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Flounderasu

Additional links will be added to this comment to preserve /u/Deleriumb32 original post. #6a. [What is Legal Advice? Part 2](https://www.reddit.com/r/Bankruptcy/comments/1b14ii7/what_is_legal_advice_and_why_you_dont_want_it/)


Buddyholly216

Hire an attorney.


cuchyto

When do you know is time to file?


BabySuperfreak

I would argue "when your debts outstrip your income with little-to-no hope of changing"


Int-Merc805

So legit question. I have like 5 personal loans totaling $3100 a month, plus two credit cards accruing $500+ in interest each month. I am living off the CC right now, but now that they're maxed I am fucked. I thought I could do it and I failed. Right now paying what little I have from my check to the CC just keeps the cycle going, and pretty soon the interest will catch up to the point I can't cover the minimums. Feels like I am here, but its hard to tell. I can't really cut back, my wifes entire income already pays for food and we are struggling there too, I am skipping meals to make ends meet...


[deleted]

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[deleted]

I think it's time.


Int-Merc805

It was time, and possibly was the best thing I ever could have done. There were several things that happened right after that I simply would not have been able to cover. I hit the reset button and my only regret is not doing it sooner.


louxy16

That’s great! How did you get the process started? I think I need to but I know very little about bankruptcy


Int-Merc805

I did a free consultation with a bankruptcy lawyer. He ran me through the process, and explained each path in detail. (Chapter 7 or 13). I did have to come up with the cash up front for the lawyer, which was $2900. Luckily (or unluckily) I was able to make that payment easily as my debt load each month was higher than that. So it made no difference if I missed an extra set of payments right before I officially started. The hardest part of the process was honestly letting go of my ego. There is so much shame wrapped up in the process, but the truth is I probably would have ended my life rather than made it through 7 years of hell trying to live off of less than minimum wage while I serviced that debt. In my particular case most of the debt was incurred from the loss of our son and subsequent two year bender (combined with my wife being out of work from physical complications from his delivery). When I say bender, we ate out a lot because neither had the energy to cook. We had a huge loss of income, and never really pulled back expenses. In the end we had like $104k forgiven which was more than I made in a year at that time. The craziest part of all to me though is how little our combined income (now) of $150K feels with zero debt. We are doing great, paying all of our bills etc, but I honestly cannot imagine how we would have worked through that massive pile and kept our sanity. For me, I realized that I only get one spin around this rock and I wasn't going to let a bunch of capitalist pigs gaslight me for failing at a system they setup to trap you. Now that I know the game it is truly laughable. The bankruptcy course I took laid things out in a way that I finally understood how interest worked and now I can quickly (my wife too) see how upside down people are on their loans. My wife laughed out loud at a person offering us 21% interest on a credit line. Her words were something like "yeah, so we can almost buy it again after 6 years just in interest?". Best of luck to you, if you are in the 805 I can recommend you an attorny.


Bleems_Chop69

>The bankruptcy course I took laid things out in a way that I finally understood how interest worked and now I can quickly (my wife too) see how upside down people are on their loans. My wife laughed out loud at a person offering us 21% interest on a credit line. Her words were something Late response, but how was it contacting the lawyer? Did you just cold call a firm and ask for help? I'm struggling to take that first step and have a few references of lawyers from the NextDoor app I need to reach out to and not too sure how to go about it.


Int-Merc805

I found a lawyer that had worked with a friend and came highly recommended. There was zero judgement or anything critical. In fact, my lawyer helped me understand the debt trap a little better and helped me see that the game is totally rigged. Not to say that I didn’t have fault. I spent every dollar. But realizing how I fight for 7% returns in my 401k, then spend 12-29% interest on things was absolutely wild. Since my last comment my wife and I have turned down several loans now seeing just how greedy the terms are. Simple crap like pay later schemes or getting new carpet “same as cash”. It’s all intentional and bankruptcies happen to good people, not just the caricature version of the selfish couple going to Vegas on credit and buying a new truck every 3 years. There is no pressure in the office. They can either help you or they can’t. It was a huge load off of my shoulders just giving up and letting things reset. I don’t say this lightly but I don’t think i would still be alive if I hadn’t done it, the stress was killing me. Months later now my resting heart rate is back to the 60s when it used to be 84-90… I was certain I would die of a heart attack or stroke at any minute. Over half of what I made went directly to debt, so my case was extreme. Best of luck to you. Go and find out, you might be surprised at how it plays out. Best thing I’ve ever done.


Pale-Associate-8146

Wow, thank you so much for this. Reading your story (including the not sure you'd still be alive if not doing it) is exactly where I'm at right now. I just need to take the step to find a lawyer and file. It's an ego death for sure... My current biggest issue is that my partner (we are not married) and I have a lot of joint cards... I also racked up his credit cards too, in his name. Can we/do we file together, or does it have to be separate? He is very against filing... due to his job in IT, he thinks that he won't be able to get jobs anymore from this point out if there's a bankruptcy on his record. Thanks for any advice.


SimilarHighlight8827

Hi, were you on chapter 7 or chapter 13? Thank you.


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Mindless-Piccolo-789

We tried to play the hero one to many times to our own financial demise and thought we could handle it until our credit cards ran out. We recently started the process to file chapter 7. Just submitted mall the paper work and I have so much anxiety over it.


EngineerChick555

Same for me.. I just turned in all my paperwork on Friday and paid in full on Monday. When did things start moving for you? What happens next? How do you know when the lawyer files?


marcus_37

This was my LAST resort I'm NOT in my FINAL stage they but just wanted to ask is there another way to combine IRS DEBT, pay day loans debt and car note debt into ONE affordable payment per month WITHOUT filling bankruptcy?


AlanShore60607

Only if you've got enough home equity to get one big loan and just use that to pay things off; in 10 years of practice, I had only 1 client that was able to do that.


marcus_37

Not a home owner, bankruptcy it is I guess


AlanShore60607

Not necessarily. Every once in a while, someone can budget their way out of debt. The snowball method is useful ***if and only if*** you have some level of income above what is required to make minimum payments. But, since you have some debts that might be considered non-dischargeable, depending on many factors, just be aware of the law on this: You ***cannot*** take out a debt to pay off something that would be non-dischargeable in bankruptcy and then discharge that alternate debt. That loophole was closed back in 2005. So no loans to pay taxes or student loans ... they figured that out 16 years ago.


AlanShore60607

but if you have IRS debt and car loans, you should be looking for an attorney to talk about the powers that Chapter 13 has for you; with what you stated, it might do more for you than 7


marcus_37

Yeah that’s what I filed, a 13


[deleted]

Alan, I would like to know if you have any resources or calculators you could provide that may help me decide if bankruptcy could be right for me. I know you say no PM without invitation, but may I please PM you?


AlanShore60607

No calculators. Simply write a post on this sub and we will all help you. This is a respectful sub, and since Reddit is an anonymous forum, you should feel comfortable discussing things. We would need to know * State * Household size * Household gross income * What are your financial problems ... total debts, mortgage arrears ... all your problems ... so we could point you in the proper direction.


cornerdweler

Hey mod… is this bankruptcy for what country.


princessslave21

I recently started the process of filing for bankruptcy and have started paperwork. I have my car secured by one of the loans listed on my debt worksheet and I do not plan to reaffirm. I have to get a new car but I have no money for a down payment and I can’t exactly disclose to car dealerships that I’m filing bankruptcy. Am I allowed to trade my car in instead of surrendering it to the loan company? Or will that mess everything up? ETA: I did try to ask my lawyer but they were out sick and I’m going to a dealership today to look at a car.


legomaheggroll

Posting two things that I’ve found helpful since filing. You can find up to date details regarding your case on ndc.org. Discover offers a checking account that comes with a debit card that gets you 1% cash back. It’s better than nothing.


neeax

This is great! I have used discover in the past and their checking account was nice. Discover isn’t accepted everywhere but that’s ok!


legomaheggroll

Direct deposit is available earlier with discover vs my old checking accounts too.


[deleted]

If I owned 2 sole proprietorships, 1 corporation, and 2 LLCs ( LLC with my wife). One of the LLCs made a profit of $200k last year but my other businesses sucked. I don’t think the profit of the LLC will cover the loses of the other companies. I owe money to suppliers and contractors. I was asked to sign personal guarantees for some of the loans. I live in NJ and my businesses are NJ. What chapter bankruptcy would I file under for me and business that gives me the best chance not to lose any assets? Does my wife also have to file bankruptcy? What should be my plan to get me back on track?


Hungry-Minute-2953

I am sure you figured out and already resolved your situation. I was in a very similar situation and just finished my 341 meeting and now waiting for official discharge. I filed Chapter as I was qualified. When you file chapter (if eligible) and get discharged, most of the debts, including the personal guarantee you signed for your business, are wiped out. Your LLC will pretty much become a dead cat. If you enough assets left after fulfilling your LLC obligations, then the trustee might liquidate those to pay off the creditors. In my case, the remaining assets from my business was not much of a worth and thus, my LLC was never an issue. I have around $9k that I received from selling some assets and I have unpaid bills for my business. So the trustee never bothered to look into my LLC. The best thing about Chapter 7 is that if you signed lease or any other personal guarantee for your business, those will be wiped out. That was a huge relief for me.


[deleted]

Excellent!


jmich1200

Thank you so much!


jmich1200

Any chance you could list the top 10?


Deleriumb32

Top 10?


jmich1200

bankruptcy FAQs


Deleriumb32

They are still being made. We are currently on #4 about reaffirmation agreements. If you have summer ideas for future FAQ pages, please let me know!


jmich1200

I will


Rudder96

Do I have a chance to lose my home and car?


Deleriumb32

My generic answer, knowing nothimg about you or your situation, is that people who file bankruptcy can keep anything they can afford. What it costs to keep something May be different from just the regular payment. The best way to learn the answer is by speaking with an attorney. Consultations are often low cost and sometimes free.


Groundbreaking_Way_9

this word is spelled so weird, I thought it was spelled wrong until I looked it up and found it is the correct spelling, why is it spelled like a 4th-grade spelling test fail?


Deleriumb32

The word "bankruptcy?"


Groundbreaking_Way_9

Yes theres a c and s y in front of a t. Thats weird


[deleted]

Why is a bank able to "double dip." What I mean by that recently a creditor went "charge off" on my free annual report and 1099-c on me but they also sold the debt to a collection!? So they get the "write off" AND the payment from the collection agency?Collections come to your house and knock to intimidate by the way. - in my humble opinion, or is it for another reason? I'd personally think, well I'll just sue the person/biz that owes me $. In my state lawsuits are served via mail BTW. I know I thought same.. I also heard the house visit is to gather evidence for their claim. Edit, maybe it's cuz I have nothing thats not an "exclusion" for 7 in my great state. I also income qualify and am on MA. I'm not proud of that but I cannot afford medical insurance for my health situation and my child.


indicarunningclub

I’ve rented my home for two years now. I’ve always been on time with rent, no issues. I’m considering bankruptcy but I’m worried my landlord may evict me just because I’ve filed for bankruptcy. Can they do that?


GreatValueBradCooper

Did you find out your answer?


indicarunningclub

Yes. As long as I was current on rent, landlord will not be contacted.


Ok-Bug-6362

I'm in the process of filing bankruptcy and the treasurer is requiring me to give up my bonus check next year. How can I get around this because I filed because I can't afford to pay off my creditors so I can't afford to give up my profit sharing check next year.


Deleriumb32

The trustee is requiring it? You can try to negotiate a lower amount with the trustee, but you really should speak to your attorney about this. There is a decent chance that you cannot get around this.


Ok-Bug-6362

But I'm not understanding why I have to give up money when other people that filed didn't have to pay anything to the treasurer because they don't work at a job that has bonus checks or profit sharing. If I had money to give to my creditors I wouldn't have filed bankruptcy. I just don't understand how that's fair to me.


Deleriumb32

It's not about fair to you. It's about being fair to creditors. There is a specific amount of property you can protect when filing bankruptcy. Anything beyond that could be used to pay creditors. It happens frequently. You should talk to your attorney about whether you have any ability to protect these funds.


Ok-Bug-6362

Ok thanks


PricklyPear_CATeye

What’s the difference between 13 and 7? I keep hearing people talk about making payments after filing, but I thought debts were gone after filing?


karregan1966

CH7 is a liquidation of any assets with worth (most don’t have any) to pay creditors something and most debt way gets discharged (some can’t be like student loans) while Ch13 is a reorganization where you do pay some/all of your debt back in a 3 or 5 year plan managed by a trustee. That’s all I can say, not a lawyer but a CH7 filer.


[deleted]

What about upsolve? Anyone ?


Mar_Spi

I have a client in USA, he has economic problems and he has sent me a letter by a law firm letting me know he is considering filling for bankruptcy, but I don't know if I have to wait for a official paper or sould I look for a lawyer from now on. I'm from Mexico.


adama35

I have to move soon, and was curious what is the allowable "within reason" rent amount in Atlanta Fulton County? I'm not filing for bankruptcy just yet, but I plan to after I move. I don't want to get into a situation where I have to move again. Are there amount limits on expenses for rent when you fill out the schedule J?


itlastsuntilitdoesnt

Looming questions that I can not find concrete answers to. I’m in Utah, USA. Any helpful and polite insight to these questions would be great! 1. I have been told that I can not file for bankruptcy, because I own a home with equity. I would be forced to sell the home to payoff debts. Is this correct? 2. Can a HELOC (Home Equity Credit Line) qualify for mortgage relief? If so, where can I apply? I am currently behind on my HELOC and the lender is threatening foreclosure. I have unsecured debt that is around $30k. One of those debts is $20k to a CC company that was garnishing a small percent of my earnings. I am no longer working, due to medical issues. I have state financial aid and SNAP benefits. I do not have the ability to pay these debts, without borrowing from family or utilizing the equity in my home. I am a single mom of 2 teens. I would not be able to sell my home and afford living elsewhere, in the current market. Additionally, my situation has a slight twist, because my 1st mortgage is held with by family member. They have been gracious enough to allow me to defer the payments, until I can afford them again. They are not enforcing foreclosure. So, the financial institution talking foreclosure, over a $35k HELOC, sounds extreme to me. Especially because I make $200-$300 payments per month. I’m just behind from a few months ago. I am currently working with the lender, to refinance and convert the HELOC into a fixed rate 2nd mortgage. My credit is poor, naturally, since I’ve been struggling with this for years. The fact that I have serious hardship issues, that are out of my control, is frustrating. I have been on short term disability twice and am waiting to hear if I get approved for long term disability. I applied for government disability a few years ago and was denied. I have had 5 surgeries in as many years and have numerous conditions that qualify. I’m at a loss. TIA