So Far...

We have a Case Number with the U.S. Bankruptcy Court! Still waiting to find out when our court date is, but we should know within the next week or so.

Mr. America and I still can't get over just how easy this entire process has been so far. I keep waiting for a 'shocker' of some kind - something that stops me dead in my tracks and makes me regret this entire decision. It's almost like buying a house, in many ways. First, there's the paperwork. Sign this, sign that, sign this, and this, and this, and this. Then, there's the whole disbelief aspect, where you won't actually believe the house is yours until you have the keys and are standing in your living room for the very first time. I don't think we'll really believe the bankruptcy has gone through until we pull our credit reports and see proof, and that could be another several months from now, even if our court date was tomorrow.

I know I haven't mentioned what type of Bankruptcy we're filing, but that's because we weren't entirely sure exactly which Chapter the attorney was going to 'recommend.' We were given a pretty good idea, but it was really up to the attorney. There are two Chapters, 7 and 13. The simple Chapter 7 explanation is that it eliminates all of your debt, but also forces you to sell everything of value. The simple Chapter 13 explanation is that it is basically an interest-free unsecured debt consolidation loan (no real or personal property is covered) handled by the U.S. Bankruptcy Court, with a monthly payment required for up to 5 years.

So, now that we have our Case Number, we definitely know it is going to be a Chapter 13. This means that we get to keep all of our real property (homes, land, etc) and personal property (vehicles, appliances, household goods, etc.), but will be making a monthly payment for the next 36 months. I do not know exactly how it works, but basically, in our situation, the Chapter 13 works just like a Chapter 7 (all unsecured debt is discharged), and the monthly payment goes to cover attorneys fees. We will not be responsible for any of our unsecured debt. None.

It really seems too good to be true.

Bankruptcy with no hardship? We get to keep our house (and corresponding mortgage payment)? We get to keep our cars (and corresponding car payments)? But we'll be freed from the $45,000 credit card debt? And we didn't even have to come up with $3,000 attorney fees up front? You mean the attorney fees are payable after our debts are discharged? Well, that last bit isn't true - our first monthly installment is actually due on August 1st, which seems weird to me, considering we haven't even gone to court yet. But, at least it makes me feel like we're actually making progress.

Oh yes, and the collection calls should be cut in half now. We answered the phone tonight so we could give them the Case Number and our attorney's phone number. Once they have been notified of the Bankruptcy Case Number, it is illegal for them to continue calling.

Two creditors down, only three more to go.