me and my boyfriend bought a house....well guess what..he is an ex now and i am left with all the bills...i contacted a lawyer and my best bet is to file bancruptcy...i have perfect credit and now it is going to be ruined....anyone else file bancruptcy? can you tell me what it is like?
2006-08-24 03:20:32 · 8 answers · asked by kaseymay_2000 2 in Business & Finance ➔ Credit
I've never filed bankruptcy, but my parents have...twice on a Chapter 13. Your lawyer suggested bankruptcy because it keeps the creditors from repossessing things and also so they can't take you to court for the debts. This also protects you in event you have a large debt to the IRS that you can't pay in one lump sum. It all depends on the type of bankruptcy as well...Chapter 11 (for businesses I think), Chapter 7 (you walk away with nothing except the clothes on your back), and Chapter 13. A Chapter 13 is kinda like a debt reconsolidation, except the lawyer (or whoever) tells your creditors how much money they will receive total. At the very beginning you will go to court with your lawyer to get a settlement? (I'm not real clear on the lawyer and courts part...all I know is mom and dad had to go to court at least once at the very beginning). You send one payment each month to the party in charge of bankruptcies in your area. During the Chapter 13 there are strict rules that must be followed...you can not have a credit card (debit cards on your checking account are ok) and can not finance anything, including a house or car. After the bankruptcy is over it will remain on your credit record for up to 7 years.
2006-08-24 03:45:05 · answer #1 · answered by ModelFlyerChick 6 · 0⤊ 0⤋
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RE Is bancruptcy really that bad?
me and my boyfriend bought a house....well guess what..he is an ex now and i am left with all the bills...i contacted a lawyer and my best bet is to file bancruptcy...i have perfect credit and now it is going to be ruined....anyone else file bancruptcy? can you tell me what it is like?
2014-10-11 11:53:24 · answer #2 · answered by ? 1 · 0⤊ 0⤋
Depending on what Chapter of bankruptcy you file, filing bankruptcy will negatively impact your credit for 7 - 10 years.
The recent bankruptcy reform passed means that if an analysis indicates that you can satisfy or bring current all of your secured creditors (i.e. mortgage lenders, security holders like auto loan financers, etc) and repay a certain percentage of your unsecured debts (credit cards,pesonal loans etc.) within 3 to five years, you will be required to file a Chapter 13 bankruptcy which is a long term debt repayment plan. If, on the other hand, your financial situation precludes repayment you may file a Chapter 7 bankruptcy which is a liquidation plan and absolves you of all but certain (tax, alimony, etc) non dischargable debt. In either case you may reaffirm certain debts to retain the security (your home, your car, etc.). Reaffirming a debt takes it outside of the bankruptcy.
Debtors with non reaffirmed secured debts can request a stay of the bankruptcy which allows them to pursue recovery of their security through whatever action they so choose such as foreclosure, repossession or lawsuit and judgement. Any such action will be filed against all parties to the debt so if your ex is on the note for any of those items he will also be a party to the action and named in the suit.
If you do file bankruptcy, I would reccomend you retain copies of all of the documentation confirming the joint debt so that you can later provide proof to future creditors that the reason the bankruptcy became necesary was the reduction in available income occasioned by the disolution of the relationship and his unwillingness to maintain responsibility for his portion of the payments.
I'm so sorry you are in this situation but remember, the lessons we learn the most from are those that cost us most dearly.
Good luck
2006-08-24 10:37:38 · answer #3 · answered by mazziatplay 5 · 0⤊ 0⤋
let me ask, this house did u guys finance it together, is it paid for, are all or any of your creid cards joint acct. cuase when u file for bankruptcy . they give u a clean slate to start all over again but there gonna try and take all your personal property to repay ur creditors and then thats how u end up up bankrupt. i did it myself to give u an idea. laws have change since 1997 when i did it.i had over 60000.00 in credit a car that was still being finance. i paid a lawyer i dound in the yellow pages, hes very good. he charged me $795 plus 150. court fee i think it was but i was in and out of the NYS court house in 30 min. Most of my credit card companies knew what i did so they didnt bother with me any more and the rest of them i just had to fax over a copy of the courts decision. by the way i still was able to keep the car. If i remember correctly u can still keep the house( maybe depending on the equity). And believe with in 3o days i got credit cartds offers all over again from the same banks offering me credit again. my oppion, i think their thinking he was such a good customer for a long time and he could only get away with bankruptcy once so lets give him another chance cuase he cant do that again.. i think its 7 or 10 years that bankruptcy stays on your report, its not even on mine any more. but if u choose to go through with this bankruptcy , make it worth while call every credit company, treat yourself, finance some flat screens laptops make 1 pymnt too show u tried. then do what you gotta do- good luck....... after reading some other oeople s answers, let me say there seems to be good advice in them, get afree consultation from a lawyer that specializes in this and hell tell you exactly what to do.- who better too ask then someone who does this for a living right?
2006-08-24 10:58:00 · answer #4 · answered by JUNIOR 1 · 0⤊ 0⤋
Bankruptcy saved my house from foreclosure after my ex left. As I found out after she left, she didn't pay the bills all the time like she told me she did. Anyway, it saved my house. The only draw back that I have had is it shows up on my credit report and reduces the chance of any major credit purchases like car loans. I have been able to rebuilt my credit slowly with various credit cards that cater to these types of situations.
2006-08-24 10:34:03 · answer #5 · answered by krkretz 3 · 1⤊ 0⤋
Law had changed and it became difficult to file bankruptcy. It will take you a while to rebuild your credit, you can be denied from new loans as car, credit and bank loans. Try to talk to your mortgage company I know that bank are losing money if they reposes your house. Try to sell ASAP. Good luck.
2006-08-24 10:39:48 · answer #6 · answered by Isabella789 4 · 0⤊ 0⤋
your best bet is to sell your house. do what ever you have to in order to keep up your house payments until it sells. a bankruptcy will haunt you for ten years. your good credit is a direct reflection on who you are. the time will come when you will regret filing bankruptcy. fire your lawyer.
2006-08-24 10:29:29 · answer #7 · answered by tonfran 3 · 0⤊ 0⤋
yes ...it is...
How to Avoid Bankruptcy Explained
http://www.debt-explained.com/category/How-to-Avoid-Bankruptcy-Explained.html
2006-08-25 04:49:54 · answer #8 · answered by Anonymous · 0⤊ 0⤋