It's been about 9 months since our case was discharged and I really have no good Bankruptcy news or drama. Things have been smooth and easy, thank goodness...
We were able to refinance our mortgage a few months ago, which was a huge relief. But, I must say, we have sort of a special circumstance that didn't factor in the Bankruptcy - if it wasn't for the fact that we have a VA (Veteran's Affairs) guaranteed mortgage, we may not have been able to refinance this close to Bankruptcy. Luckily, with VA guaranteed mortgages, you need no income verification, no appraisal, and no in-depth credit checks. The only thing the lender cares about is that you've been on time with your payments for the last 1-2 years. So, as a result of the refinance, we are saving about $300 per month, which helps out a lot these days.
With the breathing room we gained since 2009 (when we originally filed the Bankruptcy petition), we've actually been able to start following Dave Ramsey's Baby Steps (we tried before the bankruptcy and it was what led us to the Bankruptcy decision). If you're familiar with Dave Ramsey's Baby Steps, you'll recognize that Baby Step #2 - the debt-snowball - was essentially accomplished through the Bankruptcy, but it's still been a challenge putting forth the effort to change our habits and save up for Baby Step #1 - The $1,000 Emergency fund! We still have a lot of progress to make and it seems like Murphy's Law truly does kick in just when you feel like you're making progress...Recently, we've had to buy two sets of brand-new tires and repair one of our vehicles.
Oh yes, I did forget - we did accomplish part of Baby Step #1 on our own - we have paid off other debts that were not covered in the Bankruptcy. It felt very good to pay off not one, not two, but THREE of our student loans! One more remains, but considering it's in the $30,000 range, we'll take our time and not stretch ourselves too thin trying to pay it off, though it will feel nice when we do!
All in all, things are going well. Like I said, we still have some work to do to change our personal saving and spending habits, but it is nice to have that wiggle room, instead of feeling pushed against the wall every single payday. It feels good to be on a 100% cash basis.
Monday, July 25, 2011
Tuesday, January 4, 2011
Post-Discharge Update
I have been so horrible at making regular updates that I can't remember when I wrote last, or, for that matter, what I wrote about. I could go back and check, but I just feel like writing as it comes to me...
I have a confession. This Bankruptcy thing hasn't been as emotional as I thought it was going to be. I imagined a drag-me-through-the-mud process where I felt like a complete loser and a worthless human being. Maybe it's because there has been so much other stuff going on - in our life, in the world, in politics, with the environment - that Bankruptcy is really nickels and dimes in the grand scheme of things.
So, our case was finally discharged about two or so months ago - a process that took about 15 months, maybe a smidgen longer. We have had a few events happen since the discharge that makes it feel as if we never declared Bankruptcy and are back to paying all of those debts. Every. Single. Month. It's almost like a nightmare, really. Even though the Bankruptcy is final and discharged, we are still a few paychecks away from being the next foreclosure victim. Each month the decision is not when to make the mortgage payment, but if we should, since that money would do well applied toward the many escalating costs we've had. Yes, it's almost that bad. Still!
On the amusing front of being discharged, we have begun getting mailings from local car dealerships that apparently 'specialize' in helping people just like us get into the car of their dreams! Some of the letters are even hand-written for a more sympathetic feel, even though the letter was photocopied and mass-mailed. I'm taking a wild guess here, but it would seem they are the 'ambulance chasers' of the Bankruptcy world. I used to work at personal injury law firm that made quite a living off of ambulance chasing, so I'd imagine there's money to be made from public Bankruptcy records as well. Scary. Our information is out there for anyone to see. I wonder just how much of our Bankruptcy case is public, or if it's just a list of recently discharged cases, complete with address information.
I have a confession. This Bankruptcy thing hasn't been as emotional as I thought it was going to be. I imagined a drag-me-through-the-mud process where I felt like a complete loser and a worthless human being. Maybe it's because there has been so much other stuff going on - in our life, in the world, in politics, with the environment - that Bankruptcy is really nickels and dimes in the grand scheme of things.
So, our case was finally discharged about two or so months ago - a process that took about 15 months, maybe a smidgen longer. We have had a few events happen since the discharge that makes it feel as if we never declared Bankruptcy and are back to paying all of those debts. Every. Single. Month. It's almost like a nightmare, really. Even though the Bankruptcy is final and discharged, we are still a few paychecks away from being the next foreclosure victim. Each month the decision is not when to make the mortgage payment, but if we should, since that money would do well applied toward the many escalating costs we've had. Yes, it's almost that bad. Still!
On the amusing front of being discharged, we have begun getting mailings from local car dealerships that apparently 'specialize' in helping people just like us get into the car of their dreams! Some of the letters are even hand-written for a more sympathetic feel, even though the letter was photocopied and mass-mailed. I'm taking a wild guess here, but it would seem they are the 'ambulance chasers' of the Bankruptcy world. I used to work at personal injury law firm that made quite a living off of ambulance chasing, so I'd imagine there's money to be made from public Bankruptcy records as well. Scary. Our information is out there for anyone to see. I wonder just how much of our Bankruptcy case is public, or if it's just a list of recently discharged cases, complete with address information.
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