Should I File BK or Should I Not Care Anymore?

[JohnCampbell]

Crazy question...Should I file bankruptcy if my debts are almost a year old?

I stopped paying my bills last summer. All bills including the house, auto loans, CC, and student loans (wife's) and a small amount of revolving, like the house alarm contract for the house I do no longer own.

First the house payment stopped about a year and a half ago. The house has foreclosed, moved on without the 200k of negative equity, and the debt has been forgiven. Was the primary household, and I never refi'd, so it was discharged.

The bills got super tight, and with the house going, the CC and etc stopped payment about 6mo after the house stopped payment. Again, about a year ago last summer.

Bills got tight because the job lost its revenue (commission sales). Lost the job due to that fact, so now I am on unemployment.

Because I have an almost debt free living (since I am no longer paying bills) I am not entirely sure if I will qualify for a Chapter 7. I have not talked to a BK lawyer yet.

What happens if I continue to not answer my phone, and make no payments? Will everything "disappear" after 7yrs to a clean slate?

I have already stopped receiving the house calls, auto loan calls, and some of the credit cards. I believe they discharged the loans as well. Only one or two are still calling and that's it.

Will I or should I take out small prepaid CC to re-establish credit? I have one or two accounts that were 0'd out prior to the BK, so I will leave those be so that they do not close out when I try to ask for credit.

Just not sure if the BK and the $1500-$2000+ will be worth it on my credit, esp if I will not possibly qualify for ch7.

Thank you for you help.



Cliffnotes:

Should I file BK if most of my creditors have "moved on" and have stopped calling?

Are discharged debts still considered in your BK as monthy expenses?

Should I just wait for 7yrs for the derogs to discharge and disappear?

Or is it better to file BK even though its no longer a major concern?

And does it benefit to re-establish credit via prepaid credit cards, or should I just leave the credit be for a few years?

Thanks in advance.

[Jackdog]

Your creditors have moved on but they've also sold your debt to collections agencies who will haunt you for years. If you are currently unemployed I don't see how you are not able to file Chapter 7 unless your wife is making a good amount of money. You have no income. If your wife is working and her name is on some of the debt they can still sue and garnish her wages.

[JohnCampbell]

Is unemployment pay considered as income?

Are debts that are not being paid or discharged, considered in your monthly revolving debt? For example, is the old house payment that I am no longer paying, considered as a payment to see if I qualify for ch7? I am not sure if that makes sense.

[NoMoreCards]

I suspect you are misunderstanding the terms "discharged" and "charged off".

Discharged means you are no longer liable to pay, and only "normally"comes after completion of bankruptcy. It is where a court states you do not have to pay the debt. Whereas "charged off" means it is written off the books, and sold to collection agencies who will come after you down the road.

If you have not filed BK, these debts are not "discharged".

[OHBOY]

You have not mentioned if you are still married...just wondering because you said that you are no longer paying student loans for wife which if still married is definately not a good thing as it is just about impossible to discharge student loans in bk....

You also have not mentioned any assets... who knows what, nor where you are at on the 'median'. Without that kind of input it's difficult to give suggestions or any type of 'plan/strategy'.

As most likely (?) even a 'prepaid creditcard' should show up on your credit report, I certainly would not even attempt to 're establish credit' under your (or my..) circumstances until this mess is somehow resoved.

[nc73]

Agreed. Your debts are not gone. File BK and be done with it. You are not living debt free.

[NewPage]

I am far from being an expert, but my initial thoughts are the creditors have gone quiet b/c they are prepping to sue, already have, or at best have turned you over to collection agencies. If it was that "easy" to get away from debt, a lot more people would do it and the courts would be less busy!

I would file BK and be legally, officially done with it all.

[JohnCampbell]

Thank you for the input everyone. As far as assets, I have 3 cars that are paid for, cheap old cars, newest one 12yr old.

Nothing else comes to mind, and since I rent out a room, most of my expensive belongings like my brunswick and tv's could be called someone else's.

I know BK is the right thing to do. I am unsure why I am dragging feet on this. Was just hoping it would all work itself out like it seems like it has for a few months, over a year now.

[HHM]

Thank you for the input everyone. As far as assets, I have 3 cars that are paid for, cheap old cars, newest one 12yr old.

Nothing else comes to mind, and since I rent out a room, most of my expensive belongings like my brunswick and tv's could be called someone else's.

I know BK is the right thing to do. I am unsure why I am dragging feet on this. Was just hoping it would all work itself out like it seems like it has for a few months, over a year now.

It's called "denial"

As when someone gets diagnosed with a possibly fatal disease, financial disease creates the same cycle of psychological responses
Denial, Anger, Bargaining, Depression and Acceptance.

The sooner you recognize this, the sooner you can take action, resolve the issue and move on with your life.

[AngelinaCatHub]

Thank you for the input everyone. As far as assets, I have 3 cars that are paid for, cheap old cars, newest one 12yr old. You are allowed exemptions on a car depending on the State. Any car that old unless a classic would probably be abandoned in bk.

Nothing else comes to mind, and since I rent out a room, most of my expensive belongings like my brunswick and tv's could be called someone else's. That would be fraud plain and simple. Never lie in a bk. That becomes perjury and is a criminal charge.

I know BK is the right thing to do. I am unsure why I am dragging feet on this. Was just hoping it would all work itself out like it seems like it has for a few months, over a year now. If you have a squeak in a machine and do not grease it, it is unlikely it will just "work out". It will eventually fail as you will too when things get better and blam you are hit with Judgments you may not even know you have.

John a little tip for you and OTHER'S who may lurk and may sign up to post. IF you are using your real name, I would advise that you ask a Mod to remove it.

To all other future posters, NEVER USE YOUR REAL NAME on the Internet. Unless it is a known secured site that shows HTTPS: in the address bar or a lock in the information bar you are telling the world who you are. You are open to stalking and ID theft and possibly worse. 'Hub

[blessed]

I agree Hub, I never use my real name. But there are probably thousands of John Campbells in the world. lol

[AngelinaCatHub]

I agree Hub, I never use my real name. But there are probably thousands of John Campbells in the world. lol

Ah yes but would you want to take that chance? I have done some skip tracing in my time, and am a computer consultant. There are ways even on this and other web sites to find an ip address that would lead a person to the proximity of a particular person. For example, on your browser, go to view, source and then you see what this web page is really about in HTML coding. This tells a lot about all web sites.

Now lets say I knew you lived in upper FL, and your signature said you filed on such a such date. I could go to pacer, go to middle district, and search case numbers for that date. It would localize a person to a couple hundred. Then, by subtle hints of your postings and a bit of into, going to the docket I could know who exactly you are.

It is not hard to do and with the Internet, I have found for others lost parents, death records, and such. There IS NO anonymity. Other than facts here that you have to give to get help on your dilemma, tell little. Sometimes you have to tell where you are as for advice and local laws. However, a proper name is a big bill board right to your ID. DON'T TAKE THE CHANCE! 'Hub

[JohnCampbell]

No, it is not my real name, but thank you for your consideration. I still have not filed yet, I really don't know why I am just not getting up and going.

[Universal]

While the creditors may not be hounding you at this moment, they will certainly rear their heads when you attempt to get any type of loan in the future. Maybe you don't intend to have to get a loan in the future, but you know what they say about intentions. Better to get your house of cards straightened out sooner than later.