Question by Omar: should i file bankruptcy or do a debt consolidation?
I did 2 years of active duty in the military and when I got out in 2008 i went back home (Los Angeles). i got out with a 15,850 dollar “Car Loan” I’ve been unemployed since then, now I have a 35,000 dollar debt. I am still in the reserves but I can’t find a civilian job. I just received my phlebotomy technician certificate and I’m looking for work on the medical field. the 35,000 dollar debt does not let me live in peace I can’t think right. I’m only 21 years old, I wanna go to college. I don’t know what to do, I’m about to be homeless. I need help. Please give me some advice. Anything would be helpful.

Best answer:

Answer by Jeff T
Sell the car and buy a ,500 beater. That should relieve some of the pressure.

Then read “The Total Money Makeover” by Dave Ramsey, and it will help you with some of the other money problems.

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should i file bankruptcy or do a debt consolidation? is a post from: Debt and Debt Consolidation

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An Individual Voluntary Arrangement, or IVA, is a financial agreement which legally binds both you and the entities you owe money to. Depending on how you are holding up financially, and how much you still owe on your debt, the amount of your payment may vary. The length of time you are allotted to pay the amount back can last for up to five years. After you complete the full term of payments the rest of the debt you owe is then considered to be legally settled.

An IVA is not the same thing as a debt management service. It is a formal agreement between two or more parties, namely you and your creditors. Because this is a legal document, an insolvency practitioner should be consulted. An insolvency practitioner is someone who has been licensed to establish IVAs. An insolvency practitioner can review your current financial situation and advise you as to whether an IVA is a possible solution to your debt problems.

The insolvency practitioner will interview you about your financial situation, in order to determine possible repayment figures. They will then write a proposition that outlines the terms based on the information provided during the interview. After examining the documents for accuracy, you will have to sign them. Once this is done, the courts will accept an interim order on your behalf, which will stop any creditor from pursing legal action based on your debts to them.

The process of voting will begin once the court files the interim order. Three-fourths of the vote need to come back positive in order for the IVA to enact. The creditors will meet with your insolvency practitioner for the voting process. However, the creditors will rarely show up in person. Usually, a fax is sent with their response: either they will agree or deny your claim. After the voting is complete, and you receive at least seventy five percent of the vote, you will be approved.

Your insolvency practitioner will still be a part of the settlement once your creditors approve the IVA. Usually, the insolvency practitioner is charged with managing the IVA, including the task of making sure that the payments are made as agreed and distributed to the appropriate parties. If you make all of the required payments, you will be able to cancel your debt without losing your property or going through foreclosure proceedings, even if you still owe money to the creditors. As much as 65% of the total owed may be written off by the creditors after you make your final payment.

Now Try : Insolvency Or IVA

Manage Your Debts With An IVA (Individual Voluntary Arrangement) is a post from: Debt and Debt Consolidation

Question by Mary: Does anyone know what to expect in Bankruptcy Ch 13 in the state of California ? I’m scared need advise”?
my property has too much Equity, my attorney filed a Bankruptcy Chapter 7, & later on after filing for ch 7 our attorney realized that our equity is high so then he asked me & my husband 2 convert 2 Bankruptcy CH 13, this alarmed us, We are so comfused & scared more than ever, We are current with our primary Mortgage & 1st & 2nd Loan with our Bank that is tied up with our property, our balance is $ 129,000.00 & our Appraisal is for 5,000.00 & we are current with our Property Taxes/Homeowners Insurance. & we are current with our car payment & auto insurance. Our reason 2 File for Bankruptcy in the 1st place was because of personal credit card debts, we were told from our attorney that we do qualify for CH 7, Now our attorney tells us we do not qualify for ch 7 so we have to convert to CH 13, but he says our home is not secured with the 0,000.00 Home Exemption. our children are all Adults, even though they live with us, & we support them financially the court does not reconize my college children as our dependents under the law and because 2 of them file for thier own tax-return for years now so I only have one adult dependent age 18 who is still a full-time student in High School. another thing the lawyer said 2 us when after we signed the forms for ch 13, last week friday. that we qualify for a 100% Pay Back Plan. not reduced like they do for Consolidation, & not even once did the lawyer mention anything about consolidation so I am really comfused, I even asked an attorney at the Pro-Bono work shop @the Santa Ana Bankruptcy Court House 2 weeks ago & I asked if its safe to convert my case to a ch 13 to keep my property & personal property safe they said yes, & that I would have to pay what I could only afford a month from my husbands income for a 5 year plan”so I thought ok, this is good” But, when I saw my lawyer last week 2 sign 4 the convertion to a CH 13, she said my minimum payment would be around ,000.00 a month 2 pay back my creditors & that’s the lowest payment the court would offer according to our attorney 2 start with & it will go higher in a couple of months “We can’t afford this” what should we do? this attorney is confusing us, my English is fluent but, the legal terminology is very confusing” if you have been through something like this before (or) if you know someone that had gone thru this in CA we would really appreciate any feedback you may offer, I tried 2 call my attorney again & she does not return calls I am scared for me & my family. Thanks 4 listening hope 2 hear from someone that would have knowledge to give us feedback that is true no matter how bad it ism we want to know what to expect & what we should do.
Mary:
Orange County, CA, USA

Best answer:

Answer by rpg
There is something about your story that is troublesome. It sounds like either you have a very inexperienced bankruptcy attorney, or there is more to this than what you have disclosed in your question.

Your adult children who are in college should file amended FAFSA forms and make appointments o talk with their college financial aid officers. Your Ch 13 may reduce the “expected family contribution” which may increase their eligibility for financial aid.

Why will your Ch 13 payment increase in a couple of months? YOU (or your attorney, on your behalf) write your Ch 13 repayment plan and present it to the court for confirmation. The court does NOT write your Ch 13 repayment plan. YOU do. There are constraints, all of which must be met. But if you do not want a Plan that calls for an increase “in a couple of months” then do not submit a Plan that proposes this. In fact, that is fairly unusual. Most Ch 13 Plans call for equal payments over the life of the Plan. I do not know, and am having trouble guessing, why your attorney would write a Plan that proposes this. Most Ch 13 Plans do not.

I also wonder whether your bankruptcy attorney is experienced enough to perform the Means Test correctly using Form 22c which is the Long Form of the Ch 13 Means Test. Many inexperiencd attorneys only use the short form of the means test, which can be a disadvantage to the debtor.

Usually if you have a 100% repayment Plan, it is because you have equity that you could not protect in a Ch 7 with the available exemptions. That is why you are converting your Ch 7 to a Ch 13 — because your equity in the home exceeds the available 0,000 exemption. It is somehow troublesome that your attorney did not realize this before filing the Ch 7, unless the appraisal was done after the Ch 7 was filed or unless you tried claiming your adult children as dependents and that was disallowed after you filed. Was the appraisal done recently or are you using an old appraisal figure? If it is old, you might want to get a newer appraisal since property values have dropped in many areas. Your appraisal would need to come in under about 5,000 in order for you not to have an excess equity issue.

If I were you, I would make an appointment with a second bankruptcy attorney for a complete review of the case and a second opinion. You will need to pay for this, but it might be worth while to get a second, experienced, pair of legal eyes taking a detailed look at the case.

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Q&A: Does anyone know what to expect in Bankruptcy Ch 13 in the state of California ? I’m scared need advise”? is a post from: Debt and Debt Consolidation

Question by Life Explorer: I need a reputable credit counseling coumpany for mandatory pre-filing bankruptcy counseling. Who did you use
Don’t give me a “debt management” of “consolidation” solution as I will report you as a SPAMMER.

I have already begun the paperwork for Chapter 7 bankruptcy and know it will be a long hard road to fix my credit.

This is for those who have already or are in the process of filing for BK or those who know the process well, ONLY.

Fed law requires pre-filing counseling and a “certificate”. I can do the counseling class online which I prefer. What companies have people who filed BK used for pre-filing counseling and and post-discharge counseling?

AND if you think I can get around the BK with the amazing “debt consolidation company” you are about to mention, don’t… it just shows you haven’t read my question and have no idea what the process is all about. I have no other options but to file BK right now.

And please don’t preach to me about the evils of credit or bankruptcy or how great your loan co or debt consolidation co is. I’m experiencing the evils and just want my life back

Best answer:

Answer by Jill S
I just finished my bk chapter 7 and used Greenpath Debt solutions for my pre bk counseling. They were very good, and let me have the counseling without paying a fee due to my lack of funds. If you want, you can view my q&a page for details of my experience with this. Or feel free to email me with any questions at hansjill228@optonline.net. Good Luck.

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Q&A: I need a reputable credit counseling coumpany for mandatory pre-filing bankruptcy counseling. Who did you use is a post from: Debt and Debt Consolidation

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