Bankruptcy - anyone gone through it?

[Dayze]

well, after a 12 month fight with our mortgage company and creditors; exhausting all savings; cashing out 401ks; stopping 401k contributions.....

it appears the end is near. We are being foreclosed upon 10/15/09.

our lender has being jerking us around for 5 months with a loan modification and I was informed today by the VA that even if the mod is approved, it will likely be a very miminal impact to our monthly commitment/cashflow etc.

Anyone have any suggestions, opinions on the matter? It's really tough right now.

Thanks guys/gals.

Dayze

[R8RFAN]

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.

Preach on brother Preach on

Dave Rocks!!

[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

[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.

[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.

[Bugeater]

Originally Posted by R8ers

We are meet drivers which means we meet another driver halfway I take his freight back to my domicile, he takes mine to his

Sorry to tell you this, but playing with your toy trucks on your mom's kitchen floor does not make you a truck driver.

And why would I envy you, you're a Raiders fan FFS.

[R8RFAN]

They can't eat you man, don't be scared, it's business and happens everyday.
Get away from debt, rent for a few yrs, act your wage, live well within your means and take care of the things you do buy.

Don't buy new cars, they depreciate 100 dollars a week for the first 4 yrs you own them on a 30k car

30k car
Payments 500 bucks a month
Depreciation 400 a month
Extra cost of the collision 100 per month at least

Shiny car costs you 1000 dollars a month to drive.

Stay away from credit and you will be able to do what I did in a few years.

I wish you luck

[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.

[Bugeater]

Originally Posted by R8ers

They can't eat you man, don't be scared, it's business and happens everyday.
Get away from debt, rent for a few yrs, act your wage, live well within your means and take care of the things you do buy.

Don't buy new cars, they depreciate 100 dollars a week for the first 4 yrs you own them on a 30k car

30k car
Payments 500 bucks a month
Depreciation 400 a month
Extra cost of the collision 100 per month at least

Shiny car costs you 1000 dollars a month to drive.

No you dumbshit, it does not cost you $1K/mo to drive that car, it just mean he's throwing the payment and insurance money into a hole.

[R8RFAN]

Originally Posted by Bugeater

No you dumbshit, it does not cost you $1K/mo to drive that car, it just mean he's throwing the payment and insurance money into a hole.

God you are dumb

[Bugeater]

Originally Posted by R8ers

God you are dumb

You're the dumb****. Explain to me when that other $500/mo comes out of your pocket.

[R8RFAN]

Originally Posted by Bugeater

You're the dumb****. Explain to me when that other $500/mo comes out of your pocket.

Your 30k car is losing 100 dollars per week value for the first 4 years you own it on average. plus the car payment

New cars will cost you more on collision insurance...

You don't understand that?

[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.

[Bugeater]

Originally Posted by R8ers

Your 30k car is losing 100 dollars per week value for the first 4 years you own it on average. plus the car payment

New cars will cost you more on collision insurance...

You don't understand that?

And all that means is the car is losing value as fast as you pay for it, which is true. Where you're losing me is when you say it costs an additional $500 each month, when does that money come out of your wallet?