Question BK, Financial/Debt Management or DIY?

[Corrosion]

I have an appointment with an attorney to file BK on the 31st. Based on a previous meeting it would be a Ch. 7. There are currently several judgments against my wife and I. Paycheck garnishment(both) and a lein on the house. A multitude of smaller accounts that have been sent to some sort of collection. There is just too much for me to actually get it all sorted out.

Here is where the problem comes in, due to an inheritance that I just received I should have enough to take care of most if not all the debt. Should I continue on with the BK and let the court handle paying everyone off, take care of it myself contact everyone or find a financial/debt management person to assist.

I honestly do not know all that is owed, I have looked at my credit report and can't say I follow a lot of it. I am afraid that if I do it myself something will be missed. Is there somewhere out there I can turn to assist in getting everything taken care of or is my best bet to continue with the BK and the the court handle it?

Thanks and if you need more info please ask.

[ForumReader]

I have an appointment with an attorney to file BK on the 31st. Based on a previous meeting it would be a Ch. 7. There are currently several judgments against my wife and I. Paycheck garnishment(both) and a lein on the house. A multitude of smaller accounts that have been sent to some sort of collection. There is just too much for me to actually get it all sorted out.

Here is where the problem comes in, due to an inheritance that I just received I should have enough to take care of most if not all the debt. Should I continue on with the BK and let the court handle paying everyone off, take care of it myself contact everyone or find a financial/debt management person to assist.

I honestly do not know all that is owed, I have looked at my credit report and can't say I follow a lot of it. I am afraid that if I do it myself something will be missed. Is there somewhere out there I can turn to assist in getting everything taken care of or is my best bet to continue with the BK and the the court handle it?

Thanks and if you need more info please ask.

I think it would be best for you and your wife to talk to the attorney about whether to file for bk based on your inheritance and how much your debt is. You have to weigh your options and find the best route to taking care of your debt. One thing for sure from my personal experience, is to stay away from debt management companies. They are not worth it. Good luck.

[despritfreya]

Did you tell your attny that you have an inheritance? If so did he/she explain that you will lose the $$ to the Trustee (unless you can find some exemption to protect it-doubtful). Since you will have to give up the $$ and it is enough to pay your debt, why not pay your debt? At least that way the Trustee will not get a piece of the action.

[Corrosion]

Yes, my attorney is aware of the inheritance and said that the money would be turned over to the trustee. I know there are court and attorney fees, but I did not know that the trustee also had some sort of fee. Is it a percentage or a flat fee?

If the money is going to go to the creditors rather I do it or the court does it, is it to may advantage to do it myself and if so is there someone our there that assists with this. I obviously do not handle money very well.

Thanks...

[despritfreya]

In response to:

"I did not know that the trustee also had some sort of fee. Is it a percentage or a flat fee?"

The Trustee gets a percentage on a sliding scale. 25% of the first $5000 distributed, 10% of the distribution between $5000 &, I believe $50K and the percentage decreases from there.

Personally, I would want to make the best of the $ as possible and would deal with my creditors on my own, trying to get some to discount the debt. However, if discounted, you will receive a 1099 for that part of the debt that is forgiven.

[Corrosion]

Hmmmm, well that is good to know about the Trustee.

Ok, does anyone know the best way to make sure that all debt gets accounted for so that I can take care of it now while there might be money available to do so and the best way to go about doing this myself?

Would there be a difference in the time frame for seeing an improvement in credit score or reestablishing credit between a DIY approach or going through a BK?

Thanks again...