]

Am I going to lose my mind during this Ch 7 experience? LOL

[golfgolf]

Is there a provider that can help in filling out all the necessary paperwork required before filing? I am just reviewing the documents now and it seems like it is going to take me some time to figure it all out. Also, it seems like I need to take a Debt Management class before I take all the necessary paperwork to my attorney. Is that correct?

Thanks everyone for your guidance.....I feel like I am walking around aimlessly.........

[lrprn]

Is there a provider that can help in filling out all the necessary paperwork required before filing? I am just reviewing the documents now and it seems like it is going to take me some time to figure it all out.

Just curious....why are you stressing over the filling out the forms if you have an attorney? That's what you are paying him/her to do for you.

Also, it seems like I need to take a Debt Management class before I take all the necessary paperwork to my attorney. Is that correct?

Actually it's a required credit counseling class before filing and a financial management class after you file but before your discharge.

Check here for required pre-filing credit counseling classes approved by your state - http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm . Don't wait too long to do the class. Some can return a certificate of completion very quickly, others can take up to 5 days to get something back to you. Your lawyer needs to have the certificate in hand to file with your forms - that's specifically stated in the current bk law.