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Why Do People Think Bankruptcy Gives You a Fresh Start? – Jeronell

By on February 26, 2013

“Dear Steve,

Separated from my husband. we filed bankrupt separately because we lived at different addresses.

he filed a chapter 7 and was done i filed a chapter 13 supposively because of income and it has been a nightmare.

I was left with the responsiblity of paying all the bills. we surrendered our house in the bankrupt.

i had two rental properties, One, i moved back into and the other has a tenent whose job status has changed, therefore she never pays on time. It has been 3 years since the bk. I still pay associations fees, taxes and maintenence on old house. i had an old car so im always fixing that.

Medical bills for myself and daughter and maint on the rental property and mine. Trustee based my chapter payback amount on overtime that was enough to be someone’s paycheck. I told them that overtime was not normal and we had already been advised that it would be cut out. Indeed, i have worked very little overtime since then. I have tried to get a parttime but have been unable to get one. Not to mention i am in school also.

My question is, why does everyone say that bankrupty gives them a fresh start? Or course it did for my ex-husband, He has moved on, brought a new truck, had no back bills haunting him and good for him, I’m not mad about that.

But for me, I get tax bills, insurance bills, maintenance bills and association fees from our old property. I had to pay off his old vehicle that he left but was in my name. i maintenance rental properties by the way which earns less than its mortgage which is about to foreclose because i’m always late paying because tenents are always late paying me.

i dont make enough to pay my rent and basic necesseties. This is a never ending battle.


Bankruptcy Road Sign

Dear Jeronell,

Have you discussed this with your bankruptcy attorney? It sounds like you wanted to hold on to the rental property and in that case a chapter 13 might have been necessary. But that’s not a problem of bankruptcy but wanting to maintain or protect certain assets, like the rental property.

READ  The Five Myths About Bankruptcy. Watch the Video.

Based on your current income they may be able to modify your payment or if you actually wanted a fresh start you should talk to the bankruptcy attorney about converting your case to a chapter 7 bankruptcy and possible hand the rental property back.

If the bankruptcy attorney says you make too much money, find a different attorney. You might want to click here to find a local bankruptcy attorney that can help you qualify for a chapter 7 even with a higher income. Many are able to file without a problem.

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  1. Bigdog

    February 27, 2013 at 11:30 am

    This government wants to make sure you have nothing.It does not matter to them that you worked all your life to buy things you want and to have then something happens like loss of job. It is very hard to find a attorney that will be straight with you they all beat around the bush or seeing that you have those houses they don’t really want to get involved with you.They are looking for a quick and clean bankruptcy

    • Steve Rhode

      February 27, 2013 at 12:52 pm

      The bankruptcy code makes allowances for a number of things, including not taking your house.

    • Kenneth Neeley

      February 27, 2013 at 6:40 pm

      Unfair generalizations Bigdog. I’m a bankruptcy attorney who gives people honest answers and does not shy away from tough cases. And, the bankruptcy laws are very fair. Our clients keep their house, car, furniture, tools, clothes, wedding ring, gun, and much more.

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