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Household Finances

Need Info on Bankruptcy

21 years ago

I live in Virginia and am considering filing for personal bankruptcy. Would

anyone have any information about this topic?I don't know much about this

and I would like to know what the exact process is,and what things I could

or could not do once I have filed. I am particulary interested in what the

long-term ramifications would be, but any info would be useful. Thanks in

advance.

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Comments (5)

cowboyind
21 years ago
The decision of whether to file bankruptcy or not is complex and difficult. Filing bankruptcy does have long-term implications to your credit rating, your ability to do such things as purchase a home and car, and possibly even get some jobs. However, the other side of that issue is that most people who are considering bankruptcy already have credit problems, and in many cases bankruptcy can be the most expedient way for them to get back on their feet.

The link below is to a Nolo.com article on Chapter 7 bankruptcy. Once you click on that, you can read that article which contains a good overview of what bankruptcy is and what it involves. At the top of that page, there is also a "search" function. If you click search, it will take you to a search page. There, type in "bankruptcy" as your search term, and where it asks for the type of info to look for, put a check next to "Articles and FAQs." This will lead you to a huge number of bankruptcy related articles.

The Nolo.com information is unbiased and can help you make your own decision about whether bankruptcy is or isn't right for you, and it can also help you decide between Chapter 7 bankruptcy, which is where certain debts are discharged, and Chapter 13, where you pay back a portion of what you owe, using court-administered payment plan.

Ken

Here is a link that might be useful: Nolo.com Bankruptcy Article
cowboyind
21 years ago
Here's a link to another Nolo.com article, this one titled "Bankruptcy FAQ." This one has more info than the one I linked above.

Ken

Here is a link that might be useful: Nolo.com Bankruptcy FAQ
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Do I smell a religious discussion lurking in the wings? I had my post scratched, here, when I commented on the "God helps those who help themselves" quotation above. Plus admin sent me a warning to behave myself. I understood that religion and politics were not permitted on the Kitchen Table, but haven't seen in the Terms of Service that it was unacceptable elsewhere. As many of you know, I have spoken often here in opposition to the 15 - 18% rates of interest on major credit cards and the 25 - 28% charged by store-issued cards. When we sign (or, by our action agree to) contracts, it's important that we understand the terms. But many people don't bother ... many just ask how much they must pay as minimum monthly payment. Which means that, if they follow that procedure, they'll still owe part of that debt in 10 years or so. Along with a number of others, I've said for years, and done some lobbying along the line of trying to get implemented, that children should be taught more about the management of daily living, including money management, in school - but in most places it's very little done. As a parent, it seems to me important that I teach my children how money works, and how to take care that they not get into trouble in its use. I've done quite a lot of talking here relateed to the need for people to learn increasingly how to manage both their income and assets effectively. Taking on some of these credit card contracts grows to be more or less like flushing a $50. bill down the toilet ... ... every week. Stupid ... and hardly any of them would take on such a contract, if the terms were fully explained to them. I am distressed by the OP's reference to being able to keep not only cars ... but "houses", as well. I lived for a number of years where people, many of them refugees who'd left their home with nothing, had to save for years to afford a bicycle. Plus devise methods of countering rather high rates of inflation which chewed value annually from each of their units of currency while they did so. That's a treadmill, for sure. I am troubled by the lackadaisical attitude that some (many?) of our contemporaries seem to take regarding discharging obligations which they have undertaken: no one forced them into it. If my kid runs down an icy hill with leather shoes ... s/he shouldn't be surprised if s/he falls on her/his patoot. When we get to be adults ... we should act responsibly. When we make a contract, we should make a serious effort to fulfill our obligations in it. ole joyful
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cube1067, Hi again, friend from way back when. I'm sorry about your father's pickle. Not a pleasant situation, for sure. Isn't it difficult to compehend how someone can continue making the same mistakes over and over? And as for learning lessons, there's no rule that we can only learn from our own foolish mistakes: we're fortunate if we can, keeping our eyes and ears open, learn from the mistakes that others make. If we don't boss our money - it'll boss us. Learning how money works is an interesting hobby - that pays well. I've spoken here approvingly previously about Canadian MoneySaver, a plain paper magazine with no ads and few illustrations - mostly text. They asked what subscribers wanted, so sponsored seminars with their resource people and meetings of the subscribers in a number of cities. The monthly meeting here was last night. On Tuesday evening, the editor came to speak in London and offered a number of good ideas about money management and tax savings. Son went with me, daughter wasn't able to. The overhead transparencies that he used are available at www.canadianmoneysaver.ca/tipsandtools. A number of useful concepts relevant for everyone, but some of the material is relevant for Canada only. Have a great weekend, everyone. ole joyful
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whazzup
20 years ago
Maybe you can find the information specific to your state at this link. Good luck!

Here is a link that might be useful: Eastern District of Virginia
dave_donhoff
20 years ago
Hi fbresnah,
Before you step in the bucket of personal bankruptcy, I'd urge you to determine what you REALLY expect to get out of it.

Bankruptcy is an effective tool for protecting income producing assets (like business inventory, machinery, and investments) from being siezed by creditors, thereby preventing any possibility of recovery.

Many (most?) people who use personal bankruptcy have no income producing assets to protect, and thus take a much worse medicine than the problem they are actually addressing.

Also, most folks who use personal bankruptcy are primarily attempting to "stop the noise" of the creditors & collectors who are relentlessly harrassing & pursuing them.

If you fall into the category of those who have no income producing assets to protect, you can often get FAR better results, with FAR fewer negative side effects by using alternative strategies.

Ken and I have gone from intense adversaries in our opinions to what I believe is allies in the concern for the common man who gets stuck in the mechanism of the public credit game. I know that at his core he cares deeply about people, and I think he knows that about me too.

Together (or not exactly together, sometimes,) we've dived deep into various aspects of this topic... and some great stuff has come out of it.

I'd invite you to surf a few of the following threads.
Some examples of misery sustained, and misery conquered!

http://ths.gardenweb.com/forums/load/finance/msg0914195427209.html?4

http://ths.gardenweb.com/forums/load/finance/msg081156017751.html?15

http://ths.gardenweb.com/forums/load/finance/msg1122145213469.html?49

http://ths.gardenweb.com/forums/load/finance/msg0811432230158.html?29

http://ths.gardenweb.com/forums/load/finance/msg010459412351.html?5

All the best to you with your challenges,
Dave
joyfulguy
20 years ago
Check as to whether you'll get out from under all your debt - some debts in some jurisdictions are not cancelled in a bankruptcy.

There are the fees to be paid to the bankruptcy trustees, etc.

Who stand in line ahead of the people who benefitted you by giving you credit in the first place.

My former SIL went through bankruptcy owing under $20,000., while a friend of many years standing sniffed with disdain when he heard of it: he's sometimes owed well over $50,000. but wouldn't consider bankruptcy.

He's more self-reliant, more entrepreneurial - and more tough-minded - than the former SIL. Knows a lot more about money and how it works, as well.

I hope that you choose the path that'll be most effective for you.

Good wishes as you make the attempt.

joyful guy

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