Bankruptcy - anyone gone through it?

[R8RFAN]

Originally Posted by Dayze

I definitely want to get to a point where I’m debt free.

The real kick to the onions with this deal is we did everything right 3 years ago when we bought the house. We only borrowed about 65% of what we qualified for etc. It just sucked bad when I had to take a job paying 40%less per year; and by the time I got the job, we had racked up debt; . It took every bit of unemployment simply to pay the house payment; my wifes income covered the other secured debt; gas, food, even some utilities had to be put on credit.

I want to get past this; begin restore credit (hopefully only restoring late pays etc and not a foreclosure) and get out of unsecured debt. Then only enter into a small practical home.
Our current house is nice, but too big for the two of us anyway.

Friend, restoring credit is not your first priority, there is no shame in renting until you are financially capable of being a home owner.

If you spend your life worrying about a FICA score, you are spending your life worrying about what to put on credit next..

I did it before, I was up to my ass once before, thought I deserved this or that just because I worked, then I realized I deserve nothing I couldn't pay for.

Now when I buy a car, it's cash, a boat it's cash or anything else I want... My credit score is falling like a rock because I have no debt and I am no longer important to them unless I am paying payments and debt...

I could care less about credit, it's good for one thing... To buy a house at a decent rate, other than that they can keep it.

Bank your money, save up 20-30k while u are in bankruptcy... when you are able to buy again, put the big payment down to avoid PMI then get a 15 yr note that is no more than 25% of youy NET household income per month

can I ask you what the % of your NET income the house payment is or was?

[CaliforniaChief]

Originally Posted by R8ers

Friend, restoring credit is not your first priority, there is no shame in renting until you are financially capable of being a home owner.

If you spend your life worrying about a FICA score, you are spending your life worrying about what to put on credit next..

I did it before, I was up to my ass once before, thought I deserved this or that just because I worked, then I realized I deserve nothing I couldn't pay for.

Now when I buy a car, it's cash, a boat it's cash or anything else I want... My credit score is falling like a rock because I have no debt and I am no longer important to them unless I am paying payments and debt...

I could care less about credit, it's good for one thing... To buy a house at a decent rate, other than that they can keep it.

Bank your money, save up 20-30k while u are in bankruptcy... when you are able to buy again, put the big payment down to avoid PMI then get a 15 yr note that is no more than 25% of youy NET household income per month

can I ask you what the % of your NET income the house payment is or was?

This is great feedback in that cash is so powerful now. Find a way to stash as much cash away as you can and any credit concerns will be alleviated if you're bringing all cash or mostly cash to the table.

[Dayze]

Originally Posted by R8ers

Friend, restoring credit is not your first priority, there is no shame in renting until you are financially capable of being a home owner.

If you spend your life worrying about a FICA score, you are spending your life worrying about what to put on credit next..

I did it before, I was up to my ass once before, thought I deserved this or that just because I worked, then I realized I deserve nothing I couldn't pay for.

Now when I buy a car, it's cash, a boat it's cash or anything else I want... My credit score is falling like a rock because I have no debt and I am no longer important to them unless I am paying payments and debt...

I could care less about credit, it's good for one thing... To buy a house at a decent rate, other than that they can keep it.

Bank your money, save up 20-30k while u are in bankruptcy... when you are able to buy again, put the big payment down to avoid PMI then get a 15 yr note that is no more than 25% of youy NET household income per month

can I ask you what the % of your NET income the house payment is or was?

That’s pretty much our plan.

Pay off debt; rat-hole money, then get into a home for no more than 15 yrs.

Excellent posts, by the way R8rs.

[R8RFAN]

Originally Posted by Dayze

That’s pretty much our plan.

Pay off debt; rat-hole money, then get into a home for no more than 15 yrs.

Excellent posts, by the way R8rs.

I hope you get their friend, because I promise you, if and when you do, you will never go back and the feeling of having very little come out of your paycheck per week and having more money than month will become like a drug.

I always get what I need, I get mostly what I want, but once your though process changes and you realize creditors are NOT your friend and want your money, you think twice before you will sign your name.

I am not rich, I have a wife and a teenage daughter, I may die with a crapload of cash for my wife and daughter to spend.... who cares, thats who I would want to spend it.

When you are forced to pay cash, you will learn to save...

I will give you my opinion on bankruptcy though, if you do it, do it all the way, don't do that pay off the creditors crap and do not consult one of those credit consolidation or get out of credit card debt or similar companies....

Or any of those negotiate your payments company, they will take your money and just do what you can do for yourself.

You credit will be smashed either way, house, utilities, car to get to work other than that, screw the unsecured debt.

Go buy the book Total Money Makeover by Dave Ramsey

[Mr. Flopnuts]

Originally Posted by R8ers

I hope you get their friend, because I promise you, if and when you do, you will never go back and the feeling of having very little come out of your paycheck per week and having more money than month will become like a drug.

I always get what I need, I get mostly what I want, but once your though process changes and you realize creditors are NOT your friend and want your money, you think twice before you will sign your name.

I am not rich, I have a wife and a teenage daughter, I may die with a crapload of cash for my wife and daughter to spend.... who cares, thats who I would want to spend it.

When you are forced to pay cash, you will learn to save...

I will give you my opinion on bankruptcy though, if you do it, do it all the way, don't do that pay off the creditors crap and do not consult one of those credit consolidation or get out of credit card debt or similar companies....

Or any of those negotiate your payments company, they will take your money and just do what you can do for yourself.

You credit will be smashed either way, house, utilities, car to get to work other than that, screw the unsecured debt.

Go buy the book Total Money Makeover by Dave Ramsey

I have one of those negotiate your debt businesses and I'll tell you right now, that I don't misrepresent myself or the purpose of my business to anyone, anytime. Yes, if you use a company like mine your credit is going to be shot, if it's not already. But the fact is, the only people I can help are the ones that are on the verge of falling apart anyways.

Yes. A lot of companies in my field are inexperienced, and simply don't care about the results they provide after the money has been collected. Try not to lump all of us in the same boat though. I have years of experience in my field and have provided real results to people who otherwise would've had to file for bankruptcy and we saved them from it. Their credit must be rebuilt, but it went from a 10 year process to a 3 year process. And I have references who could tell you that I begged them not to pay me a dime and file for their bankruptcy protection because it was the only logical choice.

All I'm trying to say is, we're not all assholes that care about nothing but money. It's just not the case.

[R8RFAN]

Originally Posted by Mr. Flopnuts

I have one of those negotiate your debt businesses and I'll tell you right now, that I don't misrepresent myself or the purpose of my business to anyone, anytime. Yes, if you use a company like mine your credit is going to be shot, if it's not already. But the fact is, the only people I can help are the ones that are on the verge of falling apart anyways.

Yes. A lot of companies in my field are inexperienced, and simply don't care about the results they provide after the money has been collected. Try not to lump all of us in the same boat though. I have years of experience in my field and have provided real results to people who otherwise would've had to file for bankruptcy and we saved them from it. Their credit must be rebuilt, but it went from a 10 year process to a 3 year process. And I have references who could tell you that I begged them not to pay me a dime and file for their bankruptcy protection because it was the only logical choice.

All I'm trying to say is, we're not all assholes that care about nothing but money. It's just not the case.

Not saying you are at all but I don't understand "the credit must be rebuilt" part... credit is what got a guy like this in the position he is in and people that do the job you say you do are enabling them to do the same thing that got them up to their ass in the first place.

I respect you as a person, but I don't respect the business you are in.

[Mr. Flopnuts]

Originally Posted by R8ers

Not saying you are at all but I don't understand "the credit must be rebuilt" part... credit is what got a guy like this in the position he is in and people that do the job you say you do are enabling them to do the same thing that got them up to their ass in the first place.

I respect you as a person, but I don't respect the business you are in.

Credit is a tool that should be used wisely. Just because so many people are unable to control themselves with it, doesn't mean that it is an evil entity. It's a matter of personal responsiblity, and education. I provide both as a means of avoiding a return trip to my office. As far as not respecting the business I'm in, that's fair. It's full of assholes, douchebags, and thieves. Which is why I felt the need to defend myself in the first place.

[R8RFAN]

Originally Posted by Mr. Flopnuts

Credit is a tool that should be used wisely. Just because so many people are unable to control themselves with it, doesn't mean that it is an evil entity. It's a matter of personal responsiblity, and education. I provide both as a means of avoiding a return trip to my office. As far as not respecting the business I'm in, that's fair. It's full of assholes, douchebags, and thieves. Which is why I felt the need to defend myself in the first place.

If you truly are trying to help people then I am sorry if I painted with too wide of a brush.
I know I am weird to most but I see all credit as bad except for a 15 year mortgage with a payment of 25% or less of net income, this enables people to sometimes double up on payments and pay that house off early,become 100% debt free and live on what you make instead of being a slave to the lender.

I was dumb when I got a 30 yr mortgage, but I paid it off in less than 5.5 years.

I was not trying to offend you, it's just you are in business to help people improve their credit score, I am totally opposite, I don't want to have credit and think it is the root to most of American family problems including causing more divorces in America than infidelity

I want to see people prosper, I want people to be able to take a day off and relax without worrying if they are going to make the bills.

[Dayze]

Originally Posted by CaliforniaChief

Your story is all too common. What I like is your attitude through this, that you're looking to the future and have hope. You will recover and make a great future for yourself largely because that's your attitude. Obviously you recognize all the hurdles you have to success, though.

My wife and I never went through foreclosure, but we did have to move out here from Texas (I lost my job) and we couldn't sell our house in TX. We lived in a small apartment and had about $20,000 in debt. We took a class called "Financial Peace University" through our church (Dave Ramsey) and started taking the right steps. Budgeting, Emergency Savings, Debt Snowball, 3-6 months savings, insurance, investments, giving, etc...and now we still struggle but we only have about $1,500 in debt, our car is paid off, we own a home (which in Southern California is not easy...well wasn't), and are moving forward.

I can't imagine how tough this is for you guys and I really am sorry to read...but you'll get back on your feet again.

Originally Posted by CaliforniaChief

This is great feedback in that cash is so powerful now. Find a way to stash as much cash away as you can and any credit concerns will be alleviated if you're bringing all cash or mostly cash to the table.

Thanks for the input guys.
The thing I’m trying to emphasize to my wife is; we WILL make it through this.
Sure, we will need to make concessions as far as where we live, or not having the ‘popular’ car etc…but we will get out. The ultimate goal (I’m trying to get her to understand) is not going to happen in 2 years. 3. Hell, maybe not even 5. But we can be debt free.

At that point, who gives a sh*t what our credit score is. Doesn’t matter with cash. That’s one reason I’m not too worried if we do go through foreclosure and it shows up on our credit. Big deal. My goal (“If you’re here, and I’m here…isn’t that “Our” time Mr. Hand”?) is to have no need for a credit score, except leading up to the purchase of another house. After that…back to a cash basis.

I trying to get her to realize that if you don’t do this, you become a slave to your chit/credit/credit card companies etc. You have no flexibility. Imagine how nice it would be to have large chunk of $ in the bank and little cash committed/going out each month – if you didn’t like your job….you could find a new one. One that didn’t drive you crazy. You wouldn’t “NEED” to make tons of money simply to cover the cost of financing all your stuff.
As it is now (with probably 90% of Americans I suspect), everyone is trapped. They NEED to stay at their job. The CAN’T quit. They must continue to go in order to PAY for everything they were too eager to pay cash for.

When we got in the house we had a reasonable house payment (compared to income); had money for a lot of things. Didn’t have unsercured debt. Then BAM…layoff. Uh oh. Now that ‘reasonable’ payment is n’t so ‘reasonable’.

She’s coming around slowly; I just need to keep stressing this stuff to her.