Those of you who have had to file bankruptcy after D, what kind of process is it? Approximately how much did it cost and were they able to discharge the debt or merely consolidate it? I am becoming more and more desperate to get it under control. To some people the amount doesn't sound extreme, but it's enough to keep me from being able to pay my household bills and still have any grocery money. I'd appreciate hearing your experiences.
We filed a ch13 (repayment) about 6 months before the bomb. After separation I went back and had atty refile for lower payments based on the new expenses of a separate households.
I feel it was the right thing to do. We had good a credit rating and good incomes but we had too much credit and could see the end of the rope. We'd tried once before to take care of it with a home equity line (huge mistake!) but it was time to end it before they came after us with serious action.
So what about you?
- Talk to a good bankruptcy attorney. Then talk to the other side; Consumer Credit Counseling is funded by creditors so they often advocate not to file but enter a repayment plan. Then do reading on your own. There are pros and cons to both sides and only you can figure out if you can live in your current or future circumstances.
- Bankruptcy is extremely complex so don't even THINK about attempting one those file-it-yourself deals and stay far away from the "we-can-wipe-out-all-your-debt" outfits on late-night TV.
- Cost depends on the complexity of the case. We spent a few thou but it was taken from payments so there wasn't much bite.
- What you file (Ch 13 repayment or Ch 7 liquidation/restart) and how much you pay is based on a set of formulas and guidelines. An atty will determine what applies to you.
- Don't wait too long. You can slowly bleed yourself dry trying to pay off all creditors, interest, and penalties and still end up in trouble.
- Do this once. As our atty said, look at this as a "silver bullet" but not a way of life. Indeed this dog plans to never go back. Living cash-only and loving it.
"My actions are my only true belongings. I cannot escape the consequences of my actions. My actions are the ground upon which I stand." Thich Nhat Hanh
