That, plus the problems with id theft, 31% interes rates and obnoxious collections people are the reason I don't feel bad about stiffing credit card companies for 50% payoffs. Credit sucks, we should all be working very hard to become lenders. The in-between for a debtor and a lender is a trader and if you make enough trading you become an investor, which is a lender
Hydroblunt I have a potential plan in mind and would like your advice on whether it would be worth it. This is based on me working on a $65,000 annual salary and also an excellent credit score of 760. Liabilities: Mortgage debt: 120,000 Assets: Savings account: 30,000 Home equity: 30,000 I have open unsecured lines of credit up in the area of around 200,000. How can I screw the system without going to jail? Would it be worth throwing away a good credit status to grab the $200,000 and get ahead several years? I was thinking of somehow hiding my assets and the 200K into a family members trading account and operate from there. If anyone thinks I am a scumbag for devising such a plan then you are 100% correct. I am Welcome to Capitalism
No don't sell the two cars right before filing. If you do the bankruptcy judge will say you are selling off assets to screw creditors. John
If you feel you must then do it quickly before you start to miss payments on credit cards etc. What kills people's credit is they get way behind on debt payments so their credit is already shot when they file. It best to do it while you are still current on debts. I know a lady who took the bull by the horns and filed before she missed payements and her fico score is in the mid 500's which is a reasonable place to start over at. Also, do not sell any assets right before filing. The court will consider that defrauding creditors. John
Get an attorney. Do not draw on any credit or sell any assets before getting legal help. Keep in mind when you are screwing your creditors you are also screwing us through higher interest rates. I wish you the best of luck with it. Traveler
Keep in mind that the following types of debt can generally NOT be discharged. Debts for taxes owed to local, state or federal agencies Debts for money, property, services, or an extension, renewal, or refinancing of credit, which was obtained fraudulently Debts which were neither listed nor scheduled or which the debtor waived discharge Debts which are owed to a spouse, former spouse, or child of the debtor, for alimony, maintenance, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record Debts owed for willful and malicious injury by the debtor to another person or property owned by another. Debts for government-sponsored educational loans, unless it can be shown that repayment will cause an undue hardship Debts for death or personal injury caused by the debtor's drunk driving or from driving while under the influence of drugs or other substances Debts incurred after a bankruptcy was filed Also, if you obtained the debt while you and your wife were married, you probably will not be able to file without it affecting her as well. Don-
You might refer to the Beasley decision.. Debts which were neither listed nor scheduled or which the debtor waived discharge
Listen to Hydroblunt. Electric Savant is wrong on this subject. Take it from a guy who knows, though I live in another state. I bankrupted(Ch. 7) in 1995 and it took 10 years to get my credit score (FICO) back in the 700s. If I ever have to bankrupt again, I would not use an bottom-feeder bankruptcy attorney. My atty from 1995 made mistakes by leaving off creditors. You can do it yourself. Don't sell the cars. Since they are old, just value them very low. If they are not paid for, re-affirm those automobile debts. You can transfer assets too. Just lie, and make sure they cannot be traced through bank statements or other means. They usually just take your word for it though, and never check to see if assets are transferred. FWIW, I used to also sell credit repair books and have read many legal books on the subject. Good Luck to you!
Can't someone just cash out their bank accounts and brokerage accounts and put the money under the mattress so no one knows about it? If it comes up, can't you just say you gambled it away?