Archive for October, 2008

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Lets see what happens to credit scores now

Friday, October 10th, 2008

Well, we just left the lawyers office for our bankruptcy filing. So it’s time to watch our credit scores decline from now on! Our credit scores will plumet some say as much as 350 points, the chapter 7 bankruptcy stays on your credit report for 10 years. So much for great credit. (BTW a chapter 13 only stays on for 7 years)

I pulled our credit reports today, as well as got our updated credit scores. From my previous credit posts you know I use Equifax. I really like their monitoring. You get an e-mail anytime a score changes above or below a target you can set, or anytime your balances increase, etc. I highly suggest if you are intersted in your credit history, are considering a bankruptcy, or want to know your scores which will relate to your ability to get loans you invest in this information.

Equifax Credit Watch Gold 3-in-1
Equifax Score Watch
Equifax Score Power

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Friday, October 10th, 2008

We went in to the lawyers office and completed the means test required for a chapter 7 bankruptcy. We were at a -$5,200 left over as disposable income. (This is due in part to a large house payment, and me no longer bringing in any income from lack of sales in the business) We already know we are surrendering the house, but the payment is allowed to be included.

He should be filing our paperwork tonight or in the morning. I can’t believe this is actually happening. Filing bankruptcy. Ugh.

Our credit scores will plumet some say as much as 350 points, the chapter 7 bankruptcy stays on your credit report for 10 years. So much for great credit. (BTW a chapter 13 only stays on for 7 years)

The next step is going to a meeting called the 341 meeting of creditors.

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Good news for a chapter 7 bankruptcy

Friday, October 3rd, 2008

Tonight we went into our lawyers office to finalize the paperwork for filing and got great news! Because virtually all of the debt is due to our business, AND because chapter 13 has some limits on the amount of unsecured debt we qualify for a chapter 7. This makes us happy! With a chapter 13 bankruptcy, you are in a repayment plan up to 5 years based on the amount of debt. We we have absolutely no additional income, so I didn’t think there would be a way to repay anyway. Whew!

We still have to do the means test, although it doesn’t really apply due to our situation being “forced” into a chapter 7. The court and appointed trustee want to see the results. From what I understand the court tries to force you into a chapter 13 so creditors can get some of their money back, but it won’t apply in our situation.

We didn’t have time to complete the test tonight, but will go back next week and get it completed to be able to file. Finally, it seems like forever since we started the process. Now I’ve got to get some info from the NOLO chapter 7 book to refresh my brain.

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Debt collector calls are annoying

Wednesday, October 1st, 2008

The collection calls from the credit card companies are unbearable! We will be filing our bankruptcy case in the next few days. I have been avaoiding the calls, but they are at the point I needed to answer some of them.

We were getting over 125 calls a day! I suspect the reason is because I was avoiding them, and the automatic system would dial in some cases every 15 minutes. I talked to a couple but they say until we actually file our case their system may keep calling. Bank of America, and American Express seem to be the most frequent.

I just checked our credit report and scores again, but nothing has yet shown up late. We are about 60 days late now on most credit cards. If you are interested in seeing your credit scores, credit reports or signing up for the scorewatch product like I use check out these links:

Equifax Credit Watch Gold 3-in-1 (monitors all three credit reports)
Equifax Score Watch
Equifax Score Power

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