Mandatory Bankruptcy Counseling

I am going to file a chapter 13 bankruptcy soon and I just did the required counseling online. It cost $50 through the company I did it with. Can I say, what a waste of money. All they did was ask what your income was, debts, assets, etc. then tell you your debt to income ratio. All that for $50 when I am filing bankruptcy and don't have any money anyway. What a waste. I could have done that myself. I just had to vent about it.

Behold, the new BK laws...making people in debt spend more money to learn what they already know...BK is the only option left. Sorry you had to waste $50, Sassnlucy.

Eh, you gotta do what you gotta do right? Yeah it was really nothing I couldn't have done with an excel spreadsheet. Well now they will send me a "personalized" packet telling me that I have too many medical bills, etc. DUH!!! Why do you think I am filing bankruptcy???

Thank God when I filed I didn't have to go through that. What a waste of money you didn't really have and a waste of time you probably didn't really have either. I think when consumers head to the bk attorney to file bk, they pretty much know there is no other option, everything else had been tried.

Right, it didn't change my mind! It was much easier back when I filed my chapter 7......just fill out the papers and go to court. Right before we file and have the payment plan set I have to pay ANOTHER $50 to do this with the new budget!!!!! Yeah I would have rather taken a nap or walked my dogs or something productive.......

Right, it didn't change my mind! It was much easier back when I filed my chapter 7......just fill out the papers and go to court. Right before we file and have the payment plan set I have to pay ANOTHER $50 to do this with the new budget!!!!! Yeah I would have rather taken a nap or walked my dogs or something productive.......

I know what you mean, Sass - I had to do that too, when I filed Ch. 13 last year. Does your state also require the other counseling that you have to do before the end of your plan? My attorney told me there's another counseling session that has to be done (and yes, it's another $50) before the judge will discharge your case at the end of the plan.

Yep, I sure do....another $50 to get discharged...oh well. At least we live in a country that allows us to file bankruptcy at all cause if not I don't know what I would do!!

Could someone please delete my double post??? That is the 2nd time I have done that tonight!!

Yes Suebee, OH also requires the debtor to do the "exit counseling" before being discharged from a chpt. 13. I am so glad I don't have to go through that. I'm about to finish mine REAL SOON. I do get the mailings from the trustee's office for these couseling sessions, but they are offerred to me for free, probably because I was in it before the new laws took effect.

I'm in Michigan, and my court date with the Trustee is next month (ch. 13). I too had to pay to find out what I already knew, and will pay again at the end as well. For me, this is going to be the best choice I could have made. Fortunately, my attorney is working the payment plan to be less than $500 a month. This is a blessing because I was paying about $1100 a month to all the CC's and Loans. I would never have been able to dig my way out.

When I was a kid, my parents had to declare bankruptcy, and I was so ashamed that I found myself in the same boat (actually different boat, different body of water - far different circumstances) and had to declare it too. They declared it because of the horrible ecomony - loss of jobs. I'm just stupid in handling my finances and let it get out of control. I too am glad we live in a country that allows us a way out of the spiraling debt cycle that has trapped so many of us. I have certainly learned a valuable and expensive lesson. Granted that by the end of my payment plan I will have paid $30k instead of $60k, the following 7 years will haunt me, but there is a light at the end of the tunnel.

Good luck to us all.

Just wanted to ask questions about your recent filing for bankruptcy. Did you file alone or with spouse? Noticed you said it was Chapter 7. Were any of your assets affected, if so can you share what?

I am filing a chapter 13 myself. Tricam, I think it is by far the best choice for us as well. We just paid the attorney fee and filing fee and we will go sign everything next Thursday and the attorney will file it that night. We were also at the point that there was no way we would be able to dig ourselves out of the whole that we were in, either. My husband and I have not been very smart financially either. Don't feel bad, because this is actually my second time filing. I filed chapter 7 on my own in 2003 on debt I had incurred before I met my husband.

I am considering filing because I am being sued by the collection agency. Were you being sued? I ask because I know I've heard you can get a judgement against you if you don't act on the suit. I was wondering if your attorney brought that up and how it may affect you.

also, I have another post when I'm asking if it would be ok for my husband to purchase a car under his name. I am the one who might file bankruptcy. We just really need a newer bigger vehicle. What's your opinion?

pat25, it was because of a lawsuit that I gave bankruptcy a more serious consideration. I attempted to go through a debt settlement company (Mezey & Associates) wich turned out to be one of the most foolish things I could have done. I won't get into it here, but don't by any means consider this organization. I have other posts that go into the hellish details of my (and many others') involvement with Mezey. Long story short, one of my credit cards was suing me for approximately $25k. I knew that I was going to have a judgement against me. I also knew that I would not be able to pay it. Left with little other options, I contacted a bankruptcy lawyer. In fact they had already issued a garnishment to my workplace and froze my bank account. Fortunately, within a week, my lawyers were able to stop the garnishment before it took effect and release my bank account.

Once you file, an automatic stay is in effect which stops any action against you or your assets. It also protects any co-signers (chapter 13).

I had a court date for the seeking of a judgement by one of my creditors. My lawyer said it didn't matter if I went to the court date. They were going to be awarded the judgement, but it would be revoked by the courts. That's what happened. I have a court date with the bankruptcy trustee in June.

pat25, regarding your inquiry about a car. As I understand it (from the chapter 13 handbook) you will not be able to incur a debt over $1,000 without the courts approval. According to the handbook, the courts will generally grant the request to you if the circumstance is extreme and the new payment will not prevent you from making the plan payments. It will be very important that you have been paying regularly into your plan. It would be best to contact a lawyer before making the purchase. Making the purchase so close to filing may cause you problems.

thanks tricam for sharing your story and for the advice. let you know how it goes.