Anyone know anything about bankruptcy?

[Tina]

I'm trying to help out my aunt (she's like a sister to me). She's in Michigan, I'm in Virginia. She is getting a divorce and is in really bad financial shape. She's 3 months behind on the mortgage, making next to no money (laid off more than a year ago now and working a worthless job), the bills are piling up on her, and she has been unable to sell her house (needs too much work). Her credit went downhill a long time ago since her deadbeat husband (sorry, its the truth) couldn't keep a job. So now she's on her own and scared. We've been talking about her moving in with DH and I here in Virginia to help get her back on her feet and get a fresh start. But with not being able to sell the house, we don't know what to do. We need info about filing bankrupcty. How long does it take? How much does it cost? Does she really need a lawyer? Does she have to wait for it to be over before she can move out of the state of Michigan? We'd like to have her here with us by the end of the year - by Thanksgiving, if possible. I'd appreciate any help anyone can offer. Even lawyer recommendations are welcome. She lives in Warren. Thanks DISers!!

 

[Tina]

Anyone??

 

[Miss Jasmine]

Laws vary state to state with regard to bankruptcies. I encourage your aunt to consult an attorney who specializes in bankruptcy. The attorney will be able to answer all of your questions. With regard to how long it takes...it depends on the court, again an attorney would have the best information.

 

[snoopy]

My brother and his wife filed bankruptcy. Two times, actually. There reasons weren't good ones like your sister's, they just like to live beyond their means.

I believe it cost them about $1,000 to retain a lawyer, and another $500 or so to actually file, but I could be wrong. I seem to remember her asking me to borrow the money for this...... Also, if I remember correctly, the day they filed was the day they were resolved from all debt, but there was a hearing a couple of months later that any of the creditors could come to to try and negotiate the paying off of debt. One thing I do remember clearly is my SIL ran and maxed out a credit card right before filing and she had to pay for that, there is a law somewhere that says you can't use your credit cards right before you file bankruptcy.

I don't know about when she get move out of state, they never had to do that. They were able to keep their home and their car, because both were worth less than what they paid for them.

 

[Lars624]

Hi......I am a MI resident and I have a niece who has been through this.....I wish I knew more details about the time it took & how much it cost.....I would definatley urge her to see an attorney.....

 

[Tina]

Thanks everyone for responding. We've found a great lawyer in Sterling Heights than deals in divorces, bankruptcy, and other family law. My aunt had called her office this morning and spoke with the receptionist, but the lawyer wasn't in yet. She didn't plan to hear from her for at least a day or two, but suprisingly, the lawyer called her from home. She was really nice. Really informative. She was upfront with all of her fees and gave great advice. It looks like it would cost her $950 for the bankruptcy or $1500 for bankruptcy/divorce combo - which she recommended so her husband can't take advantage of her. My aunt is feeling much better now and has a positive outlook. Thanks again to everyone.

 

[doxdogy]

We have been through bankruptcy. I don't remember the exact cost. But it was over $1,000. It took about a year from start to finish (a good portion of the time was spent filling out all the paperwork). We had fill out financial affdavits, which included listing all the property in our house. The reason being they wanted to see if we had any "valuables" that were worth selling to help pay off our debt. We weren't behind on the house or car payment. We were able to do what is called reaffirm these two debts. After the paperwork was filed we were appointed some type of "guardian", unfortunately I can't remember the exact term that was used. Our creditors were given the opportunity to show up at the hearing in court. I don't believe any of them showed up. I do remember during the process our bank accounts were frozen for a few months. I was told by the attorney to cancel my direct deposit and pay all of our bills by money order. It was a reasonably painless process. I hope this information helps.