Category archives: Filing Bankruptcy

We spoke today with a bankruptcy attorney

We spoke today with a bankruptcy attorney and are filing chapter 7 which wipes out all debt and is afresh restart. We are keeping both of our cars but are giving up the house.

In order to know the benefits of filing BK you need to know the exemptions of your state. Google “bankruptcy exemptions” or go to for a free bankruptcy site. Individuals basically have two choices chapter 7 or chapter 13. Chapter 13 is the more difficult and lengthy of the two and should only be used if you can’t past the “means” test and/or you are behind in payments to secured property(e.g. mortgage,car loan). In Chapter 13 you file a plan with the court to pay off some portion of your debt over 3 to 5 years. Here is the video:

In Chapter 7 your nonexempt assets are liquidated by a trustee if you have any and used to pay your creditors. Another suggestion is to look at nolo’s site find their books on bankruptcy and see if they have them at your local library. I haven’t filed yet but expect to pretty soon. I’ve learned a LOT from these resources. Once you know the details you can decide if you want to hire a lawyer or file pro se.

A few years ago my brother and his live-in girlfriend split up and he filed bankruptcy. She took out some credit cards in his name, which he didn’t find out about until after the split. he was able to keep his house and car. talk with the lawyer. i believe he did a 7. don’t go buy what others say, ask someone who knows the law. Besides, if they take your car(s) then you’ll be without a way to get to and from work.

Do a google search on both. The laws have changed but even still.. you are allowed a certain amount in assets. They dont just swoop in and take everything you own(I have filed chapter 7 and its slated to fall off of my credit report in 2009)but the laws are different now and a bit more strict. Still.. its more then likely the best option from what you’ve described and the only one who can tell for sure would be an attorney who specializes in BK.

Since they dont own the home free and clear and still carry a mortgage odds are they can keep it no problem they will have to “re affirm” that debt- meaning their mortgage company will be notified that they are filing for BK and they then will send them a letter asking them to “re affirm” or re commit to this debt and thats all they have to do. Same with the cars if they still have an outstanding loan on them.

They really only need to be concerned if they have more assets or own more assets that are valued more then the actual debt(which from what you described are medical bills) then they may be forced to pay or liquidate what they have. If they still have a mortgage on their house then its not entirely an asset yet, same with the cars etc. They should be able to get a free consultation by phone and/or in person to any number of qualified BK attorneys in their area.


  1. a couple cards I am actually paying under a “collection” status
  2. rest of my cards I am making at least min. if not a little bit over every month – probably a total of $7,000 in those
  3. we turned in our one vehicle that was leased when my hubby lost his job.
  4. yup I lost my BIG paying job with benefits in October then he lost his in February.
  5. we have a camper we use as a place to stay when we go up to visit family ( 4 dogs travel with us- cheaper than boarding) but are getting close to reposession cause they will not allow us to make partial payments that I have offered to do every time they call.
  6. we may have an opportunity to buy the house we are renting but afraid what it will do if we file.


Who has experience filing bankruptcy?

Friends of mine are in serious financial trouble. The husband had cancer two years ago and he is self employeed, their insurance was awful and now they are tens of thousands of dollars in debt and are at risk of losing their home. They own a home (still have a mortage on it) and two vehicles. When you file BK, does the bank take everythign you own? What is the best to file? Ch 10? Ch 13? What is the difference? Experiences please?

Hey, my husband and I filed a chapter 13 years ago. When we had just had our 3rd child my husband got reall sick and he was out of work and because of a mix up at his job (the correct papers not filed when a change was made for workmans comp) we could not pay any of our bills.

We had several credit cards to the max. It was really bad. We had credit people calling nonstop and some of them were very ugly. (one lady told me to get off my #@#@# and get a job so I could make the payments!) Even after he was ablew to go back to work they wanted all there back payment right THEN. It was not possible for us to ever catch up.

Watch this video with good tutorial:

Anyway, we found out about the chapter 13 and I will say that it was a godsend for us!!!! We went in that day, sat down with a lawyer, told him our situation, gave him our credit bills and by the time we left that place he was taking care of everything!

He called all of our creditors and sent a letter of cease and desist and we never got another call. We went to court and it was in and out..noine of the creditors showed up and fought it. We were given a payment plan that we could afford and sent it to the chapter thirteen office every month and they paid a portion to each creditor.

We stayed on it for 3 years, I think it was and that was it. It stayed on our credit for 7 years but we were able to bring our credit back up. As a matter of fact we ended up getting 3 credit cards over the last 3 years.

Then my husband lost his job and he was out of work for over 6 months and we ended up charging to much on those 3 cards and when he went back to work he just wasn’t making what he was before so just recently we got behind in our payments cause we ciuldn’t make the minium payments anymore, so late fees and over the limit fees got us behind AGAIN.

This time we refinanced our house and used the equity to pay off a loan and 1 of the bigger of the credit cards leaving us with two cards left that are behind. My husband is working with them and so far it is looking good. They are really working with us so far.

We actually was working with CCCS but it’s been really slow and while waiting on that we were getting further behind and getting 20 calls a day from 8 am till 9 pm from creditors. So my husband called the last two creditors and talked to them and if they do what they say, they will waive the late fees and over the credit fees and make our monthly payments more where we can afford them.

With lower finance charges we should be paid them off in less than 4 years. Which it would take 20 years to do with the finance charges the way it is now. Of course the cards will have to go but we have desided that if we can not pay cash then we won’t get stuff. We NEVER want to get be in this place ever again. That’s my story. Sorry it was so long. Hope it helps.

P.S. We did not own a home at the time of our chapter 13 but unless things have changed and I remember correctly the lawyer said that we would not have lost our home or car if we had owed owed on them. But check it out for sure first cause this was years ago and I don’t know for sure.