Monkspider's girlfriend: Questions about declaring bankruptcy

monkspider · January 7, 2003, 03:57

Hi! This is monkspider's girlfriend. My boyfriend said that there were a lot of smart guys here, so I have just a couple of quick questions.
Basically, I have been in a lot of debt since I graduated from college and it seems to only keep on increasing. I am overwhelmed with bills and under a lot of stress. I am seriously considering declaring bankruptcy but I need to know a few things.
1. Will bankruptcy completely screw me over?
2. What type of bankruptcy should I declare? (Chapter 12, etc)
3. What is the cheapest and best way to declare it?

Thanks in advance for any help.

aaglo · January 7, 2003, 04:00

Why don't you start looking for work instead of spending your time here?

I hope you can solve your problems...

BTW, Here where I live, a personal bankcruptcy is not possible (or atleast wasn't possible a couple of years ago... I don't know the current situation).

Shi Huangdi · January 7, 2003, 04:00

I wouldn't know nearly as much as most guys here, but IIRC from business law class in high school student loans taken for education cannot be eliminated by bureaucracy.

Oerdin · January 7, 2003, 04:04

Bankruptcy absolutely does screw you over for seven years. If you end up marrying a man the it ends up screwing his credit as well. My suggestion is to make a budget, find out how much you make, and how much your bills are then live with in your budget. It sounds harsh but it is the only way to live with in your means.

monkspider · January 7, 2003, 04:12

Shi Huangdi:
I have some student loan debt, but the main debt that is killing me is my old credit cards.

Oerdin:
I did not know that it would hurt monkspider's credit too when we get married. I'm sure he will be happy to hear that. Thanks for the advice, but I am just totally stressing from not being able to make ends meet anymore. So if I do have to declare bankruptcy do you know the best way to do it? Thanks.

aaglo · January 7, 2003, 04:16

Can your ask your parents or friends to help you financially? I would suggest that.

monkspider · January 7, 2003, 04:18

Aaglo:
My parents and friends don't have any money either, or else I would.

Urban Ranger · January 7, 2003, 04:18

Maybe you want to try loan consolidation?

Dis · January 7, 2003, 04:24

DL!!!!!!

. sorry couldn't resist.

Dis · January 7, 2003, 04:25

what kind of degree do you have? Please don't say liberal arts.

Oerdin · January 7, 2003, 04:33

First I would try debt consolidation. If that didn't work then I would try to renegotiate the terms with my crediters because if I declare bankruptcy then they get nothing while if we renegotiate they get less then planned but more then bankruptcy.

If that didn't work then bankruptcy is the anwser. Last I checked there were 15 different types of bankruptcy and even with in those 15 the exact laws vary from state to state so I could tell you which would be best in Kansas give you circomstances. My advice is to find a bankruptcy lawyer, tell him what types of debts you have, and then to follow his advice. Or better yet find some why, any way, to reach some sort of agreement whith you crediters. Other wise you will be screwed financially as will monk spyder (if you get married).

My girlfriend has been devorced and before she got devorced she was legally seporated for one year. During that one year her (soon to be ) exhusband declared bankruptcy and guess who's credit got screwed for the next seven years? It sucks when you want to buy a new car and everyone turns you down.

Luckily for Christine and I my credit is still good so we've been able to buy a car and not worry to much about her exhiuband's mistakes.

monkspider · January 7, 2003, 04:42

Urban Ranger:
I have tried it, but even with consolidation it has still been too much for me since monkspider and I moved in.

Dissident:
I have a master's degree in Spanish.

Oerdin:
That is *very* helpful, thanks a lot! I will be sure to tell Dustin to be extra nice to you from now on.

Thanks for all the help guys!

Dis · January 7, 2003, 04:48

I still don't think bankruptcy is worth it unless you own a home or some other asset you really don't want to lose.

Oerdin · January 7, 2003, 04:57

Bankrputcy is bad news but if you are truly unrecoverably in debt then it may be the anwser. Just make sure you've tried absolutely everything first.

catullus · January 7, 2003, 08:22

How bad is it? How much would you need just to pay back old debt? Or the most expensive debt (credit card is worst)?

I know how you feel. I've been so overwhelmed by bills and so depressed by my personal economy that I saw no way out.
I was in a very bad situation some years ago. Several loans unpaid, bills unpaid, life a mess. Luckily, I came to my senses (in fact, my girlfriend kicked me into shape), and asked my parents for help. They don't have extra money, but they took a bank loan and gave me the money as a loan between us. We made a contract with monthly dues and so on.
So, they arranged the consolidation of my short-term (and expensive) debt for me. Would that be possible for you? Or Monkspider?

Then, I made a budget. It added up in negative. Then I made a new one. No vacations, no car, No late-night parties in town. Still in the red. Then I added a moonlightning job. And came out positive. Can you do that? Make a budget? Is it possible for you to work extra? My extra work earns me peanuts, really, compared to my real day job, but hey, it's money. Night and/or weekend shifts should be possible to find. Either at 7-11, a cafe, a nursery home. Can you wash floors?

I've paid back to my dad. My credit rating is fine, in fact my SO and me bought a flat two years ago, with loans from the bank. I still can't afford vacations, but we have a car, at least. I still work extra, enough to keep my liquor cabinet more than well-stocked, enough to invite friends over for dinner. Even enough to put a little bit aside.

Don't lose hope.
Bankruptcy is really not an option.

C.

Ishtar · January 7, 2003, 09:14

Hi.

I've done bankruptcy before. I did Chapter 7, I think, the total liquidation one. There is also a Chapter 13, I think it is, where they do some type of "reconstruction and repayment" of your debt. I survived just fine and even purchased a car and a mobile home the same year my bankruptcy was discharged. Sometimes it is indeed the only answer. Yes, it does stay on your credit report for 10 years and that makes it difficult to obtain some types of credit and, in the chapter I filed, you cannot file again for 6 years. I am in South Carolina and that was in 1994.

I suggest you start by going online and searching for the bankruptcy laws for your particular state and reading up on it a bit. Then find an attorney who does bankruptcy. Not all do. It is a specialized area. Normally, they do not charge for a consultation visit. Some do, some don't.

If your stress level is extremely high, the creditors are calling constantly and there is no other way out, look into it.

The peace of mind outweighed the negative effects for me.

Hope this helps a bit. Good Luck. I know how you feel!

Ishtar

Ishtar · January 7, 2003, 09:16

Start Here:

http://www.kansasbankruptcylaw.com/

And, again, Good Luck!!!

Ishie

Zkribbler · January 7, 2003, 11:11

Yeah, Ishtar is right. Bankruptcy is not the total anvil-around-the-neck most people think it is. Some future creditors are even happy to see you because they know you can't declare bankruptcy again for--whatever--6 or 7 years.

Student loans, as a practical matter, cannot be gotten rid of. There is an "extreme hardship" exception, but a law school professor once told me that exception had been granted only once.

But credit cards, those are evil.

Sky-high interest rates, handed out like Kleenex to innocent young people (and sometimes to goldfish and dogs

).

You might try renegotiating with your creditors. You might trink about Chapter 13--which merely reorganizes your debts. Or you might think about Chapter 7--liquidation.

But most of all, you should really think about talking to a lawyer. They know about stuff like this.

BTW: A lot of these loan considation services you see advertized are rip-off places. Either stay away or approach with extreme caution.

Tuberski · January 7, 2003, 18:45

Bankruptcy can only be discharged in federal court, as far as I know.

That is where I went. I had a good credit rating before the bankruptcy and it got worse after, but I can still get credit, albeit at higher interest rates.

ACK!

chequita guevara · January 7, 2003, 19:17

First off, if creditors are hounding you day and night you should know you're allowed to tell them to stop harrassing you, and by law, they must stop.

Next, make a budget, all your debts, all your income, then figure out what expenses can go. Get rid of them. Figure out what you can pay. Then, talk to your creditors and tell them you are thinking about filing for bankruptcy. Once you say the magic word, they will bend over backwards to come up with a plan that will fit into your budget. They want their money, and they'd prefer some of it to none of it, and all of it if you can do that over a much longer period.

Oerdin, I'm surprised your girlfriend can't sue to have that bankruptcy removed from her credit rating. If she was legally seperated, she shouldn't be held legally responsible for his debts or credit screw-ups.

Skanky Burns · January 7, 2003, 21:07

If you haven't already, take a pair of scissors / knife to your credit cards. You don't need that temptation to spend constantly around you, and you certainly don't need the high interest rates they provide.

Swissy · January 7, 2003, 21:48

This is were you start http://www.ksb.uscourts.gov/

Note that it will cost you around $200-250 to do it yourself. Add about $150-250 if you use an attorney. The process is simple enough, you should be able to find a "How to do your own bankruptcy" book at your local library. Chapter 7 is a complete liquidation of all your assets. As freightening as this may sound, you are allow to exempt much of your assets by Kansas state law. Chapter 13 has you paying a portion of your debts over a period of time, with the remainder being discharged. You must have income to use chapter 13.

Bankruptcy is not the taboo it once was. You will not be able to qualify for the best rates for any credit. But, you will be able to get credit rather easily, just that you'll be paying more to get it. If you do file bankruptcy, you should have a valid reason for it if you plan on buying a house within ten years. Mortgage companies will accept long term unemployement, substansial medical bills, or adverse court judgments as good reasons.

Also, your student loans can not be discharged by bankruptcy. Best to file soon, congress will again be looking to change the bankruptcy laws with an eye at making it more difficult to discharge consumer debt (credit cards).