Effects of Bankruptcy?

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Re: Effects of Bankruptcy?

Unread postby Campfire » Wed Sep 27, 2017 5:58 pm

Phoenix853 wrote:Camp,
No not yet. I still doing the research. I may not even qualify for ch 7, haven't run the numbers. I am heading back to court to fight the Ex over CS and her half of my IRA. She doesn't want to pay CS and want's More than Half from my IRA.

So at this time, Its hard for me to consult with a BK attorney at this time. Too many balls in the air.

Recovering from BK is something an Attorney may not really comment on, that's why I asked here for real life answers.



I didn't qualify either. Your family law attorney would have to be an idiot to allow you to qualify for Ch7. His fees, unless court ordered, are dischargeable in Ch7. If it becomes a possibility, expect your attorney to definitely become a part of the "other side".

All 3 bankruptcy attorneys I consulted with mentioned approximately 2 years before my credit would recover significantly. Simply google the "Ch7 Means Test".

I would not worry about the bankruptcy issue unless you have a lot of free time. You won't really know whether you will qualify until you know what your total debt, income, and obligations are. The calculators online can give you a guesstimate, though.
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Re: Effects of Bankruptcy?

Unread postby Phoenix853 » Thu Sep 28, 2017 11:05 am

a dad wrote:Bankruptcy is putting your poor financial decisions on to the rest of us.


Appreciate the sentiment. I think I can pull out of this with time. I've never thought of or wanted to go down this road. As for my poor decisions:
All my Debt is Attorney fees. I drive a 01 Ford, paid off. My mortgage is lower this year than last due to refi, I'm a frugal shopper and watch my pennies.I live modestly. The decision to go into debt was out of necessity, Attorney's cost money if you have to fight for 50/50 against someone who has no concept of money. I think I've made all the right decisions.

If it comes down to it, I would with out regard to "the rest of us." for one simple fact. My kids and I. I'm not going to live in a box and lose my kids over the thought of how it will effect society. Selfish, possibly. Self preservation, yep. It's business and right now I'm in the Red due to my divorce, not lavish gifts or charging up a credit card on luxury items.

I'm just weighing my options if this were to get deeper.
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Re: Effects of Bankruptcy?

Unread postby Phoenix853 » Thu Sep 28, 2017 11:16 am

Campfire wrote:

I didn't qualify either. Your family law attorney would have to be an idiot to allow you to qualify for Ch7. His fees, unless court ordered, are dischargeable in Ch7. If it becomes a possibility, expect your attorney to definitely become a part of the "other side".

All 3 bankruptcy attorneys I consulted with mentioned approximately 2 years before my credit would recover significantly. Simply google the "Ch7 Means Test".

I would not worry about the bankruptcy issue unless you have a lot of free time. You won't really know whether you will qualify until you know what your total debt, income, and obligations are. The calculators online can give you a guesstimate, though.


After my Ex went Ch. 13 she found an Attorney who found a crack and got her Ch.7 I'm sure it's possible and she'll never be found out that she lied on her application.

I'm not at that point yet, but I don't know how much this CS and IRA thing will cost until it's over. I was just curious as to the effects it would cause going forward. Right now I'm able to stave off any concept of it with 2 jobs.

I've seen the means test, but haven't put in my own information into it. 2 years seem like a long time without a safety net (Credit) I've got a 17 y/o truck that will need to be replace when she dies, but i'm hoping she's got a few more years in her.
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Re: Effects of Bankruptcy?

Unread postby lovingfatherof2 » Thu Sep 28, 2017 11:51 am

I know how you feel. My debt came from a wife that also had no concept of money and me having my blinders on and my balls in her Coach purse. Then to add to that I had to hire lawyers to fight to be an equal parent putting me even further in the hole.

Never again

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Re: Effects of Bankruptcy?

Unread postby spritom » Wed Oct 04, 2017 4:45 pm

It will depend on those reading the post-BK credit report.
Some won't care and still do business with you.
Some will care and won't.

Getting another car post-BK is really easy. Many auto dealers pay to get names of people in bankruptcy proceedings and mail them offers to come buy cars. % rate? Typically in the 18-25% range.
Low rate loans though...if one really pushes the credit-pruning for a couple years, doable, but yes, harder.
Part of the reason is the dealer/lender charge the high APR, but also, that car won't be able to be discharged on another bankruptcy any time soon and they know it.

Bank CC, some are easier than others. Sometimes start out with a secured CC, at least then it goes as a positive on your score.
But some banks can still be persnickety. One friend reaches the 7-year BK mark in a few months, just got turned down by a bank credit card, the bank said it's because the BK is still too new.

Houses are also a bigger fish. One guy I know did a BK 3 years ago, bought a house a year ago.

I'll bet it's also with the economy/waves of whatever business you deal with too and if they're in a position to be picky and turn away people, or if they've been burned much, etc.

But even in the best of situations, BK means the list of businesses that will deal with you will be smaller for some years.
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Re: Effects of Bankruptcy?

Unread postby Phoenix853 » Thu Oct 05, 2017 12:13 pm

Great incite. I appreciate the information. Really helpful.
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