Termyn8or
Posts: 18681
Joined: 11/12/2005
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In truth, twelve grand ain't shit. If you want it straight, pay up. It is to your advantage so that you can screw them for alot more later. It's a shame to use bankrupture for such a paltry sum. I probably owe about four times that and I am only considering bankuptcy in the far future. I plan to die owing.
Also even a chapter seven, if you can get one, is only an estoppment on collection actions, you still owe the money. They know it. Then you are regarded as a "second chance". I have never filed and as such if I walk into a bank I am not a beggar, I am a customer.
Even the highly coveted chapter seven does not wipe out the debt, it only keeps them from taking any collection action against you. Anyone examining your credit report will see that. You will also have burned your bridges with any company that has extended you any credit.
Really, mark my words : twelve grand is not worth filing on. If you are on a limited income, explore other options, such as a lower rate loan to pay it off if you are having trouble making the payments. Granted some people use bankruptcy to their advantage, and recent changes to the law have made that harder to do. But to do that effectiviely you have to know what you're doing, they know most of the schemes and scams.
Up until 1997 or so most people with money who wanted to screw the system would extablish residency in FL. Back them I am not exactly sure how this came about, but this is a federal law administered by state courts or something like that, and in FL you could keep more stuff. Bankruptcy can be used as a moneymaking tool, and has been. But even in the best of circumstances you can only do it once every seven years. See after that you have like six years of real vulnerability. If you screw up again it might become so that you can't even have a bank account and have to go to the store to ge money orders to pay your bills. They want you to set up automatic payments and all that. This is a trap.
If you do file bankruptcy, if you get that second chance don't blow it. But I highly advise against it for that amount of money. In payingit you are establishing better credit. In other words, do as I say not as I do. My situation is vastly different. I could detail it for you but that is not necessary I think. If all you owe is twelve grand, even at 20% if you CAN, pay it off.
I am poised for bankrupcy, and am getting to the point where they will not bounce me into a chapter eleven or thirteen, I will get the coveted chapter seven. And on quite a sum I might add.
There's my two cents for now. If you file, make sure to mark me down for reaffirmmrnt. Look at the TV, "most cases filed with most attorney fees deferred". Know why the do that ? Because they know you can't file again for at least six years. That gives them time to attach your accounts and so forth to collect. Since the bill becomes due and payable AFTER the bankruptcy, you can't file on it. You are the most collectable person on Earth for six years and they figure they can get it out of you somehow. And they can, frozen bank account, all that. They can apply duress and you have use your last bullet. You get another bullet in about six yaers. And with the new laws it is hit or miss.
Right now you are in a decent position if you want to keep goos credit. Banks are hurting and the only way they make money is to loan money. (idealistically) I have had pristeen credit for over twenty years, and when I use my silver bullet I wnat it to be worth at least a hundred grand. I am getting there. And that is the heart of the chapter seven. If there are any signs of life, i.e. the ability to pay, they will bounce you into an eleven under the new law. This is where the court determines your new payment and interest. Creditors like this, at least they get something. But do it right the first time. I plan to walk in there with at least eighty grand in debt and no visible income for the last five years, I will get my chapter seven easily.
If you truly are in need, and not playing the game like some do, don't file. Think of what it really does for you. They attach your bank account, well don't keep much in there. Open another account somewhere else, they are noy automatically notified.
In other words, use bankruptcy to gain, not to just keep the phone from ringing.
T
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