Bankruptcy Question

[kdcrs]

Anyone know how it works in AR?  I have fallen on some hard times and think it may be the only option but I don't want to lose the house and car.

[SLC]

The bankruptcy laws were altered a few years ago and are not as forgiving to debtors who are overextended or experiencing financial difficulty. 

This is not my area of expertise but I definetely you need to communicate with a good bankruptcy attorney in your area. 

[cdhogfan]

What you should do is sell the house and car and pay off the debt.  Get a beater and into a place that you can afford.  Why do you want to keep those things when you can't pay for them?

[kdcrs]

i can pay for the house and car it is just credit cards that are eating me up.  I still haven't made a single late payment but i will be there before too long

[edmo]

What you should do is sell the house and car and pay off the debt.  Get a beater and into a place that you can afford.  Why do you want to keep those things when you can't pay for them?

This is good advice, especially since you are still current on your payments. You should not even consider BK.

[Immensehog]

i can pay for the house and car it is just credit cards that are eating me up.  I still haven't made a single late payment but i will be there before too long

You're not ready for bankruptcy yet.  Call the credit card folks and work some deals, they know something is better than nothing.  If you are still current, there is still time.

[TuckFexas]

Call the credit card companies and tell them that if they want your money they can get ahold of Exxon and get it from them. (don't take my advice)

[selfexplanatory]

Call the credit card companies and tell them that if they want your money they can get ahold of Exxon and get it from them. (don't take my advice)

haha

[Michael Porkleone]

Cut costs and use that money to pay down your debt.

For example, most could save $40 to $50 a month by canceling a high speed internet account. 

[kdcrs]

You're not ready for bankruptcy yet.  Call the credit card folks and work some deals, they know something is better than nothing.  If you are still current, there is still time.

I have heard they jack up your interest if you call them and let them know all isn't well.  I have cut back on everything Yindao I am just down to where there is no cutting left I can do and I had a pretty big life event that is killing me (financially).

[Michael Porkleone]

I have heard they jack up your interest if you call them and let them know all isn't well.  I have cut back on everything Yindao I am just down to where there is no cutting left I can do and I had a pretty big life event that is killing me (financially).

I understand - a life event can easily swing things waay into the red - Call the companies anyway.  If you really haven't had a late payment, tell them another card is offering a low rate balance transfer (say 4.99%) and you are considering transferring your money.  Also, research other cards - many will offer someone with good credit (like you) a VERY attractive introductory rate - this will at least buy you some time. 

Trust me - bankruptcy SUUUCKS.  Sell the car and hitch a ride with a friend or neighbor

[Michael Porkleone]

I have heard they jack up your interest if you call them and let them know all isn't well. 

This isn't true - they want their money and dont want you to file bankruptcy. 

[malibu327]

wait now, how will he get on hogville?

Cut costs and use that money to pay down your debt.

For example, most could save $40 to $50 a month by canceling a high speed internet account. 

[BigSexyHog]

Sorry to hear about your struggles.... I was close at one time too.  Not sure if you can get a second job or even something part time, but that is what I did and it helped out alot.  Not sure of your situation, but something to consider if you are able.  I am down to 60K in debt (car included ) so trust me bro I am right there with you.

[wholehog92]

I'm sure you've probably heard this before, but check out a Dave Ramsey book from your library.  That's very good free advice.  It saved my marriage and financial life.  My house and car are my debts and are less than 100K total.  My wife and I take in right at 80K.  If you make less than that and house/car debt is higher than that, I would point you towards the previous post.  Rectify that and pay off the unsecured debt.

[spit]

if you're still current like you say, then tomorrow do a balance transfer to a new card for introductory 1year 0% interest.
CUT UP the credit cards.
There is not an easy way out - don't have the misconception that filing BR is the easy route.  Tighten the belt, no sat/cable t.v., no inet, no cell phone, only drive your car to work and back - eat at home from the grocery store - and only go once every 2 weeks get plenty to save gas.
Work your arse off, there are plenty of jobs for a hard worker... Do this and you'll make it.

[Michael Porkleone]

wait now, how will he get on hogville?

the library or a friend's house.

[Michael Porkleone]

I'm sure you've probably heard this before, but check out a Dave Ramsey book from your library.  That's very good free advice.  It saved my marriage and financial life.  My house and car are my debts and are less than 100K total.  My wife and I take in right at 80K.  If you make less than that and house/car debt is higher than that, I would point you towards the previous post.  Rectify that and pay off the unsecured debt.

This is the best book there is on the subject.  I paid off over $20,000 in two years by changing habits and prioritizing debt.

[cdhogfan]

This is the best book there is on the subject.  I paid off over $20,000 in two years by changing habits and prioritizing debt.

This guy is why I gave the advice about selling the house and car.

[pfrg999]

Cut costs and use that money to pay down your debt.

For example, most could save $40 to $50 a month by canceling a high speed internet account. 

dude that's cold.... true but cold... or Get $20 basic cable..

[HootieHaterfromALA]

BK is the absolute worst option my friend...being in the lending industry you see nonprime or subprime lenders getting out of the business everyday.....and after you file that bk you officially have become a nonprime/subprime customer. If you are able to get a loan in the future....your rate is going to be retarded. 2 yrs ago... a BK in someones file meant "hey...they got rid of debts..they should have some discretionary income"....nowadays it means you are getting declined because only prime lenders are left.

[Verge]

didn't they change bankruptcy in 2005... i don't think your credit card debt goes away anymore... so you are basically left with the same bills you had before.


How about, finding everything you bought with your credit card and selling them. Selling ur car, and selling your house to get out of debt... this stuff isn't going to dissappear, might as well deal with it now before you are old and have 0 retirement.

It's nice to say "i want to get out of debt" but right now you really don't. If you really did, you wouldn't have a computer for typing on hogville, you would have sold it, you aren't putting forth near the effort right now to even declare bankruptcy.

[PigPusher]

Have a friend that declared BR.  Within a month he had credit cards and a financed car. Go figure.

[HootieHaterfromALA]

Have a friend that declared BR.  Within a month he had credit cards and a financed car. Go figure.

Those days are about to go bye bye for a few years...I am telling you. More and more prime lenders are tightening up and nonprime lenders completely getting out of the lending business (auto and mortgage). There will always be credit card companies raping people with 20-25% rates.

[bevosucks]

There is a ton of misinformation in this thread.  Contact a bankruptcy lawyer and get real answers to your questions.  The new law has no effect on most cases, and there is no rule about "your credit cards not going away anymore".  What you have in this thread are people presuming to know facts about your situation, and I doubt they are offering solutions that you have not thought of.  Other responders have their own motivations - "working in the lending industry".  Call 3 or 4 bankruptcy lawyers in your area and meet with all of them and get some real advice about your situation.

[Nashville Fan]

I would listen to Ramsey on the subject before I would listen to a bankruptcy attorney. I know people who have been advised to file bankruptcy on as little as 10K debt. The bankruptcy cost them 2K up front. Didn't make financial sense, they just panicked. Now they have to live with a bankruptcy on their credit history.

[CampuspostmanHOG]

Check with a non-profit credit counseling service such as CCA in Northwest Arkansas.

They can get payments reduced in many cases. I haven't used them but I know they stay awfully busy helping people avoid bankruptcy.

[Verge]

There is a ton of misinformation in this thread.  Contact a bankruptcy lawyer and get real answers to your questions.  The new law has no effect on most cases, and there is no rule about "your credit cards not going away anymore".  What you have in this thread are people presuming to know facts about your situation, and I doubt they are offering solutions that you have not thought of.  Other responders have their own motivations - "working in the lending industry".  Call 3 or 4 bankruptcy lawyers in your area and meet with all of them and get some real advice about your situation.

By all means, since you cannot afford to pay your bills, do not take free advice from people on the internet about your excessive spending, PAY SOMEBODY with money you don't have.

[kdcrs]

Thanks to everyone.  I think we found a non bankruptcy way out that is totally legal and will get us about 18k and pay off most of our bills.  My wife is gonna be a surrogate.  This way she can still stay home with the kids and we can get the bills paid.

[friendian69]

Cut costs and use that money to pay down your debt.

For example, most could save $40 to $50 a month by canceling a high speed internet account. 

That's not a good idea nowadays!  W/o the internet you are behind, way behind.  If he would have canceled his internet connection, he would not be  able to receive all this excellent Hoggville advice!!

[bevosucks]

By all means, since you cannot afford to pay your bills, do not take free advice from people on the internet about your excessive spending, PAY SOMEBODY with money you don't have.

1.  Don't assume this person's financial difficulties were solely due to excessive spending.  We simply don't know the cause.
2.  A first appointment with a bankruptcy lawyer will be free.  Nonetheless, the lawyer owes the person the duties of loyalty and competence, which can't be said of ignorant anonymous posters on the internet.

[Immensehog]

There is a ton of misinformation in this thread.  Contact a bankruptcy lawyer and get real answers to your questions.  The new law has no effect on most cases, and there is no rule about "your credit cards not going away anymore".  What you have in this thread are people presuming to know facts about your situation, and I doubt they are offering solutions that you have not thought of.  Other responders have their own motivations - "working in the lending industry".  Call 3 or 4 bankruptcy lawyers in your area and meet with all of them and get some real advice about your situation.

I think everyone is quite aware we are not attourneys, just alot of people who have been in the same boat.  The advice in this thread is pretty much dead-on.

Go save the world elsewhere.

[hoggeek]

I actually agree with bevosucks here. Most posters here are young and have no idea what it is to be truly screwed financially. Take it from someone that has been in the situation of putting everything you have on eBay and getting about 8 cents on the dollar for some of it. Sometimes there are situations that can't be handled by an off the cuff response from an anonymous poster on a message board. Having said all of that, if you aren't behind yet then you are nowhere close to bankruptcy.

Try going unemployed for 10 months, with a 550/mo T1 contract and a house that you can't sell in a crappy market like this, and said house holding over 50k in equity because you picked exactly the wrong time to buy a fixer-upper for a remodel. If you look up "screwed" on dictionary.com, you'll see this, with my picture.

[Michael Porkleone]

1.  Don't assume this person's financial difficulties were solely due to excessive spending.  We simply don't know the cause.
2.  A first appointment with a bankruptcy lawyer will be free.  Nonetheless, the lawyer owes the person the duties of loyalty and competence, which can't be said of ignorant anonymous posters on the internet.

I've looked it over and every post seemed like sound financial advice (except Tuckfexas) for a forum that specializes in half naked women.  Which post are you referring to that is offering bad advice?

[Michael Porkleone]

Having said all of that, if you aren't behind yet then you are nowhere close to bankruptcy.

It seems everyone agrees with you. 

[TuckFexas]

I actually agree with bevosucks here.

I had to read this a couple times because it made me "lol" when I read it out loud. Carry on.

[hoggeek]

I had to read this a couple times because it made me "lol" when I read it out loud. Carry on.

Elucidate, please?

[TuckFexas]

Elucidate, please?

It's just funny to me. I guess you gotta say it out loud and pretend you're in a board meeting for it to be funny.

[Verge]

1.  Don't assume this person's financial difficulties were solely due to excessive spending.  We simply don't know the cause.

It's credit card debt... what causes credit card debt... spending...

It's not like the government put 10k of back owed taxes on his visa now did they ?

[Tomhog™]

I quit using credit cards 5 years ago.  A decision I am most thankful I made.  It took me two years to get out of the debt I was in.  But now, I've been debt free other than house, car, and now motorcycle.

[Michael Porkleone]

I quit using credit cards 5 years ago.  A decision I am most thankful I made.  It took me two years to get out of the debt I was in.  But now, I've been debt free other than house, car, and now motorcycle.

I carry two cards:

1.  Company AMEX
2.  A personal visa that is linked to my American Airlines rewards program - I make every purchase I can with the card as the miles add up quickly.  The key is to pay off the balance in full every month

[hoggeek]

It's just funny to me. I guess you gotta say it out loud and pretend you're in a board meeting for it to be funny.

Hmmm. Pretend it's a real story, and it's you, and you've got 3 kids and see if those tears of laughter dry up a bit.

[HOGWILD_F4I]

It appears you have some income, considering you own cars and a home.  Also throw in the fact, you are current on your credit card payments, bankruptcy is not the answer.

Bankruptcy is not what it used to be.  The banks and lenders are all in the U.S. courts hip pockets.  Today, bankruptcy takes on a whole new meaning.  It used to be bankruptcy meant "relief".  Now it is far from that. 

If you even went ahead on filing bankruptcy, there would be a strong possibility that you would not be eligable for a Chapter 7, and would get stuck filing under a Chapter 13.  (everyone would still get paid.. you just get screwed)

[TuckFexas]

Hmmm. Pretend it's a real story, and it's you, and you've got 3 kids and see if those tears of laughter dry up a bit.

I was speaking of the "I agree with bevosucks" and only that. I wasn't speaking of the nature of the thread. Lighten the frick up.

[Section B]

credit cards are one of the biggest problems in America.  our debt will be our downfall as a nation.

The nation itself (ie politicians) needs to have its platinum card revoked before it's too late.

[hoggeek]

I was speaking of the "I agree with bevosucks" and only that. I wasn't speaking of the nature of the thread. Lighten the frick up.

Sorry. Sore subject.
-------------------------

This appears to be a pretty good site for bankruptcy questions and answers:
http://www.bankruptcyaction.com/

[razorduck9]

It's just funny to me. I guess you gotta say it out loud and pretend you're in a board meeting for it to be funny.

That is hilarious Tuck.......  When you think of it like that, its like the CEO of a company just listened to two proposals, and came out and said he liked the one from bevosucks!!!!

Good stuff....... 

[PigPusher]

We went from credit card to debit card and our savings are quite noticeable. Lesson I had to learn was immediately putting the receipt in my billfold instead of on the car console.  The bookkeeping was simple after that.

[J.A.Y.]

credit cards are one of the biggest problems in America.  our debt will be our downfall as a nation.

Go to the UK.

My cousin has lived there for 3 years now. She said they use plastic likes it's going out of style.

In debt to their eyeballs, and its just normal. She said the majority are in a 50 year mortgage on their house.

WAY TOO MUCH keeping up with the Jones'( or Beckham's), she actually said people here in America mostly are in really good shape compared to the Brits.

[J.A.Y.]

OH yeah don't get me wrong.

I live with only house and my wife's car debt. ( I have a company car)

I am blessed with a wife that is very frugal, except for purchases that involve this baby we have on the way