shinyhappypeople Posted February 5, 2013 Share Posted February 5, 2013 ... and are willing to admit it on a public forum :) any advice, words of wisdom or encouragement for me? This is to clear up some serious OLD debts that are causing us serious problems. We've been very careful about "no debt" for the past 8 years or so. Here's what scares me: What if our attorney screws up? There is the potential that he will not deal with every issue properly and there are just a ton of details to juggle. I literally thank God that we have the option of bankruptcy. But, it's scary for me to put my financial future into the hands of a stranger. Quote Link to comment Share on other sites More sharing options...
Heather in Neverland Posted February 5, 2013 Share Posted February 5, 2013 My brother filed bankruptcy. He got a bankruptcy attorney. It cost him about $900 I believe and it was all very standard and fast. No problems. If you get someone who specializes in bankruptcy, you should be ok. Quote Link to comment Share on other sites More sharing options...
MomtoCandJ Posted February 5, 2013 Share Posted February 5, 2013 Also depends on what kind. We filed wage earners so that the debts were being paid but without the interest. We paid ours off August of 2011. Today dh got financed with a consigner for an auto loan. The credit union we went through said that the only reason he needed one was because we haven't had anything with payments since (outside of normal bills). Oh we declared at the end of 2007. Quote Link to comment Share on other sites More sharing options...
Joshin Posted February 5, 2013 Share Posted February 5, 2013 I thought the statute of limitations on most debts was seven years? Quote Link to comment Share on other sites More sharing options...
melissad2 Posted February 5, 2013 Share Posted February 5, 2013 I thought the statute of limitations on most debts was seven years? I agree. Check into your states statute of limitations. It varies with each state but after a number of years creditors can no longer sue you for debts. They can still call you or mail you stuff but they can't sue you. I would try contacting them to see if you can settle the debts (often for pennies on the dollar). They start to fall off your credit report after seven years. Quote Link to comment Share on other sites More sharing options...
shinyhappypeople Posted February 5, 2013 Author Share Posted February 5, 2013 I agree. Check into your states statute of limitations. It varies with each state but after a number of years creditors can no longer sue you for debts. They can still call you or mail you stuff but they can't sue you. I would try contacting them to see if you can settle the debts (often for pennies on the dollar). They start to fall off your credit report after seven years. Without going into details... please just trust me that bankruptcy is our only reasonable option at this time, and I am deeply grateful that it exists. Quote Link to comment Share on other sites More sharing options...
jamajo Posted February 5, 2013 Share Posted February 5, 2013 We had a business that failed where we personally guaranteed lots of our business purchases. We lost our house in the bankruptcy deal and downsized our family, We sold a lot of our furnishings and started over. It was a relief for us and we lived very differently after that. We saved a whole lot more now and live very budget conscious. It was the best decision we ever made. It was sobering for the kids as well to go from living high on the hog to living in a 3 BR 1 BA house. Let's just say they have less of an entitlement mentality. It was sobering for us all but I have no regrets. We purchased a home 2 years later and have experienced no financial backlash. I think primarily b/c DH had a good paying job before the failed business and again after and our financial history shows consistent on time payments until the time we were in business for ourselves. Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted February 5, 2013 Share Posted February 5, 2013 We have not, however I have had a close friend who did when she was very sick for a year, lost her job and lost her condo while running up medical debt and credit debt to pay for basic living expenses. Also my parents did once when I was a child. Don't go with the first lawyer you call. Ask around, people you trust and see who they recommend. My friend's attorney did mess things up quite a bit. It was ok in the end but way more complicated that it should have been. Meet with more than 1 attorney before making a choice. Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted February 5, 2013 Share Posted February 5, 2013 When we lost our business and our home was foreclosed on, I looked into BK. It wasn't worth it to us because we do not live in a state that allows wage garnishment for anything other than taxes and child support (neither of which you can bankrupt away.) We didn't have any assets left, and our income was too low for Chapter 13 (where you pay it back over 5 years based on income.) The only incentive was to get the creditors to stop calling us, and they don't upset me. We saved our $1300 bankruptcy fee and ignored the creditors. They got exactly what they would have gotten had we gone bankrupt - nothing. Quote Link to comment Share on other sites More sharing options...
shinyhappypeople Posted February 5, 2013 Author Share Posted February 5, 2013 ...deleting TMI... Quote Link to comment Share on other sites More sharing options...
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