Hi there. From my experience, your attorney should contact those annoying creditors after the bankruptcy is filed. The creditors need to have a "case number" logged in their system in order for them to take you off their list; this is standard procedure.
Typically, those who file for bankruptcy have already had their credit tarnished because of collection agencies, which destroy your credit. So since yours may already be hindered, filing for bankruptcy will actually improve it over the long term, in my opinion.
A short sale is when you decide to sell your house for lesss than what you owe on it; this is typically done to get out from underneath the heavy debt you owe on it. Subsequently, the house doesn't go into foreclosure. Sometimes people want to buy it back from a relative or friend after bankruptcy.
Is it even worthwhile after years of non payment and a repo to opt for debt negotiation rather than bankruptcy? I own nothing (cars house, etc...) except for clothes and such...
Hmm. The answer to your question would depend on a case by case evaluation. However, if you owe close to $10,000 or more, I would personally opt for bankruptcy. Although, if you have the cash bundled and ready to pay your crditors, once a payoff amount is reached with each of them, then you could do that. But that still shows up on your credit report in the same light as a bankruptcy.
If I file personal bk will it effect my business which is chapter S Corp? The business showed a loss of $200,000 on 2008 tax return. Thanks for your help.
Okay, I believe you are asking whether filing personal bankruptcy will affect your small business. The answer is that it will not as long as any of the personal debt you are filing for in no way overlaps with your company business debt. Also, before you file personal bankruptcy, it might be wise to let your vendors know that their debt will not be affected; I am not positive on this aspect of the law, so please ask your attorney for more specifics.
My wife is losing her job, we have $50K in Credit cards, we have a rental that is under water with a first and second both from cash out refis. We cant keep up with payments, although we are current. We just had a baby. Will Bankruptcy give us a fresh start. It is our best option at this point? Need advice.
We usually say that if you have a heavy mortgage, car payments, and have only 20k in debt, then bankruptcy is the right decision. Given that you have 50k in debt, I would reccomend bankruptcy without hesitation. Good luck to you; it's not an easy decision but it seems like you do not have an option at the moment.
These are good questions. Once the process begins, you and your attorney can begin letting creditors know that you have sought bankruptcy protection. Some creditors may ask for a "case number" whereupon you must give them said number and they will leave you alone. Also, some states' government controlled businesses, like most electric companies and some phone companies, may restore your accounts (if they had been shut off previously).
Your life, Joey, will not be different in a bad way. On the contrary, your life will most likely be more pleasant as you no longer have to deal with creditors harassing you, being overwhelmed with debt, and constantly worrying about what to pay for versus what to sacrifice.
Lastly, challenges include a smaller pool of new lenders that will approve you for a loan for a car or a house. However, there are lenders that specifically work with post-bankruptcy applicants, so it's not like it is impossible to get a loan for a house or a car for the next seven years, but of course the interest rates won't be that great.
These are good questions. Once the process begins, you and your attorney can begin letting creditors know that you have sought bankruptcy protection. Some creditors may ask for a "case number" whereupon you must give them said number and they will leave you alone. Also, some states' government controlled businesses, like most electric companies and some phone companies, may restore your accounts (if they had been shut off previously).
Your life, Joey, will not be different in a bad way. On the contrary, your life will most likely be more pleasant as you no longer have to deal with creditors harassing you, being overwhelmed with debt, and constantly worrying about what to pay for and what to sacrifice.
Lastly, challenges include a smaller pool of new lenders that will approve you for a loan for a car or a house. However, there are lenders that specifically work with post-bankruptcy applicants, so it's not like it is impossible to get a loan for a house or a car for the next seven years, but of course the interest rates won't be that great.
Renting is not affected by bankruptcy. However, landlords usually like it if you have proof of a full-time job, or some type of income. So as long as you have that you should not have a problem.
I'm considering filing bankruptcy. I have close to $30k in credit card debt (not behind on - making minimum monthly, approx $550/month). I rent an apartment. I have no mortgage or car payment. Only assets are some basic household items, clothing, computer and old car. I lost my job and now collect unemployment. I'm barely able to pay the bills and have very little money left at end of month. I have no savings and basically live check to check. Eliminating the credit cards would provide a fresh start and reduce the need to quickly find a high paying job. Does these seem like a good case for bankruptcy? Thanks in advance.
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18 comments:
When will creditors stop harasssing me?? I keep getting these horrible phone calls from these stupid people and it's become so annoying!!
Hi there. From my experience, your attorney should contact those annoying creditors after the bankruptcy is filed. The creditors need to have a "case number" logged in their system in order for them to take you off their list; this is standard procedure.
Thank you. Last question -- How much longer is this going affect my credit?
Typically, those who file for bankruptcy have already had their credit tarnished because of collection agencies, which destroy your credit. So since yours may already be hindered, filing for bankruptcy will actually improve it over the long term, in my opinion.
What's a short sale?
A short sale is when you decide to sell your house for lesss than what you owe on it; this is typically done to get out from underneath the heavy debt you owe on it. Subsequently, the house doesn't go into foreclosure. Sometimes people want to buy it back from a relative or friend after bankruptcy.
Is it even worthwhile after years of non payment and a repo to opt for debt negotiation rather than bankruptcy? I own nothing (cars house, etc...) except for clothes and such...
Hmm. The answer to your question would depend on a case by case evaluation. However, if you owe close to $10,000 or more, I would personally opt for bankruptcy. Although, if you have the cash bundled and ready to pay your crditors, once a payoff amount is reached with each of them, then you could do that. But that still shows up on your credit report in the same light as a bankruptcy.
If I file personal bk will it effect my business which is chapter S Corp? The business showed a loss of $200,000 on 2008 tax return. Thanks for your help.
Okay, I believe you are asking whether filing personal bankruptcy will affect your small business. The answer is that it will not as long as any of the personal debt you are filing for in no way overlaps with your company business debt. Also, before you file personal bankruptcy, it might be wise to let your vendors know that their debt will not be affected; I am not positive on this aspect of the law, so please ask your attorney for more specifics.
My wife is losing her job, we have $50K in Credit cards, we have a rental that is under water with a first and second both from cash out refis. We cant keep up with payments, although we are current. We just had a baby. Will Bankruptcy give us a fresh start. It is our best option at this point? Need advice.
Joey:
We usually say that if you have a heavy mortgage, car payments, and have only 20k in debt, then bankruptcy is the right decision. Given that you have 50k in debt, I would reccomend bankruptcy without hesitation. Good luck to you; it's not an easy decision but it seems like you do not have an option at the moment.
Thanks amy, we are starting Ch 13.
What do we have to look forward to after we start the process? Will our life be so terribly different in a bad way? what would be the challenges?
Joey:
These are good questions. Once the process begins, you and your attorney can begin letting creditors know that you have sought bankruptcy protection. Some creditors may ask for a "case number" whereupon you must give them said number and they will leave you alone. Also, some states' government controlled businesses, like most electric companies and some phone companies, may restore your accounts (if they had been shut off previously).
Your life, Joey, will not be different in a bad way. On the contrary, your life will most likely be more pleasant as you no longer have to deal with creditors harassing you, being overwhelmed with debt, and constantly worrying about what to pay for versus what to sacrifice.
Lastly, challenges include a smaller pool of new lenders that will approve you for a loan for a car or a house. However, there are lenders that specifically work with post-bankruptcy applicants, so it's not like it is impossible to get a loan for a house or a car for the next seven years, but of course the interest rates won't be that great.
Does this answer all your questions? Good luck!
Joey:
These are good questions. Once the process begins, you and your attorney can begin letting creditors know that you have sought bankruptcy protection. Some creditors may ask for a "case number" whereupon you must give them said number and they will leave you alone. Also, some states' government controlled businesses, like most electric companies and some phone companies, may restore your accounts (if they had been shut off previously).
Your life, Joey, will not be different in a bad way. On the contrary, your life will most likely be more pleasant as you no longer have to deal with creditors harassing you, being overwhelmed with debt, and constantly worrying about what to pay for and what to sacrifice.
Lastly, challenges include a smaller pool of new lenders that will approve you for a loan for a car or a house. However, there are lenders that specifically work with post-bankruptcy applicants, so it's not like it is impossible to get a loan for a house or a car for the next seven years, but of course the interest rates won't be that great.
Does this answer all your questions? Good luck!
What about renting a place to live? will that be difficult?
Renting is not affected by bankruptcy. However, landlords usually like it if you have proof of a full-time job, or some type of income. So as long as you have that you should not have a problem.
I'm considering filing bankruptcy. I have close to $30k in credit card debt (not behind on - making minimum monthly, approx $550/month). I rent an apartment. I have no mortgage or car payment. Only assets are some basic household items, clothing, computer and old car. I lost my job and now collect unemployment. I'm barely able to pay the bills and have very little money left at end of month. I have no savings and basically live check to check. Eliminating the credit cards would provide a fresh start and reduce the need to quickly find a high paying job. Does these seem like a good case for bankruptcy? Thanks in advance.
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