Bankruptcy

Well, I've become a statistic. I am joining the growing number of people in filing for bankruptcy this year.

I've known for years that bankruptcy would benefit my financially, but I've held off because my credit was blemish free. Unfortunately, someone sued me in small claims court and got a judgment.

First rule of small claims court. Insist upon an ACTUAL JUDGE. Don't let any ol' flunky they have come in and hear the case. In our case he couldn't make up his mind who was right between the $4,000 they wanted and the $0 I was offering so he awarded a judgment for $2000.

I've been battling with AT&T Universal Card for over a year about a fraudulent charge too that they refuse to reverse. I feel like I can kill two birds with one stone.

Make that three birds. I totalled my vehicle and Infinity Insurance won't pay the claim (but they won't send me a denial letter either). Time to let the credit union fight it out with them.

I'm using ziinetplus2.com to fill out the initial paperwork. At $199 it wasn't cheap, but I just charged it. Since I'm filing bankruptcy...

I have no lates on my credit profile. Sorry, FICO, sometimes people DON'T give advance warning on a CH7.

Direct Merchants Credit Card bank is in for a shock. I sent them a $4,000 payment a couple of months ago. Now it's going to be treated as a 'preferential payment' and be demanded back.

This is a time for a new change in my life. I'm getting out of the loan shark business and into the shampoo business. I broke up with a girlfriend and I'm moving. It feels good to make a fresh start! New Years is just so invigorating that way!!

Oh Shylock!

You know better than to go bankrupt over such small amounts with a 0 late credit report! I have followed your posts for years and you are just about as smart as I am on credit. I even asked your advice on multiple credit cards right before I got the quarter million+ credit which can be invested wisely to well overcome your dillema especially being that your intro rates will cost you an adjusted average of about 4 percent for the first year! Being that you have no lates and a fairly long history you have obviously overcome the responsible spendng issue. Even if an amatuer followed that program with little inquiries and reasonable balances it is a guaranteed 50-100k credit line.

WHAT THE HELL R U DOIN SHYLOCK?

Yeah, that's what I thought - had some e-mail with Shylock while posting was disabled.

"In our case he couldn't make up his mind who was right between the $4,000 they wanted and the $0 I was offering so he awarded a judgment for $2000.

and

"I totalled my vehicle and Infinity Insurance won't pay the claim (but they won't send me a denial letter either). Time to let the credit union fight it out with them."

and

"I've been battling with AT&T Universal Card for over a year about a fraudulent charge too that they refuse to reverse."

I found that so often it's not overspending, it's "small" problems like Shylock is having -- but several of these can just make you say "See that finger? Ok, I discharge!"

Have to say that I wouldn't have filed if I'd had the equity in my house to pay everybody. In 96 I didn't know nearly as much about bankruptcy as I do now, and bankruptcy was the worst thing I could imagine. If I didn't have several of these "little" problems like Shylock, I would have sold my house, got a job to pay the remaining debts, and I certainly wouldn't be doing "this" today.

There were some people who really didn't DESERVE to get paid, and since not paying them would have ruined my credit, I decided to discharge everybody. Never once regretted it either, at $60K+ it was definitely worth it.

It's not overspending. I rent a small room from someone and I sleep on the floor -- no bed. That was fine when I was 18, 21, and 25. I turn 30 in February and it's just getting old.

I overdrafted my Washington Mutual account. Anyone who's had an account with them knows they offer a pseudo-"overdraft protection" where you can overdraft, pay the $21.00 and bring your account current. I brought in a check shortly after my condo sold for the full amount and they refused to cash it. "Too likely to not be good." They did, however, place the item with CHEX and with a collection agency, which regularly demands that I send them a check for the amount owed. I already did that and WAMU wouldn't accept it.

I owe $800 in parking tickets for the high crime of parking outside my own house. Turns out in my city you must apply for a permit to park your car in front of your own house. No signs are posted on the entire street.

My biggest problem, honestly, is a sense of disorganization. I'm terrible about keeping paperwork organized, easy to find and in the right place.

I printed out my bankruptcy petition through ZIinetplus2.com -- all 47 pages. I was pretty impressed with how easily and simply it worked out. I just gotta fork over the $200 and file it. Apparently you can only file from 9-4 and I work from 7-4. I don't get sick days or time off either.

The collection company for the company that got the judgment against me for $2,000 sent me a bill for $5,500. Despite the judge throwing out half of their claim and disallowing interest they are claiming the original amount, $1,100 in "interest" (at a usurious 18%) plus $400 in court costs.

That's several violations of the FDCPA right there. I just want to get the ch 7 discharged then go after them for FDCPA violations.

I got a preapproved card soliciation in the mail yesterday. Funny.

I am very pleased with the results of the software I downloaded to create my bankruptcy petition. The date for my creditors meeting has been set and there are no deficiencies in my pleading.

A side note to anyone that uses this method - originals are apparently supposed to be "blue backed" meaning that a blue sheet of paper is affixed to the back. The lady at the counter assisted me in attaching a blue sheet to the back of my original petition.

I would recommend that you keep the 7 in the back pocket for future use.
My rule of thumb is similar to what i've read elsewhere. i'd wait until you have 3x debt to income. At that point, game over and start again.
i should have declared 7 way before i refi'd my home (at which time I still had a job).
i think we are just beginning a huge wave of 7. i know so many people out of work for so long. there is little hiring going on and the high price of oil is about to put the economy down for another 6 months to a year. hope i'm still working then. ugh.