What happens after filing and before discharge?

Bankruptcy 7 will remain in your credit report for a period of 10 years after your discharge and your credit score will come tumbling down. So, try to avoid bankruptcy, if possible.

Have you tried all types of debt solution methods especially debt settlement? It is considered to be the last option for avoiding bankruptcy.

Most times the court will accept your paperwork and if all is in order a meeting of creditors will be set up. After 60 days from creditor meeting,the discharge can begin. All creditors must file a claim within that 60 day period. Once you file a automatic stay is issued and no collector or creditor can take any action against you without filing for relief.Once discharged,any debts discharged are null & void meaning no one can ever collect on them.

When I did my chapter 7, I only had to submit info about my wages for the past 6 months. They didn't want bank statements or paystubs during the process, only the 6 months before the date you file.

BUT - There was a stipulation that any checks you bring in over $300 or $400 must be given to the trustee first, and he/she will decide what to do with it. Also, any bills over that amount must go through the trustee too.

Thanks everyone!

Phoenix, yes I think we have explored all of our options. We don't qualify for debt consolidation because we don't have enough income to pay our creditors.

I wanted to try do-it-yourself debt settlement (I can't see paying someone 15% to do what I can do myself), but we do already have a creditor that is building a lawsuit case. Besides, I can't see any way that we can save 50% of our total debt ($140,000) over the next couple of years since our base income barely covers house and living expenses. I did want to avoid BK, but realistically I don't think we can.

Cajun & Goudah, thanks for the info. Having to give all income and expenses over $300 to $400 to the trustee will certainly make it difficult. Since my husband is paid every other week, his paychecks are more than that and any side work that he gets will also be more than that. Our two mortgages are also more than that.

My concern is that if he picks up enough side work during the summer, it could make us ineligible for Chapter 7, but I guess we'll just have to see what happens.

I'm sorry, I meant aside from your normal paycheck and living expenses . . . . . I didn't have to give the trustee my paycheck. I didn't actually have to give them anything after the initial info. It's only if you get extra money over $300 to $400 that you have to give it to the trustee.

Also, the income is based on the previous 6 months income, so you should be okay if you do it soon. But there are questions on the BK petition asking if you expect any increase in income in the next few months.

Once your bankruptcy is discharged you can start rebuiling your credit by getting a secured credit card from your bank. Once you have shown a good payment history you will be offered more credit from different sources. Bankruptcy is not the end of the world. Be careful of the balloon percentage predator cards that hook you and raise you through the roof with the fine print on the back of the application.

Thanks, Goudah, for the clarification! That makes me feel better!

I know that the forms ask about expected increase in income, but in our case I think it's more of a hope than an expectation! We don't expect any increases to our regular income, but we hope that my husband can pick up some extra side work during the summer. However, with the current economy being what it is, that certainly isn't guaranteed.

Thanks, Frogpatch! I know a little bit about secured credit cards, and I have heard about the predators who look for recent BK candidates. Right now, I feel that I never want to see another credit card in my life, but I guess at some point I will have to start looking at rebuilding our credit!

Then you should be fine - They mean more like you know you will be getting extra income, not you hope.

Really, the whole process is very scary, but once you are done you will wonder what you were so scared of.

Are you hiring a lawyer?

Thanks again, Goudah! Yes, we are going to hire a lawyer. I hate to spend the money, but we do have some issues that make me uncomfortable trying to do it myself! I have a little bit saved up since I was hoping to start building a debt settlement fund, so I think I have almost enough to pay an attorney.

Good - If you aren't comfortable doing it yourself then an attorney is the way to go. Yeah, it's more expensive, but at least you don't have to worry about messing everything up becuase you did something wrong!

I am so sorry to hear that Alias. I think this type of problems do crop up in our lives some-way or the other. We are required to overcome these problems. When bankruptcy is inevitable, then go for it. We, community members, are there by your side.

Thanks Phoenix! This forum has been such a blessing and help already! I really appreciate all of the advice and support that I've gotten here!

I had the exact same issue with my filing....seasonal imcome would have put me over the edge. My lawyer told me all they are really concerned with is the past 6 months and unless you hit the lottery or some rich relative dies and you come into enough money to pay off your debt, then you will be fine. As soon as our paperwork was filed I my income almost doubled for a few months and I was very concerned but my lawyer told me not to worry, I was ok to make money.

Thank you so much, Successful, for that info! That makes me feel much better! Since I don't play the lottery and don't have any rich relatives, it's pretty unlikely that I will come into enough money to pay off by debt of $140,000. But there is a good possibility that our income will increase during the next few months. However, I really need to be able to save that money to tide us over during the next several months after that when our income will decrease. So I REALLY appreciate that info!

if i withdraw money from my ira can the trustee take it. I need it to pay the attorney and help supplement my income for the next few months. I'm talking about maybe $8,000.

after filing for banructy how long does it take the lawyer to file the petion and how long will it take to get things started in court, what is the timeline for these answers

Once I paid my attorney the filing fee, my case was filed in court that next morning. I had my meeting of creditors about 4 weeks after that.

HOW LONG AFTER I GET MY INCOME TAX BACK CAN I FILE BANRUCTY.

We have found a lot of people who have just gone through the bankruptcy process are eligible for additional help with their mortgages. Feel free to contact me with any questions! We can help you pick up the pieces.

[email]robyn@divinesolutionsnow.com[/email]
800.726.2128 ext 8002