They have made it where you must qualify for a chapter 7 which is total liquidation and most of us do not qualify because we are not as far into debt as they think that we should be but they can let you file a chapter 13 which is reorganization that makes the payments smaller but the bill higher. You also are not able to file for 8 years after you already have filed even if it was discharged.
121354
I guess to appreciate the new law you have to be on the "receiving" end.\n\nMy sister was renting her house to someone. After a few months of hardship stories, she finally had to start evicting them after $2000 in back rent had accumulated.  \n\nThen they filed for bankruptcy.  \n\nThen 2 days after the creditors meeting, they apply and get a brand new mortgage, putting down $5000 on the loan.\n\nThat's abuse of the bankruptcy system.\n\nNow, on the other hand, we see the 78 year old retiree who runs up $20,000 in medical bills.  No way to ever catch up, rent runs behind, credit cards get maxed out.....\n\nOr the husband with 2 kids, factory worker getting $25 an hour and thinks his job is secure.  Gets laid off, can't find any jobs that pay more then $9 an hour.  Wife can't work cause she's raising kids.......\n\nIn both of these cases, creditors don't care.  They want their money.  Collection agents relently hound and threaten them.\n\nYeah, I know both sides of the story.
52289
I have been in a similar boat as you. My husband has migranes and was refered to a sepcialist/psychologist/CAT scans/ect.... We never dreamed that the insurance company wouldn't cover most of this so we were stuck with over 10k in debt. His credit score was the national lowest. Over a period of 2 years we have been paying one bill at a time. Most of these are collection. We pay the newest ones first because they are considered more "credit" worthy? (if thats the right term) If you pay the bills that are older first it looks like you take on new debt not to re-establish credit but to get by. Credit companies don't like that. So pay the newer ones first. It takes alot! of time and patients.\nIf you were to pay off all of your bills at once it wouldn't change your credit score overnight either. It takes time for it all to be processed. You may even have to provide proof of payment to your credit agency. Trans Union so forth. Use bankruptcy as a last resort. Bankruptcy laws are different but mostly for large companies. Bankruptcy still has a negative effect on your credit for like 10 years or something. So while you can pay little by little over a period of a few years and all the while your credit score will go up and up, filing bankruptcy will cause you to suffer credit wise for the next 10 years!\nOn the up side, after you file bankruptcy I believe its like 6 months and you are eligible for certain types of high intrest credit loans. (car/bank) but not financing on a home or anything costing alot of money. I don't know the law on that too well but I think thats right.\nAs someone said before, you can always talk to a lawyer. Make sure you have all of your bills and a copy of your credit report. A lawyer may be able to suggest a good option other than bankruptcy. \n\nTo rebuild credit means to pay off old debt. In the mean time you go without credit. If you have cards cancel them. Until you get your balances back to a "safe" level do NOT use them. After you cancel your current cards you may find it difficult to get new cards right away. That should tell you something. Stop using them. Ok ok. There will come a point when your credit will start to improve. Keep away from the cards until all the debt you have will fit onto one card (low monthly payments) Use this card to "build" your credit to an even better standing, say 600. Keep it up and your looking at about 20 points every 6 months. So it isn't impossible, but it is hard. You really have to want to avoid bankruptcy and repair your credit the good way. \n\nDon't waste your time with "credit counselors" unless its through your bank. They charge soo much money for their services. You end up paying them more than creditor.
662768
you can refinance with a lien on your property but you would have to have a subordinate agreement from who ever holds the lien if they are willing to do so.  bankruptcy if it is a chapter 13 can discharge liens but that is because you would have paid them off.  not in a chapter 7
344556
I doubt if you will be able to file bankruptcy on line. You can file on your own, but will probably need to talk with an attorney. Bankruptcy laws changed about a year ago. You cannot automatically get a Chapter 7 discharge. There is a means test you must pass before you will be allowed to receive a discharge. You may be required to file Chapter 13 to repay all or part of your debts. That is the new law. There are Consumer Credit Counseling companies that help those with credit problems to work something out and repay their debts without having to file for bankruptcy. They can often work out a reduced settlement out with your creditors. If it has been 10 years and you are working, perhaps it would be best to try and work out a settlement on your debt. Frankly, after 10 years, I am not sure that they could legally collect from you anyway. If you file bankruptcy your credit will suffer for many years. A bankruptcy can stay on your credit for as long as 10 years, depending on the section of the bankruptcy law you use. You really need to talk to a lawyer or credit counseling service.
311585
I have been working in the mortgage industry for about 4 years now. Let me tell you up front, in all honesty, it's MUCH more difficult to work with someone who has a previous bankruptcy than someone who doesn't, even if both customers have the same credit score! From a lenders point of view, when you have a bankruptcy we automatically downgrade your credit grade even if you're credit is restored and you have a 700 score. Normally a 700+ score would place you in an "A+", "A", or "A-" credit grade depending on a few things such as mortgage payment history. However, when we see a bankruptcy less than 7 years out, we will bump you down to a "C" credit grade or less. Which means you won't be able to obtain maximum financing. Most lenders max out at 80% or 85% LTV (loan to value) with "C" credit grade / bankruptcy. That means if you wish to purchase a $100K house, you would only be able to finance $80K or $85K of it. There are lenders out there that will still lend to customers who may be even one day out of discharge, but you're going to get raped on the rate. It's always best to avoid bankruptcy at all cost! If you have to do it, look into filing a chapter 13. Filing a chapter 7 is basically like throwing up a big middle finger and saying I'm not paying anyone any money. That's why it has a 7 year period. In all reality though, I still have customers come to me that had a bankruptcy more than 7 years ago and I STILL see it on their credit report. Chapter 13's typically last anywhere from 2-4 years, and in a C13BK you work to pay back negotiated amounts. This will always look better than paying back nothing at all.
102562
To start, let me say I'm not a lawyer.  I'd suggest that you  contact a bankruptcy lawyer and have him go over all the details.  They usually allow a free consultation.\n\nThat said....I'm going to bet that you will not qualify for a Chapter 7.  Read the link below, and it goes into the new bankruptcy laws.  I think you will find you earn too much money and will have to go Chapter 13.\n\nYou are playing with fire if you think you can hide that 1099a.  If it was filed with the IRS, and you don't declare it, they will send you a bill for the amount.  It may even trigger an audit.  So I'd file it and take the $6000 bill.\n\nThe good part (there is a good part?) is that you can include that $6000 on your bankruptcy.  Past taxes are a "priority" debt, and the IRS gets to be first in line at bankruptcy time.  Therefore, you treat them like any other creditor, and they get paid by the trustee every month over the "plan period".  Fortunately, you don't have to pay interest or penalties on the debt.\n\nOn the other hand, if you file for Chapter 7, you still have to pay that tax bill, but you now pay interest and penalties.  So file that 1099a.  Remember, get some advice from your lawyer, I don't want to give you bad advice.\n\nYou can't skate on child support with a bankruptcy, if that is what you were hoping.\n\nGood luck
242240
I'm in Chapter 7 Bankruptcy which lasts for 10 years. It's good because it gives you financial freedom - IF you can save money on your own and have a good job and can survive without a credit card, it's not so bad. On the other hand, it lasts for 10 years. I don't know how hard it is to get loans or credit cards later on(I'm still trying to figure it out myself) I've heard that it's not impossible, but more difficult.\n\nHope that helps some!
133133
Mr. Leibowitz is certainly the most accurate, although I'm going to have to differ with him on a couple of small points.\n\nI think you've got that dismissal is bad and discharge is good (from the debtor's viewpoint).  From the creditor's viewpoint, dismissal is good, discharge is bad.\n\nThe federal bankruptcy courts have an excellent system known by the acronymn Pacer (Public Access to Court's Electronic Records).  With the debtor's name or social security number, it is a fairly simple process to look up the status of any person's bankruptcy.  Do not rely on any of the credit bureaus for information, they are notoriously inaccurate.  I've included the Pacer website in the sources, however, it is a pay site and you have to sign up for an account.  The service is usually free if you care to visit the local bankruptcy court.\n\nAs for the effect of Chapter 7 versus Chapter 13 on the credit, my experience is that Chapter 7 is far more beneficial on the credit than Chapter 13.  You are completed with the bankruptcy within three and a half months, rather than three to five years.  You can immediately start working on improving your FICO scores and getting your life back with a Chapter 7 and you can't do that with a Chapter 13 where you are tied to the court.\n\nAlso, misinformation abounds about how long items must remain on your credit.  The definitive source is the Fair Credit Reporting Act.  I've included the FTC site with the full transcript of the act, but the applicable term for any bankruptcy is ten years.  The applicable code provision reads as follows:\n\na) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:\n\n(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years. \n\nSorry, that is probably way more than you asked for, but the misinformation was mindboggling.
595536
The new rules for chapter 7 bankruptcy effect approximately 3% of the population.\n\n#1 You will now have to attend a counseling session before filing\n#2 You will have to attend a financial management course after you file\n#3 You will also need to provide more documents to your attorney to file for bankruptcy.\n\nThe previous answer is totally invalid. I hope you know that. There is no debt to pay back after chapter 7. And in less than two years I raised my scores into the mid 600's. It's business as usuall and I am able to qualify for a home mortgage, a car or most credit cards if I choose.\n\nThere are scores of attorneys out there who love doing bankruptcies because it's gravy work for them. You should find someone suitable for about $500. Filing fees should still be under $300. I actually filed my own bankruptcy with the help of a legal aid office for $550, lock,stock & barrell.\n\nIf you do hire an attorney, He needs to sit down with you for an hour and fill out the paper work with you. That his job. He knows how to fill in the blanks. The reason I say this, an attorney I sought out handed me the papers to fill out and sent me home.\nI had so many questions I was stymied. I sought out another attorney. He asked me to bring all account information to his office. We sat down and he filled out the paperwork as he was asking the questions.
510137
Bankruptcy shoudl be a last resort! \n\nIf you have to file, then make sure you know what your getting into. \n\nHere are some very informative bankruptcy facts. \n\nhttp://www.expert-credit-advice.com/bankruptcy_facts.htm\n\n\nGood luck to you!
84476
It depends on how your 'Community Property' laws in your state work.\nYou might want to retain a financial lawyer, or at least hunt around for a decent one experienced with financial matters.\nI would suggest you keep your finances separate, too. Stuff only in your name and such.\nOn a side note...even if it is illegal, creditors will say anything and everything to get money out of you. \nIf they've already discharged the bankruptcy, creditors cannot bother you anymore unless you fail to pay on agreed terms setup in the bankruptcy. We only had a couple of issues with creditors, but, as soon as you say it was discharged and give them the doc-number,they'll usually leave you alone.
36887
It is possible for one person to file more than five bankruptcy petitions.  The questions is whether the Debtor who does so will receive a discharge in each case.  That will depend on the chapter, the amount of time that intervenes between the filings, and how the prior cases are resolved (dismissed, discharged, pending, etc.)  \n\nThe rules state in an earlier answer are obsolete for cases filed after the effective dates of the 2005 bankruptcy reform act (October 17, 2005 for most changes).  The waiting period is now 8 years for filing a second Chapter 7.  Also there are numerous new limitations on the effect of a subsequent Chapter 13.  If you are considering a second bankruptcy, set an appointment with a bankruptcy attorney.
549088
I've read many of Debt Guru's answers in the past and they usually are fairly decent.  But this one I have to comment on.  It's very self-serving and borders on spam.  I don't suppose you are the owner/employee of this company, are you?\n\nTelling people not to file because it "stays on your public record the rest of your life" is the exact sort of scare tactic nonsense that collection agencies tell you.  Yes, the statement is true, but very few creditors go through the trouble of referencing bankruptcy records, and depend more on credit reports.  BK filings drop off credit reports after 10 years.  You know that!  So why are you passing on this sort of advice, other then scare people enough to do business with you?\n\nOne more reason why people need to look carefully at these "credit repair" companies.\n\nTo answer your question, it really depends on how much debt you are in.  You need to look at your individual situation and see if it's the right thing to do.  A bankruptcy attorney will give you an hour of free advice, so call around and do some research.  NEVER file a BK on your own.
277076
Your only relief is Chapter 13 Bankruptcy. Ch13 is reorganization. It is effective the day you file it. That stops all foreclosures instantly. You still have to pay the mortgage. Nobody gets burned. But the court will allow you to keep your things and make the payments.\n Don't confuse this with a Chapter 7 bankruptcy. CH7, is a complete insolvency, It's done and over, all bills are wiped out.\n CH13, no bills are wiped out, you still have to pay them, but the court will not let anyone foreclose or repossess.\n\nGood Luck.
451006
Depends on the level of debt. No they can't. They can't siphon your funds in your bank or anything. Its more or less an agreement between you and them to make payments or make them in full. I hear that after 7 years, they stop calling and can no longer collect. Of course you can declare bankrupsy, and all your debts are removed. However, that kills your credit for 7 years. Don't get too far in debt because you wont be able to finance a car, house, etc etc. Oh and just so you know, you can usually negotiate your debt down if you do deal with the credit angency. "Take it or leave it" ...usually they take it and you can settle for less of the amount than what you owe.
484965
If you were to file a chapter 7 now on your credit report it will show that you would have filed 2 bankruptcies.  Under the new bankruptcy laws you will have to go to counseling before filing any bankruptcy and the counselors they are using are from Consumer Credit Counseling Services.  \n\nYou should continue with the chapter 13 or just payoff those bills with the funds you received from the sale of your home.  It will save your credit and you won't be turned down to buy another home in the future.   You also want to start getting your credit back on track by applying for a secured credit card.  Stay away from retail and department credit cards.  These type of cards are finance companies and will lower your credit score.
589448
I would avoid the bankruptcy, if it's at all possible.  You will probably need business credit to get your new repair shop up and running, and the BK will trash your chances at that (or make it really expensive).  Considering your relatively low amount of debt and what sounds like a very good record of making payments, you can probably just work something out with most of the people you are supposed to pay next month.  If not, you will have some blemishes on your credit, but it will not be so ruined that a BK is needed.  You will survive being a little bit late, if it comes to that.\n\nAre you able to file Chapter 7? Sure.  Almost anyone is.\nShould you? No.  You have other options that you should explore first.\n\nGood luck, and try to keep a positive outlook.