Update on My Life After Bankruptcy

I'm ashamed to say I haven't posted on this site in three months. I fully intended to keep posting helpful information to people who are going through bankruptcy. The problem is I've been working 50+ hours per week on my new job so I have not had very much time to do anything but work, spend time with my family, and sleep.

That's also very good news for my family. The timing has been perfect. Not only did I get rid of all my credit card debt in the bankruptcy but now that we're making a lot more money and we've been able to pay off other debt and have fixed up our house and we're even taking our family to Disney World next month. We're the perfect example of how bankruptcy can change your life for the better.

Plus my brother now needs to file bankruptcy (he's got himself in a huge mess). He doesn't even have the money to hire an attorney so I'm thinking about helping him to file for himself. If that happens I'll have plenty more information to post on this website. I'm also going to be working less hours starting next week. The money has been nice but I have to have a life too.

Thanks to everyone who reads my blog and I'm really sorry that I haven't posted in so long. My goal is to post at least twice per week. I want my posts to contain useful information that will benefit you in your struggles through bankruptcy and your fresh start in life after bankruptcy.

God Bless,

Kari

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My Chapter 7 Bankrupcty has been Discharged!

This is an awesome day for me. I checked PACER today and as of yesterday my bankruptcy is discharged. Woohoo! I knew it had to be any day now but I'm just thrilled.

If this is your first time reading my blog please check out my other entries. I filed bankruptcy on October 12th and have documented all of my personal bankruptcy experiences here. My bankruptcy was audited and I also started a new job in between filing and my 341 meeting of creditors. I was worried that any of those things could cause a delay in my bankruptcy or even cause me to have to file a Chapter 13 instead.

I'm so happy that my bankruptcy is discharged. I'm ready get my fresh start and do things right this time around. I'll keep making entries into my blog because I'm very interested in researching more about about bankruptcy law and other people's experiences. I also want to be able to help other people that might have to go through a bankruptcy. You'll hear over and over again that bankruptcy can be the most hardest thing you'll ever have to go through. It was NOT for me. The last few months I've felt like a huge burden has been lifted from me. I have three children and I wondered how I would ever send them to college (let alone put dinner on the table for them). Now I'm looking toward a bright future for my family.

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No objections?!

I checked out my case today on PACER and the status is still "awaiting discharge". I'm thinking any day now my case should be discharged because I filed on October 12, 2007 and my first 341 meeting was on November 8th and my second 341 meeting was on November 29th. However, the last day for my creditors to object was January 7, 2008 and I don't see any objections on PACER and my attorney hasn't contacted me with anything.

So now I'm just waiting. My audit went through fine. They didn't find anything that concerned them. The only thing I'm probably waiting on is my van to be reaffirmed. My attorney mentioned I might have an issue with reaffirming my van but I'm not sure if that will hold up my case from being discharged.

So far my life doesn't seem at all worse from filing. It's much better. I don't get creditors calling my house and I have over $800 per month less bills. I know I can't get credit but I'm going to try to live without credit anyway because of the mess I got myself in from using too much credit before. I keep everyone posted when my bankruptcy is discharged. I can't wait!

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My bankruptcy audit is over.

I checked PACER last night and it looks like they are done with my random audit. My bankruptcy case was one of the “lucky” ones chosen for a random audit. The audit company called my attorney’s office a couple days ago with a few additional questions and now PACER shows:

"Report of Audit with No Material Misstatement Identified. (Entered: 12/26/2007)"

It sounds to me that they have completed my audit and everything checked out. I’m so relieved. I was hoping that the audit didn’t hold up my discharge. So now as long as I don’t receive any last minute objections from creditors I should be discharged within the next couple weeks. Yay! This bankruptcy is almost over and behind me now.

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The Bankruptcy Forum – All your bankruptcy questions answered!

I’ll never have enough good things to say about the bkforum. I stumbled upon this website when I first decided to file for bankruptcy and this website has been a God send for me. Bankruptcy is such a hard decision to make and you can feel trapped and alone. But if you decide to visit the bkforum you’ll realize that you are not alone. The thing that’s so cool about this site is that not only is there people there in the same situation as you but the moderators at the forum are very knowledgeable about bankruptcy laws and proceedings. If you have any questions at all about filing bankruptcy ask at the bkforum and you’ll have many replies in a matter of minutes.

I have to say that I personally visit the bkforum at least once a day. I try to check out the latest posts and now that my bankruptcy is filed and I’ve attending my 341 I especially like to hang out in the general section. I’ve never read a forum where the people are so nice and accepting.

No – they are NOT paying me for this post let me assure you, but if your looking for the right step to take and you’re not sure about bankruptcy then just check out the bkforum because you’ll get a lot of good information there.

Good luck with everything and come back soon.

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Should I file for bankruptcy?

If that’s the question you’re asking yourself then you’re probably in serious debt and don’t see a way out anytime soon. You really need to weigh your options and see if there’s any other way for you to get out of debt. Filing for bankruptcy should be a last resort but there are many times when it is the best decision you can make. Answer the following questions:

1. Are you able to make at least the minimum payments on your credit cards and if so, how long will it take you to pay them off?
If you’ll be paying off your credit cards for more than 10 years then it might be worth filing bankruptcy.

2. Is your house in foreclosure or are you no longer able to make your house payment?
If you file a Chapter 13 bankruptcy then you may be able to save your house and prevent foreclosure.

3. Are you disabled, living on social security, or have no income from a steady job?
Sometimes, people are deemed judgment proof meaning they don’t have any income that can be garnished from a creditor suing you in court. Unless you have a reason to file bankruptcy (you’re losing your house, etc) sometimes it better to wait it out. You may have to put up with annoying phone calls from creditors but it might be better than going through an unneeded bankruptcy.

4. What kind of debts do you have?
If your debts are mostly credit cards and medical bills then these kinds of debts can be discharged in bankruptcy. In a Chapter 7 bankruptcy you pay none of it back. If you file a Chapter 13 bankruptcy you will be put on a payment plan and at the end of 3-5 years whatever is left owing will be forgiven. However, if you owe for student loans and child support, these debts can not be included in your bankruptcy in most cases.

5. Have you recently lost your job or had a decrease in income?
You may need to file bankruptcy if you can no longer afford your previous debt load.

6. Do you possess many assets with high cash values or have a lot of equity in your home?
If you do, you’ll definitely want to talk to an attorney before seriously considering bankruptcy. Depending on what state you live in you can protect up to a certain dollar amount in assets but at some point the bankruptcy trustee will be looking at ways to get money to pay off your creditors.

Filing for bankruptcy is never an easy decision but sometimes it is necessary. You have to think about this logically and try to stop your emotions from getting in the way. You’re not a loser if you decide to file for bankruptcy. Sometimes it’s the very best decision you can make. I personally recently filed for bankruptcy and I feel really good about my decision. My family actually has money at the end of the month to spend on clothes or haircuts. We struggled for some time with a huge amount of credit card debt that just continued to grow because we never had enough money to live on. Now we pay cash for everything and that’s a really great feeling.

If you do decide to file for bankruptcy then make sure you make a vow to never get yourself in this mess again. You need to build an emergency fund to may sure you never have a reason to borrow money. Don’t use credit cards. Most people can’t handle paying off the balance each month and before you know it you’ll be back in debt again. Live within your means. Don’t finance a car that’s going to take 20% of your income each month. If something happens and your income decreases you’ll find yourself right back in the same situation.

Bottom line – file bankruptcy if you need to. First, contact an attorney, or two, or three. Most give a free consultation and can give you great advice. Then after your bankruptcy is over get your “fresh start” and make sure you never have to file for bankruptcy again.

Good luck!

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