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newbie here, "official" intro and some thoughts...(long)

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    newbie here, "official" intro and some thoughts...(long)

    Hi, just thought I'd officially introduce myself here...my code name is applecake because it's fall and that's one of my fav desserts of the season. Even though apples are barely affordable anymore!!!!! Darn economy.

    All this BK stuff is overwhelming and online is pretty much the only place I can really "talk" about it right now...Does anyone mind if I just kind of get this out in writing? I'd love to hear from those who can relate.

    We have made the decision to file ch 7. Our income is about half of the limit, so we're good there. Between credit cards, a rental property, personal loans and one $%^%$#@ collateralized loan against the paid-off car, we will be unloading about $95K. (We make $40K/year before taxes.) This is largely due to our failed business, which we had to close this summer. Our heads were barely above water before the business went under, but now it's just like, file BK or drown. So we are filing. We talked to a couple lawyers and found one that we will be going with. But we haven't retained him yet or anything; we're in the process of gathering all the paperwork and that stuff.

    We have to wait till after the holidays to file because of that stupid loan that we took out just last month, using the paid-off car as collateral. We borrowed it out of desperation; leftover "business stuff" that we thought we had time on, then we almost got sued unless we came up with cash right away. Anyway, we can't very well turn around and file before we even make a payment. Even though we honestly didn't have a thought of BK in our heads at this time last month. Truly this is not fraud, but of course it would look that way. Our lawyer advised us to make about 2-3 payments towards this particular loan and then stop paying, and file. Makes sense to me.

    For all other of our debts that we're getting discharged (or surrendering), we were advised to not pay anymore on them because it's like throwing money down the drain. I agree, so we've stopped paying on the credit cards and even the rental house (in which there are no tenants). We're going to let it go into foreclosure, but before the whole thing is done we will have filed BK. I have to say, this feels really strange. For YEARS - 5 or so - we have struggled to pay our debts. We have struggled mightily to keep the rental house paid up, kept up, rented, etc. It has been pinning us down and we thought we'd never get out from under it - BK was never even a thought, not an option to us, until now. Now all of the sudden we are purposely not paying on them because we know we are filing...it is just surreal. Freeing, definitely, but such a shift in thinking for me. I'm the "money lady" of our household - I do all the bills and make sure everything gets taken care of in the financial dept.

    I'm not telling any of our creditors that we're filing until we actually do. I'm just not quite sure how to handle the phone calls until then. I did break down and get caller ID, which is helpful. But, should I at least answer? Pretend like I'm trying to pay but just am having trouble? (Which would be the truth if we weren't planning to file) Let the machine take all the calls and just ignore them?

    That collateralized loan is a little tricky because it's with Citi Financial, and we have two other debts with them that we have stopped paying on (that will be either surrendered or discharged in the BK). So we're making payments to one account only with them. anyway, we're planning on surrendering the collateralized car and buying another one with the cash from our tax return when we get it. That's what our lawyer advised. I think that makes a ton of sense.

    We were already working towards a cash-only lifestyle. We had the credit cards cut up long ago and were just paying on them. Our mortgage payment is very reasonable. I actually think that this BK will force us to live in a very disciplined manner - even more so because we know that credit will DEFINITELY not be an option for us for a while. Ultimately, we wanted to eliminate it from our lives anyway. I'm not saying this is a fabulous situation to be in. I do understand that BK is serious and it took a long time for me to even be able to consider it as even a remote possibility. But I have to say, it is our lifeline right now and I'm so thankful for the last-resort option that at least we have.

    Well I guess that's all my thoughts for now. I'm so glad this forum is here. Hopefully I'll hear some responses. It's nice to know we're not alone in this.
    Visit my blog and say hi!
    http://apple-afreshstart.blogspot.com

    #2
    Welcome to the Forum!

    There's lots of help available here, which you'll see as you get going. I'm glad to see you'll get an attorney. It can be *very* helpful, especially if there are business issues, as this can make things a little more complex. (Not worse, just more issues to cover.)

    It sounds like the attorney has you on the right timetable with regard to the loan. That makes sense.

    I agree with not telling the creditors about the BK until you actually file. And as far as the phone calls go, I would invest in an answering machine. If you're not able to make a payment, what else is there for you to talk to them about?

    BK is serious and requires some planning, but it also offers those who are willing to take control of their future (and it sounds like you are!) an opportunity to come out from under huge, over-burdening debt and have a fresh start.

    So, welcome! Enjoy the search feature and post your questions as you go through the process.

    Dude, seriously, see an attorney.

    Comment


      #3
      Hello and welcome

      My situation was very close to yours. The not paying credit and getting to pay bills is a relief! We also struggled for years with our biz before coming to the same conclusion.

      Though surreal (I can relate!) it was absolutely a life saving action for us when filing BK. I can actually see a future for my family

      As far as the waiting time, I got an answering machine. I let them serve me judgements. I learned and studied here and other places so I was much calmer about it all. And when I wasn't... these guys calmed me down

      Just hand it all over to the atty as you get letters etc! And I was able to pay the atty and get some much needed health for my kids.
      Filed C7 Aug 31 2008
      341 Oct 8 2008
      Discharged Dec 9 2008

      Comment


        #4
        Hi Applecake and welcome to this board,

        I live in "apple country", so apples aren't expensive here (yet). We pay about $5 bag and get to frolic through the different apple trees...I pretty sick of everything apple...now if the price of the other fruit was cheaper, I'd be a happy camper
        I think the hardest decision is the decision to file. It sounds like you have a good attorney and are on the right track now. I know how you feel, I NEVER thought (as most of us on this board) that I would be considering filing BK, but we have and that's why we are here. I know it feels weird to stop paying the credit cards, but concentrate on living on a cash-only basis (it will feel great) and try to save for an emergency fund because no credit will be available for awhile.
        If you don't want to tell your creditors that you are filing BK, fine, but I would at least pick up the phone and talk to them because you don't want them trying to hunt you down by calling work or your family and neighbors! They will if they can't get hold of you! Don't make ANY PROMISES to pay, tell them that you are 'working on it' and that you are having a hard time right now, but will call them when your situation changes.

        Good Luck!!
        May 2008 Hired 1st Attorney/Stopped paying CCs
        May 21, 2009 Retained 2nd Attorney
        May 28th - Filed for Ch 7 (FINALLY!)
        9/11/09 - DISCHARGED!!!!

        Comment

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