swellmomma Posted June 14, 2012 Share Posted June 14, 2012 In addition to the nonsense with my ex and getting a family law lawyer for that mess. I started bankruptcy proceedings today with a different lawyer. I had looked into doing this a few months ago and then found out if I waited until June it would have been 7 years since I was a college student and my student loans could be wiped out too. I have paid off many debts on my own, and don't have credit cards etc BUT my earning potential is not going up and I can't get ahead. My interest payment each month is more than the payment arrangements I made and had been paying. The one debt started out as only $2 principal but due to the high interest rate all these years it is now at $14 K. Because it is my first bankruptcy AND due to how low my income is the lawyer said as long as I maintain my side of the bargain (submitting proof of income and expenses each month, paying my $100 per month, and attending any credit counselling sessions they say) I will be released from my bankruptcy with a clean slate in 9 months. My current debt load is just under $50K so to be able to have a fresh start in only 9 months (well plus all the years it will take to get that off my credit report), compared to the 50-75 years it was going to take me to pay it all off. I am starting year 35 of my life in a mess but if things go as planned I will be divorced and debt free before my 36th birthday. A true fresh slate after all this time. I know I should not be celebrating a bankruptcy. I hate that it has come to this but I am looking forward to being free from the burden of this debt. Quote Link to comment Share on other sites More sharing options...
frugalmama Posted June 14, 2012 Share Posted June 14, 2012 :bigear: Out of curiosity - what happens in a bankruptcy if the person declaring bankruptcy has no or almost no {under $500/mo} income? Quote Link to comment Share on other sites More sharing options...
swellmomma Posted June 14, 2012 Author Share Posted June 14, 2012 :bigear: Out of curiosity - what happens in a bankruptcy if the person declaring bankruptcy has no or almost no {under $500/mo} income? That I do not know, especiall given the difference in countries. For me all sources of income including disability for the kids etc comes to $3100/month. Which on it's own sounds like a lot but is not really much given the cost of living in my province. When I was trying to make payments to each place separately I was paying out just over $300 a month. Through the bankruptcy I will be paying $100/month to the lawyer opening up another $200/month for groceries. $300 of that 3100 just started up this week (I got a new daycare kid). The lawyer said usually if I was filing I could only have a car worth $5000 and my dad paid $9000 for mine at xmas. He said given that it is a basic model (crank windows etc) sedan, and due to having special needs kids and living in a rural location meaning I have to have a safe reliable vehicle chances are the judge will not make me sell it as we could not buy a comparable one for $5000 when this is already as basic as they get. Quote Link to comment Share on other sites More sharing options...
Blueridge Posted June 15, 2012 Share Posted June 15, 2012 :bigear: Out of curiosity - what happens in a bankruptcy if the person declaring bankruptcy has no or almost no {under $500/mo} income? There are different types of bankruptcy that I have heard of, a chapter 13 and a chapter 7 for individuals, and different ones for companies. A person with little income would probably qualify for a chapter 7, which doesn't require any repayment. Everything is completely eliminated (this is my understanding, but I am no lawyer lol). Quote Link to comment Share on other sites More sharing options...
Sneezyone Posted June 15, 2012 Share Posted June 15, 2012 Different countries makes a difference. Here, student loans cannot be discharged in bankruptcy...ever. Quote Link to comment Share on other sites More sharing options...
theYoungerMrsWarde Posted June 15, 2012 Share Posted June 15, 2012 :grouphug: Sorry for the "sticky, brown, icky" stuff (as ds3 put it today) happening all at the same time. But yeah for it going to be over in only 9 months! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.