bankruptcy

It's basically crippled for a long, long time.

 

10 years, I believe.

 

I believe so, too. That was the first number that popped into my mind.

 

10 years is how long it stays on your report, but our attorney tells us that within 12 months our score -- now in the 590s -- will be actually up close to 700. We are going to be able to keep our home and one vehicle, and timely payments on that will jack the score up.

It is not uncommonan we are told and have read, for folks two years out of Chap. 7 to have been able to get a 30-year fixed for 5.5 percent (ours is at 5.125 now ...)

So yeah, it "stays" on there, but rehab begins quickly and apparently smoothly.

The way our budget will work, the Chap. 7 will result in us gaining about $1400 a month back -- some of which will go into a jalopy for me, MOST of it will go to savings to rebuild that from the $0 it is now, and the rest will be set aside to start paying down on the student loans when they come out of forebearance in a year. Also, we plan on putting $100 or so extra into the principal of the house.

Basically, it is the unknown that is worrying us. And having to deal with the deeply-ingrained belief that you pay bills when they mail them to you. We detest quitting on stuff, so that is hard. But if this road results in a WAY more stable financial future for us -- and for our 2-year-old daughter -- than it is worth the short-term pain.

RB

 

And at this point in our societal evolution, with credit being what it is and spending habits becoming what they are, I'm not sure I'm all that worried about my credit score. I'm not planning to move or buy anything big anytime soon (other than a car -- I have a lease expiring this year, and I'm not going to do that again.)

The main thing that keeps me from looking deeper into bankruptcy at this point is the effect that it might have on my 14-year-old daughter getting financial aid in four years. Anybody have any insight on that?

 

that was quite possibly the most classless post ever left on this site.

 

How much is the lawyer charging you and if possible always go chapter 7. If you are going to have the stigma of the BK on your credit report, its better to have it without having any debt to repay.

Will the judge force you to liquidate retirement funds?

 

sorry to hear that

 

I think the only effect it might have is getting the PLUS loan, which is a separate loan besides Stafford Loans, etc. But if you are denied the PLUS loan, then the school will usually offer a separate Stafford Loan, although it won't be for as much as the PLUS loan.

 

There've been a lot of classless ones. That one was definitely one of the worst.

 

At best it was a very poor attempt at humour, ie. Rockbottom has hit rock bottom. Even if that's what it was, it's completely uncalled for.

And if it's an expression of schadenfreude, well, TSP, what goes around comes around.

RB, man, I'm sorry you and the missus are going through this. Best wishes to you and your family.