Author Topic: Simplest Solution May be Chapter 7?  (Read 1612 times)

0 Members and 1 Guest are viewing this topic.

search4solvency

  • Valued Member
  • Posts: 78
Simplest Solution May be Chapter 7?
« on: December 30, 2015 04:39:51 PM »
I have zilch recoverable assets -- no home, no car. Just clothing, books, bookcases, an old laptop and  an Iphone 4s.   My printer may be my most single valuable item and it cost me something like 120 dollars.

 My credit rating is already in the toilet, and I'm living paycheck to paycheck.  From everything I've  read I qualify for Chapter 7

I would like a fresh start to put my energy into the things that can put me back on my feet and on the road to solvency.  But putting time and energy into mud wrestling with  JDB -- it' gets in the way with that.   And I find it very stressful.

So what have I got to lose if I go the Chapter 7 route?  I could sue JDB for FDCPA violations even if I file for BK, couldn't I? And I have the satisfaction of knowing they haven't been able to me.

Bruno the JDB Killer

  • BANNED
  • Posts: 14304
Re: Simplest Solution May be Chapter 7?
« Reply #1 on: December 30, 2015 04:58:16 PM »
You could sue, but the proceeds of the suit would be used by the trustee to pay debts. You can get a free consultation from most BK attorneys.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

CleaningUp

  • Valued Member
  • Posts: 10312
Re: Simplest Solution May be Chapter 7?
« Reply #2 on: December 30, 2015 04:59:30 PM »
What are the debts that you are thinking will get discharged?


search4solvency

  • Valued Member
  • Posts: 78
Re: Simplest Solution May be Chapter 7?
« Reply #3 on: December 30, 2015 05:22:27 PM »
Debts come out to about 15k. 

But I have to get my credit report to know fershure. All of it stemmed from about 2 years ago, when I hit the skids financially.



CleaningUp

  • Valued Member
  • Posts: 10312
Re: Simplest Solution May be Chapter 7?
« Reply #4 on: December 30, 2015 05:32:23 PM »
What sort of debts are they?  Credit cards?  Medical bills? Student loans?

Note that student loan debts are generally not dischargeable.

 

search4solvency

  • Valued Member
  • Posts: 78
Re: Simplest Solution May be Chapter 7?
« Reply #5 on: December 30, 2015 05:38:30 PM »
Credit cards, medical, utility, health club memberships.

I also have student loan debts of about 40k but, yes, I know those aren't dischargeable.

fisthardcheese

  • Valued Member
  • Posts: 3800
  • They forced arbitration into your contract. Use it
Re: Simplest Solution May be Chapter 7?
« Reply #6 on: December 30, 2015 06:50:18 PM »
For me, personally, I wouldn't file BK until I had an imminent judgement pending against me or some type of garnishment on the way.

The reason is for the fact that BK would not be available again to me for 10 years (thanks coltfan for the correction).  And If I use it now, then within the time period become ill or injured and incur $100k in medical debt, I would be done for with no BK to use.  Also since these are all consumer debts with almost all of them likely having an arbitration contract involved, I would just start going that route to knock these out.
« Last Edit: December 30, 2015 07:29:12 PM by fisthardcheese »
11 Arb Settlements (9 AAA, 2 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

coltfan1972

  • Valued Member
  • Posts: 6532
  • My Shoes Cost More Than Your House
Re: Simplest Solution May be Chapter 7?
« Reply #7 on: December 30, 2015 07:27:19 PM »
For me, personally, I wouldn't file BK until I had an eminent judgement pending against me or some type of garnishment on the way.

The reason is for the fact that BK would not be available again to be for 7 years (I believe that is the number).  And If I use it now, then within the time period become ill or injured and incur $100k in medical debt, I would be done for with no BK to use.  Also since these are all consumer debts with almost all of them likely having an arbitration contract involved, I would just start going that route to knock these out.

10 years for a chapter 7. 

I can't imagine filing BK for only 15K in debt that can be discharged, when I was not facing a garnishment or at least a lawsuit.   If you're living paycheck to paycheck and your credit is already destroyed, the better question is what benefit is there to filing a Chapter 7?

Tons of people ride out bad debt until the statute of limitations expire. 

I'd say it's a no brainer you qualify, but does not sound like a very smart move, just based on the details in your posts.



LexisNexis® Legal Newsroom- 05-17-2013 | 10:11 AM --

JONESBORO, Ark. - A federal judge in Arkansas on May 15 ruled that dismissal of a consumer's lawsuit against a debt collector is not proper because although the consumer posted messages on a website "in an odious manner," valid First Amendment concerns exist (Brandon Scroggin v. Credit Bureau of Jonesboro Inc., No. 12-0128, E.D. Ark.; 2013 U.S. Dist. Lexis 69070).

Bruno the JDB Killer

  • BANNED
  • Posts: 14304
Re: Simplest Solution May be Chapter 7?
« Reply #8 on: December 30, 2015 08:01:42 PM »
I also have student loan debts of about 40k



What did you study?
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

search4solvency

  • Valued Member
  • Posts: 78
Re: Simplest Solution May be Chapter 7?
« Reply #9 on: December 30, 2015 08:26:12 PM »
Classics. Greek and Latin.

It has made me a rich person on the inside. But I concede not as of yet on the outside.

But who knows where life might take me. . .

fisthardcheese

  • Valued Member
  • Posts: 3800
  • They forced arbitration into your contract. Use it
Re: Simplest Solution May be Chapter 7?
« Reply #10 on: December 30, 2015 08:29:05 PM »
Classics. Greek and Latin.

It has made me a rich person on the inside. But I concede not as of yet on the outside.

Probably never unless you wish to teach Greek & Latin to other swindled students.

But who knows where life might take me. . .

Indentured servitude.
11 Arb Settlements (9 AAA, 2 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

search4solvency

  • Valued Member
  • Posts: 78
Re: Simplest Solution May be Chapter 7?
« Reply #11 on: December 30, 2015 08:42:00 PM »
I'm hearing Sinatra singing my anthem right now "Regrets, I have a few, but not too many. . . "

That said, my Classics education is not among them .

volunteerchild

  • Valued Member
  • Posts: 29
Re: Simplest Solution May be Chapter 7?
« Reply #12 on: December 31, 2015 01:34:12 AM »
My tax lawyer said the same thing as people here are saying.  Save Bankruptcy Chapter 7 for absolute serious emergencies since you only get one in 10 years and often bad credit goes away before bankruptcy on its own.  There is Chapter 13 etc but even then, that is a five year payout.

I have government student loans too.  I can relate. Government employment or NGO employment retires the debt in ten years if it qualifies or they can adjust the student loans to fit your income and they go away in twenty.  However, you get hit with a 1099 for the difference at the end of what you didn't pay.  There are many loan forgiveness occupations and degrees and I am researching them per my tax lawyer's instructions.

Jersey No Neck

  • Valued Member
  • Posts: 259
Re: Simplest Solution May be Chapter 7?
« Reply #13 on: December 31, 2015 01:39:46 AM »
It's 8 years for a chapter 7. 

From NOLO PRESS:  Successive Chapter 7 Cases

If you received your first discharge under a Chapter 7, you cannot receive a second discharge in any Chapter 7 case that is filed within eight years from the date that the first case was filed.
 
Also depending on how much you make you may be able to have your student loans discharged as well.  This link will give you more info: 

http://www.studentloanborrowerassistance.org/bankruptcy/

You can buy the Nolo Press book:
 
New Bankruptcy, The: Will It Work for You? Sixth Edition.

You can get it from Amazon.  A simple Chapter 7 can be done on your own.  I have done 3 (no not all for me) and all went well.

volunteerchild

  • Valued Member
  • Posts: 29
Re: Simplest Solution May be Chapter 7?
« Reply #14 on: December 31, 2015 02:37:14 AM »
Yes, that's true.  But it stays on your record for ten years and there are cases stating it is not a financial planning tool.

 

credit