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Whee! It's done!

post #1 of 12
Thread Starter 
Whee! It's done!

I'm officially debt free! None of my creditors contested the bankruptcy so as of August 31, 2008 at 11:59pm, I received an automatic discharge. I haven't officially gotten any documentation from the Trustee yet, but I'm sure that will be coming within in a week or so. However, I just faxed my final Income and Expense Report to them.

I feel like a monkey is off my back and I have some control, and privacy, back in my life

The next and final step, is getting back to my job and that is in the works!

I have to say to those who are drowning in debt and trying to juggle a mounting debt load and going without food and medications at times in order to pay bills, that is no way to live Bankruptcy is not the ideal way to dealing with your debts, but there comes a time where it is the only viable option, and having gone through it, I can tell you that making the decision is the hardest part. Once you make that decision it feels like a 10 ton weight has been lifted off. My money problems and bill collectors were not only affecting me physically because I was so stressed out from being harassed, but it was also affecting me mentally and I was falling into a depression that was affecting my ability to rehab and motivate myself to keep pushing forward.

So if you are going through some really tough financial times, don't be embarrassed if you have to consider and pursue bankruptcy. The process is really not that bad and it's pretty painless. I don't regret for a moment having taken the step. Plus it's a huge wakeup call to change your money habits Cutting up credit cards and getting a consolidation loan just doesn't do it. Bankruptcy on the other hand is like shock therapy; a real wake up call.
post #2 of 12
i am glad to hear it
and now that you getting back to work , it all sounds good!!!
post #3 of 12
we're going through the same thing right now and he finishes next month i'm glad to hear that everything worked out for the better for you
post #4 of 12
Here's to better days ahead
post #5 of 12
Right on! I am glad to hear things are working out so well for you
post #6 of 12
Congratulations!! WOO!!!
post #7 of 12
Our daughter had to do it when she was around 18 - she let her cell phone charges spin wildly out of control and we refused to bail her out. We figured she was old enough to know better. Anyway, the only bad part of bankruptcy is that if you want a loan or financing for anything fairly large in the next few years unless you can get a co-signer your chances are slim to none. I don't remember off-hand how many years after bankruptcy you were "black-listed" but it was a fair bit of time for our daughter.
post #8 of 12
Good for you!!!!!
post #9 of 12
Thread Starter 
Quote:
Originally Posted by Yosemite View Post
Our daughter had to do it when she was around 18 - she let her cell phone charges spin wildly out of control and we refused to bail her out. We figured she was old enough to know better. Anyway, the only bad part of bankruptcy is that if you want a loan or financing for anything fairly large in the next few years unless you can get a co-signer your chances are slim to none. I don't remember off-hand how many years after bankruptcy you were "black-listed" but it was a fair bit of time for our daughter.
Credit is really easy to rebuild. I already have a plan for that, but it won't be until I'm back at my job and have money to go along with my plan.

I intend to get a secured investment loan. Because the bank will have control of my investment, their loan to me is secure. If I default they just take back the money they gave me. I intend to do just a couple thousand and pay it off in 1/2 the time as the loan period.

I also intend to get a prepaid credit card through my bank. Instead of charging a debt, it will work similar to cash in that what I spend comes off of my prepaid credit. The fact that the payments are being made "on time" will go towards building a positive credit.

I've talked to my bank and they said that if I stick to this plan I should have A1 credit established by the end of next year. Yes, the bankruptcy will still be on my credit report for 6 years, but a good year or two of excellent credit reports will go a long way to negating the R9 credit that I currently have from the bankruptcy.

Also my bankruptcy was the result of extenuating circumstances. I didn't just up and decide to declare. I went off work sick and held off for 3 years before I finally had to and that was only because everything around me was going up in price and my income remained the same, and while I had made arrangements with my creditors to make payments at a lower interest rate until I returned to work, one creditor refused to work with me and actually it was them that forced me into a position where I had no other choice but to go bankrupt. Had I not ended up off work sick, I never would have declared and would have done what I've done in the past, pay my debts.

So I'm not concerned about getting credit. I have no plans on buying a house and when I do buy a car in the spring, because I have no debt I'll be paying for it in cash, or perhaps using it as a way to help build my credit by paying for all but a couple thousand and using the car as collateral for the amount.
post #10 of 12
I'm not sure if a car CAN be used for collateral - cause it depreciates too fast.

IMO its better to avoid going back to using credit cards after bankrupcy. Only use case or the bank debit cards that takes the money out right then.
post #11 of 12
Thread Starter 
Quote:
Originally Posted by GoldenKitty45 View Post
I'm not sure if a car CAN be used for collateral - cause it depreciates too fast.

IMO its better to avoid going back to using credit cards after bankrupcy. Only use case or the bank debit cards that takes the money out right then.
Yes, cars can be used as collateral. To get a car loan, the bank requires 15% down and they will use the car as collateral for the rest. But I intend to pay cash for my car, and if I decide to use the purchase to help build my credit back, it will only be financing a couple thousand dollars and paying cash for the bulk of the purchase.

So far as credit cards after bankruptcy go, there is nothing wrong with it. I plan on getting a prepaid one to help build credit, so it will be like using a debit card, because it's a credit card, each purchase while being paid cash for, will also be repairing my credit unlike using a bank debit card.

I've talked to my bank and they said that I have a very sound plan of action, plus I've been doing a great deal of reading up on rebuilding credit, and these are some of the things that are recommended.

Plus I'll have a huge advantage behind me. When I go back to work, seeing that I'm debt free, I'll be able to bank one full check and 1/2 of the other one each month, so I'll be putting large amounts of money into savings. If you have money in savings, it's easier to get loans because creditors can see that you have a way to pay them back.
post #12 of 12
I'll bet you feel just wonderful, Linda! Kudos to you for getting your life back in order! It takes a lot of courage to do what you have done!
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