going to file chapter 7 have questions

I am in the process of getting ready to file Chapter 7 and I was informed by my attorney to stop paying them because at this point all I would be doing is giving away my money.

Best advice I could tell anyone is to follow your attorney's advice on what you should do.

Filing for bankruptcy can be long and confusing process. It is always better to hire a bankruptcy attorney who understands your financial situation. You can also visit bankruptcyaction.com and bills.com they offer good information on bankruptcy. Filing for bankruptcy may not be a fresh start as it stays on your credit report for up to 10 years.

I am aware of the effects of bankruptcy. I am disabled and don't plan on buying a house or anything in the near future. With my medical condition I could have less than 5 years to live. I just don't want to leave the burden of bills out there if I do die. This way everything is clean, I will never get a credit card again.

Also like I see it I will have to put up with about a months worth of phone calls till I get my next disability check to put some money down for the attorney. I am just wondering if the creditors do call, will me telling them I am filing for bankruptcy stop them from calling?

Hi Guest,

First you would need to go through a government approved Credit Counseling program for 6 months before you can file. You definitely sound like a good candidate for Chapter 7 bankruptcy. You can also file yourself without an attorney, should you have the patience and want to save money. The necessary forms are online.

As far as buying a home, mortgages are not dischargeable in bankruptcy. Around 2-3 years after bankruptcy discharge, especially with a nice down payment, as long as you have used credit sparingly and responsibly (you will get TONS of credit offers) you shouldn't have much of a problem. Just shop around (and make it clear that you are shopping around). My mom filed for bankruptcy in the end of 2005, and she and her new husband just bought a home (and he retired due to disability so she is the only wage earner). She was smart and only took 1 credit card for emergencies.

It is an exaggeration that bankruptcy is so horrible. One can re-build their credit and move on with their lives much faster and with a whole lot less trauma than through a settlement program, for instance.

I hope this info helps you, please keep us updated!

chrys

what do you mean 6 months of credit counseling? I have not seen anything on that yet.

I don't think the counseling last for 6 months, you just have to a credit counseling session 6 months prior to filing and again after you file.

That's what I read. 180 days before I file and it takes 1 hour by phone or online.

Maby I interpreted him wrong. Anyhow I did find an attorney in my area so I will be calling him next week to check it out. His website says low cost and payment plans available.

Also when I do file and everything is over, what happens to my credit report? Does everything get removed from it or does it just show a zero balance for everything

It will actually show " included in BK"

Hi,

No, it was my misunderstanding.

You are required to have a credit counseling session within 180 days before filing. After you file (and before discharge) is a debtor education course.

Thank you for that correction!!

That's OK Chrys!!! After I looked up the laws I understood what you meant.