The 341 meeting with our creditors . . .

I just feel like telling someone. Indulge me please.

We had our meeting with creditors and the BK trustee's representative Friday. We filed just before the Oct 17 change in the law along with several hundred others in this BK jurisdiction. It went well and we are encouraged that our plan will be accepted. There were no creditors at the meeting; just us, our attorney and the trustee's representative. It seems that we are a novelty.

What makes us different is that we had not made a single late payment. Further, our first payment to the trustee was just over $30,000. Interspersed with the base payment we have two payments of $3,000 and one of $16,000. Nobody in the trustee's office had ever seen anyone file with that much cash on hand. In Jimmy Buffet's words, "It hung 'em up."

The trustee's representative asked why we found ourselves in this position and I explained that four years ago I lost my job to China along with about 10,000 others in this area. With our family income cut by half and having to pay for my health care we found it difficult to service the debt, so we began to draw on our savings to the amount of $2000 a month to make minimum payments. After a year of looking for employment with gray hair and finding none I took my President's advice and educated myself in a new career and started a new business. Financed it with credit cards because nobody would loan money to some one who is unemployed. Then my dental implants became infected because I neglected my health and that added $18,000 more to the debt load. My new business lost $10,000 the first year, $1,000 the second and will turn a profit of about $5,000 this year. A far cry from the $65,000 plus benefits, expense account and 401K that went to China. When we discovered that after Oct 17 the minimum payments would double we saw no way to continue to meet our obligations. As an aside, after filing and ceasing to pay the bills the interest went from under 4% to 27.9% and the minimum payment went from 2% to 4% of the total. That increased our minimum payments from $2,000 a month to over $9,000. More than twice the take home for our household.

Every one in the BK division was very supportive and assured us all along the way that there was no shame in what we have done, that the laws are there to protect good people from bad circumstances. Still it's a hard thing for couple who have paid every bill on time and in full for 35 years.

We won't have our plan finalized for probably 9 months, but we now have a budget, a plan and can see an end in only three years. It will be interesting to see how our credit is viewed after discharge. Thirty five years of no late payments and a credit score of 810 and suddenly a BK.

Like I said, it hung 'em up.

Sorry you have to go through this. :hug:

I got in just under the wire--filed electronically on Saturday very late in the evening. My attorney was exhausted after working 18-20 hour days for weeks on end. While I was in his office on the 15th he got a call every 2-3 minutes asking if he was taking on more clients. He took a week off after the 17th.

He is girding up for February. That's when he expects the next wave to hit after the minimum payments double and those people hanging on by their fingernails find they can't make it anymore. The home mortgage companies are running ads asking, "Have your credit card payments gone up? If you're a home owner call us for a no cost . . . "

He may not continue to represent BKs. The responsibilities go way up and even though the attorney's fees increase they won't cover the extra work or the extra liability.

fight it and he said they couldn't afford to go up against big Banking

I'm sure you will come to that feeling as well. It is such a relief to have a plan and an end point. Hang in there.

Good for you in the way you're handling it... dignity is worth millions of dollars, so you are quite rich.

Like I said, I'm over the bad feelings that come along with situations like this.

I'm not angry with my creditors either. I incurred those debts in good faith and would have paid them off in due course but for career reversals.

no late payments on our record

good luck! we're already 16 months into a 42 month plan and are looking forward to being done in 3 more years discharging about $225k

Our plan calls for 36 months to discharge $162k. So far it is a very positive experience and a huge weight off our minds.

the only thing we wondered after the lawyer visit was 'why did we wait so long?'

pride I suppose and (like you) we entered the debt in good faith and hated not being able to make good our promise

I went through the process with her. What too many people don't realize is that most filers are good people who are going through hard times. Like you, she had perfect credit for many years but job losses and illness changed all that. Hang in there, life will get better. That's what the BK fresh start is all about. I truly feel for those who didn't file in time and will be faced with a harsh reality in the near future.

We all die at some point.

payments due on credit card balances

The "Bankruptcy Reform Bill" a gift that keeps on giving....

will have many fewer options available. Most will be forced into CH 13 and will have to pay exhorbitant fees for counseling and other services.

Wife had diabetes; She lost her job due to the illness; I lost mine due to excessive time off to care for her (pre family leave). Found a drycleaners to purchase; 0 down due to investment tax credits at the time.

Had a difficult 1st year. The second year the landlords changed; from a family owned grocery store to a republican dominated business. My Wife died from complications. the new landloard did not want everyting he had purchased; so he forced the groceery store managers to either purchase their stores or file for unemployment. He then tried to force me out of business; he lied about my lease; lied to my customers; he lied to the courts.

I have seen this man on television with Trent Lott. He was later charged with defrauding the US government a charge which he was able to beat due to his political influence.

I filed for Bankruptcy.

Fat chance you could do that now.....