Disclaimer: I am not a lawyer. I am
only publishing my interpretation of my situation. You should seek your
own legal representation for your own particular
situation. Do not rely on my
opinions or statements for your own purposes as state
and local law varies as do individual circumstances.
A good friend of mine told me today that he filed for
Chapter 13 Bankruptcy back in 2007. Looking back now, he wishes
he had not filed. This makes me feel better about having not
filed for bankruptcy, Chapter 13 or Chapter 7, myself.
When my friend filed for
Chapter 13 Bankruptcy back in 2007, the bankruptcy court placed
him on a repayment plan and he also reaffirmed the mortgage
payments on his house (with no adjustment to the mortgage
agreement by the bankruptcy judge or court). Sadly, the Chapter
13 Bankruptcy repayment plan left him with so little money to
live off of, he quickly went into default on his reaffirmed
mortgage. My friend tells me he had to ask himself which bill to
pay - the mortgage payment or the bankruptcy court repayment
plan payment. He figured the bankruptcy court payment was more
important with more consequences so he started missing mortgage
payments... but he made his bankruptcy court repayment plan
payments.
My friend's home will go
into foreclosure pretty soon. His last payment was around
October of 2007. My last payment on my house was November of
2007 so I am surprised that my friend's house has not gone back
in foreclosure already. Of course, his house is in Alabama; mine
is in Florida - different foreclosure rules.
Now, my friend is having
to figure out where he is going to live next - just like I had
to do when I moved out of my house that went back in
foreclosure. Luckily, he has a family member who has a house
that he can rent. It is not too far from his house that he is
losing in foreclosure, and he will have plenty of room.
Hopefully, his aunt will not charge him too much rent as he
still has to keep making his bankruptcy court repayment plan
payments. I think he has to make those payments for another four
years. That is a long time of bankruptcy court payments.
Looking back at when I
was considering filing for bankruptcy, I remember when my lawyer
told me about how much money I would have for living expenses.
All of those expenses were based on I.R.S. national averages.
These allowable living expenses covered car allowances, rent
payments or mortgage payments, food... everything that an
average person needs for living expenses. It only took about a
fifteen minute talk with my lawyer (at an hourly rate of $225)
to decide that Chapter 13 Bankruptcy was not for me. I decided
to wait things out and see if the banks ever come after me.
There is a possibility that they will not. The government might
pass some sort of legislation that saves me - it is unlikely,
but it might happen.
In the meantime, this is
the second friend of mine that has said he wishes he had never
filed bankruptcy. The other friend said the same thing, but that
friend filed Chapter 7 bankruptcy instead of Chapter 13. As the
"I wish I had never filed" statements keep surfacing, my resolve
not to file only strengthens. Let me know if you or someone you
know has filed for bankruptcy and endorses the process. I would
love to hear about it. I will be certain to update you if I hear
of anyone who says "Filing bankruptcy was the best thing that I
ever did."
Please keep in mind that
everyone's situation is different. You should evaluate your own
situation according to your own circumstances. Please seek
professional assistance for your particular needs.
Disclaimer: I am not a lawyer. I am
only publishing my interpretation of my situation. You should seek your
own legal representation for your own particular
situation. Do not rely on my
opinions or statements for your own purposes as state
and local law varies as do individual circumstances.
|
