Debt Free or Bust

Signed Chapter 7 Bankruptcy Papers June 30

joubess — Fri, 03 Jul 2009 07:21:14 +0000

I signed all the chapter 7 bankruptcy papers on Tuesday, June 30, 2009. It was like closing on a mortgage or getting a divorce. It’s that much paperwork.

It will take 3-4 weeks to go through the system, and then I’ll have to go to court and meet with the trustee.

After that is over, I’ll report what I had to keep and how much debt I discharged. It is around $280,000. The only debts I kept are my first mortgage, the second mortgage, the taxes I owe, and the student loans that are actually around $46,000, not $80,000. If I do end up paying them, I’ll try to negotiate a settlement. Not sure it will work, but all they can say is no.

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June 2009 Debt Report

joubess — Tue, 30 Jun 2009 01:11:07 +0000

Starting Balances calculated post-bankruptcy (May 2008):

Debts excluding student loans and 1st mortgage: $38,707
Plus debts incurred between May 2008 and March 2009: $8,583
Student loans: $80,215
Total: $245,308 $127,050

Current Debt Balances:

IRS: $2,148.39 (TY 2007)
LDR: $3,168.21 (Louisiana Department of Revenue, TY 2007, interest added, negotiating regular payment, made $18.10 pmt)
Chase HELOC?: $4,537.52 bankrupting
CFCU Visa: $6,142
Capital One HELOC: $21,434.14

Debt Balance excluding co-signed student loans and first mortgage: $36,137 $32,893

Student Loans:

Co-signed student loans, approximate balance: $80,215 (found out the new balance when my attorney checked my credit report. No letters I’ve received add up to this much. Attorney is checking on it).

Total balance including student loans: $116,352 $113,108

Change since highest balance ($127,050 starting May 2008): $13,942

Discussion

I took the first mortgage balance out of the debt report. That’s not in the list of debts I need to pay off first, and we have to live somewhere. Balance totals changed substantially because of it.

I also found out the Chase loan isn’t a HELOC, so it’s going with the rest of the debts in the bankruptcy.

The changes are based on my attorney’s advice for going forward after I sign the papers tomorrow.

To see everything I owed before I changed my balances to “post May 2008″, read my May 2008 Debt Report. Interest, fees and penalties have been added since then, and the actual amount of the student loans is now on my credit report with the correct amount due.

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Turned in Rest of Bankruptcy Papers Today

joubess — Fri, 19 Jun 2009 23:57:37 +0000

My 2008 taxes were done on Monday, and I was able to finish up the rest of the paperwork I needed to turn in to my attorney this week.

I turned the rest of it in today. They’ll probably file on Monday, unless they go through my information and find something missing. I’ve been through the list twice and I checked everything off, so if something is missing it will be because I did it wrong rather than forgot it.

I added another tutoring client starting next Tuesday and Thursday for 2 hours each day. The more work I can get the better. That means more income.

I’ll have a June debt report in the next few days.

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P.S. The Articles page is working again. I got the plugin sorted out. It’s not complete yet because I have to repopulate it manually.

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