Bankruptcy ?

[peaceluver]

This is for my sister, this is from edited from a conversation we had this morning.


We are so behind in bills it is unreal. Of course I dont think they will ever be caught up and my credit is totally shot. Does anyone know if someone who is married can file bankruptcy if their spose doesnt? I just know I am going to end up getting sued over my bills not being paid. It takes everything we have just to keep a roof over our heads and food on the table.

[Cheryl419]

She can file without her spose filing too. But tell her to make sure theres no other way first. We filed a few years ago & it was the stupidest thing we ever done. You cant get no where after filing, you hear people say you can but we for one didnt accomplish anything.

[redrig]

I think you can only declare personal bankruptcy for stuff that is in your name, not stuff that is in both names.

I did chapter 7 in 1997 and it took a while but now I have built up my credit again (thanks to Providian) and bought a house last year.

[imdetoo]

Hubby filed bankruptcy without me. We kept our house and our cars. We were able to buy a new (used) car and a house. Yes, our interest rates were a lot higher but we were still able to purchase them. I wish we hadn't filed but like your sister our credit was already shot and we really had no other choice. Our lawyer informed us that no matter which way we filed (chapter 7 or Chapter 13) that it would hurt us just as bad either way so we opted for Chapter 7. Good luck to your sister.

[MsLynn]

when i got divorced, i had no choice but to file, i got to keep my car, and had the option to keep my house, but since his name was on it, i refused to keep it, because he thought he could come and go as he pleased since his name was still on the deed to the house. NOT GONNA HAPPEN. but alot depends on the laws in her state

have her contact an attorney, most will at least talk to you without charging you anything. i went through a firm that specialized in bankruptcy. so that made it better for me.

[cab244]

We filed chapter 13 back in 1999. We were still able to buy a house and buy a car under it but it was a real pain. You have to go through the courts for every little thing and by the time they get back to you the house you were looking at could already be sold. Then you have to go through the whole process all over again. As far as one person filing in a marraige it can get tricky. For instance we tried to file so that it would just be my credit that would be hurt but since I had added him on to my credit cards as a joint user he had to file too. That was for Georgia. It might be different in your state. Most lawyers will offer a free initial consultation. Maybe she should just call a couple of them and see what they say. I also have a question about bankruptcy's. Is this on your credit report 10 years from the date you filed or 10 years from the date it is discharged?

[cab244]

Pulled this from equifax's website:


Public Record Judgments remain on file for 7 years from the date file whether satisfied (paid) or unsatisfied.
Paid tax liens remain on file for 7 years from the date released (paid).
Unpaid tax liens remain on file indefinitely.
Bankruptcy
Chapters 7, 11 and non-discharged or dismissed chapters 12 & 13 remain on file for 10 years from the date filed.
Discharged chapters 12 & 13 remain on file for 7 years from the date filed.


So according to this since I filed in 1999 and it is discharged it will be on my record until feb 2006.

[Merryg]

For those of you who filed and bought a house - what procedures did you have to do? How hard was it to buy a house? Any barriers you came across?

[cab244]

It's been a couple of years so bear with me as I try to remember. First we had to find a lender willing to finance us with court approval. Then we found an agent. Then we found a house. Then we had to contact our bankruptcy attorney so they could contact the courts on our behalf. Then you have to wait on the court clerk to give their okay. Then you have to do all the "normal" stuff regarding getting financing. We had to go through it twice because the first time the house was sold before we got through the court.It was a real pain but at least we got it. Our rate wasn't that bad at the time either. For the car loan that was another story :(. If you are a first time home buyer their are special grant programs that you can take advantage of. Having the bankruptcy doesn't matter for those. We used one to help with the down payment.

[jinydale]

Cab, what kind of grants where those and how did you find them?

[barky586]

After five years, we were able to to get a CONFORMING mortgage! Got a regular credit card after less than a year. Our credit union (we finished paying off a vehicle while we were filing and didn't list it) gave us another vehicle loan with 1% higher rate than others would be getting after about a year after the above-mentioned vehicle was paid off (two years after the bk).

We became penny pinchers and very, very frugal after ours and stayed totally out of debt (less the one vehicle payment and the credit card that we pay in full most every month). Plan to stay that way.

Hang in there - it will get worse before it gets better - and it should get a lot better. I think the problem with many people is that they do not learn anything at all from the experience - much like a fat person who starves themselves to lose weight then gains all the weight back when they go back off the diet. ON THE OTHER HAND, the fat person who totally changes their eating habits keeps the weight off. :)

[cab244]

I don't remember which program we got. Actually, Our lender set it up for us. He was really great. I was trying to find loan programs for businesses and I typed in federal grants and then just grants. After you scroll down through all the pay for info sites there are a few with links for first time home buyers. If you find a lender who specializes in helping people with credit problems they will probably know of some. I'm still looking for stuff on loans so if I find something I will come back and post it. That is if someone else doesn't beat me to it.

[jinydale]

Thanks cab, I would really appreciate it.

[rain_cries]

Could she try a debt elination service? They negotiate with the creditors to get the interest rates either lowered or down to 0% and eliminate any fees....

[rain_cries]

This isn't a consolidation loan... Something like this...

http://www.debtterminators.com/

They don't loan you any money - they negotiate with the creditors to get the monthly payments reduced and eliminate intrest.

[peaceluver]

Thanks everyone I passed info on she said she was just going to call a lawyer and find out her options.

[peaceluver]

OK guys another question for you. She called today and said that she got a letter from a lawyer about one of her bills. They gave her 30 days to get back to them. She wants to know if she will have to pay all upfront to not go to court or will they arrange a payment plan? They just got caught up on the bills enough that she can make payments.

[peaceluver]

Yes I think this is because it has not be paid on in awhile. I know she went through a credit counseling program, but this bill would not accept the payments. I basically think she just said oh well I have nothing else to send and never got back in touch with them. Now they are wanting their money. She is sending a letter to the lawyer stating what she can now send them each month until its paid in full. Hopefully that will be enough for them not to go to court.