unique situation

[chicagoannie]

ummmm....get sued? Then have to pay back through wage garnishments (maybe NJ is a state where wages cannot be taken, tho.) And eventually be foreclosed on and forced to move? And have to pay taxes on the home loan deficiency.

[airahcaz]

ummmm....get sued? Then have to pay back through wage garnishments (maybe NJ is a state where wages cannot be taken, tho.) And eventually be foreclosed on and forced to move? And have to pay taxes on the home loan deficiency.

understood, suits can be settled, if sued, prior to having judgments rendered

[BKAttyMI]

I have not read your other posts, but I have several clients that are employed by banks, some of which are even filing bankruptcy for debts TO those banks. I always have them check with the bank's human resource dept for that bank's policy, but I have yet to see any of them lost their jobs over a bankruptcy case. It may be a different situation if you are in charge of managing other people's finances, but always worth checking with human resources.

[airahcaz]

I have not read your other posts, but I have several clients that are employed by banks, some of which are even filing bankruptcy for debts TO those banks. I always have them check with the bank's human resource dept for that bank's policy, but I have yet to see any of them lost their jobs over a bankruptcy case. It may be a different situation if you are in charge of managing other people's finances, but always worth checking with human resources.

wow, filing bk with debts to their bank of employment, if that can be excepted (and accepted), I can see how anything can

[LadyInTheRed]

It is illegal for your employer to fire you for filing BK. See my post in your other thread for the specific section of the bankruptcy code.

From what I've read, if you want to settle all of your debt, you need to be prepared to pay 40% of the debt in a lump sum. Some creditors will acccept less, some will require more, but the average is 40%. Some creditors may not settle at all. If you settle with some, but can't settle with others you may still have to file BK in which case you threw away your money on settlement. Filing a Chapter 13 from the beginning has a much more predictable outcome.

[airahcaz]

It is illegal for your employer to fire you for filing BK. See my post in your other thread for the specific section of the bankruptcy code.

From what I've read, if you want to settle all of your debt, you need to be prepared to pay 40% of the debt in a lump sum. Some creditors will acccept less, some will require more, but the average is 40%. Some creditors may not settle at all. If you settle with some, but can't settle with others you may still have to file BK in which case you threw away your money on settlement. Filing a Chapter 13 from the beginning has a much more predictable outcome.

- agree on the point of money thrown away for settlement, if ultimately filing bk

as for filing, some have recommended to wait until the point of judgment / wage garnishment if all else fails in the interim

[chrisdfw]

It is illegal for your employer to fire you for filing BK. See my post in your other thread for the specific section of the bankruptcy code.

From what I've read, if you want to settle all of your debt, you need to be prepared to pay 40% of the debt in a lump sum. Some creditors will acccept less, some will require more, but the average is 40%. Some creditors may not settle at all. If you settle with some, but can't settle with others you may still have to file BK in which case you threw away your money on settlement. Filing a Chapter 13 from the beginning has a much more predictable outcome.

This is true, I am not sure about the 40% thing, but if you cannot settle with all, you will have wasted your money. I know. I settled 30,000 of debt with Bank of America for 4500. 6 months later citibank sued me and forced me into chapter 7. I could have used the 4500 on other things, perhaps got my busines started on a better footing, or ?

Do not settle one at a time, you'll be wasting your money. If you can't see yourself getting all the money together in time, then you can't afford to settle and should go for BK

[inbigd2]

Search for Federal law about ch 13 and getting terminated from an existing job and you will find that it is illegal for an employer to terminate someone based on credit but there are some exceptions. I read about a situation where someone that would require security clearance, military if I remember correctly, was terminated and the court allowed it. As for getting a new job with ch 13 on record that can be an issue and employers can base hiring decisions on credit history.

I filed about 5 yrs ago and have 2 months of payments remaining. If I had it to do over again I would have made 1 more try at settling with the creditors. I am relieved that debts will be gone but I still hate the stigma of the word 'bankrupt'. In my case it was all because of stupid use of credit. If I had experienced emergencies / crisises that caused me too file I would not feel as bad.

[ValleYum]

Isn't NJ a deficiency state? Where the OP will be on the hook for whatever his home doesn't sell for at auction if it is foreclosed upon?

[lillymarlene]

Should this be a new thread?

"Sorry, I meant if one creditor summons me, in this case the OC (Discover and FIA for BofA thus far), then that will appear on my credit report. Will that open a can of worms for all creditors to now file suits?
Secondly, I've read that I should be less worried if the debts is sold off, it's really the OC's I need worry about?"

Before filing chap 13, I went to see a credit counselor. She looked through my cc statements, and also 2 suits I had pending against me. I guess she just determined I was too "far gone" and gave me contact info of her favorite bk attorney. She also said, that even though these were relatively small suits, that once they start, the rest will be sure to follow.

[airahcaz]

after going back through your posts to try to comprehend why you'd say a person "cant declare any chapter of BK" - it appears as if you apparently dont qualify for a Ch.7, but do not want to be put into a Ch. 13. The only other option is to settle the debt. However, since you work for a bank and you state that filing BK may cause termination - in reality any financial issues while working at a bank is trouble. IMO not filing BK, even if Ch.13 - and doing nothing while attempting to gather up the funds to try settle all of your debt as you are able to is a huge mistake. There is no guarantee that anyone will settle with you, then there's that whole tax implication. It's better to be open about your financial picture with your employer vs. having a sudden garnishment come up and then have to answer why it all happened.

You have 2 choices: File and pay back some of the debt - or - sit and wait for lawsuits, judgments and garnishments. Which do you think your employer would be more inclined to fire you over; paying back some of your debt via a 13 or....?

What you're talking about doing here (http://www.bkforum.com/showthread.ph...111#post506111) wont work because in reality ("in another persons name") - you wont have that money, it'll be taken via garnishment as well as anything you own could get a lien attached to it. Buying a house in another persons name isnt going to get you out of the debt you're currently in.

No one wants to do a Ch. 13, but the reality of it is sometimes one has no choice in the matter.

Update: I have been summons on some of the debts, and my lawyer has arranged settlements for 20 - 25%. On a Citi account with ARS, seems their offerings have come down from 70, 60, 50, 40 and now 30%. My lawyer has gotten them down to 25% and not sure that they will go down further by waiting, again, even though not summons as yet on this one debt.

Bottom line, I don't qualify for CH7, and I believe I would have paid more $ via a CH13, plus risk to my job, etc.

I still have properties in arrears to deal with, but the CC debt is slowly being fully eliminated via settlement, all of which I should have paid out within a year.

[dman]

If an employed person cannot declare any chapter of BK for whatever personal reason, yet has defaulted on CC debt as well as mortgages (housing underwater, etc), how would one deal with the outstanding 5 figure CC debt?

Here's a unique solution. Move to a community property state, take up residence (however long that'd take), have your spouse file for chapter 7; your debts MAY be discharged. Check with a lawyer first, this is at best, very very iffy. I wouldn't recommend it personally.

[airahcaz]

Here's a unique solution. Move to a community property state, take up residence (however long that'd take), have your spouse file for chapter 7; your debts MAY be discharged. Check with a lawyer first, this is at best, very very iffy. I wouldn't recommend it personally.

I'm not married

[karm43]

YESSSSSSSSSS! I know this personally! They will all be suing you.