Bankruptcy

I filed bankruptcy in 1994 when I was 32. I had gone to Credit Counseling Center and they suggested I file. I found an attorney in SF and it was quite easy and it cost me about $300. However, I did not have a home, nor did I have kids at the time. I basically had $12,000 in credit card debt and I was a single renter not making much money. I have heard that bankruptcy laws have changed since then. Good-luck.

I too own a business and am realizing things aren't going to get a whole lot better for awhile still. I finally spoke with one of my vendors who told me what a struggle it is for many people and it really made me feel better. The main thing she said was to stay in contact with everyone. 10 people sending 15.00 to a supplier is better than getting nothing, and the worst thing is to not keep in contact with them. Also, by showing good faith, it stops any collections.I've thought about selling plants from my yard, mowing lawns, etc to help make ends meet. Also, you might try calling the people who owe you money and seriously ask them if they can pawn something in order to pay you-that might get their attention. And lastly, I know a single mom who broke down and rented a back room in her house to a college student in order to make ends meet-think creatively, maybe contact a temp agency for more bookkeeping work. Good luck!

file for bankruptcy, you will get a new start and be able to build a new credit in about 4 years. Give up the house, without work, you have no financial benefit for staying there. Both of you, try and get any kind of work and that goes for your kids who are still at home too. Everyone needs to help out. Our country has never seen the likes of this recession. you are not alone. Take care. My husband and I are hanging on by a thread. Our financial advisor says it's better to rent but we are holding on. We have also refinanced several times because my husband w/ diabetes has been sick, really sick, 4 times in the last 12 years, losing years of work. Stop crying and take the pressure off of yourselves and your husband. Be good to yourself and him and your kids. You will be okay, no one is dying of a terrible disease, you still love each other. It's just 4 walls, go somewhere else, cheaper, and breathe.

Hi S.:
I am deeply sorry you are stuck in this economic throws of life as some of us also have been. I know an attorney you can speak to about the BK issue and he may be able to help. His name is Stephen Cammack and he works in the same office as I do. HIs telephone number is ###-###-####. Tell him T. Y. referred you and he will take good care of you.
Regarding your husband's business. If he is a partner, the accountant should be handling the issues and notifying everyone of the situation. It sounds like he is a sole proprietor though and as my current boyfriend, baby's father, went through, he was a sole owner of an alarm company that went BK a few years ago and although he lost the business, he felt that now he could put his handy mind and body to work doing other things. It is a little hard if you have to lose the house but one thing I can tell you going through money issues still, is that the house is a material item. You and your family and friends mean more than that and you can be happy if you stick together through the trying times.
Give Mr. Cammack a call and I will tell his secretary that you may be calling. Good luck!

T. Y.

We had a really crappy loan on our house, it was interest only and our payments climbed to $3200 a month. We used credit cards to try to save the house and had zero equity because when we refinanced we were refinanced at 100%.. needless to say we learned ALOT from that experience and we filed 2 years ago to clear ourselves of the stress and phone calls from creditors. We contacted David Arietta in Walnut Creek. Here is his info:
David A. Arietta
Law Offices of David A. Arietta
700 Ygnacio Valley Road, Suite 200
Walnut Creek, CA 94596
phone (925) ###-###-####
fax (925) ###-###-####
https://www.Ariettalaw.com

He did a good job for us. Good luck.. T.

Try contacting a Consumer Credit Couselling office in your area - they will review your finances over the phone or in person and help you determine whether you can consolidate debts or file for bankruptcy. If bankruptcy seems to be the way to go - contact your local State Bar Association branch - tell them the "nutshell" of what's going on and they will connect you with a good attorney. In San Joaquin County it costs $60 for the initial consultation with a good attorney that is NOT going to rip you off.
Also, contact Visionary Home Builders in Stockton - they can help you get your mortgage lender to modify your loans to a better interest rate and lower payments. They are a HUD program - all we paid was $40 for our credit checks.
www.visionaryhomebuilders.org It takes about a month to get an appointment - so contact them right away - go pick up the forms and get them filled out a.s.a.p. to get the ball rolling. Meanwhile you can tackle the bankruptcy stuff.
Been there, done that, bought the T-shirt.

S.,
We just filed chapter 11; or 7 i forget which one. Anyway, our attorney is in Auburn, we went there because he was recommended to us by a friend. He really knows what he is doing, and makes it worth the drive. I know it is hard to get thru all of this, but has your husband filed any leins on the propteries that he is owed money from? It has been done, and can be done. But that does not mean he will see it any time soon. In the process of your bankruptcy we are giving up our home, and all of the debt. You can keep the house, and do a chapter 13 which will restructure your amount that you owe. It sounds like you may also need to consider that this may be causing some depression with you, especially if you are crying all the time. Go see your primary care doctor for help before it is too late. When I get depressed I end up crying for days at a time and can not stop. I have even woken up in my sleep and been crying. I feel for you and I just keep telling myself that we are not alone with this, that a lot of people are going thru this right now. It's all over the place.
W. M.

I normally wouldn't recommend this, but first I say go to your dr and have him give you some meds to get through this trying time. You need sleep to think straight. Something mild, if you're against asking your md, try an over the counter med. Next, can you and your husband do some work outside of the home--again, you need some cash immediate cash to get you through this crisis. Then if you haven't already, call your mortgage company see if there is anything they can do to help you. Call any and all credit card companies and do the same. Lastly, as previously mentioned contact a bankruptcy attorney. (you might look for bankruptcy blogs and see what other people have done) It can be a fairly simple process. However, the people I know who have filed seem to do it more than once after that initial time has passed. I'm not saying that would be you, but it's something to think about.

Remember--take care of yourself first, the rest won't seem so scary.

I looked into bankruptcy for my mom, but not very deeply. The laws let you keep a certain amount of equity from your house (though that sounds irrelevant to your situation, unfortunately) and I think you can keep a vehicle up to a certain value. If your business is incorporated that'll protect your personal assets. In your shoes, I would consult a bankruptcy lawyer to help you sort out the options, and I would start charging the children rent and let them know the severity of your situation. I have family friends who filed for bankruptcy 15-20 years ago and they are fine now; even own their own home again. I know it would be really hard for you to leave your home, but that might be the best option: to walk away and start again with a clean slate. That is the purpose of Bankruptcy. I hope that you will find a solution soon.

Hi! Bankruptcy sounds scarey and it isn't really. It is a way to get out from under when all other resources have failed. As like anything, there are some risks involved when doing so. It sits on your credit for 10yrs. You may get sued even after your bankruptcy goes through (some creditors still try to collect, especially if you have assets). Getting a loan of any sort is literally impossible! Even renting (which you don't have to worry about). That is my only issues. Well i have a few "bill collectors" trying to go after me for bills that were issued AFTER my bankruptcy was passed.

I have filed back in September 08, it was a personal bankruptcy chapter 7 as a no asset case (i had not personal belongings).

Your bankruptcy will be determined based on your income as a married couple. Your income level will decide if you qualify for a chapter 7 or a chapter 13.

If either one of you are bringing in ANY income in a 6 month period and its less then the allowed income for the 6 months, then you can qualify for chapter 7.

In some cases they do allow you a certain percentage of personal property (i.e. home/car).

As with anything, i would consult an attorney, one who specializes in Bankruptcy. Your first initial consultation is free. He/she will evaluate your case and direct you in the right direction.

Depending where your located, I can recommend my lawyer. Remember, they do as for retaining fees if you do decide to go with them and represent you.

Good luck in your decision, what ever it may be. Do know, I am happy I did it. It sucks for other reasons, but knowing I have no debt, no credit cards, no car payments, etc....is quite refreshing. I still till this day do not own a single credit card. If I don't have the cash, I don't buy it. It was a quick way to fix my money issues and spendings issues I had. This wasn't my first time having to be bailed out of financial debt. So it was a hard lesson to teach my self to be responsible financially.

Speak with a bankruptcy law attorney ASAP. I'm not a lawyer myself but I do know that some types of bankruptcy will allow you to keep your home, cars, etc, and just re-organize the debt. Also you may be able to re-negotiate your home loan with your lender to reduce those payments as well. Good luck with everything. We lost our home last year so I know what it's like to feel what you're feeling right now!! Hang in there!

Hi S., I've never been through a bankruptcy, however I do know of a reputable bankruptcy Attorney Max Cline, you may be able to get a free consultation.

Good Luck

First go to Nolo Press in Berkeley, on 9th and Parker Streets, and pick up a handbook on bankruptcy, so you will at least have an idea of whether or not you need to declare bankruptcy. (Or call Nolo, and ask them to send you an appropriate book. You might want to ask for a book on collections, also, and see if you can collect the money your husband is owed.) Nolo Press publishes books on the law for non-lawyers, and they are a fabulous resource.

Then, if it looks like you will need to declare bankruptcy, call your county Bar Association, and ask for referrals to attorneys who specialize in bankruptcy and/or collections. You may have to pay $20 for the referrals, but it is worth it to find an attorney who practices the type of law you need help with, and an attorney who is in good standing, and doesn't have a disciplinary record.

And try not to worry (although, of course, that's easier said than done.) Many families are in the same boat right now. Even if you do have to go bankrupt, you have your family, and your health, and you'll get through it.

Oh S.,
I DO UNDERSTAND! Been there.Lost everything,was actually homeless for a time with a year old baby girl,two boys 10& 11, a dog,cat,& snake, all living in the back of my car, or when we had enough $$ the motel 6...........Our BIGGEST MISTAKE....was not filing BK. I felt Guilty filing.....so we never did....we thought we could live the American Dream, and Good Americans DON"T file bankruptcy.......
11 years later, we still have NO CREDIT!!!! Our kids are older & smarter for the expierence but I wish we weren't.....
Please DO NOT HESITATE....file. I do know things have changed in regards to the rules for filing but IF it will save you even ONE nights sleep it will be worth it I PROMISE!
I don't mean to scare you, BUT it's scarier not knowing where you might be sleeping next week..IF we had filed, we would not have been homeless, we would not have lost everything. We wouldn't have had to move our kids 500 miles away & start a whole new life.
We did it, it can be done, & we ARE STRONGER FOR IT! (atleast that's what everyones says when they don't know what else to say)...
I just don't ever want to see ANYONE (even a someone I have never met) go thru what we did! We had friends & help from our church but even then we had to start all over. One of the hardest things to get over is the PRIDE,admitting to our friends & family that we had lost everything.....some of them tried to help us but we wouldn't take any money...finally my brother rented a home for us until we could get on our feet so to speak.
We did move,went back to work for someone else. We are both still in the same industry so jobs were easier to come by but now we have NONE of the benefits of owning your own business, NONE of the things we thought we would have by this stage in our lives, NO savings, No credit....list goes on but it's just TOO depressing.
I know I was suppose to make you feel better BUT, it is not an easy thing to deal with.Please feel free to send me a private e-mail IF you would like to talk some more.
Go to another Attorney, you are paying thier fee's & should get the answers you went there for,IF NOT,get your money back. This is one thing I HAVE LEARNED. ASK>>>all they can say is "no", and you are no worse off for asking. If they say yes than you may have saved a few bucks.....
By the way, my credit union offers a Consumer Credit Counseling service for FREE ( if you are a member)they will give you a FREE consultation. Safe Credit Union, even if you don't belong, call your own bank they may offer something similar due to the recent economic crisis ???? It's worth a try .
Good Luck, I will say a prayer for you & your family. Don't let PRIDE send you to the poor house like we did....please....L.(i hope none of this sounded rude, I just got so worked up with old feelings,sorry)

Hi S.,

If your husband is a licensed contractor then he can go to the recorders office and put a lean on the houses that he did work on and didn't get paid for.

That will surely make them pay him. If they don't they will have that lean on their house by him until they pay off their debt with him. If they don't, they can't sell their house or get a loan from the lender for anything.

I would do that. But don't file for bankruptcy. You do not want to ruin your credit. Best of luck to ya.

I also felt that filing bk was giving up -taking the chicken way out and asking for someone else to bail you out however after my husband's divorce from first wife was over, we were stuck with a good portion of HER debt. Now I know it usually is 50-50 splitting some debt but this was debt for her that she obtained AND a few doctor bills for the kids that we had previously offered to take care of under our insurance but she insisted doing it her way. I was really mad that we/he had to pay for things she signed saying she was responsible for. I have no problem paying for the kids but this was a control issue for her. There would not have been a bill if she would have used our insurance. We also were not able to claim either child or any of the daycare expense for taxes so we ended up with a huge IRS bill. We struggled for a long time to get things in order. I had debt from when I was younger and stupid so we had some issues to work on. After 4 yrs of making payment arrangements, we were close to getting back on track and my husband lost his job. So now we were $4000 less a month. We ended up filing BK and while it has been hard to get a car loan (we ended up with high interest rates), and have been turned down by a few rental agencies, not to mention credit cards... we are plugging through.

I do agree that you should file liens on the work that you have done so that you can get paid.

Dear S.,
I'm so sorry to hear you are going through all of this.
You are certainly not alone.
Times are really tough for people right now.
A friend of mine is going through the same thing right now (although she and her husband are not self-employed).
He had to have two operations and lost a lot of work so last year, she began trying to get a loan modification on her house through her mortgage broker. He told her to quit making her house payments and to make a long story short, she was notified by the bank that they had begun foreclosure proceedings. She was ready to walk away from her house which would have been terrible because they poured a lot of money into improvements before the market tanked.
I gave her the number of an amazing attorney who is getting them all straightened out without losing their home or vehicles and is getting them on a re-payment plan. The whole world was lifted off her shoulders.
The attorney I know that specializes in these things is in Humboldt County, but if you need, I can give you his number. He may know of someone in your area that can help you. He gives free telephone consultations. I think my friend said they talked for an hour free of charge.
Get some expert legal advice.
My friend went from crying day and night thinking her family was going to be living on a river bank somewhere to being able to breathe.
I wish you the very best and hope it all works out for you.

Hi S.

sounds like you are in a real bind. Some things to consider APART from bankruptcy and maybe a way to get your financial life back on track. Have you considered selling the house and becoming renters? if you live in the city (or a city) then sell a car(if you own more than one) usually city transportation is good enough. Do the kids work? if not, how about them getting part time jobs and IF you or your husband is paying off a car debt for them, then perhaps they can take over those bills. I am just suggesting really getting down and dirty and consolidating.. cut out all cable , EXTRA cellphones, eating out and anything else you can think of.. I would make a list of all the things you and your family purchase on a monthly basis, including all the bills.. Also, what about having a huge garage sale?
I suggest this because I , too have have to consolidate. get rid of excess. you'd be surprise how much extra fat you can cut out. We started first with no longer buying coffee out (saved a ton there) then of course always brought our own food to work... stopped buying clothing IF it wasn't on sale and only IF totally needed. We dropped any and all memberships to a gym (stopped buying into the idea that we needed it for our sanity) and instead we walk and or use our old treadmill.. oh and the biggest thing for me.. I stopped having my hair done. I now color it myself and save a fortune. In addition, If I want a haircut, I go to one of those places that charges about 10 dollars.. the cut is just as good... I constantly look for ways to cutback. I also take muni all the time and or walk. As for other ways, I take any clothes that I might have otherwise given away, to consignment shops and sell them there.. this includes old cds I never listen to any longer. lastly... while we don't have much of this kind of stuff, frankly.. we also do all our own recycling. we used to put out used bottles and stuff for garbage day, now we keep all bottles and recyclables and cash them in ourselves. I know this sounds like nitpicking, but things do add up.... and as you will probably contest, every penny these days does count..
I wish you the best in whatever you decide to do!!

Visit www.cccssf.org

Hi S.,

My name is S. Crow and my husband is a self employed contractor also. By law, you have the right to file mechanics liens on the properties that people owe you money for. Even if there are disputes on the jobs, I would file those imediately and work to resolve the disputes. Sometimes, this is an eye opener to clients that you mean business. Its simple and I can walk you thru it if you need some help. I can email the forms and an example of how to fill it out. Don't pay a lawyer to do it. If the clients are currently going thru bankcruptcy, it would be prudent to files these liens asap. That will put you in line to be paid from the judge appointed to pay bills on behalf of the client.

I too feel your pain...just remember nothing too good or too bad happens for too long. It will all be over shortly.

Hi S.,

Did you know that the Bankruptcy laws our nation has, came directly from the Bible, the book of Deteronomy? The Bible allows for forgiveness and release of debt.

All things work for the good of those who love Christ and are called to him. It is during these hard times that Jesus can be your rock. You can cry to him and the Bible says he will listen.

"In my distress I called to the Lord,I cried to my God for help. From his temple he heard my voice, my cry came before him, into his ears." Psalms 18:6
" He reached down from on high and took hold of me; he drew me out of deep waters. He rescued me from my powerful enemy, from my foes who were too strong for me.They confronted me in the day of my disaster, but the LORD was my support." Psalm 18:16

God can turn your darkness into light. He did for me.
He is the mighty counselor. He can be your ear, lean on Him.
Everytime I would fear and cry, I would go to my Bible and God would comfort me. The psalms were a great place of comfort for me in my deepest darkest hour.

I have tested it, and I know it's true. Listen to the promises he has for those who know and LOVE HIM and TRUST him: "I will lead the blind by ways they have not known, along unfamiliar paths I will GUIDE them. I will turn the darkness into light before them, and make the rough places smooth. These things I will do. I will not forsake them. But those who trust in idols (not the true God) will be turned back in shame."
"Fear not for I have redeemed you, I have summoned you by name; you are mine. When you pass through the waters, I will be with you, and when you pass through the rivers they will not sweep over you, when you walk through the fire , you will not be burned, for I am the Lord your God" Isaiah 43:2
For those who have accepted that he is Lord God, he will fulfill every promise in the Bible. He doesn't promise that we won't ever go through trials and hardship, we all will. But he does promise that he will be with you and to not fear...everything will turn out ok. He can give you comfort and he can give you direction "weather you turn to the right or to the left,your ear will hear a voice behind you saying this is the way, walk in it" Isaiah 30:21.
If you haven't called upon him to come into your heart and be the Lord of you life, you can do it now. Just ask him to come in (he won't come in unless he is invited by you).Thank him for his gift on the cross of forgiveness and mercy.tell him you want to be His.

In the meantime do not be afraid to seek BK. God forgives debt and what he thinks is the only thing you need to worry about.

I sent up a prayer for you. May you find peace tonight in Him,

Gail

I know exactly how you are feeling. My husband & I filed for bankruptcy last year & I was terrified. It is a long process & you need to get a good attorney or bankruptcy firm. We went with a nationwide company who has locations all over, including Sacramento. Make sure you list all debts, including mortgage(s) and they can let you know if you qualify. You are allowed to keep your home & vehicles, as long as they are not luxury or very expensive cars, and you may be able to qualify for Chapter 7, which wipes out all debts or Chapter 13, where you pay back some of the debt on a schedule.
I was worried about my credit, but at the time,it was looking pretty bad anyway, and the overall guilt of filing. As we are now debt free, I can tell you we feel such relief. We only buy things when we can afford it and pay cash. What a great feeling.
Go get a free consultation with an attorney and they can go over everything with you. We ended up paying $1800 in legal fees, but that also included all court costs & attorney fees & we were able to make payments.
Good luck & get some sleep. It will make you feel so much better when it is all done.