advice on bankruptcy

[abcdan]

Hi,

My wife and I are in debt of about 50K. Most of the debt is from credit cards, mostly in my wife's name. A bk lawyer recommended that my wife file for chapter 7.

What I am curious about, is what are the long term consequences of declaring bankruptcy? Does anyone have any regrets for any reason? Is it truly the magical fix-all that it appears to be? Does everyone have credit success stories afterwards, or has anyone run into snags or serious problems? How did it affect you emotionally?

Thanks,
Dan

[Rover]

Take some time to look through the various sections and sticky posts on this great forum and you will find that your questions have already been answered many times here.

[Cali]

I agree with Rover, read read read and you will be amazed at all you will learn on here.

Good luck!

[yoyoma51]

Although it is early (our Ch. 7 was discharged 2/29/08), our experience was generally good.

We found that with good planning, the negative consequences can be mostly offset.

It was really not anywhere near the "big deal" I thought it would be! (at least for us).

Planning is the key!!!

[millerc507]

Even though ours has been a big deal, make that a "huge" deal, I beleive that in the long run it is what was best for us. We struggled with the decision for months and ultimately realized we had no choice. How big of a deal it is depends upon several factors like if your assets have any complications, exemptions, and in our case--how good or bad your attorney is. In the long run we have no regrets even though we still are not discharged. Hopefully soon!

[Cassiopeia]

NO REGRETS; absolutely NONE.

I only wish I had done it sooner.

In the short term, I think, it may be hard to get credit. But most who have gone through BK wish to AVOID credit for the short-term anyway. In the long term I've seen nothing detrimental.

My life before BK was pure hell. Now I can breath easy and I'm much happier and healthier.

I highly recommend it to those who qualify and need to do something to alleviate their unmanageable debt.

FREE AT LAST!

[brokeinAZ]

thanks for sharing

[Flamingo]

Filing Bankruptcy does not bring with it the stigma it did in the past. In today's credit crazy society, we constantly hear of businesses and celebreties filing BK (think Donald Trump) and all is well. The rest of society views it as being a failure or an embarrassment and wants to keep it all hush hush even though it is public information and eventually could get out. But most family and friends know your situation and understand and will stick by you and help out. Everyone's situation is different; what does occur for everyone after filing is the long time that the BK is on one's credit report and can be a big stumbling block for future employment or credit. It can even go beyond that because if you apply for employment at a banking or financial institution, or apply for a higher executive ranking job, almost always you are asked if you have EVER filed bankruptcy. Since that information does not get removed from the public records, it can be checked. Otherwise, if you really need to file BK to get out of a huge financial mess and it is the only way out, then file. That is why bankruptcy is there - to give you a way out and to give you a fresh start.

[FreshLikeADaisy]

I'd like to add to what Flamingo said: it's true that a bk will stay on your credit report for years. But if you were hopelessly behind by the time you filed, like I was, you may well see that bk has the paradoxical effect of *raising* your credit scores. Many people who file bk find themselves eligible for credit again long before those who don't, depending on payment habits and history. But as she mentioned, the big hitch is whether you are employed in an industry where it would make a difference. Keep in mind that bk is not an absolute bar to working in banking, for example, just that it can make it much harder for you to get the job you want in that field. That's the only thing that bk can't fix and indeed makes worse, in my view. Everything else gets better with time and revised spending/saving habits after filing.

Anyway, those are just my thoughts. Good luck to you!!!