Going Under but not Forever! - Posted by Darla Nassif

Posted by Gator on November 30, 1999 at 14:22:24:


My answer to the only question I saw is yes you can keep your goals and file bankruptcy. I think it will be much more difficult to accomplish your goals but you can keep them for what they are worth. I would encourage you to try to avoid bankruptcy. I realize I don’t know your situation but I feel that way too many people file when they don’t have all that much debt and simply need to organize their life and get their spending under control. Just my opinion but I would (and have) bust my a** to avoid bankruptcy. I would recommend a book “Financial Peace” by Dave Ramsey that Lonnie once recommended. It can be found at www.financialpeace.com. His organization will also provide you with certified financial planning if you so desire. Best wishes and I hope I haven’t said anything to offend you.

your friend,

Going Under but not Forever! - Posted by Darla Nassif

Posted by Darla Nassif on November 30, 1999 at 14:04:59:

Well I have to bite the bullet! I am still going to keep my goals before me as I ponder filing bankruptsy! I have never done that before so if anyone can give me some pointers I would appreciate it. I will find out if CS is right. Can I really keep my realestat investing goals and file bankruptsy and just start over? I am about to find out. I have been with you for a while and I have learned a lot. I have Mr. Vaughns SMGTRE, Lonnie’s Mobile course, Bill Bronchick’s course and I have studied Claude Diamond’s Lease Options. I have a home I am doing a lease option on now and I have a trailer for my parents with a L/O in FLA. I really want to get into multi-family investments here in CO. I thought I would put this out and see if anyone had any ideas. Darla

Re: Going Under but not Forever! - Posted by Jim IL

Posted by Jim IL on November 30, 1999 at 21:39:14:

AVOID the BK at all cost!..if you can.
I went thru it, and in the beginning loved the idea of not having to pay all these bills that we included. (WOW! Look all this “EXTRA” money we have now?!?!)
But, here I am almost three yesrs after discharge, and am still haunted by that BK.
I did all the “Credit report repairing” that you will/have heard about.
My report is better now than it was right after and during the BK, BUT, we still can not get good loans like we want to. (prior to the BK we had a fico that was REALLY HIGH, so a few minor glitches would have not hurt AS bad as the BK!!..the things we do in our youth!)
If I had it to do all over, we would have negotiated with the creditors and gotten the debts either restructured or paid off at discounts.
(of course threatening them with the “possible BK”.)

I have bought SEVERAL properties since, but could have done a LOT more with good credit.

In fact, last week, thanks to my pending divorce, I had to open a new checking acct for myself.
My bank offers a thing called, “check guard” which is just a small ($1000) over draft protection.
I had it on my old accts, all of them. (5) and always paid it off quickly whenever we used it. (not often.)
But, on this new acct, the bank refused me saying that I’d had a BK on my report.
The SAD part was that I was not even asking for this credit, and was opening the acct with a $10k beginning balance.
They still said, “NO!”

And, the really fun part is that the $5k in “check gaurd credit” I have on the “other accts” I cannot use, because it belongs to me and the soon to be ex-wife.(already have alerted the bank to NOT let her use it either.)
The bank would not even allow her and I to each take our names off some accts and let the other party keep some of them. You know, split them up, you keep these two dear, I’ll keep the other 2 and we can close this last one.
(And all the “check guards” have a ZERO balance.)

I did however get a good credit line from a home supply warehouse store recently. I applied and they gave it to me, no questions asked. (I almost fell off my shopping cart when they said that!)

So, AVOID that BK, there are better ways to go about it.
And as someone already said, a few “late pays” are WAY better than that BK all over the reports.

PLUS, in MANY cases, the accts you include in the BK will NOT get reported properly.
I am still trying to fight with EXPERIAN over a credit card that was included in my BK and they have on my report as being UNPAID and LATE by 3 YEARS!!
We have even sent them certified letters from the creditor showing that the acct. is closed, and was included in the BK. We may have to resort to using my attny for this fiasco, sonce they are disregarding the Fair Credit Reporting act…(30 days to investigate and ratify or remove from my report.)

And trust me, these credit reporting agencies are REALLY big beauracracy’s (sp?) and a night mare to deal with.
Unless you like unanswered letters and voice mail tag.

Good luck to you,
Jim IL

P.S. Also, make sure you look long and hard at the behavior or circumstances that got you here, and FIX IT!!
In my case, it was my first ex-wife, and she is gone.
Now if I can only get rid of this latest one??!?!!

Re: Going Under but not Forever! - Posted by Jeffrey Short

Posted by Jeffrey Short on November 30, 1999 at 19:00:05:


I too have considered BK…but found one more chance to avoid it. Try Debt Counselors of America… www.dca.org

They may be able to help you get out of your situation… w/o bankruptcy. While I have not completely ruled out BK, DCA has helped me focus on getting “my own” way out.


Bankruptsy Doesn’t Have To Be the End - Posted by Katie

Posted by Katie on November 30, 1999 at 18:49:53:

I know that it sounds horrible, but it doesn’t have to be the end of the world. Here’s the how tos 1) get all of your most recent bills together, pay stubs and W-2s, you’ll need a list of all your property and the resale value (this means everything including the cloths on your back, don’t worry you won’t lose the cloths on your back) 2) Call a number of bankruptsy attorneys most will give you free consultations, find someone you feel comfortable with, the price will range from $500 up (I paid $750 for mine) 3) DON’T TRY TO HIDE ANY ASSETS!!! 4) your attorney will give you a clear idea of the property that you will be allowed to keep, which in most states is quite a bit.

The only thing that we lost in our case was about $50,000 in very high interest debt. My credit report is actually better now than it was when I filed.

After your case is discharged you should immediately begin cleaning up your credit report. There is a book called Guaranteed Credit, written by Arnold S Goldstein, that you should read. It tells you how to honestly and legally clean up your credit report, you will not erase your bankruptsy, but you can improve your numbers.

For the record, my bankruptsy was discharged in August of this year. I closed on my first rental this week and I used a conventional loan. It’s a single family with $175 positive cash flow each month. It can be done.

Susan is right (plus one more comment) - Posted by Ben

Posted by Ben on November 30, 1999 at 17:44:52:

Use the THREAT of BK as your negotiating chip, tell creditors they can work with you and maybe get 50 cents on the dollar or you can file BK and they will get nothing. Unsecured creditors who would get totally wiped out by a BK will probably jump at the chance.

Re: Going Under but not Forever! - Posted by M.T.-(CO)

Posted by M.T.-(CO) on November 30, 1999 at 16:53:31:

I havent heard from you in a while, and now I understand why. Very sorry to hear about your situation, (I may be following close behind)!!
Are your real estate goals lagging because of the market here in the Grand Valley? Dont give up!

best wishes

Re: Going Under but not Forever! - Posted by Tony Vissoc

Posted by Tony Vissoc on November 30, 1999 at 16:13:39:

Another book I would recommend is “Rapid Debt Reduction Strategies”.


Find a way to avoid BK then start WORKING YOUR TAIL OFF to get back on track again. - Posted by SusanL.–FL

Posted by SusanL.–FL on November 30, 1999 at 15:06:23:

I am speaking from experience. 3 l/4 yrs. ago I had things go haywire and had $470,000 in debt start to avalanche. Personally speaking, showing ?late-pays? on your credit report is much better than showing a BK.

There are so MANY options available to you. Debtors WILL work with you. You would be surprised. You can reschedule your loans (mortgages and car loans). If you have real estate, the are ways to sell it quickly (wraparounds, etc.) to get out from under the weight but still have control over it. The IRS has a payment plan. The IRS also has an Abatement Hearing available to taxpayers where if you have a legitimate reason why you couldn?t pay your taxes on time, they might wave your penalties (but not the interest).
You can offer to ?settle? on accounts (credit cards & hospital bills) if you can?t pay them off. I had about 4 cards going and all maxed out to about $50,000. What I did in the beginning (in a desperate measure) was to roll over the balances to a new cards with low introductory interest rates. It did give me some breathing room for awhile. When I could no longer make the $450 monthly payments, I at least sent something in and I always returned all creditor calls.

Two hours ago I got the last of my nine mortgages back on track. No small feat.

Other ideas: If you have any IRAs, think about cashing them in to help save yourself. You will have to pay the penalties on early withdrawal but you are probably young enough to start over again.

Seek out a consolidation counselor who may have some advice. I went to one and after spending literally HOURS filling in all the numbers, she calmly told me that I wouldn?t qualify for the plan because we weren?t making enuf money and couldn?t make the lump sum payment. Well duhhhhhhhhhhhhhhh! :slight_smile:

It will be stressful and you will have MANY sleepless nights, but you CAN get through it-----if you want to.

And last but not LEAST—determine and CORRECT what put you in the financial position in the first place!

Good luck and keep us posted!