Personal Bankruptcy Filing bankruptcy. Some questions on what to expect.

[Turbec]

I am 29 years old, and live in the State of Georgia. I have three children and was remarried this year. I recently contacted a lender to inquire about what steps will be needed to start looking into owning my own home.

I knew my credit was bad, but did not realize how bad. I owe roughly $26,000 in debt. I spoke with some attorneys about my options and am going to go with Chapter 7 bankruptcy. I know that with Chapter 7 it is possible that they will take thing you own to pay off your debts.

A little background info: My husband and I both work full time jobs.

I have nothing in my name, but my husband has two vehicles in his name. His car, is to be paid off this month, which is worth rougly $2,800. My van, is to be paid off in June, which is worth rougly $2,400 according to Kelly Blue Book Value

We really own nothing else that is worth any kind of value, besides common everyday things, such as our clothing, televisions, etc. The attorneys that I spoke with reassured me that they will not take any of these items, just wanted to be sure I listed it.

So. My questions were, how long after I file will my debt be cleared from my record?

Is it true that I may be able to own a home within two years after filing? (Of course this also relies on me making regular payments like I should, and not creating any new debt for myself.)

If there is something PENDING that has not went on to my credit report when I file, will these issues also be handled by my attorney?
(The reason I ask this, I noticed some things on my credit report that were from years ago and had just shown up.)

What is the SAFEST and quickest way to rebuild my credit after I file the bankruptcy?

Anything else I need to be prepared for or that I need to expect when I file the bankruptcy?

What is the general cost for filing bankruptcy? (Most of the attorneys that I spoke with are charging around $1,500)

I appreciate anyone taking the time to read my post.

 

[army judge]

Make sure you understand Chapter 7 and Chapter 13.
Talk to several attorneys so you are better informed.
There are many good books that discuss the benefits and disadvantages of both.
The public library is a great place to start looking, plus the books can be borrowed at no additional costs to you.
After all, your taxes helped acquire them.

So. My questions were, how long after I file will my debt be cleared from my record?

The debt isn't cleared. The debt is discharged, meaning you will no longer be obligated o pay the debt.

Is it true that I may be able to own a home within two years after filing? (Of course this also relies on me making regular payments like I should, and not creating any new debt for myself.)

Hard to say, but many people report a deluge of credit offers after a bankruptcy filing has been adjudicated. YMMV

If there is something PENDING that has not went on to my credit report when I file, will these issues also be handled by my attorney?

Yes, your attorney will advise you.

(The reason I ask this, I noticed some things on my credit report that were from years ago and had just shown up.)

What is the SAFEST and quickest way to rebuild my credit after I file the bankruptcy?

I wouldn't worry about rebuilding credit.
I advise people to build their savings and avoid securing NEW debt.
Try to only buy what you can afford to pay for at the time of purchase.
You're required to attend a financial management class.
That's where you should learn new strategies to live without credit.
Credit is a trap for most people.

Anything else I need to be prepared for or that I need to expect when I file the bankruptcy?

Your attorney will discuss this with you, and you'll receive plenty of written advice.

What is the general cost for filing bankruptcy? (Most of the attorneys that I spoke with are charging around $1,500)

The costs vary all across the USA. Generally, $1,500 is the median I've observed.

 

[Turbec]

Thank you so much for your quick reply. And for being so thorough! I attempted posting on another website and someone there was very rude with me. I felt like I was being attacked more than helped. I really do appreciate your advice. I am meeting with an attorney this month so I will let you know how this goes for me.

I agree, credit is a trap. The only reason I am somewhat concerned with it is the ability to own my own home soon. I do have three children and need to provide stability for them. Which is the reason I am doing this to begin with.

 

[army judge]

Thank you so much for your quick reply. And for being so thorough! I attempted posting on another website and someone there was very rude with me. I felt like I was being attacked more than helped. I really do appreciate your advice. I am meeting with an attorney this month so I will let you know how this goes for me.

I agree, credit is a trap. The only reason I am somewhat concerned with it is the ability to own my own home soon. I do have three children and need to provide stability for them. Which is the reason I am doing this to begin with.

Bankruptcy is one of the best things our legal system offers to all of us.
There is no shame in availing yourself of the very same thing that General Motors, United Airlines, Chrysler, many municipalities, and the wealthiest among us have used, bankruptcy.
Just be smart, wary, risk averse, and avoid the credit trap after the US Bankruptcy Judge sets you free.

You're welcome.
But, home ownership is another credit trap.
Most people finance the home, because the banks and mortgage lenders have convinced that that paying a 20 year or 30 year note is "owning" the home.
Unless you can put 50 to 75% down, maybe that kind of "home ownership" isn't the best choice.
These lenders and the government "co-conspirators" are very diabolical.
Be very careful after you escape the credit trap about ever getting trapped again.

Think about this: Buddy and Dolly "buy" a home on a 30 year mortgage.
They put 20% down on a $125,000 home (yeah, I know-LOL); keeping it simple, for the next 30 years.

http://www.bankrate.com/mortgage.aspx

So, they think they're simply paying about $606 each month to "the money woman".
Some simple multiplication, paying $606 over 30 years APPROACHES $220,000 (almost $7500 a year). (It is soooo much more than that, however.)

No way is it that simple, but its safe to say Buddy and Dolly will shell out way over $250,000 to "buy" a $125,000 for 30 years, and that home won't be worth $80,000 in 30 years.

I hope you see the major flaw in "buying" a home the way the "money woman" or the "money man" want you to suck you back into the trap!


No way we'll ever see that real estate spike our parents and grandparents saw the latter part of the 20th century.
The decision is yours and your hubby's, but THINK long and hard before you leap back into the "credit trap".
I have seen credit ruin many good people, relatives, friends, and clients.
I was there once upon a time, but learned the hard way, too.
Experience is the best teacher, but a very hard master!!!!!

I wish you a prosperous and debt free 2015 and beyond.

 

[Betty3]

You do need to speak to a lawyer or two. Nolo has a good book on bankruptcy & Nolo also has good information on the internet re bankruptcy - you can do a google search to get this information. Good luck.

 

[disagreeable]

If you are both working full time jobs, you won't qualify for CH7. I suggest you get your spending under control and look into ch13.