Am I a good candidate for bankruptcy?

[eddiep]

One last question about C7, I am sure has been answered, but can they force you to sell your house in a C7? That is the one thing I am not prepared to let go of. I would go C13 before I would go C7 if I had to give up the house. The expense of my house is not overly high for my income level in my opinion, and the cost of renting in my area (suburb of Chicago).

In a chapter 7 the trustee can only force the sale of your home if you have more equity than you can exempt.

Also when filing chapter 7 you must be current on your mortgage payments or they can foreclose on you, in a chapter 13 you have to opportunity to get caught up on past due payments.

Are you concerned because your mortgage payment exceeds the standard for your state? That should not be an issue as long as you can afford to pay it and it is doubtful that the trustee would fight you on this, a $600 car payment is a different story.

[CreditCretin]

In a chapter 7 the trustee can only force the sale of your home if you have more equity than you can exempt.

Also when filing chapter 7 you must be current on your mortgage payments or they can foreclose on you, in a chapter 13 you have to opportunity to get caught up on past due payments.

Are you concerned because your mortgage payment exceeds the standard for your state? That should not be an issue as long as you can afford to pay it and it is doubtful that the trustee would fight you on this, a $600 car payment is a different story.

I guess I am just worried if we proceed, that we will start the process and then it would be out of our control and we'd lose the house. The payments are definately larger than the standard amount in the means test. However, I don't think our mortgage cost or taxes are out of line for the area. The balance on the mortgage is about 306K, we payed just under 360K about 4 years ago. However we are in a new neighborhood where they are still building, and the builders are still giving the houses away at this point. You could probably go in and get the same model house we have with similar options for 290-300K from the builder now. Not being familar with this process, I just am worried about the surprises, like being in court and being told, we're taking your house, and you can't stop us. We are current on our mortgage and property taxes, neither has ever been late.

[klandsb]

WOW... I feel your pain ... I too make a decent salary for a single mom...But I didnt always after my divorce in 2000. From 2000 until last yr I charged up my credit cards with everything from groceries, gas, car transmission ect.... Well I now find myself in about $32,000 credit card debt which seems not alot when I see others. Not that I am judging anyone, I guess I just feel fortunate (yea right) that thats all I charged. Anyway, in 2007 I secured a job within the company making decent money with the opportunity of OT. Some forced, some not. So here I am working like a dog trying to have money to survive on after paying $800 a mth in cc bills and getting now where fast on the balances. Yes, I am broke before every pay day but havent charged a thing since last Sept .. Trying to live on cash and it SUCKS big time...but its do able...Being sued now from one of those credit cards I havent made a pmt on in a few mths because I just didnt have the money and that started this whole ball rolling thinking about bankruptcy.... I could live to be 90 yrs old and still paying on that $32,000. Anyway I have an appt Mon and one Tues with 2 different lawyers just to get there advise and the one on Tues is about the judgement / sue case I need to take care of real quick .. So just so you know you are not alone out there....

[Crozier]

Hey everyone,

I spoke an attorney today, two of them in fact. I have appointments this week and next. I took the means test online, and passed. I have spent the last few days researching and reading blogs on BK. Let me just say, I have a very demanding ego, and prior to a few months ago, a pretty poor opinion of myself and people who over extend. As I read the blogs and looked at the scores of people who have been caught in the debt cycle, almost to the point of personal destruction, I have to say, we will be ok. All of us. For one thing, we are here, together, sharing ideas and experiences. Two, as long as we have accepted our responsibility for our life situation, we should be ok. The most important part . . . forgiveness. Forgive yourself for the mistakes you have made, and move forward to a better tomorrow. It is OK to fail. It is not ok to lose the lessons failure has taught you. As the sole bread winner in my family, I was embarrassed to say that I make $120K per year, and I am living check to check, basically broke. When there is extra cash, I spend it on the family, although I know it is the dumbest thing to do. I had to stop. So, I started reading about BK, searching sites, bought a few books, and luckily found you guys. I took the deep breath, sat my wife and kids down, explained my failures, explained my plan, and took control of my life once again. I am proud to say, I am making a conscious decision to do what it takes to take care of my family. No one else will. My uncle Visa and Aunt Master Card, certainly won't. Nor will will cousin AMEX.

Again, without sounding too melodramatic, thanks to all of you. I will never become a victim again. I owe it to myself and my family, just as you do to yourselves and your families.

Good luck to all of you.

Carpe Diem

[CreditCretin]

Sorry to ressurect this thread, but this particular thread turned out to be so incredibly helpful to me, that I need to let everyone know how this forum changed things for me and my family. I figured it was meaningful here as this was the post that started my journey.. As of today, we are officially discharged AND closed in our Chapter 7 case, and it is in thanks in a large part to the advice and tips I got not only in this thread, but others here as well.

When I first posted here last summer, I was as many people who first find this site, confused, scared, upset, etc. at my financial situation and the fact that the dreaded Bankruptcy was quickly becoming one of my only options left. When I started this process I was convinced that I would have to go the Chapter 13 route due to my income (over median) and credit card debt, and the fact that I wanted to save my car and my house. I never, ever, thought I would really be eligible for a Chapter 7. Then I found this forum when searching for any ideas on bankruptcy, how to file and what can happen. I came here and got some good advice, and a new direction to determine how to reseach the BK process, and progress with this journey. Had I not read some of the supportive things here, and the wonderful advice on how Chapter 7 isn't automatically ruled out just because of your salary level, that there are a large number of different variables that must be considered.

The funny thing was, I met a couple of attorney's who also told me that there was no way I could ever get a Chapter 7 through because of my income. The wouldn't even let me table the question or consider it. Had I not read up here, and researched, I may very well have gone with one of them, and things would have been very different. I also learned the importance of planning the BK out, and not to rush into this process quickly. That again was so helpful too. So we planned, and waited and interviewed more attorneys. Finding the right one was simply based on a gut feeling. The attorney we went with told me there was no reason why we couldn't try for a 7, our expenses were high enough, and we simply would be better suited to a 7 due to our current family situation over a 13. The other attorneys didn't even see that, it was all numbers. This attorney just felt right, I liked the way he talked, explained, listen and more importantly was concerned with what was best for my family and willing to fight for us. He let us know that due to the income and amount of CC debt, the UST may or may not get involved in our case, and that we'd handle that together if and when it came along. He comforted us and said in a worst case scenario if something did prevent the 7, we'd just convert to a 13 at that point and that trying for the 7 was well worth it.

We moved forward in late June and filed at that time based on the guidance of our attorney, as that seemed to be the right time. Our 341 was in early August and went without a hitch. We had a brief moment of nervousness when the UST did call early on, a few weeks after we filed, before the 341, but found out it was only because one set of our numbers was off slightly, a clerical hitch which was corrected immediately. Then we heard nothing else, until this week and it's done...

So, I just wanted to thank everyone for their support and the wealth of knowledge on these forums. I am certain that this forum has helped an immeasurable amount of people try and wade through this complicated (and emotionally difficult) process. I am so looking forward to my "fresh start" and making the very most of this new chance.

[eddiep]

hey cc glad to hear it went smoothly for you!

[free2breathe]

Congratulations! It's good to hear these success stories.

[platter]

[beachchick]

I am halfway through a Chapter 13, paying back about 10 cents on the dollar of the debt we got discharged. People think bankruptcy is a dirty little secret but in fact it is one of life's best kept secrets, I feel very blessed to have been given a second change at life, when I was going through all the pain that led up to the filing, I felt my life was over. But I was saved, to live an great life. What also helped me was reading a book called Bankruptcy, How To Survive and Prosper, got it on Amazon.com. It made you see that not only can you survive a bankruptcy but also have the great change to prosper after one, I know I have, and I have no regrets or guilt. Do you think Lehman Brothers has guilt?