Anyone Here Who's Filed Bankruptcy Chap 7 ??? - Plano,TX

Talk to a lawyer and plan on paying them cash! (A bankruptcy lawyer)

If you do file, you will not be able to do any of the things you WANT without cash or, if you are lucky a VERY high interest rate.

This is DEFINITLY a last resort!

I have not filed bankruptcy. I would exhaust every possible avenue before I would consider it and even then, I don't think I would be able to due to the harsh effects of it being on your record. I would have to find an alternative.

You do need to talk to a bankruptcy lawyer so you understand all the fine print and you make an informed decision. There is a lot of red tape involved.

You will not be able to receive credit from anyone... (except a loan shark maybe at super high interest). No agency will loan you money or allow you to co-sign and leasing any place to live will be a hardship. I as a landlord would not lease anything to someone with this on this on their record... especially within the first 5 yrs or so.

You will have to prove yourself to everyone.

I suggest you look at the list of things you stated that you want to change by 2016. That is a nice sized list that takes a lot of financial obligations. Prioritize the most important and employ delayed gratification with everything else.

Bankruptcy is an easy out for a lot of people who feel like they are drowning in debt (and probably are), however, bankruptcy will not help you at all unless you change your financial views, spending habits etc. Many people who file bankruptcy end up doing it again because they don't alter their financial style.

Talk to your employer, see if you can get more hours or get a 2nd job. Go to the social services in Plano (we have great services... this city is on top of everything) and file for assistance. Go to the places where you can shop for free food... I believe there is a pantry in West Plano at St Andrews church. Go to your church and find out if they have resources to help you get on your feet.

Please do all you can to avoid this drastic decision.

Case in point... My brother and his wife filed a few years ago when my SIL was caught with secret credit cards and a secret debt up around $50,000. They have yet to be able to get a loan for anything and are on cash basis with all creditors. The sad part... my SIL STILL spends money that she does not have like there is no tomorrow. She received a financial settlement from her dad when he passed over $200,000 and in 1 year.... there is no money. They have 3 children to put through college and she (and my brother) squandered $200,000 in less than 1 year. I can't spend money that fast. As hard as it was, I declined to lend them funds to pull out of debt because I know the cycle they are in. However, I did specifically go directly to my nephew in college and has been made responsible for his entire college education due to his parents selfishness and zero responsibility and I paid directly for books and necessities that I knew would ONLY go to him.

I know this is not what you want to hear but please exhaust all resources before you do this. Again, Plano is a very lucrative city and there are all kinds of resources in place to help those in need.

Best wishes to you.

I'm not going to discuss my personal finances. I will just say that your list of "to-do's" within the next year are not reasonable, and are poor financial decisions. Probably a lot like the poor financial decisions which landed you at the brink of bankruptcy in the first place. Be careful.

Your ability to be approved to rent after a chapter 7 depends upon the landlord and your employment situation/ability to pay. Same goes for purchasing a car. It's very unlikely that you'll be able to buy a car in the first year after bankruptcy. I would take your current vehicle and have it tuned up and keep up on oil changes. Take good care of it until you can qualify for a loan with a local bank. Do not make the mistake of financing at a used car lot. They might approve you, but it's not worth paying 20% interest. Be patient and live within your means.

If I were you, I'd do everything I could to avoid a bankruptcy. Create a budget and stick to it. Set aside an emergency fund. Contact all of your creditors and make a payment schedule on your terms. Us Dave Ramsey's Debt Snowball (check out his website for tons of great information). You can get out of debt, but you have to commit to it.

ETA: By your post here you seem all too willing to commit yourself to HAVING debt, but not to paying it. That's a mindset that needs to change right now if you are ever going to do more than just live paycheck to paycheck and have constant anxiety about your finances.

My ex sister in law filed a long time ago. She could not even buy a car with a cosigner. She also could not rent an apartment. She moved back with her parents until she remarried. Honestly, as a landlord, if you had applied to rent a house from me and I saw you had a bankruptcy in the past year, I would not rent to you due to credit issues. Your are looking at doing these new things in 1 year's time. Maybe a few years down the road you might be able to but with high interest rates.

You won't even be able to qualify for a crappy $300 limit 29% interest rate credit card for at least 3 years. Qualifying for a new car simply won't happen for you for about 4-6 years, and only IF you have been able to repair your credit since then.

Life after bankruptcy requires some major changes, and from what you have written, I don't think you are prepared for that at all. You need to redefine needs vs luxuries.

You will need to live off way less than your monthly income. You will not have the luxury of credit cards for emergencies (the only expense that truly qualifies as an 'emergency' is car repairs, medical and dental expenses can be paid off in monthly installments, everything else is a luxury) so you will need to start building your savings right away.

You will need to stay put in the 2 bdr apt for the time being, maybe even find a smaller cheaper place than what you have currently. Be grateful you have a place to live. Renting a spacious house with a yard is a luxury.

You will need transportation. This can be the bus, or your current car, making repairs as needed. Buying a new car is a luxury.

You will need clothes for you and your children. Get used to going to the thrift store. Buying brand new clothes and shoes every time they outgrow their current sizes is a luxury.

You will need food. Get used to making food at home. Going out to eat is a luxury.

I have been through it. You can get through it, but you absolutely HAVE to get your head out of the sand and face the fact that you simply cannot afford the luxuries you were used to before.

Even after your credit is repaired down the road, you will need to work with individual landlords vs corporations, and work with local credit unions vs national banks for car loans. Get used to rejections.

I have never filed for bankruptcy, but I will tell you that you will not be able to get any of those things unless you have cash to pay for them in full. Banks will not give any loans within that short a time line of filing and bankruptcy stays on your credit for a minimum of 7 years (some stay forever).

Also, as a landlord I will not rent to anyone that has recently filed bankruptcy. I need to protect my investments as well so I wont take that chance. I do consider someone if they filed years before and can show that they are back on their feet with current finances.

I strongly suggest that you try and work with these credit agencies and/or with a credit councilor to get rid of your debt.

I'm not sure you understand life after bankruptcy.

After you file bankruptcy, everything you do/purchase will have to be with cash, and lots of it. A very good friend of mine filed. Two years later she went to rent another apartment and the landlord wouldn't rent to her. Luckily she had 8 months of rent to give him to prove she was "worthy". She gave him the 8 months rent BUT still had to pay him the monthly rent payment starting when she moved in. She has been at that apartment for 2 1/2 yrs now.

She did get a $300 secured credit card, meaning that she gave a credit card company $300 upfront and was able to use the card like a credit card and it was reported on her credit report.

When her car got totaled, it was impossible to buy a used car. She needed cash. She got $2000 for her car and had $1000 saved and a $3000 car was all she could buy.

Do all your homework and have an apartment and car taken care of before you file.

I hope you have learned your lesson too.

I'm not going to lecture you or make assumptions about your situation.

I have not filed for bankruptcy, but my mom did when I was a teenager. The rules have changed since then, and now it's harder to file for chapter 7.

We lost our home and had to live in a motel for awhile until she could find something that would work with her credit. My advice is this: If you do decide you need to file, get yourself into a living situation you can see yourself in for several years prior to filing. This includes where you are living and the vehicle you are driving.

I would also focus on income. Most people think those that file chapter 7 are spending beyond their means on credit for frivolous things, but I know there are people who are trying to make it and just can't do it because their income is not a living wage and they can't qualify for services. If this is you, then I would try to figure out a way to further your education or employment with the singular goal of finding a higher paying job.

You live in an area where the cost of living is relatively cheap and salaries are relatively high (I live here too). A teaching job for Plano ISD starts at 50K a year for a bachelor's degree, and a nice single family home is around $175K. Pretty good that a teacher could afford a home on just one income. There are many other jobs that might work for you with a minimum of furthering your education.

I think the advice to talk to a lawyer is a little silly since most charge a small fortune, and your problem is you don't have any money. I would try http://www.suzeorman.com/resource-center/managing-debt/ and look at some people offering credit counseling services just to talk to people who can try to see if there is another way out too.

Good luck!

You state that you need to file due to deep debt hole yet you are saying you "have" to move out of the 2 bedroom apartment into a house. You will also "need" to buy a "new" car by then (2016).

You need to meet with a bankruptcy attorney and a financial planner. I'm not sure you understand the whole bankruptcy situation. Most companies aren't going to want to take a chance on you for several years.

You need to learn how to budget, live in a budget and make due with what you have because I fear you will be in the same place again if you don't.

I'm sorry you're experiencing such hard times. I've never personally filed bankruptcy, but I have helped others with the process of both 7 and 13.

A Ch 7 bankruptcy will show your credit report for 10 years after discharge. This will almost certainly impact your ability to rent in places that require a credit check, particularly in the first 5 years.

You may be able to finance a car, but not from a reputable dealer. You'll have to look at the sketchy places and you will have a disgustingly high interest rate. Which leads me to give you a huge and important piece of advice.

You haven't even filed yet and you're already talking about going back into debt. Ch 7 could give you a second chance to do things differently. Don't waste it by doing the same old thing again.

You need to set your mind on living a different lifestyle, which means living on the money you make rather than borrowing money. If you file Chapter 7, take money that you're no longer paying towards your debt and put it into a savings account, with the goal of a future car purchase. You'll also need some cash savings for emergencies. You have to live on your income, and sometimes that means hard choices. If your income can't cover expenses, you lower expenses or find a way to earn more. Or both.

If you're not ready or not willing to stop borrowing and using credit, then Ch 7 won't help you for long. You'll be right back where you are now in a few years. It happens all.the.time. Don't be part of that statistic.

Added: After reading replies, you might be thinking about financing a car now and filing after. Doing so might disqualify you from Ch 7 because it is an obvious tactic. You would either be ordered to return the car and pay the depreciation, or more likely you'd be put in to a Ch 13 on a 5 year payment plan for all your debts.

I have not, but someone in my family was very close to doing so. They definitely spend too much, but her husband is also in an industry that has been cut way back and he has not made a job change, although he did take on a second part time job. They are living in a depressed area (schools aren't great, etc.) so their house has not gone up in value - even if they sold it, they wouldn't get enough to cover what they owe.

She met with a financial planner who had expertise in this area, and she gave him access to all her bills, income statements, mortgage info, etc. She actually found out that the financial hole is not as bad as she thought, and they figured out some strategies for consolidating debt, lowering interest rates, settling (in some cases) for a lower amount, and more. They got rid of those annoying collection calls too. They also learned their worst spending habits. So it was absolutely worth the investment and they have a chance to improve their credit. Bankruptcy turned out not to be a good move for them.

You could ask your tax preparer, your family attorney, and friends for referrals. It's also easier to ask for help from a financial planner than to ask for a referrals to a bankruptcy. There are financial people who specialize in wealth management, which is not your category, but there are plenty of people who specialize in your area.

You can get a car but don't expect to go to a dealer and get a great deal. Plan on buying from a $50 bucks a week places where if you miss a payment they come pick up the car while you're at work.

Plan on paying cash for your purchases because you won't have any credit cards. Well, you should know that won't work and that you need to pay cash so you won't have new debt.

Get on low income waiting lists for housing if you can. For a 3 or 4 bedroom place the rent can be hundreds and hundreds.

Find a Habitat for Humanity in your area and see if you can get in their program. Make sure you try as hard as you can to get a place where you can have a room for each child. As they get older they'll want that space to themselves.

You should qualify for Habitat because you are in substandard housing for the number of children you have. HUD says you should have a room for each gender and for kids that are far apart in age.

They will help you work on a livable budget and some of your sweat equity can be done taking classes on personal finance, budgeting, home repair, etc...

I know what it's like to finally realize you will never be out of debt without real help. Don't feel bad this is an option you have to contemplate. It won't be easy but it won't be as bad as you think. There are huge corporations that file bankruptcy every 10 years or so. Then they go open another business with a different name just to run it in the ground in a few years too.

You can also downgrade your living circumstances. Really. For a few years living frugally you can come out in a much better place.

Plano isn't a horrible place for severe storms and tornadoes. You can buy a 4-5 bedroom mobile home and put it in a mobile home park with storm shelters and pay a lot less than a house payment. We paid $40K for our 4 bedroom, 3 bathroom, 2 living area, dining room, study home. Our lot rent in town was $125 per month and we paid our own trash and water. In parks that pay both water and trash I've seen lot rent be as high as $200 per month. BUT those higher places usually have pools and playground equipment plus the storm shelters and perhaps even a club house.

For the same amount of rent you pay you might be able to be buying your own home through either Habitat or a mobile home.

I know, really, I do, how hard it is to admit that living in a mobile home is the best you can do but if you think about the space and community you can have it's a good place to be.

Even if it's only for a few years. Then you can sell the mobile home, sometimes to the owner of the park, and use that money as a down payment on a stick or brick home.

Updated

You can get a car but don't expect to go to a dealer and get a great deal. Plan on buying from a $50 bucks a week places where if you miss a payment they come pick up the car while you're at work.

Plan on paying cash for your purchases because you won't have any credit cards. Well, you should know that won't work and that you need to pay cash so you won't have new debt.

Get on low income waiting lists for housing if you can. For a 3 or 4 bedroom place the rent can be hundreds and hundreds.

Find a Habitat for Humanity in your area and see if you can get in their program. Make sure you try as hard as you can to get a place where you can have a room for each child. As they get older they'll want that space to themselves.

You should qualify for Habitat because you are in substandard housing for the number of children you have. HUD says you should have a room for each gender and for kids that are far apart in age.

They will help you work on a livable budget and some of your sweat equity can be done taking classes on personal finance, budgeting, home repair, etc...

I know what it's like to finally realize you will never be out of debt without real help. Don't feel bad this is an option you have to contemplate. It won't be easy but it won't be as bad as you think. There are huge corporations that file bankruptcy every 10 years or so. Then they go open another business with a different name just to run it in the ground in a few years too.

You can also downgrade your living circumstances. Really. For a few years living frugally you can come out in a much better place.

Plano isn't a horrible place for severe storms and tornadoes. You can buy a 4-5 bedroom mobile home and put it in a mobile home park with storm shelters and pay a lot less than a house payment. We paid $40K for our 4 bedroom, 3 bathroom, 2 living area, dining room, study home. Our lot rent in town was $125 per month and we paid our own trash and water. In parks that pay both water and trash I've seen lot rent be as high as $200 per month. BUT those higher places usually have pools and playground equipment plus the storm shelters and perhaps even a club house.

For the same amount of rent you pay you might be able to be buying your own home through either Habitat or a mobile home.

I know, really, I do, how hard it is to admit that living in a mobile home is the best you can do but if you think about the space and community you can have it's a good place to be.

Even if it's only for a few years. Then you can sell the mobile home, sometimes to the owner of the park, and use that money as a down payment on a stick or brick home.

I do not think you can get credit for 7 years. You will have to check with a bankruptcy lawyer.

I have not.

Chapter 7 stays on your credit for UP TO 10 years.
The court can CHOOSE to convert your case to a 13.

TF has great advice.
This should be a LAST resort.

Dave Ramsay.

Good luck!

You have to prove you can be awarded a chapter 7 bankruptcy. The courts won't grant it for folks who stack up the debt and then want to walk away. The process to prove you qualify is a few months at least so the bills and debt won't be instantly taken away. You will need to attend financial training classes and you'll have to prove you are spending your money wisely every month.

If you do qualify and are granted a chapter 7 bankruptcy, then you will have no credit AND you will have a major black mark on your credit reports. Those negatives will remain for several years and will disqualify you from most if not all reputable lenders.

You will not be getting any kind of decent, affordable vehicle by 2016.

You might be able to rent IF the landlord is willing to take a risk on. However, I wouldn't hold my breath on being able to rent by 2016.

There are fee associated with the process as well (a couple of thousand dollars) so you need to factor that in your thinking.

If you are married to someone with a good to great credit standing, you can expect the aftermath to be less painful. Using your spouse as a cosigner and/or joint account holder, you can leverage his or her ability to pay loans on time every month to more quickly improve your credit score and also to gain access to loans otherwise denied you due to your bankruptcy. I wouldn't go down this road unless you had exhausted all other avenues.

According to a few past clients, it usually takes at least three years to get large credit amounts post bankruptcy (you can get $500 credit card to rebuild credit but not a $10000 car loan). There are car dealers who allow you to make payments to them instead of you having to get a loan but miss a payment and the car gets repoed. As to rent, plan on paying several months in advance and you might find someone who is willing to rent to you. Things will be difficult for a few years until you rebuild your credit. Good luck.