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If you're in financial crisis and cannot repay your debts, bankruptcy may be the solution to your debt problems. To learn what bankruptcy is and how it may work for you, check out the bankruptcy information below:


What is bankruptcy?

Bankruptcy helps to eliminate a part of your debts and may offer a payment plan where you pay back your debts with court supervision. When you declare bankruptcy, the court puts an automatic stay on any legal actions (collections, garnishment, foreclosure etc) taken by creditors/lenders due to non-payment of debt.

There are personal and business bankruptcies. The most common types of personal bankruptcies are Chapter 7 and Chapter 13.


When should you file bankruptcy?

If you're unable to manage your debts and need to eliminate or reorganize them, you should consider declaring bankruptcy. Below are the conditions when you should declare bankruptcy.
  • You're making the minimum payments on your bills.
  • More than one account is in collection.
  • The lender is about to foreclose on your home.
  • You've recently lost your job.
  • You have tried other debt solutions and they haven't worked.


What is a bankruptcy discharge?

A discharge is a court order releasing the debtors from the personal liability to pay off their debts. The discharge order is usually issued 4 months after filing Chapter 7 bankruptcy and 3-5 years after filing Chapter 13 bankruptcy (30-60 days after your final payment).

The discharge does not remove any unpaid liens placed on your property before you filed for bankruptcy due to default on a secured debt (a mortgage or car loan). So, the lender can carry out a foreclosure after the automatic stay is lifted. To avoid a foreclosure after your Chapter 7 bankruptcy has been discharged, and keep your home, you should sign a Reaffirmation Agreement (for exempt equity) and continue paying your mortgage.


How to file bankruptcy

Instead of filing bankruptcy on your own, it's better to get help from an attorney who'll guide you through the process. There are 3 steps to filing for bankruptcy. They are:
  • Deciding which chapter you can file for under the Means Test.
  • Enrolling for Credit Counseling.
  • Filing the court documents, including a financial statement.

For more details on how to declare bankruptcy, check out this information on filing for bankruptcy.


What happens after you declare bankruptcy?

Take a look at the bankruptcy information given below and get an idea of what happens after you declare bankruptcy.
  1. Creditors are notified: Within 14 days of declaring bankruptcy, the court notifies your creditors about the filing. The court sends a copy of your bankruptcy petition, including a notice that the automatic stay has been put in place, the name of your trustee, and the date when the 341 creditor meeting has been set.
  2. 341 Meeting with your creditors: Between 20-40 days after filing, the trustee holds a 341 Meeting with your creditors. You are required to attend and answer any questions put to you under oath.
  3. Trustee's role: In a Chapter 7 bankruptcy case, the trustee takes a look at your assets and determines which ones your state law exempts from being sold. Any nonexempt assets are sold off to pay your debts. In a Chapter 13 bankruptcy case, the trustee negotiates with your attorney and creditors to work out a repayment plan you can afford.
  4. Creditors may challenge the discharge: Your creditors have 60 days from the 341 meeting to convince the court you should not be able to discharge their debt.
  5. Financial Management course: Under the 2005 changes to the bankruptcy code, you are required to enroll with a court approved credit counseling service within 180 days before you file for bankruptcy.


Can you keep your home after filing bankruptcy?

You'll be able to keep your home if you've filed Chapter 13. But if you've filed Chapter 7, you may or may not be able to protect the equity in your home from your creditors/lenders. There are Federal and State Homestead exemptions. If your equity is less than the exemption, then you'll be able to keep your home.

Federal and State Exemptions
Some states permit their citizens to use the Federal exemptions, while others do not. Every state court requires an individual filing for bankruptcy in their state to have lived there for at least 2 years or to have lived in that state for the majority of the 180 days before the 2 year period in order to use their exemptions.

If you have more equity in your home than the state homestead exemption allows, then the trustee will sell your home. You will get an amount equal to the exemption, and the rest will go to pay off your debts, including your court costs. If you are still paying on your mortgage, you may reaffirm your mortgage and exclude your home from your bankruptcy estate.

However, if you have sold or transferred property to another person in order to avoid losing that property in bankruptcy, then you may lose part of an exemption or have your bankruptcy petition denied.


What debts are not discharged?

There are certain debts which cannot be discharged by filing for bankruptcy. These include:
  • Student loans
  • Back taxes
  • Fraudulent debts
  • Alimony
  • Child support
  • Large purchases
  • Government penalty


Pros and cons of declaring bankruptcy

Filing bankruptcy gives you a fresh financial start and helps to eliminate or restructure your debts so you can manage your finances well. However, when you file Chapter 7, it hurts your credit score. But Chapter 13 has a positive effect on your score as you can repay all or part of your debts. Thus, bankruptcy isn't always bad. What's important is to understand how bankruptcy works and which Chapter would suit you the best.
Related Articles
Related Forum Discussions
Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How do i declare bankrupcy?

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Peter,

Welcome to the forums,

There are two ways to declare your bankruptcy. First one file a petition to voluntarily go bankrupt. This is more common. Another way which is not used often is for creditors to ask the court to make a order to that the person is bankrupt.

God Bless You,

Thanks,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:48 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Will my spouse get affected due to my bankrupcy?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:48 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Welcome to MortgageFit Forums,

Once you are in MortgageFit you need not worry.

Your spouse will not get affected if he or she is not responsible for any of your debt.

But in community property states either of the two (husband and wife) can contract for a debt without the signature of his or her partner on anything. Like day to day debts do not require both spouses to have signed. Still there are exceptions to it like sale and purchase of real estate will require signatures of both spouses.

Your attorney can help you in a better way in this regard.

God Bless You.

Thanks,
Samantha

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Thanks for attending my question Samantha. Can you tell me which are community property states.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:48 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

There are many community property states like Arizona, Idaho, California, Nevada, New Mexico, Texas, Washington, Wisiconsin, Louisiana

God Bless You.

Thanks,
Samantha

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am bankrupt and i am about to file bankrupcy but i want to know that whether all my debts be wiped out once i file bankrupcy?? and if not what are those debts?? any feedbacks are appreciated.

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

As far as i know lot of your debts will be wiped off but not all there are some debts that will not get wiped even if you file bankrupcy.

Thanks,
Jerry

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Dylan,

Welcome to MortgageFit Forums.

As jerry said there are some debts that do not gets wiped off even if you file bankruptcy like back child support, certain kind of tax debts and alimony.

Student loans will also not get discharged unless you are able to show that repaying the loan will be a undue burden. And believe me this is a very tough standard to achieve.

God Bless You.

Thanks,
Samantha

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi! Filed Chap. 13 bankrupcy Oct. 2003. My attorney died April 2004. HIs former partner agreed to watch over his cases. My employment changed but I kept making payments, though the date I paid monthly changed a few times. I was told this didn't matter as long as I got the payment in within each month. Because the office delays posting payments upto 3 days, some months didn't show as being paid, which promted a review of my account. They say over the life of the case there is a $1500 shortfall of what I should have paid in vs. what's been paid. My date to appear is 1/11/05 and I only have $800 of the $1500 needed by Wed. My next payday is on the 15th (13th due to the holiday). Do the courts judges ever show any leniency or will they allow the case to remain open and let me pay the balance a few days later? What recourse do I have if they throw it out? (The case would be complete by Novemebr 2006 if allowed to continue) I'm so stressed...HELP ???

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:48 | Post subject:

blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Willnjoy,

It's a hard time you are facing but I feel you will come out of this problem with your honesty.

If you can clearly explain your problem in and give them proof of your difficulty, then there is every possibility that the court may give you time.

Consult with your attorney on the approach you need to make. Don't break down. I am sure your problem will get solved.

Regards,
Blue

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Willnjoy,

Welcome to MortgageFit Forums.

I don't feel there is any fault on your part to be charged for. This is really painful to see that in spite of making payments on a regular basis you are having tough times.

I shall advise you to talk to your attorney and get the evidences of your payments. He can suggest the best possible way to explain things in the court in full.

Since you are honest and sincere in your approach, there is no reason the court will force you anything. Things should be explained clearly and convincingly.

Take help of your attorney always in the process and I sincerely believe that you will come out successfully from this problem.

God bless you,

For MortgageFit,
Samantha

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I live in Arizona and I am thinking about bankruptcy, but I have been paying IIM for the past 6 months and I still do not see any changes. It will take me until 2012, I think, to pay off my debt of $12, 000 or more. Any advice?

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Welcome to MortgageFit Forums.

Can you be more elaborate on why you are thinking about bankruptcy?

God bless you.

For MotgageFit,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:48 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i have a credit card that i fell behind ion the company has hired an attorney to settle this dept, they want to go to court, they will not work out a pymt arrangement, my name is on the house the morg. is in my husbands name, can they put a lien on the house or come after my husband, the card is in my name only.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:48 | Post subject:

colin's picture
colin | Joined: June 30, 2006 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

The company cannot claim your house. However, they can have a lien put on it. The reason is that if the house is ever sold, they get their money.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:48 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kay,

Don't get scared. The primary mortgage holder can only force someone out of the home which requires foreclosure proceedings in the court.

The most that a CC company can do is to get a judgment from the court against you and put a lien on your house.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:48 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi again, what is i do a quick claim, the card is in my name only, can they go into our checking account?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kay,

Transferring your property will not free you from your liabilities. You can quit claim the house but your debt remains as it is.

So far it remains outstanding your credit is going to be damaged severely. Why don't to take your time and make a fresh budget to start paying off your CCs?

Why are you in such panic? :)

James

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:48 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i spoke to a lawyer yesterday, he told me since im being sued by a cc company i shouldnot quitclaim my part of the house to my husband because they will come after him, i dont know how they can do that hes not responsible for my dept.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,
As you people have a mortgage on the home, first the company will have to pay off the lender on your home and then foreclose, but under most conditions they will not be able to foreclose as long as you keep the payments regular to your lender.

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kay,

There is no need to quit claim the property. The credit card company can only place a lien on your property if the legal document states that the card is secured by your property.

Similar will be the case with your checking account. If the document states that on default, money will be retrieved from your checking account, then only the funds from your account can be used to repay the credit card debt.

Thanks,

Caron.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi again, in court if i set a payment arrangement can they put a lien on my property, i am not on the loan i was put on the house as a gift, the card is in my name only, i dont understand if a quitclaim my share to my husband, how can they go after him its not his dept?

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kay,

Welcome back.

If you set up a payment arrangement, then you can prevent collection. But in no way can they put a lien on the property. Even if you quit claim your share to your husband, I don't think they should go after him. This is because the card is in your name after all.

Thanks,

Caron.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi again, the lawyer told me if i quitclaim my half to my husband, they can come after him, its a fraudulant act, and i no longer will be exempt, i received papers from the sheriff they are suing me for the dept on this credit card, will they put a lien on my property if i make a pymt arrangement with them to secure the arrangement? :oops:

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kay,

If you make a payment arrangement with the credit card company, I don't think they will put a lien on your property. Also, you have a mortgage against the house, and the lender can put a lien when you default on the mortgage payment.

Thanks,

Caron.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I was in car accident in 2004 and had surgery 2005 and 2006 as a result of this accident. Because I was off from work each year for about 3-4 month I got behind in my bills. I was off work from 7-7-06 until 10-09-06 with no pay I have tried to avoid bankruptcy but I just can't see my way out. I am in about 21,000.00 of debt this is ruff estimate wshould I file chapter 7 or 13

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carnahandavid's picture
carnahandavid | Joined: December 21, 2006 04:07 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Pat,

Sorry to hear about the problems you are facing.

Before filing for bankruptcy you will be required to undergo credit counseling. It will be used to check if you are in a position to pay a certain percentage of the debt or not.

And also a Means test to determine filing which type of bankruptcy will be appropriate for you.

David

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psteward's picture
psteward | Joined: December 22, 2006 10:27 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If I file will my furniture be taken it is one of the bills I can not pay

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Under chapter 7, your non-exempt property will be sold to pay off the dues.

And in chapter 13, your debts will be restructured and a suitable payment plan will be formed which you can afford to pay off the debts within a specific time frame.

As such it all depends on which chapter you qualify for. Also let me suggest that you try to enroll into any form of debt consolidation program before finally deciding on [url=http://www.mortgagefit.com/know-how/filebankruptcy.html]filing bankruptcy[/url].

Lay Hurst

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Pat,

Welcome to this forum.

It's hard to imagine what you have gone through. It's really traumatic. I can only pray for your good health.

You said you have tried to avoid bankruptcy but then have you tried out any other option to repay your debts?

There are some alternatives which may help you get out of this situation.

Refer to the section on
Alternative ways to avoid bankruptcy
to know more about the options.

Feel free to ask us if you have any query on the alternatives.

God bless you.

Samantha

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

While filing bankruptcy what are eight priority taxes?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

All debts of a debtor are assigned priorities for payment in bankruptcy. Most of prepetition tax debts are regarded as eight priority taxes.

Normally these are certain income & other taxes that debtor owes before he files a bankruptcy petition.

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi McCutchin,

Welcome to the forum.

The prepetition eighth priority taxes are unsecured federal taxes given below:
[list:53d8510e9e][*:53d8510e9e]Income taxes for the tax years ending on or prior to the date of filing bankruptcy, for which a return is due within 3 years of filing the bankruptcy petition.

[*:53d8510e9e]Income tax assessed within 240 days before the filing.

[*:53d8510e9e]Withholding taxes which you are liable to pay.

[*:53d8510e9e]Income tax which was not assessed prior to the petition date but were to be assessed on the petition date. These taxes were still assessable as on the petition date because there was no return, late return (within 2 years of filing) or fraudulent return filed.

[*:53d8510e9e]Excise tax on transactions which occur prior to the date of filing the petition, for which a return is due within 3 years of filing the petition. If the return is not required, these excise taxes include only those taxes on the transactions started during 3 years immediately prior to the filing date.

[*:53d8510e9e]Employer's share of employment tax on wages or commissions (including vacation, sick leave etc) paid as priority claim or for which a return is due within 3 years of the filing date, including a return for which extension of a filing date is obtained.[/list:u:53d8510e9e]Hope this is going to help you...

God bless you.

Samantha

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

About 4 yrs ago I had a ch 13 case dismissed for non payment. My home was in foreclosure and included in the case. Aprroximately 7 mths after the dismissal I was able to satisfy my mortgage obligation. Is there anyway I can have my dismssal changed to something else so that I start obtaining credit again?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rosie,

Welcome to forums.

It's good to know that you paid off the obligation even after a bankruptcy dismissal. But the fact remains that even though your bk Chapter 13 may have been dismissed, it's going to stay on your credit report for 10 years. Had the bk been discharged, it would have stayed for almost 7 years. However, the negative effect on bk dismissal gets minimized with time; so you can very well opt for a loan with favorable terms after a year or two from now onwards. But in the meanwhile you should make on-time payments on other debts, so that they can offset negative impact due to the dismissal, at least to some extent.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

with the loss of my husbands job 5 months ago we are now in a situation where unemployment will be running out in 2 months and then our only income will be mine which is 680.00 per month we have 3 children. our house payment is almost 1900.00 alone we have never been late on anything our other bills total monthly payments of about 900.00 per month in credit not counting the cost of just living like food gas and electric total of debt we need to file on counting the house is about 296000 with only a 680.00 income will we qualify for chapter 7 ? and if we own our vehicals will we have to sell them to pay back some of the dept????

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tozzi,

Welcome to forums.

I can understand your situation and I must say it's tough. But at times such things do happen and then all we can do is fight out the situation. Is your husband looking for a part time job or something till he gets a permanent one? With your income, it's impossible to make payments. Moreover, it's going to be tough for you to handle your living expenses. So, why don't you apply for Section8 Voucher housing program? I think it will be a suitable option far you as far as paying your mortgage is concerned.

I feel filing chapter 7 isn't the right solution here because depending upon the state, you may lose your home, vehicle and the like. So, frankly speaking I believe you should enquire about section8 housing vouchers at the office of your State Housing authority.

Know more on Section8 housing vouchers from a previous discussion on this topic.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Over the past year I went thru a gut-wrenching divorce & was left with a bit of debt from my ex wife's rehab and a house with a mortgage I couldn't really afford but desperately wanted to hold onto. I started investing in the stock market as a way to supplement my income using low or no interest credit card loans and trading on margin for short term gains. I was also using these personal credit card loans to help keep my business afloat. At first it was working and supplementing me just enough but as the market began to slip I began to try and hold out. As margin calls came in I kept borrowing more money and eventually dipped into a home equity line of credit. Eventually I used up every ounce of credit and the stock market as we all know tanked completely and basically wiped me out. Here's what I'm looking at: I owe $184,000 in unsecured credit card debt, I owe $124,000 on a home equity line of credit (technically a 3rd mortgage) that I just found out is still attached to my ex wife's name despite her no longer being on the deed of the house. I am self employed and have an S Corp which makes about $75,000 per year. After all of my business expenses my personal income taxes probably reflect no more than a $40K income. I've watched my industry take a downturn and expect it will trickle down to my business in about 4 months which will decrease my income severely. I cannot fathom how to even make a dent in the $308,000 I owe and yet everywhere I turn people say "declare bankruptcy as an absolute last resort, your life will never be the same." Obviously this debt makes me sick to my stomach on a daily basis but I just wanted to know if there's any other remotely possible solutions or do I fall into a worst case scenario here and should go for bankruptcy? I would like to try and hold onto my house through the process if my mortgage company winds up qualifying me for lower payments through their home retention program - otherwise I'm headed down the road of foreclosure. The house is worth less than what I owe on it even without the $124k third mortgage. My other question is how to protect my ex-wife's credit through this process when it comes to that $124K equity loan. Ultimately it was my choices that led to this financial disaster and she's got enough on her plate at the moment. Is my only option through bankruptcy to hold onto that loan whose payment is $1025 a month or is there another option wherein her credit doesn't get trashed? Also, how will my bankruptcy affect my S Corp (which has no assets) if at all? I heard from an accountant friend that in the state of California you're allowed to keep up to $22,000 in assets through bankruptcy. Is that true? I have about $10,000 left in the stock market of my own original money that I'm going to need this Spring when my business could take a big downturn.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome D,

Your query has been answered by one of our forum members in the given link:
http://www.mortgagefit.com/bankruptcy/option.html

Check it out and I hope it will help you.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

can you get alimony reduced because it is way too high

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

can you get it reduced when your pay has lesssened to disability

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what do you do if you can not catch up

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I don't think it gets lessened. Better consult your attorney in this regard.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I'll be inheriting assets worth $35,000 in a week or 2. Yes, I am very happy for that. But the problem is elsewhere…I had just filed for bankruptcy (Ch 7) because I was unable to pay debts of $40,000. I was thinking if I could dismiss my bankruptcy as now I’m capable of paying back the debts. I had heard that court dismisses the bankruptcy if debtors are not present during the hearing. Do you think I can dismiss my bankruptcy in this way? I haven't contacted my lawyer yet…just want to get some great advise from you all…

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jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

I don't think it's a great idea to not attend the court hearing and dismiss the bankruptcy. There are chances that the court may consider this as a fraud and may even penalize you. In my opinion you should contact your lawyer and take his suggestions. I don't think even he will agree to this.

Thanks,

Jerry

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Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Me and my husband…both of us are looking at [url=http://www.mortgagefit.com/know-how/filebankruptcy.html]filing bankruptcy[/url]. I know there are different ways to avoid this bankruptcy but I don't think we will be able to because my husband has been without work for about a year and there is no chance that he will be getting a job in the near future... He is trying desperately to look for employment and now he is thinking of moving outside state to get a job. My question will be Should we try to sell our house before declaring bankrupcy or should we sell the property after we have declared it??

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Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Daisy,

You should file bankruptcy first and then sell off the property during the bankruptcy. This selling of the property should be done in the presence of your bankruptcy trustee. Your bankruptcy attorney will also be able to guide you in a better way. As far as I know, your case will be filed in the state where you are living right now. Moreover, you should also note that in any case, you should not transfer the property right now to anyone else because such a transfer may be considered as a fraudulent one by the trustee.

Thanks

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Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am about to file chapter 13…due to some hardships. Just wanted to ask you all if I can get credit cards once I file bankruptcy. I came to hear that I will not be able to get credit cards if I file bankruptcy! (Oh! Lord). Can anyone out here tell me if I'll be able to get credit cards after filing bankruptcy or not???

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jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tulip,

As far as I know, you will be able to get a credit card though you file a [url=http://www.mortgagefit.com/bankruptcy/chapter13.html]Chapter 13 bankruptcy[/url]. Getting a credit card will also help you in improving your credit score in the long run. But it is always better to get a secured credit card after bankruptcy rather than getting an unsecured one. A secured credit card is the one which is obtained by opening up a savings account with a bank offering such a program. The bank will offer a credit card and secure it with a deposit.

Thanks,

Jerry

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