What happens after a chapter 7?

[kmattin]

I am in no way making unwarranted assumptions about anyone's situation. Having file chapter 13 just about one year ago, after amassing $68,000.00 of debt, I filed. I feel it was the best option available to and I haven't looked back. What I did learn, was that circumstances happen. Lost employment, carelessness, medical conditions all can lead us to a down the path to debt.
My point was and still is, people sometimes turn to the easy escape of BK. To have filed a chapter 7 and return to file again later, tells me that the counselling that is required didn't stick. DA is an organization that helps people learn about debt and how to overcome the desire to debt. They teach about spending plans so that every penny earned and spent is tracked daily and are extremely helpful in guiding members in automobile purchases. They teach about responsibility and integrity.

[scorpion35]

Maybe you should check out debtors anonymous in your area. Sounds like you have a problem. You would wise to check this out.

+1

[sunshinepa]

Why file again? Take the money you would pay the lawyer, buy a used car and let them repossess the one you can't afford. That would be much better if you don't have other bills. I think it would be less of a hit on your credit vs. another BK.

Just my opinion.

[jetsfan2010]

Rozi, I just saw a couple of your other threads and think some of the info from there will be helpful here. You are paying just under $600 a month for a 4Runner worth $9K. You still owe $23K. It needs $2k in work. You do have credit card and other debt.

With that kind of deficiency, I can see why you would be considering a Chap 7. You might be able to cram down your loan to its current value in a Chap 7. Was this car you bought in 2004? If not, how long ago do it you buy it? Redemption is also an option. I don't know a lot about the details of cram downs and redemption because I filed a Chap 13 where those are not options. Try searching the forum.

Letting the car go and trying to settle on the deficiency may still be a better option. It's hard to know without having a more detailed picture of your debts, income and assets. If you consider settlement, make sure you take into account the tax liability you may have to pay on the difference between the deficiency and what you pay in settlement.

The tax implications alone for settling that debt would make a 7 the best option with that type of amount upside down on a car. You can actually get financed for a car with better terms once the 7 discharges now then you can if you filed a 13.

[Rozi]

I just want to thank everyone for their help! I have decided to file Chapter 7 on Thursday. The attorney is only charging me $70.00 and I can finally start to breathe again and not stuggle in between paychecks. You all just pray that I can get another car soon

[JackBondLove]

I think Rozi should go for it. (S)He is upside down $16K on the car and $14K on other debt (I presume it is not student debt.) While the trouble (s)he had gotten into for the 1st BK may have been due to profligate spending (in which debtors anonymous may help), it seems that this 2nd go round is due to the destruction of the middle class structural change in the economy. With that said, as (s)he is no longer a member of the middle class, (s)he must learn to live on less income, and debtor's anonymous is a good support group for that purpose.

[Kev1235]

I am in no way making unwarranted assumptions about anyone's situation. Having file chapter 13 just about one year ago, after amassing $68,000.00 of debt, I filed. I feel it was the best option available to and I haven't looked back. What I did learn, was that circumstances happen. Lost employment, carelessness, medical conditions all can lead us to a down the path to debt.
My point was and still is, people sometimes turn to the easy escape of BK. To have filed a chapter 7 and return to file again later, tells me that the counselling that is required didn't stick. DA is an organization that helps people learn about debt and how to overcome the desire to debt. They teach about spending plans so that every penny earned and spent is tracked daily and are extremely helpful in guiding members in automobile purchases. They teach about responsibility and integrity.

In 2001 there was no counseling requirement. Pre or post petition. None. Zero. Notta. So you're talking about something you don't know about.

To have filed chapter 13(which means you made median income in your state and can more easily pay debts) and then tell someone filing chapter 7, whether it's their first, second, or third time that you who has no training economics/mental therapy they have a problem is pot meeting kettle, it's hypocrtical as you can get and really sick.

Should someone realize what conditions led them to bankruptcy? Sure. Are they always the person filings fault? Nope. There can be a host of political problems from illegal aliens, to outsourcing of jobs, to the falling value of the $, to our great nations horrible trade laws.

Bankruptcy is a business decision. No more. No less. If someone who is a productive american citizen thinks they need to file after already having filed a decade ago to provide for themselves, and continue paying into our govermental system then I see no problem with it. I'd rather have that, then someone who isn't productive and chooses to do illegal activities to pay their bills and not need us our goverments laws as they were designed.

[Kev1235]

OP only had really two options for settling that debt that he is unable to pay anyways.

Filing chapter 7 OR letting the finance company, repossess, and then try to negotiate the difference for what he owes after they auction the vehicle(if it books at 9k, it'll sell for half that and that will be applied to the 23k, so he'd most probably owe 18k still) and negotiate a payback procedure with a debt counseling service.

You can't trade in a car that's worth less than what you owe without the dealer carrying over the loss onto the new vehicle therefore making the payments on your new car just as bad and probably even worse.

[frogger]

people sometimes turn to the easy escape of BK.

Easy? Nothing about bankruptcy is easy.......

[kmattin]

Look folks, I did not mean to twist anyone's panties. I filed because it was the only avenue left available to me. In my opinion, to file chapter 7 twice in a ten year period is telling me there may be some underlying problems with the ability in make sound financial decisions. There was no easy decision on my part to file, but the way I read the original post, it was almost crying out for something more than what this board is going to give. Kev, you come across a little too angry. I meant no harm. Just an attempt to pass on some experience. If you want to be a cheerleader for someone that doesn't seem to have a good grasp of money matters, so be it. My money since sucked until I filed and then I went into a crash course of money management. I plan never to file again. I will complete my obligation and I will move on, you may want to do the same.