New here with a question please

[GKGMP]

Hi everyone. I am so happy I found this site. Thank you everyone who has ever contributed.

I have come to the decision to file a Chapter 7 Bankruptcy. I have done a lot of research and am pretty familiar with the new rules as such. I know it is more difficult to file a Chapter 7, but I do quality, as I am nor working right now and will meet the means test for the last two years. I will probably file Pro-Se. I have an acquaintance who filed a Chapter 7 last year and has given me a copy of the petition he has filed, so that is why I am comfortable with going Pro-Se. I can probably follow what he has done. I know it is a lot of work, but if I can do it on a Pro-Se basis, I will try, and if it becomes too difficult, I will retain an attorney.

I feel bad about this. I got myself into a mess and don't see any other way out. To top the mess I got myself into, I was sued by a company called Asset Acceptance. These people lied about me being served a Notice of Arbitration and actually submitted false and fraudulent documents to that effect. A company called NAF issued a ruling against me. They had a hearing of which I was not informed and submitted false documents claiming a person from Michigan travelled 400 miles to serve me with a summons. This is all one big lie. The sad part is that the Judge sided with them and validated their award. This is regarding MBNA and this bill was paid off in 2001 and the Judge said too bad, you should have acted sooner. So, I paid off the card in 2001 and somehow MBNA gave this company my name and they turned around and sued me for $18,000.

If I may, I would like to pose the following questions:

1. Some of this debt will expire in 2008. I am assuming I should include all debt even if it is legally past the SOL?

2. Will my new credit score suffer in direct proportion to the dollar value of the debt that is being charged off? Example. Total debt being discharged is $30,000 instead of $10,000.

3. Will my credit report reflect the amount that is being discharged?

4. I have a judgment from Asset Acceptance which I assume will require additional work on my behalf to have the judgment removed as a judgment and have it included as part of the bankruptcy discharge dollar value?

5. Will it be impossible for me to ever purchase a home again? Will I have to wait 10 years until this bankruptcy is removed? (I hope not)

6. Do you think if I offered Asset Acceptance a nominal sum to have the judgment removed that they will take it, and thus may avoid me filing bankruptcy? I was thinking about sending them a certified letter offering to pay a nominal amount and inform them that if they do not accept it I will be forced to file a Chapter 7 bankruptcy. I would also stipulate that they needed to send me a Release and Complete Satisfaction of Judgment entered by the Court and signed by a Judge because I am sure they would try to pull a fast one and just grab the cash.

7. I feel pretty down right now. Has anyone felt the same way? I feel very bad that my life has come to this, but unexpected things happened and I really do not see any other way out at this point.

Thank you for reading this, and I wish everyone the best.

[jq26]

1. Some of this debt will expire in 2008. I am assuming I should include all debt even if it is legally past the SOL?

2. Will my new credit score suffer in direct proportion to the dollar value of the debt that is being charged off? Example. Total debt being discharged is $30,000 instead of $10,000.

3. Will my credit report reflect the amount that is being discharged?

4. I have a judgment from Asset Acceptance which I assume will require additional work on my behalf to have the judgment removed as a judgment and have it included as part of the bankruptcy discharge dollar value?

5. Will it be impossible for me to ever purchase a home again? Will I have to wait 10 years until this bankruptcy is removed? (I hope not)

6. Do you think if I offered Asset Acceptance a nominal sum to have the judgment removed that they will take it, and thus may avoid me filing bankruptcy? I was thinking about sending them a certified letter offering to pay a nominal amount and inform them that if they do not accept it I will be forced to file a Chapter 7 bankruptcy. I would also stipulate that they needed to send me a Release and Complete Satisfaction of Judgment entered by the Court and signed by a Judge because I am sure they would try to pull a fast one and just grab the cash.

7. I feel pretty down right now. Has anyone felt the same way?

1. Include all debts.

2. No. But your credit score will be pretty much shot anyway. You will have a public record on your reports plus a note that says, "Included in Bankruptcy" next to every account that you included. But you will also have a $0 balance and creditors will like that. The credit card offers will return and there are other techniques to rehab your post-BK credit rather quickly. The most important consideration is to get some steady income and to remedy the issues that led to BK (to the extent that you can control- a prolonged serious illness is not something that one can "remedy" easily).

3. Mine did not. It was a BK7 and was listed as $0 assets and $0 liabilities in the publci record. But each listed account has a discharge amount listed, so it takes about 30 seconds to total 'em up and figure out what my total is. Some are actually listed twice, once by the OC and a second time by the collection agency- so the totaled amount is far more than the actual discharge amount. But who really cares. They all state $0 balances and that is what cerditors really care about- that and FICO scores.

4. I think the judgment can also be discharged. Probably involves some sort of quick civil procedure. I had attorney handle my BK so I'm not sure. Maybe Lady will clarify for you if you definitely want to go pro se.

5. I purchased one through my girlfriend 9 months after my BK7. Essentially, we used my money for a down payment and her credit (I am off the mortgage note and off the title). We are now married. I purchased one in my name alone 2.5 years after BK7 with prime rates and use it for additional rental income. Credit has tightened up a bit since then but if you keep your nose clean for a year or two and reestablsh credit, you could be in a home in a year or two as long as you have a down payment (this is attributable to the collapse of the 100% financing subprime market that occurred this year). A good objective broker can find you financing if you need help (see Charles on this site in the mortgage forum).

Prior to BK I had a few credit cards and was a renter. Since the BK, I am a homeowner with more available credit than ever before. BK is not the credit nightmare that it is portrayed to be- although understand that it takes work to rehab.

6. How much do you owe Asset Acceptance? Is this the only debt you have? If it is a reasonable amount of money, you have no other past due debts, and you want to avoid BK, then I'd try to negotiate a pay-for-deletion. Although it appears that they'd likely not to do this because they have already secured a judgment. They'll probably play hardball for full payment.

7. Yes. It is a terrible feeling of being trapped. As much as I hated having the ugly BK on my credit reports, it felt like I unloaded a 1000lbs of bricks off of my back when the dischareg papers came. Then I found this site a few months later and got to work repairing my credit. It changed my life.

[GKGMP]

1. Include all debts.

2. No. But your credit score will be pretty much shot anyway. You will have a public record on your reports plus a note that says, "Included in Bankruptcy" next to every account that you included. But you will also have a $0 balance and creditors will like that. The credit card offers will return and there are other techniques to rehab your post-BK credit rather quickly. The most important consideration is to get some steady income and to remedy the issues that led to BK (to the extent that you can control- a prolonged serious illness is not something that one can "remedy" easily).

3. Mine did not. It was a BK7 and was listed as $0 assets and $0 liabilities in the publci record. But each listed account has a discharge amount listed, so it takes about 30 seconds to total 'em up and figure out what my total is. Some are actually listed twice, once by the OC and a second time by the collection agency- so the totaled amount is far more than the actual discharge amount. But who really cares. They all state $0 balances and that is what cerditors really care about- that and FICO scores.

4. I think the judgment can also be discharged. Probably involves some sort of quick civil procedure. I had attorney handle my BK so I'm not sure. Maybe Lady will clarify for you if you definitely want to go pro se.

5. I purchased one through my girlfriend 9 months after my BK7. Essentially, we used my money for a down payment and her credit (I am off the mortgage note and off the title). We are now married. I purchased one in my name alone 2.5 years after BK7 with prime rates and use it for additional rental income. Credit has tightened up a bit since then but if you keep your nose clean for a year or two and reestablsh credit, you could be in a home in a year or two as long as you have a down payment (this is attributable to the collapse of the 100% financing subprime market that occurred this year). A good objective broker can find you financing if you need help (see Charles on this site in the mortgage forum).

Prior to BK I had a few credit cards and was a renter. Since the BK, I am a homeowner with more available credit than ever before. BK is not the credit nightmare that it is portrayed to be- although understand that it takes work to rehab.

6. How much do you owe Asset Acceptance? Is this the only debt you have? If it is a reasonable amount of money, you have no other past due debts, and you want to avoid BK, then I'd try to negotiate a pay-for-deletion. Although it appears that they'd likely not to do this because they have already secured a judgment. They'll probably play hardball for full payment.

7. Yes. It is a terrible feeling of being trapped. As much as I hated having the ugly BK on my credit reports, it felt like I unloaded a 1000lbs of bricks off of my back when the dischareg papers came. Then I found this site a few months later and got to work repairing my credit. It changed my life.

Thank you so much for taking the time to answer my questions. I really appreciate your help and congratulations on rebuilding your life.

Asset Acceptance has an $18,000 judgment against me. I am sure they would play hardball, but if I inform them that the only other option I have is a Chapter 7 Bankruptcy, maybe they will think twice. I do have other debt besides this Asset Acceptance judgment. I was going to not include debts that the SOL expires on in 2008, but I guess I have to include everything.

I am happy that you were able to puchase a home after bankruptcy. I just had a sick feeling I would be ineligible for 10 years. My credit is bad now, so I don't know how much worse it can be if I file for bankruptcy. I am just embarrassed that I allowed this to happen to me.

I have every intention of doing everything in my power to never have this happen to me again. I got carried away with credit cards I obtained in the late 90's and used carelessly in the 00's. The interest payments were killing me. My son was diagnosed with leukemia and I could hardly work, let alone think straight, with a sick child so everything suffered. I claim full responsibility for my state of affairs, but I don't think I can get out of this hole I am in if I don't file for bankruptcy. I will put forth a great effort in rebuilding my credit.

I agree with your assessment of this site -- it is great to have a place where a person can discuss credit problems and not be kicked down any further than they already are.

Thanks again, you made me feel much better.

[bingo]

AA likely hears the bk card a few hundred times a day. Don't threaten bk unless, you are really are going to file. They may well ramp up collection activity by trying to levy your bank account or, garnish your wages.

If you do reach a settlement with them, don't send a dime until the agreement is in writing .

For sure, include all debts-even the soon to be SOL stuff.

With 2 years of good bill paying history post bk, you qualify for FHA mortgages at conventional rates. After 3 or 4 years, you'll qualify for more conventional mortagge products.

[jq26]

I just had a sick feeling I would be ineligible for 10 years.

It will reported for 10 years on your reports if you can't get it removed earlier. Credit will return instantly. There is an entire forum in here as to what cards to get first and then to work your way up.

My credit is bad now, so I don't know how much worse it can be if I file for bankruptcy.

Exactly. It will get better and you will be more creditworthy without the crushing debtload.

I am just embarrassed that I allowed this to happen to me.

Don't be. It is a business decision. Take emotion out of it if you can. You are in the business of providing for yourself and your loved ones. Embedded in the rates we all pay on credit is a portion set aside for losses such as these. So we have all paid for it already.

[bingo]

Don't be. It is a business decision. Take emotion out of it if you can. You are in the business of providing for yourself and your loved ones

Agreed! At the end of the day, we act in what we perceive to be our best interest.

[LNY]

The "sad state of affairs" here is that caring for a sick child should land anyone in this position. I am sorry to hear of your circumstances, and hope your child is well.

The others are right. The sooner you do this, the more relieved you will feel, and the sooner you'll be on your way to getting back on your feet. And yes, you will be able to rebuild fairly quickly. We'll be here to help you do that, and to offer moral support/advice in the meantime. You are not alone!