Bankruptcy...need some advice/info

[IwantmyMMnow!]

While it is difficult for me to post this and no way to say it but to just say it, I figured posting it up here would help me reach a broad audience.

I am going to see a bankruptcy lawyer next Thursday. I know I will lose my house in SC and losing my MM is a distinct possibility. I was hoping I could put it off until after MVX (sort of my last :banana:), but I have to deal with it now.

Just wondering if anyone else has gone through this and what your experience was. You don't need to post it up for everyone to see...a PM is fine.

While I wish things could be different, they aren't. Filing for bankruptcy will benefit me in some ways. I'm essentially trying to 'shed' the debt that was accumulated while married and start over with a clean slate. I can make ends meet between my retirement check and my GI Bill money, as long as the only bills I have are my rent, utilities, car/insurance, child support, cell phone, and other small things. I have cut out some non-essential things (haven't had cable TV for over a year and use my phone for internet service on my computer) and have not used any type of credit card since I moved.

Any advice/info that you guys can pass on to me will be appreciated. I've got my kids (part-time) and my health and am content with being a student for the next 2.5 years, as now will most likely be the only/best chance to get my degree.

I'm still hoping I can make MVX...will just have to see where I'm at next weekend. I realize bankruptcy isn't the end of the world; I've personally been through enough over the past 2+ years to know that I will get past this and be able to move on.

[sailsmen]

Like many I could have filed bankruptcy many times as a result of events beyond my control. I elected not to. I paid all debts in full.

A company I had a minor ownership in was hit with bad debts exceeding our sales over a few months when the oil patch cratered. When the bank figured out our line of credit was really just financing bad debts they called it. No US bank would give us a loan. We took steps to survive. 8 years latter we sold the firm to a NYSE company.

Others that I know have filed bankruptcy.

Looking back had I filed bankruptcy many of the opportunities I have had would not have been possible.

The point I am making is to look for another solution. Will the creditors rework your obligations, etc. Bankruptcy is the end.

Good Luck.

[fastblackmerc]

Would you make a profit selling the house?

Use the profit to downsize your debt.

[FF1077]

I had a coworker just go through it. He said the court lets you keep one car. His was paid off, so I dont know how it would work if you had a loan on yours.

He also has a house and declared bankruptcy on part of the loan so if he gives it back to the bank they cant come after him for the unpaid loan.

[Haggis]

Kyle the only advice I have for you is; good luck brother.

[IwantmyMMnow!]

The house is upside-down and I'm not the sole owner; we bought it a year before the market/economy tanked. My MM is paid off. The other debt that 'we' accumulated is well beyond trying to work out a payment plan, unless I live to be 120 or win the lottery.

I've been trying to pay off this debt on my own for the past 18 months, but it is just too much. After doing much research over the past 5-6 months and getting advice from my divorce lawyer, bankruptcy is the best option, unfortunately.

[Mebot]

Iirc chapter 9 is a better option than a chapter 7. You have the ability in a Ch. 9 to make repayments. Ch 7 is complete wash but harder to bounce back from & harder to get loans & credit & such. I'm not an expert but I did pick up a few things when I worked at a financial institution. Best of luck to you man, you will make the right choice for yourself

Sent from my handheld Zack Morris iShoe 4S.

[martyo]

Iirc chapter 9 is a better option than a chapter 7. You have the ability in a Ch. 9 to make repayments. Ch 7 is complete wash but harder to bounce back from & harder to get loans & credit & such. I'm not an expert but I did pick up a few things when I worked at a financial institution. Best of luck to you man, you will make the right choice for yourself

Sent from my handheld Zack Morris iShoe 4S.

Chapter 9 is for municipalities. I think you mean Chapyer 13.

I have been involved in over 30,000 bankruptcies.

The single best piece of advice I can give you is to make sure that you land in the hands of an experienced attorney. Ask up front if you will have access to the attorney representing you or if you will be in the hands of the attorney's paralegal -- that is the way many, many bankruptcy firms handle their case management and many clients find this a less than comfortable way to handle their case. It can be a rather impersonal experience.

[BlackJack]

I did a Chapter 13 fourteen years ago. It takes 3 yrs of garnished wages to pay back the debt. As soon as you file, the companies that hound you must cease. Many will take an agreed amount vs the total debt. I was able to get another car loan in 5 yrs after filing albeit at high interest rate. Whatever you do, do not change banks after you file because banks will make you wait 3 yrs after filing to give you a bank account. If you have any specific questions, please PM me. It's not as bad as what you might think and nothing that can't be overcome.

[Shaijack]

Now is a good time for your MM brothers to help as they can. It may not help but I pledge $100.00 to his cause.

[Shaijack]

Mom in law filed it and had a 87K dept. She paid 146.00 a month for three years. Did not own a car or house though.

[Mebot]

Chapter 9 is for municipalities. I think you mean Chapyer 13.

Yep you're right. Ch 13. Apologies Not sure where 9 came from. i know it wasn't chapter 11 b/c thats for companies right?

Sent from my handheld Zack Morris iShoe 4S.

[martyo]

Yep you're right. Ch 13. Apologies Not sure where 9 came from. i know it wasn't chapter 11 b/c thats for companies right?


Individuals can file a Chapter 11 case as well but if they meet the debt limitations of a 13, they may be better served by filing the Chapter 13.

[martyo]

I did a Chapter 13 fourteen years ago. It takes 3 yrs of garnished wages to pay back the debt. As soon as you file, the companies that hound you must cease. Many will take an agreed amount vs the total debt. I was able to get another car loan in 5 yrs after filing albeit at high interest rate. Whatever you do, do not change banks after you file because banks will make you wait 3 yrs after filing to give you a bank account. If you have any specific questions, please PM me. It's not as bad as what you might think and nothing that can't be overcome.

There have been significant changes made to the Bankruptcy Code since you filed (the changes came into affect October 15, 2005).

Also, there may be some additional differences between the way your case went and the OP's potential case because exemptions (the things you can keep despite the bankruptcy filing) vary state by state.

[IwantmyMMnow!]

Now is a good time for your MM brothers to help as they can. It may not help but I pledge $100.00 to his cause.

I appreciate this, Shaijack, but I'm not trying to 'pass the hat' in my situation. It's my responsibility and while I hate to admit it, it's ultimately on me for putting myself in this position. Yes, things happened that I had no control of, but I knew shortly after my daughter was born (she's 7 now) that we were digging a pretty big hole...won't get into the who/what/where/when/why now...what's done is done and need to move forward from this point.

I appreciate all the input/advice that everyone has given so far. Everyone's situation is different; I'll find out more about my situation on Thursday. I just don't know what to expect and was wanting to get an idea of what others have gone through...I'm expecting the worst and hoping for the best. In my mind, losing the house isn't a big deal to me, even though the market will eventually come back to where it was when it was bought and the rental income would be nice to have. If something can be worked out for me to repay my debt, I have no issues with that. After my first divorce, I went from $10K in the red to $15K in the black in less than 5 years. Of course, things are a LOT different this time around.

Right now I'm just trying to simplify my life and want to be able to see my kids as much as I can because it is possible that may change eventually. While I'd like to stay in Asheville so I can be close to my kids, that doesn't mean it will always be that way....



I don’t care how poor a man is; if he has family, he’s rich.

Dan Wilcox

[Haggis]

Now is a good time for your MM brothers to help as they can. It may not help but I pledge $100.00 to his cause.

I will also donate $100 to Kyle. Need address or Paypal.

[PonyUP]

Kyle, kudos to you for taking charge of it, it's never an easy decision. Find out what the attorney has to say and then you can make an informed decision.

With a house involved, not sure donations from the site will be enough, but if donations can at least save the Marauder, I'm in for 100


The Ice Bucket Approves of this message

[MOTOWN]

Wish you the best of luck! i considered filing in 04 after my divorce but didnt like how i got pawned off to paralegal!
Got my money back and just paid my debts off over time with a payment plan i could work with, never again will i allow myself to go down that road.

[71cyclone]

I did a Chapter 13 fourteen years ago. It takes 3 yrs of garnished wages to pay back the debt. As soon as you file, the companies that hound you must cease. Many will take an agreed amount vs the total debt. I was able to get another car loan in 5 yrs after filing albeit at high interest rate. Whatever you do, do not change banks after you file because banks will make you wait 3 yrs after filing to give you a bank account. If you have any specific questions, please PM me. It's not as bad as what you might think and nothing that can't be overcome.
12 years ago , I did a chapter 7 due to possible lean deficency on a house [upside down in the house, and child support was going to start and divorce was coming down the PIKE ] In my case BK was the way to go ,mine was planned 9 months in advance and I still had credit [magic TRIX] . Another option is to go through consumer credit counceling co. This organizaton will set up a payment plan usually 5 years with a small fee. Bankrupcywas used by the Elite and Rich years ago and kept quiet until later years ,but in reality it is all a means of financial survival :beer:

[bigmerc'03]

im doing a ch 7 now..... going to court for it tuesday...wish me luck

[IwantmyMMnow!]

I will also donate $100 to Kyle. Need address or Paypal.


Kyle, kudos to you for taking charge of it, it's never an easy decision. Find out what the attorney has to say and then you can make an informed decision.

With a house involved, not sure donations from the site will be enough, but if donations can at least save the Marauder, I'm in for 100

The Ice Bucket Approves of this message

Thanks, fellas...I really appreciate the gesture(s), but as I said before, I'm not looking for a hand-out. At this point I'm looking for advice/input in addition to what I will find out Thursday. As long as I'm a capable human being, I need to work through this on my own. It is very comforting to know that you all would help me out and it means a lot.

As for my MM, if I have to give it up, then so be it. If there's a 'legal' way for me to be able to keep (aka drive) it, but not exactly own it, I'll find out. If I have to sell it, at least I know a good place to post an ad for it...here! I will do everything I can to get another one later on down the road. I knew bankruptcy was a pretty good bet eventually when I bought mine, but I'm very glad that I did. Buying it and meeting all the great people I've met over the past 18 months was a blessing, IMO...you all became my 'extended family' when I needed it the most.




12 years ago , I did a chapter 7 due to possible lean deficency on a house [upside down in the house, and child support was going to start and divorce was coming down the PIKE ] In my case BK was the way to go ,mine was planned 9 months in advance and I still had credit [magic TRIX] . Another option is to go through consumer credit counceling co. This organizaton will set up a payment plan usually 5 years with a small fee. Bankrupcywas used by the Elite and Rich years ago and kept quiet until later years ,but in reality it is all a means of financial survival :beer:

Thanks, 71cyclone...your situation is very similar to mine. I tried to go the CCC route last summer, but knew I wouldn't be able to keep up with a 5 year plan; I was 6 months away from retiring and I would see a significant drop in income, even if I had a job lined up...which I didn't. I was done with the AF, so canxing my retirement was not an option for me. I wanted to be closer to my kids, so using my GI Bill to go to school here was my only way to get here. After retirement, you get one more move at gov't expense (within 1 year after you retire), so I had the expenses involved with moving paid for already.

The only thing that I'm really concerned about is my retirement savings. I socked away a decent chunk of change before I retired and just hope that I don't have to give that up. I can't touch it (without penalties) until I turn 59 and it is likely that the ex will be entitled to a portion of it :mad2: (TBD later) already. I imagine I'll find out more about this on Thursday.

[PonyUP]

Thanks, fellas...I really appreciate the gesture(s), but as I said before, I'm not looking for a hand-out. At this point I'm looking for advice/input in addition to what I will find out Thursday. As long as I'm a capable human being, I need to work through this on my own. It is very comforting to know that you all would help me out and it means a lot.

As for my MM, if I have to give it up, then so be it. If there's a 'legal' way for me to be able to keep (aka drive) it, but not exactly own it, I'll find out. If I have to sell it, at least I know a good place to post an ad for it...here! I will do everything I can to get another one later on down the road. I knew bankruptcy was a pretty good bet eventually when I bought mine, but I'm very glad that I did. Buying it and meeting all the great people I've met over the past 18 months was a blessing, IMO...you all became my 'extended family' when I needed it the most.





Thanks, 71cyclone...your situation is very similar to mine. I tried to go the CCC route last summer, but knew I wouldn't be able to keep up with a 5 year plan; I was 6 months away from retiring and I would see a significant drop in income, even if I had a job lined up...which I didn't. I was done with the AF, so canxing my retirement was not an option for me. I wanted to be closer to my kids, so using my GI Bill to go to school here was my only way to get here. After retirement, you get one more move at gov't expense (within 1 year after you retire), so I had the expenses involved with moving paid for already.

The only thing that I'm really concerned about is my retirement savings. I socked away a decent chunk of change before I retired and just hope that I don't have to give that up. I can't touch it (without penalties) until I turn 59 and it is likely that the ex will be entitled to a portion of it :mad2: (TBD later) already. I imagine I'll find out more about this on Thursday.

Well if you end up on trouble Kyle, sell the MM before filing to a member here for like $5 and we can let you "use" it until you figure it all out


The Ice Bucket Approves of this message

[71cyclone]

im doing a ch 7 now..... going to court for it tuesday...wish me luck
I am with you . bankrupcy Court is a real comedy show, if you have cases in front of you, you will hear the wildest stories and see a real show. For example, the appliances that Sears repos years back was resold at scratch and dent sales in their stores.:D

[Mark Belas]

Hang in there, brother, and keep the faith. Things will turn out for the best
in the end. We are indeed your extended family.

[SC Cheesehead]

Well if you end up on trouble Kyle, sell the MM before filing to a member here for like $5 and we can let you "use" it until you figure it all out


The Ice Bucket Approves of this message

Cheapskate! I'd give him at least eight...

Hey Kyle, I think that the courts will allow retention of some items (such) as a car that are considered necessary to maintain a basic lifestyle. My B-I-L and a couple other folks I know went through this, and they all retained their vehicles as part of the settlements.

[Haggis]

Thanks, fellas...I really appreciate the gesture(s), but as I said before, I'm not looking for a hand-out. At this point I'm looking for advice/input in addition to what I will find out Thursday. As long as I'm a capable human being, I need to work through this on my own. It is very comforting to know that you all would help me out and it means a lot.

Don't consider it a hand out, consider it helping a friend and a Marauder family member. We have helped other members here rebuild their cars, why can we not help another member rebuild his life.

Give it up Kyle address and/or Paypal all donations will remain private.

[MercOut]

Deleted before yall take it too personal

[IwantmyMMnow!]

Don't consider it a hand out, consider it helping a friend and a Marauder family member. We have helped other members here rebuild their cars, why can we not help another member rebuild his life.

Give it up Kyle address and/or Paypal all donations will remain private.

Believe me, if all other options are exhausted and the situation becomes dire, I'll welcome the donations...just need to find out what's what on Thursday before I go that route, however. Just want to be sure that I need that sort of help before I ask for it. It may not be as bad as I'm anticipating...from some of the replies to this thread, it may not be...

[DOOM]

Sorry to hear this.

I hope it all works out. :beer:

[Rockettman]

I don't know anything about filing; so I can't help.

But I hand it to all of you guys (and women) of the MM community, that "IwantmyMMNow" can feel comfortable enough to reach out to many people he doesn't even know. I think that is great and shows what kind of people are on here.

Hang in there. Hope all works out in the end.

[fastblackmerc]

Wish I could Chapter. (7,9,11,13 or w/e) my student loans :shake:


I wish you the best though!

Why would you want to not pay your student loans? Did you not get the education?

[Haggis]

Why would you want to not pay your student loans? Did you not get the education?

It's the Obama way.

[sailsmen]

He didn't borrow that!

[MercOut]

Why would you want to not pay your student loans? Did you not get the education?

i don't have an issue paying them, its the amount per month that's not reasonable. Student loans are the next bubble to burst IMHO

[fastblackmerc]

i don't have an issue paying them, its the amount per month that's not reasonable. Student loans are the next bubble to burst IMHO

You do have an issue paying them....... you said you wanted them to go away.......

You didn't know what your monthly payment would be when you took the loan(s)?

If you get a mortgage or car loan you know how much you are paying every month..... correct? Student loans are no different.

[zr271cuda]

Hey guys this isn't a thread to bash on people about what they should pay and not pay lets not get off track. This guy is reaching out for some help and doing something that I know personally is something that is very hard to do. I had some hard times a couple years ago and its not something you want to talk about much less with people you don't even know. I may get slammed for being so bold but if you don't have any useful input to help him out the please don't chime in. IwantmyMMnow! I will PM my story hope it helps.

[sailsmen]

Everybody goes through hard times. Our system has an enormous safety net and a process. Bankruptcy is a part of the process.
With 33% of the population on pure welfare receiveing ~$9,000 each at an annual cost of ~$934Billion and only 51% of income tax filers paying income tax when those who Pay hear of waste, fraud and abuse they get upset. Particularly when some one jokes about ripping them off.:mad:

As has been mentioned the bankruptcy laws have changed, leaving little with the borrower. Friends that had substantial equity in their homes lost them in bankruptcy.

IwantmyMM - I hope the system works for you and you are able to move forward.

[Mebot]

You do have an issue paying them....... you said you wanted them to go away.......

You didn't know what your monthly payment would be when you took the loan(s)?

If you get a mortgage or car loan you know how much you are paying every month..... correct? Student loans are no different.

The thing with student loans is that there are several payment options to choose from. One of which is a graduated payment plan. Which essentially means the amount you pay per month rises b/c A) it's with the intent that you are rising professionally & getting better, more high paying job & B) you can pay you're loan off faster

Sent from my handheld Zack Morris iShoe 4S.

[IwantmyMMnow!]

Just want to thank everyone again that's posted up or PMed me your input...one usually gets better advice from others that have gone through a process vs the ones that 'oversee' it. I suspect there might be some pertinent information that is withheld, overlooked, or incorrectly given while I go through this process, so just want to have something to reference to if needed. I am also curious about how difficult/daunting the 'recovery' process is after filing and what it's like the first few years afterward; I appreciate those of you that have given me your stories...it simply solidifies the fact that I can and will get through this process.

I just hope that I can continue going to school to get my degree (proj grad date is Dec 2014); by that time, the initial 'sting' of bankruptcy should be over and I can continue to the next step (getting a decent-paying job) without it being a roadblock. Hopefully by 2020 I'll have the means to put my son (who will turn 10 tomorrow) through college, followed by my daughter 3 years later.

I also hope that I can still make MVX, because it might be the last event I will be able to attend for a while (outside of local one-day meets), even if I get to keep my MM. I'll plan on going...just have to wait and see if I can.

[BlueMarauder]

Ask attorney all of the questions that you have. Some to consider asking are:

How do I make sure that I will owe no money on the mortgage balance after the house is sold?
Will the co-owner of the house (who is likely on the mortgage note)
still be responsible for the mortgage balance?
Can you keep the car by making payments to creditors in bankruptcy?
Confirm that your retirement check and GI bill benefits are not at risk in bankruptcy.
Ask the attorney about making sure that all creditors names are listed in the bankruptcy schedules to avoid a creditor trying to collect after filing bankruptcy.
Ask about a secured credit card to help your credit get back on track after filing bankruptcy.
Ask how long the bankruptcy stays on your credit report after filing.

Good luck.

[IwantmyMMnow!]

Just got done spending the last 3+ hours getting all my info together for my appointment later today. I don't have any classes on Thursdays and my appt is at 1:30pm, so at least I'll be able to get some sleep.

Your positive thoughts/prayers are working. On Monday I received a letter in regards to my GI Bill housing allowance, stating there was an error in the amount I was paid so far. I didn't put much stock in it because the 'rates' quoted (incorrect amount I was paid vs correct amount I should have been paid) on the letter were both less than what I actually received. Today I had a deposit show up in my checking account from DFAS, which will allow me to pay back money I have borrowed from friends/family over the past week and the rest can go towards getting my son an 'extra' birthday gift. My daughter was mad because I only gave him two presents last weekend...lol...I actually got him 6 things, but wrapped them in 2 presents because they were small items.

While the money I received could be used to fund about 75% of the cost of going to MVX, it's more important to settle my debts with family/friends.

I'll post up what transpires from my meeting later this evening.

Thanks again to everyone for your input...to you it may seem like just a bunch of words, but to me it's a source to draw strength, hope, & fortitude from to make it through this.

[martyo]

While the money I received could be used to fund about 75% of the cost of going to MVX, it's more important to settle my debts with family/friends.


Be sure to discuss this with your attorney BEFORE making any of these payments.

[1 Bad Merc]

Kyle-just get your ass to MV 10 brother! I got a couple of bucks for your gas and I sure as heck can buy you a dinner (white castles :)) on one night plus cocktails!!!! No worries just come on up and have a good time with us.

[Haggis]

Kyle-just get your ass to MV 10 brother! I got a couple of bucks for your gas and I sure as heck can buy you a dinner (white castles :)) on one night plus cocktails!!!! No worries just come on up and have a good time with us.

Here, here....I will also donate some gas to the cause. Though it might be methane.

[Bradley G]

My junk prolly set a new record running that schtuff :P
Here, here....I will also donate some gas to the cause. Though it might be methane.

[IwantmyMMnow!]

Sorry it's taken me this long to post up...I was done and home from my appt by 3, but have been working on a project since then for my Weather Instruments class that I put off until today...won't do that again!

All in all, the news was great. I will be filing for a Ch 7 bankruptcy. While I will eventually lose the house (my lawyer said it could take anywhere from 18 to 36 months before the bank forecloses on house), I will get to keep my MM :banana: :beer:, my pension and GI Bill monies will not be touched, and my retirement savings will also be spared. Essentially, I'm getting what I was hoping for...erase the CC and mortgage debt and start fresh. I am sooo happy with this news (almost as happy as the day I had 410s installed). It will cost me just under $2K to have this done....oh yeah, I can finally put an end to the creditors calling me. I get 5-8 phone calls almost every day...I've had my cell ringer on 'silent' for quite a while now. Can't wait to hear my Sugar Hill Gang ringtone again...lol.

Right now, the only thing that is keeping me from going to MVX is the tenant in my house in SC; she has not paid Aug rent yet. Hopefully she will cough up something soon; my property manager is going to give her an eviction notice (her second one already) tomorrow. Under normal circumstances, she would've been gone already, however, I'll put up with her shenanigans to get whatever rental income I can get before the house is foreclosed.

Hopefully I'll have a check coming my way next week so I can re-register for MVX...still have my room reservation.

[Haggis]

Sorry it's taken me this long to post up...I was done and home from my appt by 3, but have been working on a project since then for my Weather Instruments class that I put off until today...won't do that again!

All in all, the news was great. I will be filing for a Ch 7 bankruptcy. While I will eventually lose the house (my lawyer said it could take anywhere from 18 to 36 months before the bank forecloses on house), I will get to keep my MM :banana: :beer:, my pension and GI Bill monies will not be touched, and my retirement savings will also be spared. Essentially, I'm getting what I was hoping for...erase the CC and mortgage debt and start fresh. I am sooo happy with this news (almost as happy as the day I had 410s installed). It will cost me just under $2K to have this done....oh yeah, I can finally put an end to the creditors calling me. I get 5-8 phone calls almost every day...I've had my cell ringer on 'silent' for quite a while now. Can't wait to hear my Sugar Hill Gang ringtone again...lol.

Right now, the only thing that is keeping me from going to MVX is the tenant in my house in SC; she has not paid Aug rent yet. Hopefully she will cough up something soon; my property manager is going to give her an eviction notice (her second one already) tomorrow. Under normal circumstances, she would've been gone already, however, I'll put up with her shenanigans to get whatever rental income I can get before the house is foreclosed.

Hopefully I'll have a check coming my way next week so I can re-register for MVX...still have my room reservation.

Congrats on the good news Kyle, hope to see you at MVX. I'll buy you a drink.

[PonyUP]

Great news Kyle, glad its working out


The Ice Bucket Approves of this message

[Roadwarrior]

Congratulations on the good news from your attorney's consultation. :beer: