Author Topic: Really scared BK7 no assets, no work in almost a year...  (Read 685 times)

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OrinSleeves

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Glad I found this forum.

I walked away from my old life almost a year ago, the debt was too much and I just couldn't handle it.

Since then I have no idea what is going on. I've been living off of the little cash I took out of the bank and just being kind of a vagabond.

Life has been good but I'm thinking of going back to reality and starting work again.

I had about $100,000.00 in debt when I left that I had been diligently paying on. It's amazing to me. I had zero debt about 3 years ago but the divorce lawyers got almost $70,000.00. I don't even think they did a good job.

Before all of this I had a good paying job and likely would have been a ch13. I'm guessing a year of not working will keep me under the means test.

I'm concerned because I haven't had an address to receive mail or a phone number and I've been trying to deal with mental health/addiction issues by lowering my stress. It's helped a lot. I'm not suicidal now but I'm scared dealing with the bankruptcy stuff will put me back into depression...

Has anyone else been through this? Any advice?

Where do I even start?

CleaningUp

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #1 on: May 18, 2017 01:53:21 AM »
We aren't psychiatrists, so please don't even try to go there.

Also, even in divorces, the lawyers are the ones that get the money, not the litigants.  You're not alone on that score.

So, what is the debt level now, and what type of debt is it?  Credit cards?  Student loans?  Child support payments?

Give us a rough breakdown of the debt.  There is very little we can do to help unless we know what the situation is.  Please be as specific as you can without giving away your personal details.  Let us know when these debts went into default and who the original creditor might be.  Also tell us what state you live in...it's important because contract law is a state matter, not a federal on.  Do you have any judgement against you?   Are any law suits pending?  Are the creditors hounding or are the collection agents of junk-debt buyer?

All of us here have been in situations like yours and have survived, even gotten ourselves out of the hole and gotten our lives back on the important things...like living them.

Start your reading here with the FlyingIFR Method which you can find here:  http://www.debtorboards.com/index.php/topic,7211.0.html

Read it a couple of times and then think about it for a day or two.  Then read it again.

Don't be afraid to ask questions.  But remember we cannot be your lawyer.  You'll have to do it yourself or go hire yourself one.  Most of us here have found that with some dedication to the research and being pointed in the right direction, we haven't needed the added expense of legal counsel. 

The election to declare bankruptcy Chapter 13 BK puts a five-year monkey on your back.  It is a choice that only you can make for yourself.  It may or may not be a good idea depending upon what your situation actually is. 

But, unless there is a foreclosure goon breathing down your neck, there is no rush to get into BK.  You have the time to think it through, and, I hope, that we can get you some of the confidence you need in yourself to take the time to do the thinking.  We can be pretty rough on you if you don't want to face the facts, but that roughness has its reason.  If you can't face the facts, there is little that we can do.

Be patient.  It takes time to get yourself in tune with a new way of looking at things, which can be summed but as these are all matters of BUSINESS, not personal worth.

Ask questions if you get bogged down.  Everyone does at some point, we're here to get you back on the right tracks.


Bruno the JDB Killer

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #2 on: May 18, 2017 12:30:04 PM »
Why not BK it now while you can? Getting rid of 100K in debt sure wouldn't depress me.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

CleaningUp

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #3 on: May 18, 2017 05:33:58 PM »
Because the OP can't Chapt 7 it out, likely.

Bruno the JDB Killer

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #4 on: May 18, 2017 06:42:11 PM »
Why not? 100K with no income? I'm sure he passes the means test. He should be qualified, unless he has debts which are not dischargeable.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

ptr

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #5 on: May 20, 2017 01:20:33 AM »
The type of debt makes all the difference in the world. In regards to Chapter 7, 100K in student loan debt is a completely animal than 100K in credit card debt. It's really hard to be specific about what action to take without a breakdown of the type of debt and the amounts. If we're talking about credit card debt, did you default on payments during your divorce proceedings or when you "walked away from your life?" What state are you in? If you stopped paying on credit cards three years ago, statute of limitations (SOL) might start coming into play depending on where you live.
https://www.thebalance.com/state-by-state-list-of-statute-of-limitations-on-debt-960881

There is a wealth of information on this board. Start reading and post more information about the specifics.


OrinSleeves

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #6 on: May 21, 2017 12:53:41 AM »
State is MD.

All debt is credit card.

I paid on the debts for at least 5 months before walking away.

It's been 9-10 months since my last payment.

Going to put my thinking cap on and review more on this site to put forward a strategy.

I greatly appreciate the advice and will update as I have more info and progress. The choice of inaction has been comfortable but I don't think it helps me.

Looking at the actual court filings required it looks feasible!

fisthardcheese

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #7 on: May 21, 2017 03:51:40 PM »
I don't understand what the conflict here is.  You have no assets and no employment.  Why not BK Ch. 7 and wipe out all debt and just get it all behind you?
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)

ptr

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #8 on: May 21, 2017 06:53:04 PM »
I can only speak to what I would do if I was in your situation. All of your debt would be eligible to be wiped away under BK Ch 7. You don't have massive amounts of student loan debt or anything that would stay with you even after a Ch. 7.





OrinSleeves

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #9 on: May 21, 2017 09:59:53 PM »
You're right. I'm going to get started with the chapter 7. I was pretty caught up in feeling sorry for myself which kept me from taking action.

muddywater

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #10 on: May 22, 2017 11:04:09 AM »
You're right. I'm going to get started with the chapter 7. I was pretty caught up in feeling sorry for myself which kept me from taking action.

Filing bankruptcy is not a bad thing, it gives you a clean slate and a fresh start, find a good lawyer in your area, most take payments, but do check them out first not all are good. You will be surprised how good you feel after it is done, then just avoid the pitfalls of new credit after it's over.

P.S. No one will put a scarlet "BK" on your forehead. relax and go for it.
Stand by for heavy rolls as the ship comes about.

BrokeBob

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Re: Really scared BK7 no assets, no work in almost a year...
« Reply #11 on: May 22, 2017 12:32:39 PM »
BK is interesting.

For some people, it is horrible.

For others, it is a godsend. 


IF you have above average income, assets that cannot be protected, and large debts, it can be horrible.
If you have no or low income, no assets or protected assets, and large debts, it can be a godsend. 

Sounds like for you it would be a godsend. 

If you wonder why we often discourage BK on this board, it is because of the people in the first category.  You are not one of them.  Don't worry about their situations. 

Stopping feeling sorry for yourself and actually doing something is a huge step, and a necessary step.  Sounds like you are ready for that step.

Best of everything for you.  I hope your situation improves in every way.

 

credit