New to the Forum

[Blarc]

Hello,

I' m new and should introduce myself so I can join in and take advantage of the wonderful wisdom and support I've seen while lurking here in the last few days. I have some questions that I'll ask over the days to come. I will be a Chapter 7 Pro Se. I'm here due to major medical expenses, although I could have done a better job living within my means and certainly will from here on out. I've spent the last couple of months educating myself on Bankruptcy laws but there is a lot to know and just when you think you understand something, you read it one more time and interpret it an entirely different way.

I wish I had found this website sooner. I'm going through all the stress and anxiety that everyone else here is. It's a roller coaster ride. Being on a sinking ship when you can't even fathom the "B" word was months and months of lingering stress. Then in the beginning of December, after some preliminary research I made the decision to file. OMG, I slept like baby for a week. I just needed a little respite and permission from myself to let go. Of course then when you hunker down and get into the nitty gritty of the filing and all you have to learn and do for Pro Se, it's a whole new level of anxiety. I've put on 10 LBS since December from stress eating and researching in place of exercising. But oh I digress. . . this is not the Weight Watcher's forum. Anyway, I'm almost at the 90 day mark, no credit card charges, etc. I did a little weird thing with my final car payment out of misunderstanding but I think it should be OK. I'll ask more on that tomorrow. Anyway, nice to meet everyone.

[Drazil65]

Welcome, I am happy to hear you have been reading everything here and getting yourself to an place emotionally where you realize this is nothing more than a business decision for your financial future.

Yes, living well below your means, learning to live on cash and knowing your trigger points will take you to the next phase of living a stress free financial life (a place where once you experience the freedom and quality of life you will never want to go back to owing anyone).

I am sorry to hear about your medical issues etc., I hope you have medical insurance at this point and can cover anything out of pocket before you file. The only other thing I would suggest is (if you haven't already) to make 2 or 3 free consult appointments with bankruptcy attorney's in your area. Other than that, lots of good solid information here so ask away!

[LadyInTheRed]

Welcome to bkforum. I hope we can help make the process a little less stressful.

[Blarc]

Thank you. Yes I have medical insurance and am working on attorney consults for the next couple of weeks.

I did a lot of research on Bankruptcy vs. Do Nothing and had made the firm decision for Chapter 7 until I read posts here and started feeling a little indecisive again. I guess I'll run it by everyone and see what input I get.

I'm one of those judgment proofs (no such thing really I know). My reasons for filing were:

1. To be done with it. For psychological, mental health reasons. The last couple years of financial burden feels like it has wreaked more havoc on my health with depression and stress than my original medical issue.

2. Found out last year my dad is terminally ill (1-5 yrs). When he is gone , I will inherit a little land and money so my situation will be changing at some point. I suppose I could settle lawsuits at that point if I did decide to do nothing.

3. Privacy. I need for my family NOT to know (because of their own beliefs and shame about it and all the additional stress and anxiety that would bring for me and for my dad with his illness). I've been living with my sister for the last couple yrs and just moved in with my father so I believe it would be hard to hide the collection process (summons, calls, etc) since I'm linked to their addresses and now living in his house.


I know that Bankruptcy is a dark mark with consequences but from all my research, it just seems cleaner to me than years of potential collections, lawsuits, judgments, etc. And also the uncertainty of how long the "Do Nothing" route lasts. Maybe some get lucky and things just fall off, no one sues and creditors cancel debts and everything is off the credit report sooner than the 10 years that Bankruptcy takes. But for others, they get the judgments renewed every 10 years and the nightmare never goes away. How do you know which will happen to you? Seems like too much of a crapshoot for me. It just seems like Bankruptcy is one all inclusive mark with a definitive (albeit long) time frame. Afterwards, people do rebuild credit, get mortgages, find jobs and generally go on with normal life. I know the job thing can be a problem but I was even reading somewhere that a potential employer would rather see one clean Bankruptcy mark (indicating you took responsibility and addressed your financial problems) as opposed to a long list of charge offs, judgments, etc., which might imply you were irresponsible and willy-nilly (even if "Do Nothing" was a well thought out plan). I think I understand all the ways that a Bankruptcy mark can possibly affect me in the future (credit, job, insurance, renting, loans, being a board member). Am I missing anything else that is really crucial?

Anyway, I know everyone has written about this over and over and I've tried to read as many posts as possible but just can't find clear cut answer. I know. . . . there isn't one or I would have found it already doggonit!

Here are the particulars of my case

Unemployed
Single
Don't own home
Car paid for
$50k unsecured debt
Main reason for Bankruptcy was major medical expense
Just moved from California in December so I will use System 2 exemptions which will more than cover all of my assets
Most of what I own is still in storage unit in California (That payment will remain up to date)
My 90-day period has been charge free
In the last two yrs my parents (divorced) have both separately gifted me money (under taxable gift amount). That has been my only source of income other than draining my IRA's.
There have been no questionable transfers.
Past means test no problem for Chapter 7

Thank you for your thoughts.

[BKAttyMI]

It sounds like you are a good candidate for bankruptcy. The "dark mark" you speak of for a bankruptcy is sometimes a lot better than years and years of collection suits, etc. Your credit will recover after bankruptcy. It won't recover if collections are ongoing. Visit with a few attorneys in your area to see what the possibilities are, make sure you discuss the inheritance issue with them.