New bankruptcy laws - anyone with any experience ?

Quote from Hydroblunt:



There is so much BS in this country's credit laws, it is simply mind boggling. The whole credit bureau game, the unsecured credit process, the BK process and the collections process, they are a tangled up buerocratic mess. Ask 3 BK attorneys, you will get 3 different answers.
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That, plus the problems with id theft, 31% interes rates and obnoxious collections people are the reason I don't feel bad about stiffing credit card companies for 50% payoffs. Credit sucks, we should all be working very hard to become lenders. The in-between for a debtor and a lender is a trader and if you make enough trading you become an investor, which is a lender
 
Hydroblunt

I have a potential plan in mind and would like your advice on whether it would be worth it. This is based on me working on a $65,000 annual salary and also an excellent credit score of 760.

Liabilities:

Mortgage debt: 120,000

Assets:

Savings account: 30,000
Home equity: 30,000

I have open unsecured lines of credit up in the area of around 200,000. How can I screw the system without going to jail?
Would it be worth throwing away a good credit status
to grab the $200,000 and get ahead several years? I was thinking of somehow hiding my assets and the 200K into a family members trading account and operate from there.

If anyone thinks I am a scumbag for devising such a plan then you are 100% correct. I am:)
Welcome to Capitalism
 
Quote from dandxg:

Going off distant memory, but isn't Texas on of the few states that won't allow creditors to take your house away? That and FL I believe. I live CO though. Sorry for your mishap. I am sure if you spend your time on Google you will get educated to some degree.
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No don't sell the two cars right before filing. If you do the bankruptcy judge will say you are selling off assets to screw creditors.

John
 
Quote from cicsman:

Hello all.

Due to a series of catastrophic events I find myself in a position where I am considering filing for bankruptcy. This is not a decision I have taken lightly but I am at my wits end and just can't see any other way out of my situation.

I live in Texas and have limited assets - a small amount of savings, a little in a trading acount, 2 cars paid off. I am not a house owner and am currently not working (although I am actively seeking work).

My wife is working but her income only covers the rent. We are currently drawing on our savings each month.

My assets are minor in comparison to a large court judgement that has been awarded against me.

I would like to hear from anyone who has any experience of the new bankruptcy laws in any way (even third hand).

I moved to Texas 6 months ago and I'm unsure of the best way to find a competent local bankruptcy attorney (i.e. I don't want to just pick someone in the phonebook).

I read that Texas will allow me to file as an individual without involving my wife. I'm not sure how this works in practice.

Any help anyone can give me while I try and navigate through this minefield will be much appreciated.

I'll happily provide updates of my progress if anyone is interested.


Many thanks in advance.
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If you feel you must then do it quickly before you start to miss payments on credit cards etc.

What kills people's credit is they get way behind on debt payments so their credit is already shot when they file.

It best to do it while you are still current on debts. I know a lady who took the bull by the horns and filed before she missed payements and her fico score is in the mid 500's which is a reasonable place to start over at.

Also, do not sell any assets right before filing. The court will consider that defrauding creditors.

John
 
Get an attorney. Do not draw on any credit or sell any assets before getting legal help.

Keep in mind when you are screwing your creditors you are also screwing us through higher interest rates.

I wish you the best of luck with it.

Traveler
 
Keep in mind that the following types of debt can generally NOT be discharged.


Debts for taxes owed to local, state or federal agencies
Debts for money, property, services, or an extension, renewal, or refinancing of credit, which was obtained fraudulently
Debts which were neither listed nor scheduled or which the debtor waived discharge
Debts which are owed to a spouse, former spouse, or child of the debtor, for alimony, maintenance, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record
Debts owed for willful and malicious injury by the debtor to another person or property owned by another.
Debts for government-sponsored educational loans, unless it can be shown that repayment will cause an undue hardship
Debts for death or personal injury caused by the debtor's drunk driving or from driving while under the influence of drugs or other substances
Debts incurred after a bankruptcy was filed


Also, if you obtained the debt while you and your wife were married, you probably will not be able to file without it affecting her as well.


Don-
 
Quote from Hydroblunt:

Actually it's just as bad or worse. It stays on for 10 years when a BK stays on for 7 years. With a fresh BK, your credit score will be much better than with a paid judgement. Also, the BK will erase the previously negative entries that lead to the judgement, a paid judgement leaves everything on.

To the poster:

This is sure advice, I actually originally thought it was not possible but recently watched someone do it who is in nowhere near your position. The guy actually has a bit of wealth but does it to play the system.

Transfer all your assets out of your and your wife's name. As long as your income does not show any real potential to pay bills, you will be able to file Chapter 7. They use a formula to see whether any income in excess of your immediate bills has potential over 20 years to repay most of the debt. Yes, they want to make an indentured servant out of you.



Dont fall for the "non-profit" credit counseling. They serve the creditors NOT the debtors. There is more than enough info on the web about the scams almost each one of these orgs runs. Ameridebt is currently subject of a class action lawsuit.

Do the BK, it's the American way. The rich do it & the big corps do it with no negative stigma while robbing millions of regular folk. Why is it that the average Joe Shmoe has to deal with a huge negative stigma when doing it for the right reasons?

FIGHT THE POWER!!!

P.S. Watch out for BK lawyers, they are selfish inconsiderate bottom feeders. You can do the BK yourself for a fraction of the cost. It takes time and research but it's worth it. Courts look down on BK lawyers for the regular folk, for good reason.
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Listen to Hydroblunt. Electric Savant is wrong on this subject. Take it from a guy who knows, though I live in another state. I bankrupted(Ch. 7) in 1995 and it took 10 years to get my credit score (FICO) back in the 700s. If I ever have to bankrupt again, I would not use an bottom-feeder bankruptcy attorney. My atty from 1995 made mistakes by leaving off creditors. You can do it yourself. Don't sell the cars. Since they are old, just value them very low. If they are not paid for, re-affirm those automobile debts. You can transfer assets too. Just lie, and make sure they cannot be traced through bank statements or other means. They usually just take your word for it though, and never check to see if assets are transferred. FWIW, I used to also sell credit repair books and have read many legal books on the subject. Good Luck to you!
 
Can't someone just cash out their bank accounts and brokerage accounts and put the money under the mattress so no one knows about it? If it comes up, can't you just say you gambled it away?
 
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