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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Probably Just a Clarification Posted by Troy on March 24, 2008 at 12:45 AM In Reply to: Filing and declaring BK are the same thing (NR) posted by Tom on March 24, 2008 at 12:29 AM I'm sure it's just for clarification, but what I meant is that anyone can 'file' a BK. Not everybody follows through, or is permitted to follow through in having their BK petition accepted. However, in the meantime, the filer/petitioner/declarer benefits from having their debtors put on automatic stay. The other major difference in 'filing/declaring' and actually proceeding with an approved BK case is the 'chapter' you proceed with and how it relates to "distancing" yourself from the BK on your credit report. A Chapter 7 is essentially an instantaneous "wipeout" and the borrower looking for a fresh start can begin distancing themselves from their "discharge" date almost immediately. That's not always the case with a Chapter 13, aka a "workout" plan (where many of the BK cases are now being pushed after the BK law was changed in 2005). With a Ch. 13 BK some future creditors place ALL the emphasis on the "discharge" date which is AFTER the ENTIRE 3 to 5 year workout plan has been successfully completed. I have heard, although much more rare, that some future creditors will look at the "filing" date of a Chapter 13 so long as the case was successfully discharged. In either case, future credit is heavily dependant on how much "distance" is between you and your BK. Again, all that just for clarification. I do understand the point Tom is making: If you "file" it will show up on your credit that you "filed/declared" BK and it will be a heavy hit on the 'ol credit report. However, there are also other significant effects that an approved Chapter 7 or 13 case will have on your future ability to get credit. It's better to have more information in this case (the original post from Matthew who really wants to keep his house) than less. Troy : : Mike, unless you can come up with the money to bring your 2nd current you may want to consider filing bankruptcy in order to receive an 'automatic stay' and thereby have your foreclosure auction postponed. Then, with a little breathing room you can figure out what to do next. : : Of course, "filing" (as opposed to officially declaring) bankruptcy will certainly effect your credit, but for the next few years that NOD has put a big enough dent there anyway. : : I have 3 young kids myself and I realize there's just no place like home. Hang in there and take it 1 step at a time. Things may just work out after all. : : Keep us posted, : : Troy : : : Help I'm running out of time! We have a second mortgage that fell behind by 60 days while we were trying to restructure our first mortgage. They filed an erroneous NOD because they did not recognize a payment we made and when brought to their attention, they just refiled the NOD a month later. We were successful with the restructure of our first mortgage but the company holding our second is unwilling to enter a repayment plan and wants us to pay arrears at the rate of 19.95% interest! Because our house was valued @ $570,000, even w/the bad market it still has a lot of equity. I have 3 daughters and my wife makes good money, but because of my job change, we're suffering. I know we probably have a case of preditory loan, but I just want to save my house,family, and life. Bewildered in San Diego. Follow Ups: Misuse of BK Tom 1:43 PM, 03/24/08 (3) Show me the Love Troy 7:51 AM, 03/25/08 (0) Re: Misuse of BK Mike 7:45 AM, 03/25/08 (1) Get a good lawyer Troy 7:53 AM, 03/25/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : I'm sure it's just for clarification, but what I meant is that anyone can 'file' a BK. Not everybody follows through, or is permitted to follow through in having their BK petition accepted. However, in the meantime, the filer/petitioner/declarer benefits from having their debtors put on automatic stay. The other major difference in 'filing/declaring' and actually proceeding with an approved BK case is the 'chapter' you proceed with and how it relates to "distancing" yourself from the BK on your credit report. A Chapter 7 is essentially an instantaneous "wipeout" and the borrower looking for a fresh start can begin distancing themselves from their "discharge" date almost immediately. That's not always the case with a Chapter 13, aka a "workout" plan (where many of the BK cases are now being pushed after the BK law was changed in 2005). With a Ch. 13 BK some future creditors place ALL the emphasis on the "discharge" date which is AFTER the ENTIRE 3 to 5 year workout plan has been successfully completed. I have heard, although much more rare, that some future creditors will look at the "filing" date of a Chapter 13 so long as the case was successfully discharged. In either case, future credit is heavily dependant on how much "distance" is between you and your BK. : Again, all that just for clarification. I do understand the point Tom is making: If you "file" it will show up on your credit that you "filed/declared" BK and it will be a heavy hit on the 'ol credit report. However, there are also other significant effects that an approved Chapter 7 or 13 case will have on your future ability to get credit. It's better to have more information in this case (the original post from Matthew who really wants to keep his house) than less. : Troy : : : Mike, unless you can come up with the money to bring your 2nd current you may want to consider filing bankruptcy in order to receive an 'automatic stay' and thereby have your foreclosure auction postponed. Then, with a little breathing room you can figure out what to do next. : : : Of course, "filing" (as opposed to officially declaring) bankruptcy will certainly effect your credit, but for the next few years that NOD has put a big enough dent there anyway. : : : I have 3 young kids myself and I realize there's just no place like home. Hang in there and take it 1 step at a time. Things may just work out after all. : : : Keep us posted, : : : Troy : : : : Help I'm running out of time! We have a second mortgage that fell behind by 60 days while we were trying to restructure our first mortgage. They filed an erroneous NOD because they did not recognize a payment we made and when brought to their attention, they just refiled the NOD a month later. We were successful with the restructure of our first mortgage but the company holding our second is unwilling to enter a repayment plan and wants us to pay arrears at the rate of 19.95% interest! Because our house was valued @ $570,000, even w/the bad market it still has a lot of equity. I have 3 daughters and my wife makes good money, but because of my job change, we're suffering. I know we probably have a case of preditory loan, but I just want to save my house,family, and life. Bewildered in San Diego. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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