Super Saturday :)

Well today is another day and I of course am now getting more and more offers about taking a post bankruptcy course. When I went to the bankruptcy lawyer and talked with them they told me about the classes that are required for you to be able to even file. In KY I had to take a course within 180 days of filing and then within 60 days of my meeting of the creditors (3/4/2011). My lawyer helped me by sigining me up for the proper courses and just gave me a card to call them and get started. I took my pre-bankruptcy course and then it was time to file. It was almost immediately that I started getting those crazy junk mail offers and also more offers on a credit counseling course. Unfortunately for them I enrolled in both through the same company so I have no need for them. Most people will infact do the same thing I did (I mean really who is going to waste their time going through 2 different companies when you can do it all with 1?!)  Something else you will notice when you get these offers is them offering you $5.00- $10.00 off which still in most cases is more expensive for you than the one that you have already enrolled in. In the event that you actually do recieve an offer that is less than what you paid for your class make sure that you do not do that offer there is no need. Why waste your time and money? The classes the lawyer sets you up with are pre-paid remember!?! Just be smart and use your head like I told you when I talked about the offers you will recieve! And remember.... IF SOMETHING SOUNDS TOO GOOD TO BE TRUE IT ALMOST ALWAYS IS!!!

Have a great day!
<3 Sarah

Its been a few days...

Well I know that its been a couple of days since my last post but sometimes life intervenes lol. On Wednesday I didn't make much money 33.50 to be exact... OUCH that on hurt! And well yesterday I didn't work! I wanted to let you know today about all the offers that I am getting to finance a car and get a credit card. Whatever you do... DON'T ACCEPT THEM! THROW THOSE OFFERS IN THE TRASH! They always promise you that you are pre-approved and that you can get it in before the meeting of the creditors but lets think about this for a second... WHY ARE YOU GOING TO PICK UP MORE DEBT? Isn't the point of this to get out of debt? Isn't the point of this to stop spending and getting things on credit?!  This is NOT the right way to build your credit back! Those are what all of us like to call JUNK MAIL lol! Be smart thats all you have to do. If you cant budget and afford all of what you had then how are you going to afford this? All because its new and it may not be the beater car in your drive way just be thankful that you have that beater car and that it gets you around!  You don't need to tack on an extra 150 dollars or whatever they may be advertising... if you really think about it rather than just acting on impulse which has got us where we are then you know that its not logical!

Alright guys I am going to go ahead give you your day back I have given you my words of wisdom for the day... see you all again soon!

<3 Sarah

& here we go again...

Well yesterday at work was not very successful lol!  I actually  made 12.34 yesterday morning and 48 last night. All in all I made $60.00. Now the important thing to do is to not spend it like I normally would. I know this is going to be hard cause this is who I have been for years and years and years now.... but I know that I HAVE to!! I looked at my 60 last night and I said to myself... What can I do to make the most of this money. So what I did was I took out 10 bucks for gas and put the rest away! (Some people may not be able to just put it in a drawer and not touch it till needed again... If you have a trust worthy friend or parent you can always give to them what you want to save and THEY WILL HELP YOU! Don't be afraid to ask!!!) Now today I don't work until tonight and have no clue how much I am even going to make.. I wish a million dollars but let's all be realistic :)


Later on I will post my tips on here for today! Tomorrow I want to talk about things like new offers and classes! Yep the important stuff... be excited haha! 


See you soon!

Sarah :)

Just another manic Monday...

Hey guys! Here it is another Monday! I haven't really had much going on since it's only 9:00 but I did want to get on and let you know what the newest venture of getting Sarah out of debt and on the right track is!! Today I start working towards completing Dave Ramsey's Financial Peace University. I am doing the classes through the church on Sunday's 4-5:45 (so you see its on a convenient day for me... Anyone can do it!!!) He states that it is 91 days to beat debt and build wealth... let's see! I have a friend of mine who did and loved the results that her and her husband have got from it... I hope those same results prove true! I have to work all day today so I won't get around to doing what he calls "the quickie budget" today but I will have it up and share it with you sometime over the next few days! Until then I will just keep checking in and let you know all the little things like how much money I have made for the day so that we all can see exactly what my situation is!!! See you soon :)


Sarah

Bankruptcy Definitions...

 Bankruptcy has its own language so here are a list of definitions that I got on line (Linked at the bottom!!!) so that we all can understand what exactly is being said :)

Adequate protection: Payment to a secured creditor to protect the value of the creditor's lien during the bankruptcy proceeding from loss due to depreciation or non payment of a senior lien.

Adversary proceeding: A lawsuit filed in the bankruptcy court which is related to the debtor's bankruptcy case. Examples are complaints to determine the dischargeability of a debt and complaints to determine the extent and validity of liens.

Assets  Assets are every form of property that the debtor owns.  They include such intangible things as business goodwill; the right to sue someone; or stock options.  The debtor must disclose all of his assets in the bankruptcy schedules;  exemptions remove the exempt assets from property of the estate. 

Automatic stay: The injunction issued automatically upon the filing of a bankruptcy case which prohibits collection actions against the debtor, the debtor's property or the property of the 

estate. 

Avoidance:  The Bankruptcy Code permits the debtor to eliminate (avoid) some kinds of liens that interfere with (or impair) an exemption  claimed in the bankruptcy.  Most judgment liens that have attached to the debtor's home can be avoided if the total of the liens (mortgages, judgment liens and statutory liens) is greater than the value of the property in which the exemption is claimed.  This is sometimes called "lien stripping."  

Avoidance powers: Rights given to the bankruptcy trustee (or the debtor in possession in a Chapter 11)  to recover certain transfers of property such as preferences  or fraudulent transfers or to void liens created before the commencement of a bankruptcy case.  

Bankruptcy Code. Title 11 of the United States Code  governs bankruptcy proceedings. Bankruptcy is a matter of federal law and is, with the exception of exemptions, the same in every state.  When federal bankruptcy law conflicts with state law, federal law controls. Bankruptcy Code incorporating changes effective 10/17/05.

Bankruptcy estate: The estate is all of the legal and equitable interests of the debtor as of the commencement of the case. From the estate, an individual debtor can claim certain property exempt; the balance of the estate is liquidated in a Chapter 7 to pay the administrative costs of the proceeding and the claims of creditors according to their priority. 

Chapter 7: (**This is what I am filing**) The most common form of bankruptcy, a Chapter 7 case is a liquidation proceeding, available to individuals, married couples, partnerships and corporations. 

Chapter 11: A reorganization proceeding in which the debtor may continue in business or in possession of its property as a fiduciary. A confirmed Chapter 11 plan provides for the manner in which the claims of creditors will be paid in whole or in part by the debtor.

Chapter 12: A simplified reorganization plan for family farmers whose debts fall within certain limits. 

Confirmed: A plan of reorganization in Chapter 11, 12 or 13 approved by the court and binding on the parties is said to be confirmed.

Chapter 13: A repayment plan for individuals with debts falling below statutory levels which provides for repayment of some or all of the debts out of future income over 3 to 5 years.  

Charged Off: This is an accounting term that means the creditor does not expect to collect on the debt. It relates to the creditor's taxes. It starts time periods under the Fair Credit Reporting Act. It does not mean that the debt is no longer legally enforceable.

Collateral:  The property which is subject to a lien.  A  creditor with rights in collateral is a secured creditor and has additional protections in the Bankruptcy Code for the claim secured by collateral.  The measure of the secured claim is the value of the collateral available to secure the claim:  it is possible to have a lien on property that is subject to a senior lien or liens such that the security available to pay the claim is really without value to the junior creditor.   The general rule with respect to liens is "First in time, first in right."  

Confirmation: The court order which makes the terms of the plan for repayment of debts in a Chapter 11, 12 or 13 binding. The terms of the confirmed plan replace the prepetition rights of the debtor and creditor.

Consumer Debt Debts incurred by an individual for personal, family or household purposes. Taxes are not consumer debts; neither are business loans. The means test only applies to those with primarily consumer debt.

Contingent: Used to describe debts that are not fixed in right at the time, but are dependent on some other event happening to fix the liability.

Conversion: Cases under the Code may be converted from one chapter to another chapter; for example, a Chapter 7 case may be converted to a case under Chapter 13 if the debtor is eligible for Chapter 13.  Even though the chapter of the Code which governs it changes, it remains the same case as originally filed.

Creditor:  The person or organization to whom the debtor owes money or has some other form of legal obligation.

Debtor:  The debtor is the entity ( person, partnership or corporation) who is liable for debts, and who is the subject of a bankruptcy case.

Debtor in Possession: In a Chapter 11 case, the debtor usually remains in possession of its assets and assumes the duties of a trustee.  The debtor in possession is a fiduciary for the creditors of the estate, and owes them the highest duty of care and loyalty.

Denial of discharge:   Penalty for debtor misconduct with respect to the bankruptcy case or creditors as a whole.  The grounds on which the debtor's discharge may be denied are found in 11 U.S.C. 727.  When the debtor's discharge is denied, the debts that could have been discharged in that case cannot be discharged in any subsequent bankruptcy.  The administration of the case, the liquidation of assets and the recovery of avoidable transfers, continues for the benefit of creditors.   

Discharge: The legal elimination of debt through a bankruptcy case. When a debt is discharged, it is no longer legally enforceable against the debtor, though any lien which secures the debt may survive the bankruptcy case.

Dischargeable: Debts that can be eliminated in bankruptcy.  Certain debts  are not dischargeable;  that it, they may not be discharged through bankruptcy or may only be discharged through Chapter 13. Family support and criminal restitution are examples of debts which cannot be discharged. Debts incurred by fraud can only be discharged in Chapter 13.  More on which debts can be discharged. 

Dismissal: The termination of the case without either the entry of a discharge or a denial of discharge; after a case is dismissed, the debtor and the creditors have the same rights as they had before the bankruptcy case was commenced. Dismissal is the penalty for many essentially minor infractions of bankruptcy procedures under the 2005 amendments.

Domestic Support Obligation: Debts for alimony, maintenance or support owed to child, spouse or governmental entity that paid for the support of the child or spouse. A new term introduced by the bankruptcy amendments of '05.

Exempt:     Property that is exempt is removed from the bankruptcy estate and is not available to pay the claims of creditors.  The debtor selects the property to be exempted from the statutory lists of exemptions available under the law of his state.  The debtor gets to keep exempt property for use in making a fresh start after bankruptcy.  

Exemptions:   Exemptions are the lists of the kinds and values of property that is legally beyond the reach of creditors or the bankruptcy trustee.  The debtor in bankruptcy keeps the exempt property. What property may be exempted is determined by state and federal statutes, and varies from state to state. 

Fiduciary:  one who is entrusted with duties on behalf of another.  The law requires the highest level of good faith,  loyalty and diligence of a fiduciary, higher than the common duty of care that we all owe one another.  The debtor in possession in a Chapter 11 is a fiduciary for the creditors, owing loyalty to the creditors and not the shareholders of the debtor.

General, unsecured claim: Creditor's claim without a priority for payment for which the creditor holds no security (or collateral). If the available funds in the estate extend to payment of unsecured claims, the claims are paid in proportion to the size of the claim relative to the total of claims in the class of unsecured claims.

Indemnify: to guarantee against any loss which another might suffer. In bankruptcy, it is used to describe the undertaking of one spouse in a divorce to assume certain debts of the marriage and to see that the other spouse is not forced to pay. Also called a "hold hamrless" clause.

Lien: An interest in real or personal property which secures a debt; the lien may be voluntary, such as a mortgage in real property, or involuntary, such as a judgment lien or tax lien.

Liquidated:  A debt that is for a known number of dollars is liquidated.  An unliquidated debt is one where the debtor has liability, but the exact monetary measure of that liability is unknown.  Tort claims are usually unliquidated until a trial fixes the amount of the liability of the tort feasor.

Means Test: Added to the Code in 2005, the means test is intented to screen out those filing Chapter 7 who are supposedly able to repay some part of their debts. The test is found in Official Form B22a. Debtors who fail the means test may convert their case to another chapter of bankruptcy. 

Meeting of creditors: The debtor must appear at a meeting with the trustee to be examined under oath about assets and liabilities.  Creditors are invited but seldom attend.  The meeting is sometimes called the 341 meeting, after the section of the Bankruptcy Code that requires it. (**This will be on March 4th for me!!**) 

Non dischargeable:   A debt that cannot be eliminated in bankruptcy.  Non dischargeable debts remain legally enforceable despite the bankruptcy discharge.  The Code's list of non dischargeable debts is found at 11 U.S.C. 523. The scope of the discharge in Chapter 13 differs from the discharge in Chapter 7. Discharges compared.

Perfection:  When a secured creditor has taken the required steps to perfect his lien, the lien is senior to any liens that arise after perfection.  A mortgage is perfected by recording it with the county recorder;  a lien in personal property is perfected by filing a financing statement with the secretary of state.  An unperfected lien is valid between the debtor and the secured creditor, but may be behind liens created later in time, but perfected earlier than the lien in question.  An unperfected lien can be avoided by the trustee.

Personal property: Assets, such as cars, stock, furniture, etc., that is not real estate or affixed to real property, 

Petition: The document that initiates a bankruptcy case. The filing of the petition constitutes an order for relief and institutes the automatic stay.   Events are frequently described as "prepetition", happening before the bankruptcy petition was filed, and "post petition", after the bankruptcy was initiated.

Preference: A transfer to a creditor in payment of an existing debt made within certain time periods before the commencement of the case. Preferences may be recovered by the trustee for the benefit of all creditors of the estate.

Pre-petition: Claims or events arising before the commencement of the bankruptcy case, that is, before the filing of the bankruptcy petition.  Generally only pre petition debts may be discharged in a bankruptcy proceeding.

Priority:  The Bankruptcy Code establishes the order in which claims are paid from the bankruptcy estate.  All claims in a higher priority must be paid in full before claims with a lower priority receive anything.  All claims with the same priority share pro rata.  Claims are paid in this order:  1) costs of administration  2) priority claims and 3) general unsecured claims.  Secured claims are paid from the proceeds of liquidating the collateral which secured the claim.

Priority claims: Certain debts, such as unpaid wages, spousal or child support, and taxes are elevated in the payment hierarchy under the Code. Priority claims must be paid in full before general unsecured claims are paid.

Proof of claim: The form filed with the court establishing the creditor's claim against the debtor.

Property of the estate:  The property that is not exempt and belongs to the bankruptcy estate.  Property of the estate is usually sold by the trustee and the claims of creditors paid from the proceeds.  

Reaffirm:  The debtor can chose to waive the discharge as to a debt that is reaffirmed. Generally, the parties to the reaffirmed debt have the same rights and liabilities that each had prior to the bankruptcy filing: the debtor is obligated to pay and the creditor can sue or repossess if the debtor doesn't pay.  

Relief from stay:  A creditor can ask the judge to lift the automatic stay and permit some action against the debtor or the property of the estate.  If the motion is granted, the moving party (but no one else) is free to take whatever action the court permits.  Relief can be absolute, for example, permitting the creditor to foreclose on property, or limited, as for example, allowing the recordation of a notice of default.  

Schedules:  The debtor must file the required lists of assets and liabilities to commence a bankruptcy case, collectively called the schedules.

Secured debt:   A claim secured by a lien in the debtor's property by reason of  the debtor's agreement  or an involuntary lien such as a judgment or tax lien. The creditor's claim may be divided into a secured claim, to the extent of the value of the collateral, and an unsecured claim equal to the remainder of the total debt. Generally a secured claim must be perfected under applicable state law to be treated as a secured claim in the bankruptcy.

Trustee:  the court appoints a trustee in every Chapter 7 and Chapter 13 case to review the debtor's schedules and represent the interests of the creditors in the bankruptcy case.  The role of the trustee is different under the different chapters.  

Unsecured:  A claim or debt is unsecured if there is no collateral that is security for the debt.  Most consumer debts are unsecured

***Here is the link where I got these definitions from!!!

 ***http://www.moranlaw.net/glossary.htm

Here I am...

Hi there! I am Sarah J. & I am here with my bankruptcy survival guide. Over the next couple of months I am going to let you into my deepest darkest secrets including all my debt, the day I go to court, and even through trying to start rebuilding my credit. (I am even going to post my budget and more as we go along!) I have found that credit is the easiest thing to lose and the hardest thing  gain back (I believe this is because you have to build trust with companies so that you can even rebuild and we all know how hard it is to trust!!)

I will start off by telling you a little about me and how I got to where I am today. I am your average 22 year old (Soon to be 23 yay!) who loves to spend time with my family, my friends, and most of all football and basketball. I'm the girl who dances around and makes a fool of myself. I am the girl who loves to be outside and get dirty and I love to wear heels and cute boots. I serve to get by and no it's not exactly the money maker that everyone thinks it is! I am approximately $33,593.20 in debt. I have debts from medical bills (most of my debt!), credit cards, phone bills, overdrafts, and I have even had a car repossessed. I believe that the decisions that I have made have led me to where I am and if I had chosen a different path I would not be going through everything that I am now. (You will learn more about my choices I'm sure as I go!) 

I have decided to start this blog to help people understand more about what bankruptcy is and how to recover from it. Yes everyone has different things that may affect your outcome but this is just a guide to try and help anyone that has to go through this process!

See you back again soon :)