When to file

[Inthestorm]

It's me again...scaredy cat worry wart. WHEN should you file? Before you're behind on all your bills, when you're behind on some or when you've been harrassed for months and months??? What happens if you don't file? You get sued, right? So you go to jail when they can't squeeze enough blood out of the turnip?

You wouldn't know that I've already seen an attorney! But if the firm was, as they say a BK Mill, that's probably why I didn't get my answers. He seemed awfully rushed.

[fltoo]

Aw, please don't be scared. Read all the great advice here and you will get through it. You will not go to jail. If you file with the car payment in place and don't reaffirm, you can surrender the car later. No problem.

Try consulting with another BK attorney, also.

[Flowers]

Yes try another attorney.

Also what are your goals or personal agenda items. Get rid of everything? Keep the house? etc etc

A good attorney will explain these things to you.

[Inthestorm]

Everybody's been telling me you can get sued...even if you simply give back your house or auto and they sell it for less, then they sue you for the difference!

We will have to file business AND personal. BIG SHOCK! That means keeping tools, work truck, office equipment to continue business, then do I get any exemptions after that????????????????? I want to keep my three horses (my life) and my truck and small trailer (need it for them) but I'm terrified of losing the house (biggest expense) because I may not find suitable rental with horse space. I've already looked, was told once they don't want no body with a bankruptcy. OWWWW...then another place...OMG what a rat-hole dump! That place HAUNTS me every waking minute! I am a tormented, tortured soul.

[queenfluff]

It's me again...scaredy cat worry wart. WHEN should you file? Before you're behind on all your bills, when you're behind on some or when you've been harrassed for months and months??? What happens if you don't file? You get sued, right? So you go to jail when they can't squeeze enough blood out of the turnip?

You wouldn't know that I've already seen an attorney! But if the firm was, as they say a BK Mill, that's probably why I didn't get my answers. He seemed awfully rushed.

Hey, scaredy cat, worry wart. (I really like the way you post - you sound like me. )

There really isn't any "set" time that someone has to file. It all depends on your situation.

-Some people on here are filing as they have not paid bills in a while and are getting harrassed and are now getting sued
-Some people are filing because they havent paid their bills in a while and are getting harrassed and aren't sued yet.
-Some people are filing because they know they won't be able to pay soon and know they will get harassed soon but no one is sueing them yet.

So, there are all kinda of situations going on when people file. Alot of times you end up in one of those situations depending on how your life is going - surprises come up and can't be helped.

I am part of the last group. I have paid all of my bills and cards for 20 years on time and I will soon have no cash left to pay in a few months so I am starting on it now. In fact, the first bill I will not pay will be next week. It will be the first time I will not pay a bill in my life. So one is calling or sueing me - yet - and probably won't because by the time they do, they will have gotten my bankruptcy notice from my lawyer.

Spend your time now looking for a good lawyer. Find one that will have time for you and that you feel comfortable with . You won't go to jail over not paying your bills. That is what bankruptcy is for - you file and it will stop the calls or take care of anyone sueing you if that is what is happening.

I think the fact that you are on here now asking and because you are worried enough about it - tells you that you should get started on it now. When you get to the point where the idea of the bills is just stressing you out, causing anxiety, fear and worry (worry wart. ) and effects your quality of life than you know it is time to start the process.

And make sure you get rid of those turnips so they can't get any more blood out of them. (Just joking - I know what you mean - it feels like all they want is more and more blood from you until you don't have any left.)

Just get the process started and you will start feeling better. I felt better once I got some control over the situation by going to meet with the lawyer.

[Nick9075]

what about all the other consequences

From either such as:

It seems that it is the lesser of 2 evils and you will still have bad credit for at least 7 years if no BK & 10 years if BK.
Expect to have:
1) sky high auto insurance premiums if you can even get insurance
2) very difficult to get credit cards even at years 7,8,9, & 10.
3) having to prepay 6 or more months of rent upfront should you need to rent an apartment (this is what I was told I will need to do to get accepted anywhere in the Boston area where I have a job offer)
4) just having a life of hell either way

I was unemployed for five months. That didn't matter -- all I got when I tried to explain to creditors was threats of sky high interest rates & 'immediate acceleration' of the entire balance due to my risk & credit profile(Bank of America's credit department is a class act even when you are not late because they look at your 'total credit profile').

[Nick9075]

Aw, please don't be scared. Read all the great advice here and you will get through it. You will not go to jail. If you file with the car payment in place and don't reaffirm, you can surrender the car later. No problem.

Try consulting with another BK attorney, also.

You won't but it will be very hard 7-10 years that you may just wish you were in jail. I am going thru this as well and this is just what I am seeing and hearing.

You suggest the OP 'surrrender' the car but what does she or he do for the next 7-10 years if they don't have $30,000 to pay for an average new car?? This isn't 2006 where 'one day out of BK' loans exist. Even when my credit was fairly good at 660 before things went to hell I was quoted 15% APR with 20% down.

[lrprn]

You won't but it will be very hard 7-10 years that you may just wish you were in jail. I am going thru this as well and this is just what I am seeing and hearing.

Nick, welcome to the bk forum. I read your first three posts - I can assure you that what you've heard and are seeeing isn't an accurate picture about what it's really like to file bankruptcy and live with having filed afterwards.

You suggest the OP 'surrrender' the car but what does she or he do for the next 7-10 years if they don't have $30,000 to pay for an average new car??

The OP stays on a reasonable family budget buying only what theyneed (and not impulsively buying what they want but can really live without) saving everything they can and (gasp!) they can then pay cash for a good used car. No one *needs* a $30,000 new car. It's a *want*.

This isn't 2006 where 'one day out of BK' loans exist. Even when my credit was fairly good at 660 before things went to hell I was quoted 15% APR with 20% down.

Ironically enough we just had a member post that they got a new car from Ford within a month of discharge for 0% down. Don't assume that just because things happened to you, they happen to everyone.

Spend some time here in the forums - you'll be shocked to see how filing bankruptcy isn't prison....it's actually freedom.....freedom from crushing debt with a chance to start over or to overcome financial issues resulting from a situation you didn't cause (divorce, job loss, medical problem) and can't fix any other way.

[lrprn]

First, Nick, see my response to your post earlier in this thread at http://www.bkforum.com/showthread.php?p=270135#poststop . Now....

It seems that it is the lesser of 2 evils and you will still have bad credit for at least 7 years if no BK & 10 years if BK.

Sorry - not true. Most bk filers that maintain an excellent record of on-time payments and keeping new credit card balances paid off consistently every month never allowing balances to get too high see a turnaround of their credit scores and the ability to get decent APRs and loan terms after just 2-3 years. Even in these tough financial times, the credit bureaus still haven't changed the way they calculate our credit scores.

Expect to have:
1) sky high auto insurance premiums if you can even get insurance

Happens sometimes but not that often. Search the forums for several rich threads on this topic to see the truth for yourself. Most of us saw no increase in our premiums and most of our insurance companies didn't cancel us either.

2) very difficult to get credit cards even at years 7,8,9, & 10.

Absolutely untrue. Most folks that file get credit card applications DURING their bankruptcy! Mailboxes flood at discharge with cc apps and loan offers because the lenders know you can't file again for years.

3) having to prepay 6 or more months of rent upfront should you need to rent an apartment (this is what I was told I will need to do to get accepted anywhere in the Boston area where I have a job offer)

Yes, this can happen. However, your specific situation is more likely due to the crowded rental market in Boston with its high cost of living that anything else. Most of our members report being asked to prepay 1-2 months of rent, not 6.

4) just having a life of hell either way

Spend some time here and I think you'll find out that being in a horrible financial situation is an up and down affair. Down when you see no options - just like you are feeling now. Up when you realize there are options like bankruptcy that can help you climb out of the hole.

I was unemployed for five months. That didn't matter -- all I got when I tried to explain to creditors was threats of sky high interest rates & 'immediate acceleration' of the entire balance due to my risk & credit profile(Bank of America's credit department is a class act even when you are not late because they look at your 'total credit profile').

We've all been here before. The large corporate lenders have had their hey day. That time is rapidly coming to an end. Get the best revenge for their "kindness" - file bankruptcy and cut down what they can squeeze from you significantly (Ch 13) or pay them back nothing (Ch 7).

Don't let your fear and anger about your bad financial situation keep you from learning there is light at the end of the tunnel. Stick around and learn the truth about bankruptcy from those of us who are living bankruptcy every day. It's not anywhere near as bad as your fear and misinformation make it out to be.

[Inthestorm]

Okay, scaredy cat worry wart is more confused! Nick have you already filed and in the process? You scare me...but then no, I don't want to be lied to, so don't feel bad. I've heard bad things from other sources, too. With my pitifully low-paying part-time job, and Dh's limping business, and NO family whatsoever, it sounds like we won't even survive bankruptcy!!!!!!!!!!!

Unfortunately, I can't go to the lawyer's with Dh on Tuesday, so could somebody hit me on the head with a skillet so I won't worry anymore till I get some real answers????