My mom just filed for bankruptsy, and I want to know what's going to happen...
2006-09-20 10:01:33 · 6 answers · asked by Meg 2 in Business & Finance ➔ Personal Finance
yea she said she had 2 use her paycheck to pay the lawyer, we got like 40 bucks to last us for another 2 weeks....
2006-09-20 10:09:53 · update #1
It depends on what she filed a Chapter 7 which gets rid of all debt or a chapter 13 which consolidates your debt and reduces it to a fraction of what you owe and you make payments on that. You can do a Chapter 7 and keep your car and home (you still owe that debt if you keep it) but you can choose to give them up. Whatever your mom has decided I am sure she has thought it through very carefully.
2006-09-20 10:05:06 · answer #1 · answered by Ask 2 · 2⤊ 0⤋
It depends on the individual cicumstance. It does not look good maybe she could of avoided doing so. It will be hard for her to get anything credit wise and that is about everythng in life.
My friend filed and she still got herself an Townhouse in GA. So I guess it's not so bad. But she is paying a lot in interest. My mother filed many years ago when the laws was different and she got credit again and now her credit score is 750 so i guess it's not so bad.
It depends on how deep in debt she was. In my case it doesn't make since to do it since I am not in that much debt it's better if I just pay it off slowly.
Happy to Help!!
2006-09-20 10:09:26 · answer #2 · answered by Missaquarian27 2 · 1⤊ 0⤋
Laws have changed recently so I am not certain how it works anymore. I am sure your mom put much thought into this decision, it is not an easy thing to do for most folks. My daughter did it a couple of years ago and cried for days (pride) but it was the best thing to do because she got way out of hand with the credit cards. She has learned much from it and is certainly better off now. I think everything gets better credit wise after seven years, but don't quote me on that. You are not forever punished for it.
2006-09-20 10:12:18 · answer #3 · answered by mickeyg1958 4 · 0⤊ 1⤋
I assume she used an attorney to do the actual filing. The court will put an immediate stop on interest charges by creditors. The court will compare assets to liabilities and decide the best way to use any assets to pay off liabilities.
If creditors have to cancel debt because your mother cannot pay, your mother's credit will be ruined. She won't be able to borrow money.
2006-09-20 10:07:22 · answer #4 · answered by regerugged 7 · 1⤊ 0⤋
What it means for you is that Christmas has been cancelled. It means you're mom is broke and it means hard times for the next few years.
It happened to us as well. Good luck, and hang in there. Don't expect that new Ipod unless you want to go to work and earn the $ for it yourself.
2006-09-20 10:11:22 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Bad luck for 7 years, I think. No loan approval, no credit cards, no mortgage pre-approvals... Cash only
2006-09-20 10:10:26 · answer #6 · answered by Anonymous · 0⤊ 1⤋