going to file chapter 7 have questions

Date: Tue, 02/03/2009 - 18:31
Submitted by on Tue, 02/03/2009 - 18:31
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I know I do not have to file for bankruptcy because I have no assets and my income is exempt. I have a lot of bills, one judgment already and another debt collector suing me for a debt that is not mine. I just want a fresh start in life and want to put the past behind me.

I have 4 credit cards right now all with a balance of $400 or less. Should I just stop paying on these now and then next month when I go see the attorney to file would I get an automatic stay placed?

I really don't have the money to pay them this month so I think it would be pointless to pay them to only file next month.

Any thoughts and any idea at how much this is going to cost me to file? Also do they need the whole amount up front in order to get an automatic stay?


I am in the process of getting ready to file Chapter 7 and I was informed by my attorney to stop paying them because at this point all I would be doing is giving away my money.


Submitted by on Wed, 02/04/2009 - 10:41

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Filing for bankruptcy can be long and confusing process. It is always better to hire a bankruptcy attorney who understands your financial situation. You can also visit bankruptcyaction.com and bills.com they offer good information on bankruptcy. Filing for bankruptcy may not be a fresh start as it stays on your credit report for up to 10 years.


Submitted by on Thu, 02/05/2009 - 07:02

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I am aware of the effects of bankruptcy. I am disabled and don't plan on buying a house or anything in the near future. With my medical condition I could have less than 5 years to live. I just don't want to leave the burden of bills out there if I do die. This way everything is clean, I will never get a credit card again.

Also like I see it I will have to put up with about a months worth of phone calls till I get my next disability check to put some money down for the attorney. I am just wondering if the creditors do call, will me telling them I am filing for bankruptcy stop them from calling?


Submitted by on Thu, 02/05/2009 - 10:43

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Hi Guest,

First you would need to go through a government approved Credit Counseling program for 6 months before you can file. You definitely sound like a good candidate for Chapter 7 bankruptcy. You can also file yourself without an attorney, should you have the patience and want to save money. The necessary forms are online.

As far as buying a home, mortgages are not dischargeable in bankruptcy. Around 2-3 years after bankruptcy discharge, especially with a nice down payment, as long as you have used credit sparingly and responsibly (you will get TONS of credit offers) you shouldn't have much of a problem. Just shop around (and make it clear that you are shopping around). My mom filed for bankruptcy in the end of 2005, and she and her new husband just bought a home (and he retired due to disability so she is the only wage earner). She was smart and only took 1 credit card for emergencies.

It is an exaggeration that bankruptcy is so horrible. One can re-build their credit and move on with their lives much faster and with a whole lot less trauma than through a settlement program, for instance.

I hope this info helps you, please keep us updated!

chrys


Submitted by Chrys Henderson on Fri, 02/06/2009 - 03:59

Chrys Henderson

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That's what I read. 180 days before I file and it takes 1 hour by phone or online.

Maby I interpreted him wrong. Anyhow I did find an attorney in my area so I will be calling him next week to check it out. His website says low cost and payment plans available.


Submitted by on Fri, 02/06/2009 - 20:54

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