- American Express Never Forgets
I recently applied for a corporate American Express card through work and they told me that they found an old written-off debt from 1990 under my name. How best should I handle this? So, I got the corporate card (with a little rule-bending). I called their "special investigations department". The debt is for about $700 and is for charges that occurred between 1987 and 1990. This doesn't show anywhere on my credit report. When I asked AmEx to provide documentation that the debt was, in fact, mine, they said that they couldn't provide me with anything, and they couldn't prove that it was mine. Nor could that prove that it wasn't. They have nothing to send me, no records, no receipts, no old statements. Nada. Only a record of a debt for $700 linked to my social security number. They've never sued, or attempted to collect as far as I know, and like I said, my credit reports show nothing (not even an account from Amex from back then).
As far as I can tell, the only time that this will cause me problems is if I apply for future corporate AmEx cards. However, I've now gotten two without a problem.
I'm pretty sure, but not 100% sure, that this is left over from my free-spending ways back in college. I was deep in debt, and initiated but never completed a personal bankruptcy. I was only 20 at the time. I paid off many of my bills. Some were "charged off" or "written off". I think that the AmEx bill was one of those that was "written off", but apparently AmEx has a long, long memory.
So, the question is this: if I don't pay off the bill, there appear to be no consequences whatsoever. As I said, I'm fairly sure it's my debt, but not 100% sure. Regardless of the moral/ethical obligation, I'm wondering, is there another shoe out there that could drop, or some other way that this old debt could come back to haunt/trouble me? Is there a unanticipated financial/legal/credit consequence to not paying this off.
I'm most likely going to pay it regardless so that I can sleep easier, but I'm still curious as to whether or not there would be consequences if I don't.
- Will winnings be taken in banko?
YANML: If you are receiving a lump sum after filing bankruptcy, but BEFORE the bankruptcy is discharged, can that be seized as an asset? I am severely in debt, and have been preparing for a Chapter 7 Bankruptcy. I recently won an amount on a game show that is nowhere near the amount of my debts, but I will not receive that money for at least six months. I had planned on filing my bankruptcy within the next three months. If I do so, will my winnings be taken away, since they are not an asset at the time of filing?
- Sue me baby
I am working with a lawyer to declare bankruptcy. I was served papers last week that show I am being sued by big huge credit card company for unpaid debt - around $30,000. I contacted my lawyer when I got served and she said if we could file before the date we had to appear in court there would be no problem. Hilariously, though, she is on vacation out of the country until just before the date I must appear in court, and I just got email from her assistant saying that we would probably not be able to file bankruptcy before the deadline and that I may have to 'file a response' to the suit.
You are not my lawyer. I have a lawyer and I am happy with her service. Anything you say is not legal advice. But, what does this all mean? What is 'a response'? Am I screwed? I am asking this question mostly because I am nervous and impatient and can't get Google to tell me anything (so so so SO much garbage when searching for anything related to bankruptcy) and I am having a hard time waiting for a response from my lawyer.
This is in Texas.
- Help, I've debted and I can't get up.
I owe my ex-school lots of money, and don't know what to do. Help! I attended school in the fall semester of '09. After deciding it wasn't the right thing for me, I stopped going. I never actually dropped out, because I had mused the idea of going back. I got several grants and scholarships, but there was still around 10k dollars left over for me to pay. I tried every loan I could imagine, and tried every adult I knew as a cosigner. None of them got approved.
Fast forward to now, and a debt collector has contacted me, saying if I don't agree to pay the debt and find some way to do it, they're going to take me to court. I don't at all have ten thousand dollars laying around. I'm in between jobs, my father is on disability and my mother is unemployed.
What are my options? Can I declare bankruptcy? I'm in my early 20s- this seems drastic. And if I do need to declare it, how do I go about doing it? And what are the side effects?
What about court? What happens then? Is there any chance of this debt being erased? And do I have to pay court costs? How much will that be?
Sidenote, if anyone knows of any possibly-free debt lawyers/advocates in the chicago area, please give me suggestions.
Could I contact my school. Do you think they could do anything, even though they've already sent a debt to the collector?
So, those are the only options I can think of. If you have any other suggestions/ questions, feel free to ask.
TL;DR: I owe school 10,000. No way to pay. Debt collector won't leave me alone.
throwaway email: debterrific@gmail.com
- Immigration and Bankruptcy
Will filing bankruptcy (UK) affect my chances of being granted a spousal visa? YANML, etc. I have a petition in for a spousal visa, sponsored by my US wife, to go live in the US. I am also on the hook in the UK, my home country, from a high court for debts accrued -- a guy visited me today and got me to agree to a payment plan, while also surveying my parents' (staying with them temporarily) possessions, in case it comes to levying them. (Not sure if my jargon is 100% there, basically they want to repo stuff if I can't pay.) He warned me that if I miss a payment, I'll default and they'll either start taking away my stuff or I'll have to file bankruptcy. Since I don't really own anything they can take away, and I'm not likely to make my payments, I find myself in a bit of a bind. My wife has offered to help me cover payments, but I owe an awful lot of money and she can't cover it all, and she really shouldn't be on the hook for my debts anyway, we're not even living together yet. I've been looking for work for 3 months and have gotten pretty much nowhere. I finally scored a job interview, for a job I'd actually enjoy doing against all odds last week and heard yesterday that I'd been turned down, which really took the wind out of my sails. I haven't given up, but my optimism is waning.
And so I start considering my options. It may not be the "right" thing to do, but leaving the country permanently in what will hopefully be less than 6 months makes declaring bankruptcy seem like an awfully convenient option. It's not the best idea, but it's certainly the easiest.
If I file, will it affect my chances of getting my visa? Will the effects of it carry over to the US in any way? My wife seems to think neither of these will present a problem, but I'm not even sure where I'd start looking for that kind of information. The way I see it, they're going to look at my application and see either a guy with a bunch of debt he has no ability to pay, and hasn't made much headway in paying in the meantime, or a guy that's officially bankrupt. I have no idea which is worse, frankly. Which is worse?
I've been pretty lazy and irresponsible in the past, and it's biting me in the ass now. I need to get as much straight as possible, as fast as possible, so that I can a) make sure nothing stops me being granted a visa, and b) leave the country in the best shape possible. I have no issue with delaying my move to the US if it means making progress to getting "clean" here, but we can't afford to re-do the visa petition, so I'm trying to be careful in what I do. Any advice?
- How can I help my employees?
I opened a glass shop thirty years ago, and it will soon succumb to the economy. In those thirty years I've always thought of my employees as one big family, and that's the way they think about myself and each other. We've always watched out for each other and have been there for each other in times of need. We all have families, mortages, car payments and two have spouses that have been unemployeed for over six months. They know that there is a chance bankruptcy in the future. Now it's not a chance but a certaintly, I am so broken up about what it is going to mean to them and their familes, that I have become almost nonfunctional and a complete wreck. My hope and goal is to have employement lined up for each of them before I tell them. I know that the job situtation is really bad, but I was hoping for any ideas of what a present employer could do to line up work before they are out of work. I know that a letter of reference is a start, but there must be more that I can do for them.
No matter what, I will tell them within 2-3 weeks before closing the doors, and hope that if possible, stay on until the present jobs that are in the books up are finished, I can certainly if there not able.
- Two Names Sign on Title, One Name Leaves
NotMyLawyerFilter: How can we get my girlfriend's ex-husband's name off her car title? Of course, there are complications... My girlfriend bought a car, and her (then) husband co-signed, so his name is on the title.
When they divorced, she kept the car (as it had always been hers). She has been solely responsible for car payments. When they divorced, they also filed bankruptcy. I don't know if there was ever any official documentation filed at the time of divorce/bankruptcy dealing with the ownership of the car, but his name is still on the title.
Since then, her ex has gotten numerous moving violations. Because his name is on the title, her auto insurance rates are through the roof. She and her ex are not on speaking terms at all, and to our knowledge, he is now living in another state and we don't know how to get in touch with him. She thinks that he would refuse to sign off on removing his name from the title anyway, just to be a jerk.
She's about to pay off the car, but we'd really like to get his name off of it. It would definitely lower her insurance rates; plus, we're not sure if she could even sell the car without his signature. Any Help?
PS: They bought the car, were married, divorced, and declared bankruptcy in Arizona, if that makes a difference.
- Need to consult an Attorney - but which kind?
Need to consult an Attorney - but which kind? In New York City, I need to discuss with an attorney options regarding possibly allowing co-op foreclosure and how options such as bankruptcy or others I don't know about might affect that possibility.
However, if I talk to a Bankruptcy attorney he will probably recommend bankruptcy. If I talk to a real estate attorney will he know all the options available?
How do I approach this so that the Hammer attorney I speak with doesn't automatically tell me my problem is a nail?
PS; I Know they are not supposed to do this but I have experience with this happening on three separate occasions as well as other friends stories. Lets assume I might run into the attorney who will try an take my multifaceted problem and frame it as the problem he specializes in.
- Will a BK hurt my chances at getting a job?
I have a job interview coming up that I'm a little nervous about, and needless to say I want some advice. It's a long read, so bring a cup of coffee for this one. If you can offer any insight or advice, I'd greatly appreciate it.
(Long story short, I've got a previous "BK" filing that I'm worried about) Coming up soon is my first real job interview in about four years. There's that general concern that I'll be a little rusty with the hiring manager as to how I phrase answers to specific questions, but the less I force myself to think about it the better I have felt. I know deep down that if I just allow myself to be me rather than try to oversell myself I should come out alright. I'm not worried about my skills, qualifications or experience. Rather, I just want to make sure that I put as much effort as necessary to get this job not simply because I want it but because my family needs it. (more on that later)
What has me all excited (in a bad way) is that I've got a fun little skeleton in my closet waiting to say hello. Two years ago I filed for Chapter 7 Bankruptcy Protection. The case was discharged in December 2008, and I'm happy to report that my wife and I are still debt free. The nature of the bankruptcy was due primarily to mounting medical debt that she nor I couldn't negotiate payments on or simply afford to make monthly payments against considering our financial situation at the time. It isn't like we worked hard to rack up copious amounts of debt and then drank champagne while we burned up the bills and late notices we got in the mail. Life hit us pretty hard, not as hard as some, but hard enough.
I've never walked into an interview before where I've felt like I've got a strike against me going in. Years ago when I had my lowest credit score, which was about 8 months before my filing, I applied at Radioshack for seasonal work to draw a secondary income to try to make good on past due bills. After interviewing well and being told basically when I was going to start, I was denied employment after they ran credit on me. Yes, I understand the plight of a business - should they hire the well qualified applicant with credit problems or the otherwise suitable candidate without any credit problems - and would like many I understand the rationale behind an employer's decision regardless of how they sway.
My Question:
Do I, at any point, make reference of or allude to the fact I had ever filed for bankruptcy protection? Should I share my personal account of what transpired, remaining breif and factual? Or, should I not mention it at all and let them uncover the information when they do a criminal background and credit check? (And then try to sheepishly explain it?)
For the record, the position I will be interviewing for and the one I currently hold is in procurement. I make many financial decisions throughout the day totalling in the tens of thousands of dollars on an order by order basis. I have held my current position for nearly a decade and believe I'm more than competent when it comes to spending my employer's money wisely, and for what it is worth I believe the same could be said of my ability with any other organization.
As to why I need this job so much:
My wife has several chronic conditions that she will undoubtedly have for the rest of her life. At my current salary it will be almost impossible to continue our current standard of living without obtaining a secondary source of employment as the cost of medical treatment continues to rise and health benefits become less beneficial. It has already been said that next year's benefits will likely decrease while our salaries will once again be frozen. This will be the third year in a row I have not received a raise.
I'm sure there are others that have found themselves in situations far worse than what I've fallen into. This isn't a "poor me" post, and bottom line I want to express that this isn't about me, but rather my wife and children. I want to be a better provider for them both. I need to know how much of an obstacle a previous bankruptcy filing would be for me going into another procurement position.
Thank you for your time.
- Non-profit financial blues
What happens to a new part-timer if non-profit employer goes under? Recently, I asked for a reduction in hours from full-time to four days a week at work for the summer, and my request was tentatively approved. (I say tentatively, because it was approved by my direct manager, but still needs to go through the higher-ups, paperwork, etc.) I asked for this because I was burned out and can afford it, it will give me some extra time to develop other skills, including taking classes, and it would give me more time to look for other freelance gigs or a replacement full-time job. I had a sense my job, and my employer, were pretty much both in a state of stagnation, or worse. I also knew that my employer (a California, USA non-profit org) was facing some serious economic troubles and my request for a reduction in hours/pay was likely to be welcomed.
However, I learned today (admittedly, through the rumor mill, I don't have any direct evidence) that there is a strong possibility that my employer might go belly-up altogether, maybe even as soon as a week or two after my part-time status would go into effect. Many other employees are making contingency plans to jump ship.
If the company goes belly up, how would this change in hours effect my potential unemployment benefits? What happens when a non-profit folds? Am I still eligible for COBRA? What happens to my accrued vacation? Should I withdraw my request for part-time status immediately (probably tough at this point as that cat is out of the bag?) and wait and see what happens with the company? I believe my org has about 40-50 employees now, as I understand employer size can be relevant to these kinds of questions. Again, we're talking California, USA. Thanks in advance for your advice!
- Westchester foreclosure advice
I need advice/an attorney recommendation. We live in Westchester County, NY, and are considering walking away from our co-op mortgage. We paid $244,000 for a place that is falling apart (the plaster ceiling collapsed, for starters). Looking at recent sale prices, I believe that we would now have a hard time getting $150,000. The maintenance was high to start with, and is now crazy high. PLUS, it is so noisy that we rarely sleep through the night, AND we have insane neighbors who hate our dog, so they tell people that we are drug-addicted child molesters, and follow us around screaming the same.
Anyway, it's hard to see the sense of spending $50,000 on repairs and renovations for a place that is a nightmare to live in, and is close to unsalable. What I most want to know is how likely and how hard can a coop pursue you for maintenance, assuming the bank will take the place back. I am not interested in discussions of the morality of walking away. If we could stand to keep living here, we would, but the stress is killing us.
- [foreclosure filter] Must we clean the home we lost?
House is being foreclosed on after a long battle with the bank. We've got mere days to move and nowhere to go. Can we leave behind furniture, etc, that we can't afford to move or dispose of? Are we liable to clean the house?
We're in Washington State. We were working with WaMu, and things were looking up, but then Chase bought WaMu. They initiated foreclosure proceedings. The house is up for trustee auction and then we have a few days before we have to be out.
My Father wants to empty the entire house (and the lifetime of accumulation) and cart it all to the dump or the thrift store. I want to take only those personal belongings that we treasure, and leave everything else (furniture, building materials -- we built the house ourselves -- and knickknacks, etc) behind. He's worried if we take that route, and just leave it in the house, the bank can sue us for cleanup costs.
Does anyone have experience with foreclosure? Do we have to spend the last days in our family home gutting it?
- Broke and wanna leave, but how?
DebtFilter: should I declare bankruptcy before leaving the USA for a long time? Details within. I'm nearing financial rock bottom and I believe a bankruptcy will help me, long-term, to get back on my feet. Complicating matters, I'm seriously considering leaving the USA for a long time, for this and other reasons, and I'm wondering if this will hurt my chances at winning bankruptcy protection or, perhaps, make bankruptcy unnecessary?
Facts:
(a) I have accumulated somewhere near $20,000 in unsecured credit card debt. Same old story: had a venture I put a lot of borrowed money into and also lived on credit while out of job working on it. Venture didn't pay off, so here I am.
(b) I have no job, no income, and no expectation that will change in the near future.
(c) I have access to less than a thousand dollars in cash and perhaps another thousand worth of salable assets.
(d) For reasons both financial and personal, I want to leave the USA to live cheaply in the third world somewhere while I get my house in order, do some soul-searching and writing and so on without the pressure of having to earn a lot of money in the USA to pay for food and shelter, etc.
(e) I plan to do this this summer with a little seed money I will borrow from family and to try and earn a meager living by doing various freelance work for people and companies in the USA and Europe over the internet while I am in the third world. I do not anticipate my earnings will exceed the range of $5k - $10k per annum doing this.
(f) for obvious reasons, I'd like to have this small amount of sub-poverty-level money free of garnishments, liens, bank account freezes or any other nasty thing my creditors might be able to do to me. Hence the bankruptcy.
QUESTIONS ABOUT BANKRUPTCY PROCESS:
(1) if I see a lawyer in April to initiate Bankruptcy proceedings (chapter 7 or 13, I'm not sure which I'd qualify for), will I be able to get the necessary paperwork done before I leave the USA in, say, July? I live in New York at the moment.
(2) Will ~$2k be enough to pay my lawyer to handle bankruptcy proceedings?
(3) How long should bankruptcy take to complete?
(4) If I am out of the USA when certain bankruptcy hearings and so on are needed, can my lawyer represent me on my behalf?
(5) If all the above is unworkable, how "stupid" is it to simply skip town without a bankruptcy? I understand that debts cannot be reported to credit agencies after 5 - 6 years (depending on state) and cannot be collected via the courts after a similar amount of time. So effectively, how is gaining bankruptcy protection advantageous to just letting the time elapse and then being free of legal recourse from creditors?
(6) Small corollary to above: I have some federally-guaranteed student loans that I understand will not be discharged in a bankruptcy. I am less concerned about these because I may be able to get them into a deferment / forbearance while I am outside the USA, or might even be able to make the payments if I get them low enough. These loans compound at a very low interest rate and are therefore much less alarming than my credit debt which is compounding at ~30% every year.
(7) What are the best online forums or resources to research Bankruptcy and related issues? I appreciate any advice here but am not expecting to figure it all out via MeFi.
BOTTOM LINE: I painted myself into a corner and want to jump out. If I can get my debts wiped via bankruptcy, I plan to live cheaply and simply outside the USA without resorting to credit for some time. However, should I get the urge to return to the USA, I want to be able to eventually (3 - 5 years) have enough financial standing to be able to get a cell phone contract, rent an apartment, and maybe even one day buy a car and house. I believe bankruptcy is the best way to do all this but am open to any other suggestions. IF you want to contact me, my throwaway address is lifecrumblinglikeacookie@gmail.com.
I thank you for reading my long question and for any advice you might have.
- Getting a Non-Mortgage Mortgage?
Our bankruptcy is less than 2 years old, but we are trying to get a mortgage. Contract-for-deed or rent-to-own will not work, so don't suggest those. Everybody, whether a bank or a mortgage broker, says "FHA requires 2 years post-bankruptcy before we can lend to you," but is my only option really to wait? The landlord is selling the house we're renting; both he and I would like my family to be the buyer. The biggest pain is that we have 7 years' history of paying way more rent now than we would on a mortgage for the same house, so it's not like we'll have trouble keeping up on our mortgage payments. We get roadblocked at every turn when looking for purchase options, so it looks like we're going to have to move out before he can sell it -- unless we can get a loan somewhere.
So, what options are there to borrow against a home purchase, without it being the "mortgage" that everyone says we can't have? Please do not say contract-for-deed or rent-to-own, those are not options.
- Is a short sale of my house a viable option?
I need to get out of my house, and it's not all due to financial reasons. Is short sale a viable option?
Over the last year and a half, my wife and I have been through utter hell. Many, many situations have come up that are stretching us to our emotional and financial limits. I'll spare you the details on anything but the relevant bits. I'm suffering from chronic stress to the point that I'm worried about being headed for a heart attack, and my wife has developed severe anxiety problems to the point where she doesn't feel comfortable driving or even leaving the house without me. We've both independently come to the conclusion that we need, not want, to move out of the area as soon as possible. We're planning on renting and staying within the state when we are able to get out. I'm trying to look into our options and minimize the damage, which is the focus of my question.
The house is in bad shape. We discovered and got rid of several areas of mold which were severely affecting my wife's health. The house was not well-maintained, which probably contributed to the mold problem and others. A lot of babies got thrown out with the moldy bathwater - we have no flooring other than the bare cement foundation throughout most of the house, the master bathroom is stripped to the studs and missing every fixture except a toilet, the cabinets and about 2 sheets' worth of drywall were removed from the kitchen. We cannot afford to hire anyone to fix the place, so we've been doing it all ourselves and learning as we go. We've put a lot of work and over $10k into the house so far, including remodeling the front bath and master bedroom, laying flooring, replumbing, etc. I doubt that my HOI will help me at all; the mold is already gone, it's never been assessed by a professional, and the mold wasn't localized to one problem with the house like a single leak (As a state, Florida learned all about separate claims and separate deductibles the year we had multiple hurricane hits).
We have a lot of debt. Most of mine was incurred at a time that we thought we could handle it, and now our situation is considerably worse than it was at the time. My wife has a great deal of debt in collection, mostly from a previous marriage in which she was literally starving. We haven't even started to touch her debt yet and have kept financially separate. The plan from the beginning was to take care of my obligations first and then tackle hers when we're ready.
Our house is underwater and will be for some time, even when you consider full market value rather than the house's actual condition. I'm current on all my payments right now, and all of our bills and my debt are current as well. Financially we have the ability to stay current on our payments for several more months, but can't continue to make any headway on our other problems at all - we're paying the minimums on our debt now, and the home repair costs are really eating into anything that's left over.
I contacted a real estate attorney through a friend and explained my situation to him. All he essentially said was that I should go for a short sale. This isn't his specialty, but he recommended a particular Realtor who works with short sales. I sent a long overview of our financial and personal situation, which was forwarded to the Realtor. When she called me yesterday, she confessed that she hadn't read the entire writeup, but the first question out of her mouth was, "how far are you behind in your mortgage payments?". She seemed surprised when I told her that we were current. I explained myself as best I could to try and clear up any misperceptions - I'm sure that most of the people who come to her are already at the ends of their financial ropes, and it's an easy enough assumption to make. After talking, I took away the following from her:
We shouldn't bother doing any more work to the house; we'll never see the proceeds.
We should stop paying on our mortgage now (!) to show hardship, and start negotiating a short sale after we're delinquent (very scary proposition)
We wouldn't be responsible for the tax burden if the balance of the mortgage is forgiven (my checking confirms this part)
We also wouldn't be responsible for the balance of the mortgage (this part doesn't jibe with what I've seen elsewhere)
If we stop paying on the mortgage, we could even move before the sale - using the unmade mortgage monies to pay rent - and complete the process through her remotely.
What I gathered from her sounds wonderful, if that's the whole truth of the situation. Somehow I don't think it'll be this easy, though. I'm certainly not willing to make a move like this without a second opinion, which I'm seeking now from here and from other real estate professionals.
A look over our bank statements and charges would probably show that we're not completely broke - yet. We still manage to inexpensively go out one night a week, and we buy more for ourselves than just survival items. We have drastically cut back expenses in some areas, and we've had negative net cash flow for some time now. Still I don't think we could illustrate a pattern of complete financial ruin. In fact, I don't think we could conclusively demonstrate any single hardship that's "big enough" to justify this action. If we were to list our debts jointly, I think we probably could qualify for bankruptcy. Having the debts removed would help, but I fear that with all the protections around the primary residence in bankruptcy we could end up even more tied to this place.
This is a step that neither I nor my wife take lightly. I'm not normally the type to fall down on my obligations when I'm able to meet them, but a lot has gone into this decision. I'm not completely averse to any risk, but want some assurances that we'll be able to survive somehow if we walk away from this house. I'm not good with negotiations, and would much prefer to have a Realtor or attorney take care of any dealings with my lender.
Other relevant information: We're in Central Florida, and we plan to stay in Florida but move to a different part of the state when we get the chance. We plan to rent a house and do not have any major purchases planned that would require a decent credit score. I work from home, so will not have to change jobs.
Credit checks are standard for employment in my line of work, so if I were to lose my job a short sale could affect my future employability (also, isn't there a box on most applications asking if there are any judgements or liens against you?), but as I said earlier I'm willing to take a risk. I'm also willing to sign a promissory note as part of the short sale, so long as the payments allow me enough left over to keep us fed, clothed, and sheltered. I imagine that I'll need to find out my limits of acceptability and give my representative authorization to work within those lines
Am I correct that this is how the game is played?
Any and all advice welcome. Please be gentle. I can't possibly convey to you how much we've been through, and it's hard to make reasoned decisions from where I'm sitting. About the debt - some of it was frivolous, but it was under control before we walked into WWIII and some of the reasons for going into debt were quite legitimate in my mind.
Finances:
Income: ~$96k / year
Credit Card Debt: ~$45k, min payment ~$1070 / month
Auto Loan: ~$17k, payment $455 / month
Wife's Debt: Still compiling information, but probably around $20k currently in collection or default
House:
Lived in house as my primary residence since 1999, refinanced twice.
Only one mortgage on the property at a fixed rate.
Market Value (Zillow): ~$135k
Mortgaged: ~$182k, payment $1200/month
Tax Burden: ~$1800/year
HOI: ~$1900/year
Throwaway email: StuckInAMoldyHouse@hotmail.com
- How to Defend Against a Secured Parties Claim
[Bankruptcyfilter] YANML...speaking in hypotheticals only. Exempt furniture / wildcard exemption vs security interest of creditor in same said furniture with a UCC Security Agreement. Does the furniture get an exemption? Or does the furniture get Repossesed via Foreclosure of Security Interest in Personal Property? Furniture was just pledged as collateral...never was sold or belonged to the creditor. How is this determined... by the Bankruptcy Trustees discretion, or by law?
- How to manage my debt and life as a whole
How do I get my life on track with high debt and a chronic medical condition? So i'm 26 years old and have been completely on my own since i was 18. I come from a working class family who lives in a small dying town with no jobs. I knew if I was going to make something of my life in any way, I had to get out of there. Being so young and inexperienced, it's not like I could get a well paying job to support myself. And it's not like my family had any money to give me.
So 5 years ago, I took out many many loans and used that money to move myself across the country to " the big (and expensive) city" to attend college and hopefully start a new life there.
I also used the student loan money to pay for everything I would need to live on (mainly rent because the dorms were more expensive than studio apts, food, and school supplies) and even then it still wasn't enough, so I also worked full time in addition to going to school full time, just to make ends meet.
On top of this, to make matters more complicated, I also have a chronic medical condition. I have had it mildly since I was 10, but never had it addressed, or even diagnosed as to what it was, since my family lacked health insurance.
It was still fairly mild even when I moved here, but through the years got much more serious and I am now in constant daily pain and have some serious breathing issues. I tried to get health insurance on my own, but no plan would cover me due to the pre-existing condition. So I had no choice but to pay out of pocket for all medical expenses. Of course I had no out of pocket money to spare, so I used credit cards to pay all my medical bills.
And I never had enough credit to pay for anything medical that would truly diagnose me, so I resorted to many expensive pain management treatments only to be left with my condition progressively getting worse.
Now flash to present day, 5 years later, and I am $60,000 in debt from school, $10,000 from credit card debt. The job market is scarce and no one is hiring on staff. I've been taking very low pay freelance gigs which don't even amount to half of my expenses.
Currently, my bare minimum expenses amount to $1150 per month.
One of them being a health plan I pay 400 a month for after puting myself on a long waiting list for a government health plan that teams with private insurers to give coverage to high risk people. With this plan I was also able to finally get the tests I needed to diagnose me, only to discover (upon confirmation of 6 different doctor opinions to be sure) that I need a surgery that will cost a minimum of $30,000 depending on where I get it done, while knowing full well my insurance plan will most likely not cover because it is not a common surgery, though results are typically favorable.
I also pay 400 a month to see a physical therapist who I have been seeing for a year and a half and is the only source of pain relief I have found to help me (Insurance only covers 25% of 12 sessions a year, which I have already maxed out) Then pay 300 a month for my credit cards and 50 for my cell phone. And every 3 months, pay 150 forbearance fee for my student loans. That is it.
I had to leave my apartment and move in with a friend who is letting me stay there rent free until I figure something out. They are also fortunate enough to make a decent living and have been loaning me money to help pay my bills, eat their food, and use their computer. If anything, they've almost become my surrogate parent and it makes me feel like shit for puting them in that position, but I simply don't know what else to do.
I would get a second job anywhere I could find, but not only have those jobs even been hard to come by, but my health simply won't allow it at this point. I am extremely distressed, depressed, and hopeless. The biggest issues of all is the health and everything else seems to stem from it to make all the other problems worse. I don't know how much more bare minimum I can get in terms of cutting my budget when I'm already miserable and in so much pain.
I have considered going on disability, but I don't know if I would count since I still have been able to work, so long as the work isn't strenuous and I don't have to be on my feet all day.
I've considered welfare and bankruptcy but I'm not too sure how they work or if I would have to give up making enough money to pay for everything I need just to qualify. Or if bankruptcy will just ruin my credit enough to never be able to rent again.
I want to be responsible and make the best choice that will benefit me in the long run, but I don't know what that is or where to go. I really need some advice or clarity on this, so anything anyone has to say, please I'd love to hear it. Thank you.
- Good questions to ask my Bankruptcy Lawyer in the morning?
Questions to ask the bankruptcy lawyer in the morning to learn about the process AND to evaluate the lawyer's ability in bankruptcy. Sorry for the late question. I am visiting a bankruptcy lawyer in the morning. Without judging my circunstances, can you please give me good questions to ask to determine if this is the lawyer I should choose IF I do go down this path. What should I ask them about? Their experience? Their fees? Timeframes? Options? Please help as I know little about this process, and I would like to know if this is a good lawyer for this process. I already know all advise you provide is not legal advice, most of you are not lawyers, and I will take everything as simply friendly advise. Thank you for your help!
- What is the best path...
Did we receive sound advice? A friend is filing Chapter 7 bankruptcy in the next few days. A creditor is threatening to repossess some items if said person doesn't respond to the written request for a voluntary surrender of the items. A document pledging the items as collateral was signed. A legal advisor gave the following advice... The creditor has given the borrower until September 8, 2009 to respond. If no response is forthcoming, the creditor is threatening IMMEDIATE (September 9, 2009) assignment to a repo company. My question is this. During a legal consultation today, my friend was advised to tell the creditor to expect a bankruptcy filing in the next ten days. This seems counter-intuitive. Wouldn't the creditor speed up their efforts at repossesion in an effort to beat the bankruptcy filing? Was this bad advice and if so why? Was this good advice and if so why? Does it make more sense to remain quiet about the filing until the papers are delivered or does the creditor have to stop making efforts at repossesion the moment they are notified of intent to file bankruptcy documents.
- How can I make it go away?
Is bankruptcy the only way to put this foreclosure mess behind me? I bought a house near Las Vegas in February of 2005. At the time I was working as a contracted consulting engineer and I could afford the house. It sounds so stupid now, but I really did not understand the housing market bubble, I just wanted a place to live. In July 2005 I was essentially laid off - several clients canceled projects and my contract disappeared.
I was able to find another job but not in Nevada. I moved back to LA and rented the house, but for far less than the note ($1150 of $2400), so I kept paying the rest. After working 9 months in LA, I was laid off again (June 2006). I got married in October 2006. After collecting unemployment and searching for a job in my field, I finally had to give up and take a job at a grocery store. I still continued to pay the mortgage all this time, but in February 2008 I had a baby and have not worked since.
Starting in April 2008 I tried working through a company to negotiate a short sale on the house. I put together tons of financial information demonstrating how my circumstances had changed. The bank never approved any of the short sale offers and finally foreclosed in March 2009. I was not contacted by the bank at all during the process. Now today I get a letter from attorneys retained by the insurance company that offered the PMI on the loan (it was a 30-year fixed 95% down) demanding payment in the amount of $65K.
I am unable to get a job in my field in the LA area. To be honest my field of expertise was kind of narrow and I have made some professional mistakes. I suspect word has gotten around. My 10 year background looks "too exotic" or "overqualified" for a lot of other jobs. I cannot even get a menial job that will break even once childcare and expenses are factored in. I have not contributed to the bottom line of my household since I moved back to LA. I also have $11K in credit card debt (the account has been closed and I have been paying it down as much as possible). I used to make $75-85K a year, I guess I might have been overextended but really it wasn't that crazy when I was working.
But what do I do now? There is no way I can pay this. I don't think my husband should be responsible, since all this happened before we were married. But is he? How long are they going to come ofter me? Would bankruptcy work? If I need a lawyer, how do I get one? What kind do I need? How much does it cost? We have no money.
How do I know if I'm even getting good advice anymore? I feel as though I am loosing my whole life over a few bad decisions and some circumstances that were truly beyond my control. I don't know how to get another chance.
Thank you so much for any information or suggestions you are able to provide.
- Photographer's agent cornered in bankruptcy filing!
I am an agent representing a group of professional photographers and, among other things, am responsible for billing on their behalf as well as collecting and dispersing the moneys upon receipt.
I just received a notice regarding a job that took place 3+ years ago informing me that, because the client filed for bankruptcy shortly after I was paid, I have been judged as having been given preferred treatment and therefore I owe the trustee handling the bankruptcy the full amount paid, nearly $10,000.00!
To make matters worse the invoice in question was nothing but the photographer's expenses. In other words, the minute I received the payment I simply turned it around and paid it all to the photographer who has long since gone his own way and isn't responding to my calls or e-mails.
What, if any, are my options at this point?
- Do people lose their homes over health expenses?
Do people actually lose their homes to pay for health care in the US, or is this an urban myth? Basically, I am doing some comparisons of the US vs. Canadian style single-payer health systems. What I can't find are real, documented cases of people being driven to bankruptcy and/or losing their home due to health care costs.
Does this really happen, or is it just a myth? What I would like are links to real stories of individuals who have lost everything due to health expenses, if they actually exist.
Much obliged!
- Unsure as to how I should proceed.
The place I work may be going under. What should I do? I work as an attorney and the managing partner had all of us attorneys in a meeting yesterday. He told us that the firm is basically out of money and that he's worried about making payroll next week. We have 10 attorneys and 2 partners here, so it's a small firm.
I like the work environment here, and the partners are generous (to a fault, it seems). The main partner is a bit oafish and I think he may be putting his head in the sand as to how bad things really are. The other partner is bad about collecting his accounts receivable, which is probably the main reason the firm is in this mess.
I'm already looking for another job, but what do I do if this place does actually go under? There is work to be done and clients whose problems won't go away.
Do I stay on in the hopes I may get paid down the line, or do I just jump ship and leave all the work for others to do?
- Is there a proof of claims deadline for Canadian bankruptcy creditors?
Canadian (you are not my) lawyers: is there a deadline for filing a proof of claim in personal bankruptcies? A client recently filed personal bankruptcy in Ontario. The bankruptcy notice says that for a meeting to be held they must receive a certain percentage of proofs of claim within 30 days of the bankruptcy filing requesting such a meeting. But there does not otherwise appear to be any deadline for filing proofs generally, and neither Google nor the Act appear to suggest one.
We are not a huge creditor and don't have much hope in recovery, so I don't care to request a meeting; I just intend to file the proof of claim and go from there.
I know you are not my lawyer and are not giving me legal advice; any direction you can provide is greatly appreciated.
- Sacrifice, Future, Family, Bankruptcy...
I'm currently working on my MBA at a relatively prestigious business school and am coming to understand that my parents are in a grave financial situation that may lead to them having to file for bankruptcy. My father's been unable to get steady work for the last year or two and my mother's income isn't large enough to maintain the household and service their debt. In all likelihood they'll lose their house in two to three months unless something dramatic happens.
I'm considering dropping out of school and returning home to help them weather the storm but I don't know a) if they'd be able to stomach it, b) whether I'd be able to find a job quickly enough to fend off the fallout, c) if I'm really serious about doing this, d) if this is the right thing for me to do, and e) what it'll mean for my future. I'm really not too sure what else to write. I come from a pretty specialized professional background and have no idea whether I'd be able to get a compatible job back home. If you have any questions I'll try to elaborate so long as I can do so anonymously. I keep asking myself 'what would a man that I admire do in this situation' and have yet to come up with an answer....
- American Express Never Forgets
I recently applied for a corporate American Express card through work and they told me that they found an old written-off debt from 1990 under my name. How best should I handle this? So, I got the corporate card (with a little rule-bending). I called their "special investigations department". The debt is for about $700 and is for charges that occurred between 1987 and 1990. This doesn't show anywhere on my credit report. When I asked AmEx to provide documentation that the debt was, in fact, mine, they said that they couldn't provide me with anything, and they couldn't prove that it was mine. Nor could that prove that it wasn't. They have nothing to send me, no records, no receipts, no old statements. Nada. Only a record of a debt for $700 linked to my social security number. They've never sued, or attempted to collect as far as I know, and like I said, my credit reports show nothing (not even an account from Amex from back then).
As far as I can tell, the only time that this will cause me problems is if I apply for future corporate AmEx cards. However, I've now gotten two without a problem.
I'm pretty sure, but not 100% sure, that this is left over from my free-spending ways back in college. I was deep in debt, and initiated but never completed a personal bankruptcy. I was only 20 at the time. I paid off many of my bills. Some were "charged off" or "written off". I think that the AmEx bill was one of those that was "written off", but apparently AmEx has a long, long memory.
So, the question is this: if I don't pay off the bill, there appear to be no consequences whatsoever. As I said, I'm fairly sure it's my debt, but not 100% sure. Regardless of the moral/ethical obligation, I'm wondering, is there another shoe out there that could drop, or some other way that this old debt could come back to haunt/trouble me? Is there a unanticipated financial/legal/credit consequence to not paying this off.
I'm most likely going to pay it regardless so that I can sleep easier, but I'm still curious as to whether or not there would be consequences if I don't.
- Will winnings be taken in banko?
YANML: If you are receiving a lump sum after filing bankruptcy, but BEFORE the bankruptcy is discharged, can that be seized as an asset? I am severely in debt, and have been preparing for a Chapter 7 Bankruptcy. I recently won an amount on a game show that is nowhere near the amount of my debts, but I will not receive that money for at least six months. I had planned on filing my bankruptcy within the next three months. If I do so, will my winnings be taken away, since they are not an asset at the time of filing?
- Sue me baby
I am working with a lawyer to declare bankruptcy. I was served papers last week that show I am being sued by big huge credit card company for unpaid debt - around $30,000. I contacted my lawyer when I got served and she said if we could file before the date we had to appear in court there would be no problem. Hilariously, though, she is on vacation out of the country until just before the date I must appear in court, and I just got email from her assistant saying that we would probably not be able to file bankruptcy before the deadline and that I may have to 'file a response' to the suit.
You are not my lawyer. I have a lawyer and I am happy with her service. Anything you say is not legal advice. But, what does this all mean? What is 'a response'? Am I screwed? I am asking this question mostly because I am nervous and impatient and can't get Google to tell me anything (so so so SO much garbage when searching for anything related to bankruptcy) and I am having a hard time waiting for a response from my lawyer.
This is in Texas.
- Help, I've debted and I can't get up.
I owe my ex-school lots of money, and don't know what to do. Help! I attended school in the fall semester of '09. After deciding it wasn't the right thing for me, I stopped going. I never actually dropped out, because I had mused the idea of going back. I got several grants and scholarships, but there was still around 10k dollars left over for me to pay. I tried every loan I could imagine, and tried every adult I knew as a cosigner. None of them got approved.
Fast forward to now, and a debt collector has contacted me, saying if I don't agree to pay the debt and find some way to do it, they're going to take me to court. I don't at all have ten thousand dollars laying around. I'm in between jobs, my father is on disability and my mother is unemployed.
What are my options? Can I declare bankruptcy? I'm in my early 20s- this seems drastic. And if I do need to declare it, how do I go about doing it? And what are the side effects?
What about court? What happens then? Is there any chance of this debt being erased? And do I have to pay court costs? How much will that be?
Sidenote, if anyone knows of any possibly-free debt lawyers/advocates in the chicago area, please give me suggestions.
Could I contact my school. Do you think they could do anything, even though they've already sent a debt to the collector?
So, those are the only options I can think of. If you have any other suggestions/ questions, feel free to ask.
TL;DR: I owe school 10,000. No way to pay. Debt collector won't leave me alone.
throwaway email: debterrific@gmail.com
- Immigration and Bankruptcy
Will filing bankruptcy (UK) affect my chances of being granted a spousal visa? YANML, etc. I have a petition in for a spousal visa, sponsored by my US wife, to go live in the US. I am also on the hook in the UK, my home country, from a high court for debts accrued -- a guy visited me today and got me to agree to a payment plan, while also surveying my parents' (staying with them temporarily) possessions, in case it comes to levying them. (Not sure if my jargon is 100% there, basically they want to repo stuff if I can't pay.) He warned me that if I miss a payment, I'll default and they'll either start taking away my stuff or I'll have to file bankruptcy. Since I don't really own anything they can take away, and I'm not likely to make my payments, I find myself in a bit of a bind. My wife has offered to help me cover payments, but I owe an awful lot of money and she can't cover it all, and she really shouldn't be on the hook for my debts anyway, we're not even living together yet. I've been looking for work for 3 months and have gotten pretty much nowhere. I finally scored a job interview, for a job I'd actually enjoy doing against all odds last week and heard yesterday that I'd been turned down, which really took the wind out of my sails. I haven't given up, but my optimism is waning.
And so I start considering my options. It may not be the "right" thing to do, but leaving the country permanently in what will hopefully be less than 6 months makes declaring bankruptcy seem like an awfully convenient option. It's not the best idea, but it's certainly the easiest.
If I file, will it affect my chances of getting my visa? Will the effects of it carry over to the US in any way? My wife seems to think neither of these will present a problem, but I'm not even sure where I'd start looking for that kind of information. The way I see it, they're going to look at my application and see either a guy with a bunch of debt he has no ability to pay, and hasn't made much headway in paying in the meantime, or a guy that's officially bankrupt. I have no idea which is worse, frankly. Which is worse?
I've been pretty lazy and irresponsible in the past, and it's biting me in the ass now. I need to get as much straight as possible, as fast as possible, so that I can a) make sure nothing stops me being granted a visa, and b) leave the country in the best shape possible. I have no issue with delaying my move to the US if it means making progress to getting "clean" here, but we can't afford to re-do the visa petition, so I'm trying to be careful in what I do. Any advice?
- How can I help my employees?
I opened a glass shop thirty years ago, and it will soon succumb to the economy. In those thirty years I've always thought of my employees as one big family, and that's the way they think about myself and each other. We've always watched out for each other and have been there for each other in times of need. We all have families, mortages, car payments and two have spouses that have been unemployeed for over six months. They know that there is a chance bankruptcy in the future. Now it's not a chance but a certaintly, I am so broken up about what it is going to mean to them and their familes, that I have become almost nonfunctional and a complete wreck. My hope and goal is to have employement lined up for each of them before I tell them. I know that the job situtation is really bad, but I was hoping for any ideas of what a present employer could do to line up work before they are out of work. I know that a letter of reference is a start, but there must be more that I can do for them.
No matter what, I will tell them within 2-3 weeks before closing the doors, and hope that if possible, stay on until the present jobs that are in the books up are finished, I can certainly if there not able.
- Two Names Sign on Title, One Name Leaves
NotMyLawyerFilter: How can we get my girlfriend's ex-husband's name off her car title? Of course, there are complications... My girlfriend bought a car, and her (then) husband co-signed, so his name is on the title.
When they divorced, she kept the car (as it had always been hers). She has been solely responsible for car payments. When they divorced, they also filed bankruptcy. I don't know if there was ever any official documentation filed at the time of divorce/bankruptcy dealing with the ownership of the car, but his name is still on the title.
Since then, her ex has gotten numerous moving violations. Because his name is on the title, her auto insurance rates are through the roof. She and her ex are not on speaking terms at all, and to our knowledge, he is now living in another state and we don't know how to get in touch with him. She thinks that he would refuse to sign off on removing his name from the title anyway, just to be a jerk.
She's about to pay off the car, but we'd really like to get his name off of it. It would definitely lower her insurance rates; plus, we're not sure if she could even sell the car without his signature. Any Help?
PS: They bought the car, were married, divorced, and declared bankruptcy in Arizona, if that makes a difference.
- Need to consult an Attorney - but which kind?
Need to consult an Attorney - but which kind? In New York City, I need to discuss with an attorney options regarding possibly allowing co-op foreclosure and how options such as bankruptcy or others I don't know about might affect that possibility.
However, if I talk to a Bankruptcy attorney he will probably recommend bankruptcy. If I talk to a real estate attorney will he know all the options available?
How do I approach this so that the Hammer attorney I speak with doesn't automatically tell me my problem is a nail?
PS; I Know they are not supposed to do this but I have experience with this happening on three separate occasions as well as other friends stories. Lets assume I might run into the attorney who will try an take my multifaceted problem and frame it as the problem he specializes in.
- Will a BK hurt my chances at getting a job?
I have a job interview coming up that I'm a little nervous about, and needless to say I want some advice. It's a long read, so bring a cup of coffee for this one. If you can offer any insight or advice, I'd greatly appreciate it.
(Long story short, I've got a previous "BK" filing that I'm worried about) Coming up soon is my first real job interview in about four years. There's that general concern that I'll be a little rusty with the hiring manager as to how I phrase answers to specific questions, but the less I force myself to think about it the better I have felt. I know deep down that if I just allow myself to be me rather than try to oversell myself I should come out alright. I'm not worried about my skills, qualifications or experience. Rather, I just want to make sure that I put as much effort as necessary to get this job not simply because I want it but because my family needs it. (more on that later)
What has me all excited (in a bad way) is that I've got a fun little skeleton in my closet waiting to say hello. Two years ago I filed for Chapter 7 Bankruptcy Protection. The case was discharged in December 2008, and I'm happy to report that my wife and I are still debt free. The nature of the bankruptcy was due primarily to mounting medical debt that she nor I couldn't negotiate payments on or simply afford to make monthly payments against considering our financial situation at the time. It isn't like we worked hard to rack up copious amounts of debt and then drank champagne while we burned up the bills and late notices we got in the mail. Life hit us pretty hard, not as hard as some, but hard enough.
I've never walked into an interview before where I've felt like I've got a strike against me going in. Years ago when I had my lowest credit score, which was about 8 months before my filing, I applied at Radioshack for seasonal work to draw a secondary income to try to make good on past due bills. After interviewing well and being told basically when I was going to start, I was denied employment after they ran credit on me. Yes, I understand the plight of a business - should they hire the well qualified applicant with credit problems or the otherwise suitable candidate without any credit problems - and would like many I understand the rationale behind an employer's decision regardless of how they sway.
My Question:
Do I, at any point, make reference of or allude to the fact I had ever filed for bankruptcy protection? Should I share my personal account of what transpired, remaining breif and factual? Or, should I not mention it at all and let them uncover the information when they do a criminal background and credit check? (And then try to sheepishly explain it?)
For the record, the position I will be interviewing for and the one I currently hold is in procurement. I make many financial decisions throughout the day totalling in the tens of thousands of dollars on an order by order basis. I have held my current position for nearly a decade and believe I'm more than competent when it comes to spending my employer's money wisely, and for what it is worth I believe the same could be said of my ability with any other organization.
As to why I need this job so much:
My wife has several chronic conditions that she will undoubtedly have for the rest of her life. At my current salary it will be almost impossible to continue our current standard of living without obtaining a secondary source of employment as the cost of medical treatment continues to rise and health benefits become less beneficial. It has already been said that next year's benefits will likely decrease while our salaries will once again be frozen. This will be the third year in a row I have not received a raise.
I'm sure there are others that have found themselves in situations far worse than what I've fallen into. This isn't a "poor me" post, and bottom line I want to express that this isn't about me, but rather my wife and children. I want to be a better provider for them both. I need to know how much of an obstacle a previous bankruptcy filing would be for me going into another procurement position.
Thank you for your time.
- Non-profit financial blues
What happens to a new part-timer if non-profit employer goes under? Recently, I asked for a reduction in hours from full-time to four days a week at work for the summer, and my request was tentatively approved. (I say tentatively, because it was approved by my direct manager, but still needs to go through the higher-ups, paperwork, etc.) I asked for this because I was burned out and can afford it, it will give me some extra time to develop other skills, including taking classes, and it would give me more time to look for other freelance gigs or a replacement full-time job. I had a sense my job, and my employer, were pretty much both in a state of stagnation, or worse. I also knew that my employer (a California, USA non-profit org) was facing some serious economic troubles and my request for a reduction in hours/pay was likely to be welcomed.
However, I learned today (admittedly, through the rumor mill, I don't have any direct evidence) that there is a strong possibility that my employer might go belly-up altogether, maybe even as soon as a week or two after my part-time status would go into effect. Many other employees are making contingency plans to jump ship.
If the company goes belly up, how would this change in hours effect my potential unemployment benefits? What happens when a non-profit folds? Am I still eligible for COBRA? What happens to my accrued vacation? Should I withdraw my request for part-time status immediately (probably tough at this point as that cat is out of the bag?) and wait and see what happens with the company? I believe my org has about 40-50 employees now, as I understand employer size can be relevant to these kinds of questions. Again, we're talking California, USA. Thanks in advance for your advice!
- Westchester foreclosure advice
I need advice/an attorney recommendation. We live in Westchester County, NY, and are considering walking away from our co-op mortgage. We paid $244,000 for a place that is falling apart (the plaster ceiling collapsed, for starters). Looking at recent sale prices, I believe that we would now have a hard time getting $150,000. The maintenance was high to start with, and is now crazy high. PLUS, it is so noisy that we rarely sleep through the night, AND we have insane neighbors who hate our dog, so they tell people that we are drug-addicted child molesters, and follow us around screaming the same.
Anyway, it's hard to see the sense of spending $50,000 on repairs and renovations for a place that is a nightmare to live in, and is close to unsalable. What I most want to know is how likely and how hard can a coop pursue you for maintenance, assuming the bank will take the place back. I am not interested in discussions of the morality of walking away. If we could stand to keep living here, we would, but the stress is killing us.
- [foreclosure filter] Must we clean the home we lost?
House is being foreclosed on after a long battle with the bank. We've got mere days to move and nowhere to go. Can we leave behind furniture, etc, that we can't afford to move or dispose of? Are we liable to clean the house?
We're in Washington State. We were working with WaMu, and things were looking up, but then Chase bought WaMu. They initiated foreclosure proceedings. The house is up for trustee auction and then we have a few days before we have to be out.
My Father wants to empty the entire house (and the lifetime of accumulation) and cart it all to the dump or the thrift store. I want to take only those personal belongings that we treasure, and leave everything else (furniture, building materials -- we built the house ourselves -- and knickknacks, etc) behind. He's worried if we take that route, and just leave it in the house, the bank can sue us for cleanup costs.
Does anyone have experience with foreclosure? Do we have to spend the last days in our family home gutting it?
- Broke and wanna leave, but how?
DebtFilter: should I declare bankruptcy before leaving the USA for a long time? Details within. I'm nearing financial rock bottom and I believe a bankruptcy will help me, long-term, to get back on my feet. Complicating matters, I'm seriously considering leaving the USA for a long time, for this and other reasons, and I'm wondering if this will hurt my chances at winning bankruptcy protection or, perhaps, make bankruptcy unnecessary?
Facts:
(a) I have accumulated somewhere near $20,000 in unsecured credit card debt. Same old story: had a venture I put a lot of borrowed money into and also lived on credit while out of job working on it. Venture didn't pay off, so here I am.
(b) I have no job, no income, and no expectation that will change in the near future.
(c) I have access to less than a thousand dollars in cash and perhaps another thousand worth of salable assets.
(d) For reasons both financial and personal, I want to leave the USA to live cheaply in the third world somewhere while I get my house in order, do some soul-searching and writing and so on without the pressure of having to earn a lot of money in the USA to pay for food and shelter, etc.
(e) I plan to do this this summer with a little seed money I will borrow from family and to try and earn a meager living by doing various freelance work for people and companies in the USA and Europe over the internet while I am in the third world. I do not anticipate my earnings will exceed the range of $5k - $10k per annum doing this.
(f) for obvious reasons, I'd like to have this small amount of sub-poverty-level money free of garnishments, liens, bank account freezes or any other nasty thing my creditors might be able to do to me. Hence the bankruptcy.
QUESTIONS ABOUT BANKRUPTCY PROCESS:
(1) if I see a lawyer in April to initiate Bankruptcy proceedings (chapter 7 or 13, I'm not sure which I'd qualify for), will I be able to get the necessary paperwork done before I leave the USA in, say, July? I live in New York at the moment.
(2) Will ~$2k be enough to pay my lawyer to handle bankruptcy proceedings?
(3) How long should bankruptcy take to complete?
(4) If I am out of the USA when certain bankruptcy hearings and so on are needed, can my lawyer represent me on my behalf?
(5) If all the above is unworkable, how "stupid" is it to simply skip town without a bankruptcy? I understand that debts cannot be reported to credit agencies after 5 - 6 years (depending on state) and cannot be collected via the courts after a similar amount of time. So effectively, how is gaining bankruptcy protection advantageous to just letting the time elapse and then being free of legal recourse from creditors?
(6) Small corollary to above: I have some federally-guaranteed student loans that I understand will not be discharged in a bankruptcy. I am less concerned about these because I may be able to get them into a deferment / forbearance while I am outside the USA, or might even be able to make the payments if I get them low enough. These loans compound at a very low interest rate and are therefore much less alarming than my credit debt which is compounding at ~30% every year.
(7) What are the best online forums or resources to research Bankruptcy and related issues? I appreciate any advice here but am not expecting to figure it all out via MeFi.
BOTTOM LINE: I painted myself into a corner and want to jump out. If I can get my debts wiped via bankruptcy, I plan to live cheaply and simply outside the USA without resorting to credit for some time. However, should I get the urge to return to the USA, I want to be able to eventually (3 - 5 years) have enough financial standing to be able to get a cell phone contract, rent an apartment, and maybe even one day buy a car and house. I believe bankruptcy is the best way to do all this but am open to any other suggestions. IF you want to contact me, my throwaway address is lifecrumblinglikeacookie@gmail.com.
I thank you for reading my long question and for any advice you might have.
- Getting a Non-Mortgage Mortgage?
Our bankruptcy is less than 2 years old, but we are trying to get a mortgage. Contract-for-deed or rent-to-own will not work, so don't suggest those. Everybody, whether a bank or a mortgage broker, says "FHA requires 2 years post-bankruptcy before we can lend to you," but is my only option really to wait? The landlord is selling the house we're renting; both he and I would like my family to be the buyer. The biggest pain is that we have 7 years' history of paying way more rent now than we would on a mortgage for the same house, so it's not like we'll have trouble keeping up on our mortgage payments. We get roadblocked at every turn when looking for purchase options, so it looks like we're going to have to move out before he can sell it -- unless we can get a loan somewhere.
So, what options are there to borrow against a home purchase, without it being the "mortgage" that everyone says we can't have? Please do not say contract-for-deed or rent-to-own, those are not options.
- Is a short sale of my house a viable option?
I need to get out of my house, and it's not all due to financial reasons. Is short sale a viable option?
Over the last year and a half, my wife and I have been through utter hell. Many, many situations have come up that are stretching us to our emotional and financial limits. I'll spare you the details on anything but the relevant bits. I'm suffering from chronic stress to the point that I'm worried about being headed for a heart attack, and my wife has developed severe anxiety problems to the point where she doesn't feel comfortable driving or even leaving the house without me. We've both independently come to the conclusion that we need, not want, to move out of the area as soon as possible. We're planning on renting and staying within the state when we are able to get out. I'm trying to look into our options and minimize the damage, which is the focus of my question.
The house is in bad shape. We discovered and got rid of several areas of mold which were severely affecting my wife's health. The house was not well-maintained, which probably contributed to the mold problem and others. A lot of babies got thrown out with the moldy bathwater - we have no flooring other than the bare cement foundation throughout most of the house, the master bathroom is stripped to the studs and missing every fixture except a toilet, the cabinets and about 2 sheets' worth of drywall were removed from the kitchen. We cannot afford to hire anyone to fix the place, so we've been doing it all ourselves and learning as we go. We've put a lot of work and over $10k into the house so far, including remodeling the front bath and master bedroom, laying flooring, replumbing, etc. I doubt that my HOI will help me at all; the mold is already gone, it's never been assessed by a professional, and the mold wasn't localized to one problem with the house like a single leak (As a state, Florida learned all about separate claims and separate deductibles the year we had multiple hurricane hits).
We have a lot of debt. Most of mine was incurred at a time that we thought we could handle it, and now our situation is considerably worse than it was at the time. My wife has a great deal of debt in collection, mostly from a previous marriage in which she was literally starving. We haven't even started to touch her debt yet and have kept financially separate. The plan from the beginning was to take care of my obligations first and then tackle hers when we're ready.
Our house is underwater and will be for some time, even when you consider full market value rather than the house's actual condition. I'm current on all my payments right now, and all of our bills and my debt are current as well. Financially we have the ability to stay current on our payments for several more months, but can't continue to make any headway on our other problems at all - we're paying the minimums on our debt now, and the home repair costs are really eating into anything that's left over.
I contacted a real estate attorney through a friend and explained my situation to him. All he essentially said was that I should go for a short sale. This isn't his specialty, but he recommended a particular Realtor who works with short sales. I sent a long overview of our financial and personal situation, which was forwarded to the Realtor. When she called me yesterday, she confessed that she hadn't read the entire writeup, but the first question out of her mouth was, "how far are you behind in your mortgage payments?". She seemed surprised when I told her that we were current. I explained myself as best I could to try and clear up any misperceptions - I'm sure that most of the people who come to her are already at the ends of their financial ropes, and it's an easy enough assumption to make. After talking, I took away the following from her:
We shouldn't bother doing any more work to the house; we'll never see the proceeds.
We should stop paying on our mortgage now (!) to show hardship, and start negotiating a short sale after we're delinquent (very scary proposition)
We wouldn't be responsible for the tax burden if the balance of the mortgage is forgiven (my checking confirms this part)
We also wouldn't be responsible for the balance of the mortgage (this part doesn't jibe with what I've seen elsewhere)
If we stop paying on the mortgage, we could even move before the sale - using the unmade mortgage monies to pay rent - and complete the process through her remotely.
What I gathered from her sounds wonderful, if that's the whole truth of the situation. Somehow I don't think it'll be this easy, though. I'm certainly not willing to make a move like this without a second opinion, which I'm seeking now from here and from other real estate professionals.
A look over our bank statements and charges would probably show that we're not completely broke - yet. We still manage to inexpensively go out one night a week, and we buy more for ourselves than just survival items. We have drastically cut back expenses in some areas, and we've had negative net cash flow for some time now. Still I don't think we could illustrate a pattern of complete financial ruin. In fact, I don't think we could conclusively demonstrate any single hardship that's "big enough" to justify this action. If we were to list our debts jointly, I think we probably could qualify for bankruptcy. Having the debts removed would help, but I fear that with all the protections around the primary residence in bankruptcy we could end up even more tied to this place.
This is a step that neither I nor my wife take lightly. I'm not normally the type to fall down on my obligations when I'm able to meet them, but a lot has gone into this decision. I'm not completely averse to any risk, but want some assurances that we'll be able to survive somehow if we walk away from this house. I'm not good with negotiations, and would much prefer to have a Realtor or attorney take care of any dealings with my lender.
Other relevant information: We're in Central Florida, and we plan to stay in Florida but move to a different part of the state when we get the chance. We plan to rent a house and do not have any major purchases planned that would require a decent credit score. I work from home, so will not have to change jobs.
Credit checks are standard for employment in my line of work, so if I were to lose my job a short sale could affect my future employability (also, isn't there a box on most applications asking if there are any judgements or liens against you?), but as I said earlier I'm willing to take a risk. I'm also willing to sign a promissory note as part of the short sale, so long as the payments allow me enough left over to keep us fed, clothed, and sheltered. I imagine that I'll need to find out my limits of acceptability and give my representative authorization to work within those lines
Am I correct that this is how the game is played?
Any and all advice welcome. Please be gentle. I can't possibly convey to you how much we've been through, and it's hard to make reasoned decisions from where I'm sitting. About the debt - some of it was frivolous, but it was under control before we walked into WWIII and some of the reasons for going into debt were quite legitimate in my mind.
Finances:
Income: ~$96k / year
Credit Card Debt: ~$45k, min payment ~$1070 / month
Auto Loan: ~$17k, payment $455 / month
Wife's Debt: Still compiling information, but probably around $20k currently in collection or default
House:
Lived in house as my primary residence since 1999, refinanced twice.
Only one mortgage on the property at a fixed rate.
Market Value (Zillow): ~$135k
Mortgaged: ~$182k, payment $1200/month
Tax Burden: ~$1800/year
HOI: ~$1900/year
Throwaway email: StuckInAMoldyHouse@hotmail.com
- How to Defend Against a Secured Parties Claim
[Bankruptcyfilter] YANML...speaking in hypotheticals only. Exempt furniture / wildcard exemption vs security interest of creditor in same said furniture with a UCC Security Agreement. Does the furniture get an exemption? Or does the furniture get Repossesed via Foreclosure of Security Interest in Personal Property? Furniture was just pledged as collateral...never was sold or belonged to the creditor. How is this determined... by the Bankruptcy Trustees discretion, or by law?
- How to manage my debt and life as a whole
How do I get my life on track with high debt and a chronic medical condition? So i'm 26 years old and have been completely on my own since i was 18. I come from a working class family who lives in a small dying town with no jobs. I knew if I was going to make something of my life in any way, I had to get out of there. Being so young and inexperienced, it's not like I could get a well paying job to support myself. And it's not like my family had any money to give me.
So 5 years ago, I took out many many loans and used that money to move myself across the country to " the big (and expensive) city" to attend college and hopefully start a new life there.
I also used the student loan money to pay for everything I would need to live on (mainly rent because the dorms were more expensive than studio apts, food, and school supplies) and even then it still wasn't enough, so I also worked full time in addition to going to school full time, just to make ends meet.
On top of this, to make matters more complicated, I also have a chronic medical condition. I have had it mildly since I was 10, but never had it addressed, or even diagnosed as to what it was, since my family lacked health insurance.
It was still fairly mild even when I moved here, but through the years got much more serious and I am now in constant daily pain and have some serious breathing issues. I tried to get health insurance on my own, but no plan would cover me due to the pre-existing condition. So I had no choice but to pay out of pocket for all medical expenses. Of course I had no out of pocket money to spare, so I used credit cards to pay all my medical bills.
And I never had enough credit to pay for anything medical that would truly diagnose me, so I resorted to many expensive pain management treatments only to be left with my condition progressively getting worse.
Now flash to present day, 5 years later, and I am $60,000 in debt from school, $10,000 from credit card debt. The job market is scarce and no one is hiring on staff. I've been taking very low pay freelance gigs which don't even amount to half of my expenses.
Currently, my bare minimum expenses amount to $1150 per month.
One of them being a health plan I pay 400 a month for after puting myself on a long waiting list for a government health plan that teams with private insurers to give coverage to high risk people. With this plan I was also able to finally get the tests I needed to diagnose me, only to discover (upon confirmation of 6 different doctor opinions to be sure) that I need a surgery that will cost a minimum of $30,000 depending on where I get it done, while knowing full well my insurance plan will most likely not cover because it is not a common surgery, though results are typically favorable.
I also pay 400 a month to see a physical therapist who I have been seeing for a year and a half and is the only source of pain relief I have found to help me (Insurance only covers 25% of 12 sessions a year, which I have already maxed out) Then pay 300 a month for my credit cards and 50 for my cell phone. And every 3 months, pay 150 forbearance fee for my student loans. That is it.
I had to leave my apartment and move in with a friend who is letting me stay there rent free until I figure something out. They are also fortunate enough to make a decent living and have been loaning me money to help pay my bills, eat their food, and use their computer. If anything, they've almost become my surrogate parent and it makes me feel like shit for puting them in that position, but I simply don't know what else to do.
I would get a second job anywhere I could find, but not only have those jobs even been hard to come by, but my health simply won't allow it at this point. I am extremely distressed, depressed, and hopeless. The biggest issues of all is the health and everything else seems to stem from it to make all the other problems worse. I don't know how much more bare minimum I can get in terms of cutting my budget when I'm already miserable and in so much pain.
I have considered going on disability, but I don't know if I would count since I still have been able to work, so long as the work isn't strenuous and I don't have to be on my feet all day.
I've considered welfare and bankruptcy but I'm not too sure how they work or if I would have to give up making enough money to pay for everything I need just to qualify. Or if bankruptcy will just ruin my credit enough to never be able to rent again.
I want to be responsible and make the best choice that will benefit me in the long run, but I don't know what that is or where to go. I really need some advice or clarity on this, so anything anyone has to say, please I'd love to hear it. Thank you.
- Good questions to ask my Bankruptcy Lawyer in the morning?
Questions to ask the bankruptcy lawyer in the morning to learn about the process AND to evaluate the lawyer's ability in bankruptcy. Sorry for the late question. I am visiting a bankruptcy lawyer in the morning. Without judging my circunstances, can you please give me good questions to ask to determine if this is the lawyer I should choose IF I do go down this path. What should I ask them about? Their experience? Their fees? Timeframes? Options? Please help as I know little about this process, and I would like to know if this is a good lawyer for this process. I already know all advise you provide is not legal advice, most of you are not lawyers, and I will take everything as simply friendly advise. Thank you for your help!
- What is the best path...
Did we receive sound advice? A friend is filing Chapter 7 bankruptcy in the next few days. A creditor is threatening to repossess some items if said person doesn't respond to the written request for a voluntary surrender of the items. A document pledging the items as collateral was signed. A legal advisor gave the following advice... The creditor has given the borrower until September 8, 2009 to respond. If no response is forthcoming, the creditor is threatening IMMEDIATE (September 9, 2009) assignment to a repo company. My question is this. During a legal consultation today, my friend was advised to tell the creditor to expect a bankruptcy filing in the next ten days. This seems counter-intuitive. Wouldn't the creditor speed up their efforts at repossesion in an effort to beat the bankruptcy filing? Was this bad advice and if so why? Was this good advice and if so why? Does it make more sense to remain quiet about the filing until the papers are delivered or does the creditor have to stop making efforts at repossesion the moment they are notified of intent to file bankruptcy documents.
- How can I make it go away?
Is bankruptcy the only way to put this foreclosure mess behind me? I bought a house near Las Vegas in February of 2005. At the time I was working as a contracted consulting engineer and I could afford the house. It sounds so stupid now, but I really did not understand the housing market bubble, I just wanted a place to live. In July 2005 I was essentially laid off - several clients canceled projects and my contract disappeared.
I was able to find another job but not in Nevada. I moved back to LA and rented the house, but for far less than the note ($1150 of $2400), so I kept paying the rest. After working 9 months in LA, I was laid off again (June 2006). I got married in October 2006. After collecting unemployment and searching for a job in my field, I finally had to give up and take a job at a grocery store. I still continued to pay the mortgage all this time, but in February 2008 I had a baby and have not worked since.
Starting in April 2008 I tried working through a company to negotiate a short sale on the house. I put together tons of financial information demonstrating how my circumstances had changed. The bank never approved any of the short sale offers and finally foreclosed in March 2009. I was not contacted by the bank at all during the process. Now today I get a letter from attorneys retained by the insurance company that offered the PMI on the loan (it was a 30-year fixed 95% down) demanding payment in the amount of $65K.
I am unable to get a job in my field in the LA area. To be honest my field of expertise was kind of narrow and I have made some professional mistakes. I suspect word has gotten around. My 10 year background looks "too exotic" or "overqualified" for a lot of other jobs. I cannot even get a menial job that will break even once childcare and expenses are factored in. I have not contributed to the bottom line of my household since I moved back to LA. I also have $11K in credit card debt (the account has been closed and I have been paying it down as much as possible). I used to make $75-85K a year, I guess I might have been overextended but really it wasn't that crazy when I was working.
But what do I do now? There is no way I can pay this. I don't think my husband should be responsible, since all this happened before we were married. But is he? How long are they going to come ofter me? Would bankruptcy work? If I need a lawyer, how do I get one? What kind do I need? How much does it cost? We have no money.
How do I know if I'm even getting good advice anymore? I feel as though I am loosing my whole life over a few bad decisions and some circumstances that were truly beyond my control. I don't know how to get another chance.
Thank you so much for any information or suggestions you are able to provide.
- Photographer's agent cornered in bankruptcy filing!
I am an agent representing a group of professional photographers and, among other things, am responsible for billing on their behalf as well as collecting and dispersing the moneys upon receipt.
I just received a notice regarding a job that took place 3+ years ago informing me that, because the client filed for bankruptcy shortly after I was paid, I have been judged as having been given preferred treatment and therefore I owe the trustee handling the bankruptcy the full amount paid, nearly $10,000.00!
To make matters worse the invoice in question was nothing but the photographer's expenses. In other words, the minute I received the payment I simply turned it around and paid it all to the photographer who has long since gone his own way and isn't responding to my calls or e-mails.
What, if any, are my options at this point?
- Do people lose their homes over health expenses?
Do people actually lose their homes to pay for health care in the US, or is this an urban myth? Basically, I am doing some comparisons of the US vs. Canadian style single-payer health systems. What I can't find are real, documented cases of people being driven to bankruptcy and/or losing their home due to health care costs.
Does this really happen, or is it just a myth? What I would like are links to real stories of individuals who have lost everything due to health expenses, if they actually exist.
Much obliged!
- Unsure as to how I should proceed.
The place I work may be going under. What should I do? I work as an attorney and the managing partner had all of us attorneys in a meeting yesterday. He told us that the firm is basically out of money and that he's worried about making payroll next week. We have 10 attorneys and 2 partners here, so it's a small firm.
I like the work environment here, and the partners are generous (to a fault, it seems). The main partner is a bit oafish and I think he may be putting his head in the sand as to how bad things really are. The other partner is bad about collecting his accounts receivable, which is probably the main reason the firm is in this mess.
I'm already looking for another job, but what do I do if this place does actually go under? There is work to be done and clients whose problems won't go away.
Do I stay on in the hopes I may get paid down the line, or do I just jump ship and leave all the work for others to do?
- Is there a proof of claims deadline for Canadian bankruptcy creditors?
Canadian (you are not my) lawyers: is there a deadline for filing a proof of claim in personal bankruptcies? A client recently filed personal bankruptcy in Ontario. The bankruptcy notice says that for a meeting to be held they must receive a certain percentage of proofs of claim within 30 days of the bankruptcy filing requesting such a meeting. But there does not otherwise appear to be any deadline for filing proofs generally, and neither Google nor the Act appear to suggest one.
We are not a huge creditor and don't have much hope in recovery, so I don't care to request a meeting; I just intend to file the proof of claim and go from there.
I know you are not my lawyer and are not giving me legal advice; any direction you can provide is greatly appreciated.
- Sacrifice, Future, Family, Bankruptcy...
I'm currently working on my MBA at a relatively prestigious business school and am coming to understand that my parents are in a grave financial situation that may lead to them having to file for bankruptcy. My father's been unable to get steady work for the last year or two and my mother's income isn't large enough to maintain the household and service their debt. In all likelihood they'll lose their house in two to three months unless something dramatic happens.
I'm considering dropping out of school and returning home to help them weather the storm but I don't know a) if they'd be able to stomach it, b) whether I'd be able to find a job quickly enough to fend off the fallout, c) if I'm really serious about doing this, d) if this is the right thing for me to do, and e) what it'll mean for my future. I'm really not too sure what else to write. I come from a pretty specialized professional background and have no idea whether I'd be able to get a compatible job back home. If you have any questions I'll try to elaborate so long as I can do so anonymously. I keep asking myself 'what would a man that I admire do in this situation' and have yet to come up with an answer....
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