Have you ever been bankrupt?

[Bruce Wayne]

Have you ever been bankrupt? What would have to happen to your finances to force you down this route? Has a friend of yours ever been in this situation?

[robby]

No, thank heavens...

[MrsChambers]

about 10 years ago, I thought that I should have filed BK... but I didn't... I just stuck it out.

I do have this friend though.... who filed BK with her then New husband about 10 years ago also.... I'm not sure about the details of that BK because they didn't tell me about it untill now.... and this came to light because they are now in the process of filing BK again.

Apparently, they have 60 grand in credit card debt. Now how you get 60 grand in credit card debt is beyond me. I haven't been to their home, beause they live far away... but I have seen pictures... and they live in a run of the mill manufactured home... no fancy furniture or carpets or window drapings.... just makes you wonder where 60 grand went to.

[frugalfarmwife]

No thank goodness although some days it feels like it would be easier than the daily grind! Bankruptcy is NOT an option for us, we'll do without first.

KJ

[BAGAGT1]

Thankfully, I have never filed for bankruptcy, and will hopefully never have to. In order for me to file for bankruptcy, I would have to have some severe medical issues, enough so that I would have to sell my home.

[PRICEPLUS]

No. I would have to be in a world of hurt to do that. It may have something to do with my upbringing. I hate to use credit in the first place. I can't say as I know anyone who has gone through a bankruptcy proceeding!

[zakity]

My sister has and some of my friends have. I think that most of them were just irresponsible with their money.

[jmjj215]

I've never borrowed any money except for my credit card I used for all purchases. So - no bk here - thank heavens.

[Armywife]

I filed for divorce and bankruptcy a few years back. I'm slowly inching my way back to where I was before the BK filing creditwise (its not easy at all).

[FrugalTexan75]

Almost five years ago now I filed for bankruptcy. In the year and a half before filing I had 6 months of either no pay, or very little income. I also got involved with a company which was less than scrupulous, and invested money into it to try to make a go of it. By the time I took a teaching job (I'd been trying to change careers) I didn't have two pennies to rub together, had to borrow gas/food money to get to where my new job was, and had 5 maxed out credit cards, a car loan, and two personal loans. I lived with the Kindergarten teacher and her husband in their spare bedroom for two weeks while looking for a place that accepted pets, as well as would accept me with my horrible credit. Once I found a place to live, my normal monthly bills, excluding credit card and personal loan payments, left me with enough to pay for my car, and a little extra for food. I tried working with the creditors, but they didn't care for my idea of paying each of them $10/mo till I could get some footing.

If I could have that year and a half to do over again, I wouldn't have let myself get so over my head involved with that business, and hopefully been able to find a real paying job in time to keep up with all my obligations so I wouldn't have had to file bankruptcy. Before that time, I had only had ONE 30 day late payment EVER. Unfortunately people don't look at how you were BEFORE BK, or really care much about hearing how it happened.

The best thing that came out of it for me though was that I really learned how to manage my money. For nearly two years I lived on a cash - only basis usng the envelope system. I learned to really figure out what were wants and what were needs. It was a very hard lesson which will follow me for eternity, but I know its not a trap I'll fall into again.

Keeping It Frugal in Texas,
Laura

[Snoopy2645]

No thank goodness I never have filed BK I was brought up to believe you support yourself no matter what!! That may have hurt me at times too for ex when I when I was 18 & a single mom I did it all alone worked ft went to school ft had no help at all for my dd. I could have taken a easier route but never thought twice about it when I was in the situation.

I do have a best friend who has filed BK twice & is going down the same route again. I really hate to see her like this. I have offered to get her a job where I worke she is a sahm but her kids are in school so thier would be no sitter needed & she refused. I have gently offered ideas she dont hear them so what can I do but sit back & watch kwim.

I pray I never find myself in a situation where I have to file BK. I thank goodness I have always found a way to pay my way even as a sahm. I learned to do things here & thier for money & get lots of stuff free with coupons & rebates & signing up for different offers. I started working a paper route when I was very young probably 8 or 9 with my big brother & from thier on out I always did something for money.

[Fern]

No, I haven't, but someone I knew did. After his divorce, he continued living as if there were still 2 incomes, plus to ease his pain he blew a lot of money on a fancy vacation. He didn't make a lot of $$, debt collectors were calling, and had very little financial knowledge. i got him to go to a credit counseling service. Ultilmately, he filed for bankruptcy. Ethically, i don't believe bankruptcy is an honorable way to get rid of your debit (eg by stiffing others).

I have another friend who has serious financial troubles, but she is still somehow sticking it out. When she was laid off from her job, she decided, unwisely, to proceed with her plans to add a mother in law addiiton to her house for her mom, who was already living with her. The contractor turned out, was unlicensed, did a half-ass job and walked away with her $$, which she couldn't reclaim becus he had no assets. She then had to spend quite a bit more $$ to get the job finished.

[miclason]

There isn't such a thing as a legal bankruptcy here...if you don't have the cash, the companies can take everything you own, put it up for sale to cover the debt AND all legal expenses of doing this...they can dock up to 20% of your paycheque also, and, if you are a co-debtor, they can dock up to 20% of your salary to cover the debt, too....oh, and if you are unemployed, the interests keep counting....the good thing is, there is no prison for debts anymore, and, also, you cannot "inherit" debt anymore - except for taxes, if your parents left unpaid taxes, you're responsible to pay for them, and there IS prison for tax evasion, so....

[cercis]

We've been lucky in that we've never had a serious illness or gone an extended period without a job.

I have no illusions that one major illness would hurt us so badly that bankruptcy might be our only option. So far we've never had enough unsecured debt for bankruptcy to even make a difference (when dh got fired and I had to take a job below market value just to eat, the amount we paid in unsecured debt wasn't enough to matter, we just lived on credit cards). We work hard to prevent that major illness - we always wear our seatbelts and our kids will be in booster seats until the seatbelt fits them correctly, we are careful what we eat, etc.

I've known several people who filed bankruptcy. Only one was because of irresponsible spending (and I'm still not sure what they spent it on, their house wasn't much, they didn't have a lot of things and they didn't eat out a lot). The others were all because of major illnesses - most of them had insurance at the time the illness happened. They probably would have been fine, but then they got laid off because of outsourcing. Sad.