Personal Bankruptcy

Discussion in '2000-02 Archive' started by Pioneer, Jul 31, 2002.

  1. Pioneer

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    Without going into too many details, I am on the verge of declaring personal bankruptcy. My income was cut severely 8 months ago and our debt has increased exponentially since then. What does a person do in a case like this?

    Bro. Steve Smith
     
  2. HankD

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    If you are asking if a Christian should ever file bankruptcy IMO that is a matter of personal conviction.

    It certainly doesn't make for what we like to call a "good testimony" but it does happen to Christians and sometime though no fault of their own. Sometimes this happens to widows whose husbands didn't have sufficient life insurance (which some Christians don't believe in) leaving behind a debt they cannot repay without their husband's income.

    If the Lord allows you to file for banruptcy, I would say if nothing else learn from your mistakes (if any were made).

    One thing you might want to look into is something called a consolidation loan.
    A lending agency will pay off all your past debts take the final total, make one big loan out of it and amortize the payments over a long enough period of time where you can manage it.

    It will cost you more in the long run but it will save you from the stigma of a bankruptcy.

    HankD
     
  3. Dr. Bob

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    Think bankruptcy laws were passed to HELP individuals (and companies) that genuinely need help and want to work with it.

    Too many use it as a "cop out" of responsibility.

    So even if you DO opt that way, remember what you own and do you best to take care of it. Even though the courts may absolve you of debt, you still have your honor and testimony to uphold.

    p.s. We had some folks come into our clinic, get lots of help and products, then NOT pay. A week later we received a letter saying they had declared bankruptcy THAT AFTERNOON after leaving our office with $500 of goods, and that WE had "no right" to expect ANY payment, and that if we dunned them, WE would be held in contempt.

    Contempt was a word already in my mind. :mad:
     
  4. Karen

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    I am very sorry you are going through this hard time. Here in the oil belt, a lot of people have gone through such times through no fault of their own. I think it comes down to you can't change the past, what do you do with the situation you are in. Bankruptcy might be what you need to do, but first find some one skilled in finance and the law to give you a concrete assessment of your situation.
    If it is because of a church situation, maybe you could apply to like-minded churches for assistance.
    God be with you,

    Karen
     
  5. post-it

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    Consumer Credit Counseling is a great place to start. They can stop all additional interest from Credit cards and other loans, then restructure the amounts you owe so the payments can fit your current income. After you have been in CCC for one year, your credit will be FAR FAR better off than the Bankruptcy you are thinking about. Generally if CCC can't help you then you should think about filing Bankruptcy.

    If anyone ever has to file a bankruptcy always leave an account open that you hopefully keep current. Try to make that account one that you had a high credit limit on ($5,000) or more at one time. It is even better to have 2 accounts that you leave out of the Bankruptcy.

    This is the fastest way to coming back from a bankruptcy and your attorney won't tell you to do that since they don't really care about you "after" the bankruptcy. Believe it or not, people can get a home loan one week out of a chapter 7 if they have kept 2 accounts paying through the Bankruptcy. It show your responsibility and that you are a cut above the rest. It really does make a difference in getting reestablished. Hope this advice helps.
     
  6. AVL1984

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    Consumer Credit Counselling is SOMETIMES the best way to go. After becoming disabled, they weren't even willing to try to work with us to help us get our debt down, etc. We were forced into bankruptcy and lost our home and a car last year. We now live in a small 2br apt. Was our testimony hurt? To a point, I believe it was. But was the bankruptcy necessary? Yes, in every way it was. Did we lose a lot? Yes.
    If one legitimately has tried and bankruptcy is the only way to get relief, I would say go for it. Even in the Bible all debts were forgiven every seven years if I'm not mistaken (according to Jewish Law). Someone correct me if I am, please.

    I would also recommend looking up Financial Peace University. It was started by a Christian man and his wife (Dave Ramsey), and his program is outstanding in helping people. They are based in Nashville, TN, I believe.

    B.T.
     
  7. SueLyn

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    When I married my husband, he had filed bankruptcy right before his divorce. He lost almost everything plus the added benefit of not being able to get even an $100 loan. Added on to this, he owed money, (a lot of money :eek: ) to the IRS because of a mistake on his taxes several years earlier.
    It's true that people go thru "bad patches" in life, but I was raised to deal with those "bad patches", not run from them. And, from my take on my husband's situation, it was pretty much bad money management, on his part and his ex-wife's. As far as the IRS goes, he didn't feel he should be responsible for a mistake he didn't make, but the person doing his taxes had made. To the IRS, it doesn't matter, they just want their money. I talked him into setting up a payment plan with them, remember with the bankruptcy we couldn't get a loan with less interest to pay this debt. It took us eight years, with payments and any refunds at tax time. I took over the job of money management in the home, never would I allow a late payment on anything, and my parents helped us get a loan against one of their CD's to start our credit over. It's been 15 years now, I still take care of the money, we have an excellent credit rating, and even though I didn't help him get into that mess, I helped him get out of that mess.
    My advice, try anything and everything before you decide to file bankruptcy. It leaves a black mark on you that even Ajax can't clean. I know that it is something we will never, ever do again. I've known some people that will file against all their debt except for one lender, so they will still able to have a credit line. Most of these people will be right back where they were within two years of filing that bankruptcy. Somehow, that just doesn't sit well with me. :rolleyes:
    Sue
     
  8. Rev. Joshua

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    The first thing you need to do is contact a lawyer. They can tell you if you're at the point where bankruptcy isn't really going to damage your credit any further (for most people who are contemplating bankruptcy that's the case) and whether or not you would lose any assets.

    The lawyer is going to want a copy of your budget and a list of all your debts (and probably a large check if you decide to file through them).

    Joshua
     
  9. Karen

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    The first thing you need to do is contact a lawyer.......

    The lawyer is going to want a copy of your budget and a list of all your debts (and probably a large check if you decide to file through them).

    Joshua
    </font>[/QUOTE]Perhaps a Legal Aid Society is somewhere near you.
    Or you can call local bar association and find who will do this at reduced rate or free.

    Karen
     
  10. susanpet

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    I enrolled in a debt management program last Nov.(CCCS). Instead of my credit cards taking 40 yrs. :eek: to pay off, it will only take about 5 yrs. now. The interest has dropped considerably and the late charges dropped.
    Things got bad cause my husband got laid off 3 yrs. ago. I would use credit cards to get cash to buy groceries and stuff. It really got out of hand. He went to truck driving school and now has a super job driving.
    We still have money problems but there is a light at the end of the tunnel.
    Check into debt management first. I can give you the name of the one I use if you PM me.

    In Christ
    Susan
     
  11. Multimom

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    If you must file Bankruptcy, I would encourage you to file under Chapter 13 so that you can repay at least part of the debt.

    Chapter 7 discharges all unsecured debt.

    Dr. Bob you said:
    Did you file a claim against the Bankruptcy. Also at the initial hearing if you can prove that they incurred the debt within (I think its like 30 days) of filing) there is a section of the Bankruptcy code that will allow you to be exempted as a creditor thus forcing the person to pay in full. What they have done is not allowable under Bankruptcy codes and you can speak to the trustee in charge of their bankruptcy.

    If you have a business you should have legal counsel, check this out. Because my days as a Bankruptcy Clerk for a law firm in Houston are a bit outdated but there is a way for you to be removed as a creditor and force the filer to pay the debt. There is a time frame on it. And if they file Chapter 13 be sure that you file a claim against the bankruptcy.
     

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