Mandatory Bankruptcy Counseling

Behold, the new BK laws...making people in debt spend more money to learn what they already know...BK is the only option left. :roll: 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.

Steelers, did I read your post right - you're completing your Ch. 13 soon? If so, congrats! :-)

I am so broke I cant even afford to file for chapter 13...not to mention I have no disposable income anymore

I just did my counseling earlier this week and it was a waste of money. I did my counseling over the phone which took about an hour and 15 minutes, but I am relieved to know that my Ch 13 will be filed tomorrow morning(May 21) :D

Congradulations Brownsugar I know this has been a long time in the making. You will feel such a relief to have it all over with. KYSIDE38

Yes Suebee, I will be completing my chpt. 13 REAL SOON! YIPEEEEEEEEE! And in that time I have made significant improvements to prevent that situation repeating itself. Unfortunately, my chpt. 13 was due to an exorbitant amount of medical debts (well over $200,000 for my son). Congratulations Brownsugar, you are going to be feeling a huge burden lifted soon, well, tomorrow to be exact! :D And congratulations also on returning to school you will do well!

That's great news Steelers, congrats again!

Brownsugar - things will soon be looking better for you - hang in there! I'm glad you were able to get everything taken care of and will be filing soon. Sometimes it's the only way.

Myself, I'm almost one year into my Ch. 13 - and because so few of my creditors actually bothered to file claims for payment, I've looked into refinancing out of the Ch. 13 this summer. Hopefully, if all goes well, I will be able to do that. I've already spoken to a loan officer at a respected bank, referred by my BK attorney, who works mainly with refi's out of Ch. 13 filings. I've also been hammering away at my credit reports, getting the inaccuracies off there and the proper reporting updated. It's working - don't ever let anyone tell you otherwise! I've seen even judgement items get deleted from my reports because the creditor didn't file a claim for the Ch. 13 repayment plan.

Oh, and I have to add this - if it weren't for these forums and the wonderful people here (both old and new), I wouldn't have had the knowledge or the courage to attack some of these issues - I've fought off the payday lenders merely by standing up for my rights, I've started correcting my credit reports, and have been able to help others with what I've learned here and my own life experience - OH WHAT A FEELING! :D :D :D :D

Sue, explain something for me - "Refinancing out of Ch. 13". What is this? I never knew this was even a possibility. So after being in the repayment plan for only one year, you have the potential option of refinancing the debt, or ???? What do they base the amount that is refinanced on, the total payments that would be collected? What if you are able to refinace out of Ch. 13. Can the remaining debtors come after you for any recompence? I would like to learn more about this. What resources did you read up on to find out about it? Is it only available if you've been a payment plan for a year or more.

Interesting ...

One way to refinance out of a chpt. 13 is if you have the equity in your home to refinance and then you pay off the chpt. 13, with the courts approval. And if it is done this way, no the creditors can not come after you. That is one way I know of to refinance out of chpt. 13. And the amount to pay is the balance owed on the debts listed in your chpt. 13

Thanks, Steelers, I wasn't on much last night to answer this one.

Tricam - what I'm doing is refinancing my home out of the Chapter 13 - there are several lending programs that will do this, and almost all of them require that you've been in the Ch. 13 plan for at least a year, with all payments made on time.

I had about 25 creditors included in my CH. 13 filing, and out of the 25, only about 9 of them actually filed claims for payment. That dropped my debt load considerably. The main reason for filing Ch. 13 was to save my house, so once I'm in the program for a year, I should be able to refinance and pay off the remaining debt, which will take me out of the Ch. 13. There are several things it hinges on, however - I have to clear up my credit report (several creditors were still reporting as collection accounts when they hadn't filed for repayment under the Ch. 13 and will be discharged), and my home has to appraise at a certain level in order for this to happen. If the appraisal doesn't come back at the level we need it to, then it won't fly.

In the meantime, to supplement my drastically lowered income from the Ch. 13 plan payments, I've started working on the side to help make extra money - I figure if the refinance doesn't work out, at least I have that.

As far as I know, once you refinance out of the Ch. 13, the case is discharged as it would be if you had completed the entire plan, and it shows on your credit as a completed Ch. 13.

I see, it can only be done if there is enough equity in the house to do a refinance. Unfortunately, I have a 1st and 2nd mortgage already and there is no equity to draw from. I guess I'm stuck with the plan.

Thanks for the information.

My case was filed last Tues(May 22) :D I already feel relief b/c my phone is not ringing off the hook :lol:
Congrats Steelers on almost being done with your BK :)

I know how relived you are Brownsugar! Especially to get checksmart off your back! :D

I've had my first meeting with the trustee. I think things are going to go pretty smoothly at the next meeting. The only problem is that I am scheduled to be out of town on the date of the court meeting. My lawyer tells me that he has done this second meeting without his clients and I don't really need to be there. Has anyone heard of this before? It is possible for me to make it back in town for the meeting, but it will come at an expense to me. If I don't have to be here, I'm going to try not to. Any suggestions or recommendations?

As your legal representative, your lawyer can speak, write, and appear on your behalf with your consent. If your lawyer was there with you on your first meeting with the trustee, then he would know as to how to proceed further. Update him as to what he should be discussing to make the job easier for you in the next meeting.

I think you should be there with your lawyer at the meeting. Hey, I'm not saying that your lawyer wont be able to handle your case skillfully but you are the best person to answer the questions related to your assets and liabilities.

I would suggest you should inform the trustee that your lawyer would be representing you in the next meeting and seek his permission if he is comfortable in dealing with him. :)

I have an appt Tues with a bankruptcy lawyer. I am currently in a debt settlement program but feel they aren't doing anything, especially stopping the phone calls. I have been with them since oct. Of course, their fees come out first. I would have to be in hte program for 39 months. I can't see a creditor waiting tha long. I am filing only for myself, not my husband. How long did it take from the time you saw a lawyer until you got to file? Should I still stay with the debt company until then? I owe about 43k. I pay the settlement co $627/mo. Do you think bankruptcy will lowere this? Thanks for all the help

Most of my debt is credit cards. Discover, Zales, & Chase. Does any one know if these are the ones that usually show up & make claim? I'm sure Chase will be after me since I've already let them know I'm with a debt settlement

I attempted to go thru a debt settlement company first. After about 6 months I got sued by one of my Creditors. It was then that I realized that they really weren't helping me at all. I contacted a lawyer, and about 5-6 weeks later, we filed. I of course stopped making payments to the settlement company right away, and I chose to close my bank account and open a new one just to ensure that no more of their automatic payments got through. I had additional reasons for closing the account, and the timing was right.

After your meeting, if you feel Bankruptcy is the route you'll take, I would recommend taking immediate steps to prevent any additional payments being made to the settlement company. I wish I had made the decision sooner myself, because by the time I ditched the settlement company, I had already paid them $6k. I'll be better off in the long run anyway.

Good luck to you.

We took our debtor education already, as soon as we got our case number. We used the same company and they gave us a 15.00 discount and only charged us 35.00. It sucked though, because me and the hubby did it online and it took two hours. We called in to get our little review and report done, and found out that we each had to do our own! We had to run it again under his number, but he did not watch it over again the second time, but it was a waste of time.

:?