[thecrankyone]

Has anyone else been through this? I am in the process of filing right now, but I still need to get more documents to my lawyer before the actual filing can be put in.

I know some of the laws are different between states, but I was just curious to hear from others who have had to deal with this.

I have a job with insurance, but long story short I made some poor choices and it has left me with more medical bills and a few other bills that I can't possibly pay if I want to continue to live indoors and eat on a daily basis.

I am being garnished now and it is leaving me with not even enough for basics as I am supporting both my son and myself (he's an adult).

[(JD)]

Okay... sorry to hear but good that you are trying to get back on level ground financially.

INCLUDE EVERYTHING. Don't pick and choose anything... include all debt that you can, and ask the lawyer about each little bill! Even if you owe a friend some money you can't repay. At least that way they can write the tax off...

Take a course on how to live without credit cards? (Don't charge anything you don't have money in the bank to pay...)

But I do understand about medical bills. arrrggh! Make sure ALL of your doctors have given you their COMPLETE balance due (and don't mention to them anything...)

Make sure you go bankrupt completely, if SD allows, and that you do not have to pay back anything. There is a Chapter 7 and a Chapter 13 in Florida, and only one lets you wipe your debt totally out. (Yeah, my ex used to go bankrupt as often as they allowed which was every 7 years ... I refused to be included (made sure I had my name taken off every credit account he kept opening arrrggghhh hey I said he is my EX!) lol

Don't feel horrible. Don't tell people. You don't owe anyone any excuse.

[LettinG0]

I have had to file. And as JD said........include everything and file Chapter 7 if you can. The only thing is if you have a vehicle financed that you need to keep, you will need to reaffirm with that creditor and pay that bill to keep your car.

And, yes, call every doctor and collection agency you can think of and ask them what you owe so you can include it.

Just look at it as a fresh start.....but also be very careful about credit cards in the future. It won't be long after your bankruptcy before someone is offering you one

[thecrankyone]

Thanks! I am working with a lawyer to make sure every I is dotted and every t is crossed. I am going straight chapter 7 as I have no assets and no car payments. Luckily credit card debt is the only kind I don't have.

I guess I'm just nervous about being scrutinized.

Once I get this monkey off my back, hopefully I'll be able to make a budget I can actually live with.

I am getting help with rent and electricity thru some local programs due to my garnishment and the fact that I lived at the YWCA for several months ( long story, no abuse involved) and their was a program that cosigned for my current apartment. They don't help every month as I prefer to pay myself, but sometimes I just can't.

I have insurance thru my job, but the copays, and uncovered portions, and bills from when my son was young enough to be on my insurance are killing me. I also have a few other debts from bad choices on my part.

[(JD)]

Yeah... your credit will be clean so to speak after it's done... and you won't be able to go bankrupt again for years...so the cc companies will be breathing down your neck with offers. I'd go to the 3 Credit Bureaus and put blocks on your credit reports---this means NO ONE can just go scanning to see if they might want to offer you credit. The only ones who can contact you are those you have contacted and done business with---no out of the loop offers.

PLUS DO NOT PAY anyone anything afterwards, if they were on the list. IF you make even one payment to a company you go bankrupt against, then ALL OF THEM can demand payment.

[Marty_S]

If your son is an adult, why are you having to support him?

Is he ill as well?

I can certainly understand if he's ill or for some other reason can't work.

[thecrankyone]

It's a long story. He does bring in some money, so he helps some. He has a felony on his record, and is working on recovery from some drug issues.

[Marty_S]

Originally Posted by thecrankyone

It's a long story. He does bring in some money, so he helps some. He has a felony on his record, and is working on recovery from some drug issues.

Oh dear.

Well, if he's in recovery then I can completely understand him needing family support.

I would explore his working more if at all possible. Keeping him working will help recovery as well. An idle mind is trouble for most recovery patients.

I would suggest he start his own business, rather than applying for work with a conventional employer. Even if it's a dog walking business that will keep him busy.

[thecrankyone]

He has several welding certificates and had a good job until he quit.

We can't afford the equipment necessary or he could make money freelance and thru art, as he has serious talent when it comes to welding, fixing things, making things and so on. The kid can read blueprints and schematics that make my head explode.

Not trying to derail your decision here - I suppose I'm just horrified that you're being forced into bankruptcy because of medical bills. Can you not get the garnishment decreased? It just seems counterproductive, since the hospitals, doctors or whoever aren't going to get anything if you file bankruptcy. They won't negotiate with you?

So sorry to hear that this is happening to you.

[thecrankyone]

Every time one garnishment finishes, it doesn't take long for another one to hit. I'm stretching it on full salary. This is killing me. My current debt is roughly half of what I take home in year without garnishment.

[Marty_S]

I would sit down with a spreadsheet and start keeping precise books on your spending.

It's amazing how much money leaves the home that you don't even realize.

If you can't identify the spending you can't manage it. Worked for me.

[thecrankyone]

I'm using my bank account for that now.

[Rose76]

I've been through bankruptcy over 15 years ago. It's a little tougher now than it was then. For instance, you have to get some kind of financial counseling now. Bankruptcy is governed by federal law, so I don't know of any important variations between states. Chap.7 verses Chap. 13 refers to sections of the federal law, so they're the same in every state.

If you're struggling because of garnished wages, then you're exactly the kind of person bankruptcy was intended for. Rebuilding credit afterwards isn't as hard as a lot of people told me it would be. Just be totally honest with your lawyer.

[thecrankyone]

You have to take a particular class before you can file ( you need a certificate to prove this) and then another one after before it can be closed. The amount of paperwork involved just for my simple case is staggering. I can't imagine those with larger more complicated cases. I would never consider it with out a lawyer or professional representation.

I go to court on Friday.

It was just overwhelming, and wasn't going to go away. I was drowning. My debt was well over half of my annual income.

Now I can start fresh and get back on the right track.

[Rose76]

Ask the lawyer to apply for a total discharge. Don't get "guilted" into reaffirming debt, or portions of debt, unless you really want that. Take full advantage of what you are legally entitled to. People with way bigger incomes than yours do it all the time. I've read that most self-made millionaires have declared bankruptcy at least once.

At some point, you'll go before a person (a trustee for your creditors) who'll try to talk you into accepting only a partial discharge. That trustee gets a percentage of everything you pledge to repay. Don't fall for the pressure. With a lawyer by your side, you may not even have to have that conversation. I had no lawyer, so I did get pressured. But I knew my rights and said I was only interested in a full discharge. The trustee-person (I forget the technical title.) looked at me with a face that would have stopped a train. I didn't cave. I got what I went in for.

Good luck with it.

[thecrankyone]

I go before the trustee on Friday morning. I am discharging all debts. Reorganizing doesn't make sense in my situation.

[thecrankyone]

I can't imagine this without a lawyer, any more than a jury trial with out one. The amount of work required is mind boggling. I have no assets so chapter 7 makes more sense than chapter 13

Good luck tomorrow!

[Rose76]

Best of luck later today. After going before the trustee, your paperwork will be passed on to federal judge. (Some people innocently think the "trustee" is a judge and get intimidated.) From what I researched, the real judge sits with a pile of cases similar to yours and just takes out a stamp that says "discharged" and just stamps each case with that. It can take a few months to get your notice in the mail saying your debt was discharged.

Once you get the discharge notice, there will be offers from credit card companies pouring in to your mailbox. They will have very high interest rates and things like "annual membership fees." Just throw them away. Eventually, you'll get an offer with no annual fee and a more reasonable interest rate. It's worth waiting for. Hold out for that, and then accept the offer. Then carefully start using credit and show yourself to be reliable. That way, you'll be prepared for the day that you need something like a car loan.

It is very common for people who've gotten a total discharge to wind up right back in deep debt a few years after their bankruptcy. Be careful you don't do that to yourself. Get yourself some health insurance and decide that you don't ever need to have more than one or two credit cards.

It will be nice to get your whole paycheck with no garnishment. Try to save even a few bucks each pay period. Hope everything goes smoothly, which it should.

How did it go?

[thecrankyone]

Pretty quick and easy. There were a few people ahead of me, including a gentleman who had custody of his grandkids, but wasn't' getting child support.

Basically I had to show my id and then raise my right hand , stating my full name and swearing to tell the truth the whole truth and so on.

Then I was asked several questions, mainly yes or no that I had to answer under oath. ( my lawyer was with me). The trustee had a computer and everything was recorded. Most of the questions were from the paperwork and copies of documents I had to turn in, for me they were pretty simple.

I have one more class I am required to sign up for and take. I also have to pay some remaining case fees and I think in 90 days I will be free, unless someone crawls out of the woodwork to protest or I win the lottery

It wasn't nearly as hard as I thought it would be.

I'm glad it was easier than anticipated!

[Rose76]

Must feel good to have gotten to this stage. Soon you'll be free of debt. That will make you very attractive to potential creditors, so be careful. It will be easier than you might expect to land right back in the soup you are just getting out of.