Bankruptcy

[jacquelynrose]

NOT even considering it but I need to discuss it!

My dear family Members tell me I will be better off filing for Bankruptcy than trying to Pay off my Debt. That was there way out and they are doing better Financially then previously...

I BELIEVE that I was irresponsible and young at the time and I OWE these people money...and that I should pay it off....(working towards that point).

My point is...WHY are they doing better? No, how do I rephrase that? I cannot even get a non-secured Credit Card and it is so easy for them! I know I have not explained my whole Financial situation and I am rather shameful to do so...Is this making sense to anyone?


Jacquelyn

[Ima saver]

Well I don't believe in filing for bankruptcy unless someone has had a serious illness. I have a friend whose neighbor did that. They bought everything they could and then filed. They did not change their livestyle, they went right back to buying things on time and not saving a dime. Try and work it out without filing.

[34saving]

I applaud your decision to pay your obligations! As for why they're better off . . . I don't have all of the information, but my guess is it's because they're no longer a bankruptcy risk. Our last tenants were the same way. They chose to avoid bankruptcy, but their FICOs were below 500 because they were such a high bankruptcy RISK. (My understanding is that once you declare bankruptcy you can't do it again for at least 7 years. So, creditors are more willing to work with somebody who can't declare again for 7 years than somebody who could declare tomorrow.)

[jacquelynrose]

Julie I had a Friend the SAME WAY! Oh I WILL Pay it. I am right now working out a Plan on how to do so...

34Saving that is EXACTLY what they told me...I think it is crazy and more Credit should be given to do those who at least want to pay it off.

[Ima saver]

I would much rather work with a person willing to try and pay it off, then someone who is just going to get up and walk away from their debt. Hopefully, creditors will feel the same way.

[PRICEPLUS]

Jacquelynrose,

You are doing the right thing and that is many times the hardest thing to do. Set your goals and take care of your situation. In the end you will be the more successful!

[xs4all]

Ok here is my 2 cents. I filed bankrupcy 7 years ago , chapter7. This past april 2006 it has been 7 years. It was the best thing I did for myself. I am a single mother, at the time I had no credit, and got into trouble with CC's. Yes I paid the price, but it was the best thing I did for myself.

I guess im a little perturbed about people judging others about bankrupcy. Its a very personal decision and I know it was right for me.

We dont give out professional advice

[jacquelynrose]

I am not saying its a bad thing really, its just they have it easier now...(BTW Single Mom also) but to each his own...I just find it odd that is all....Honestly my parents are truly embarrassed about the whole bankruptcy, I guess I didn't realize what a touchy subject it could be...but they are doing a whole lot better and I commend them! They are on their toes about their Bills etc...but then on the flip side of the coin....you have those who INTENTIONALLY screw up again, just to live the easy life all over again...you know what I Mean xs4all?

[KellyJef]

I think people who declare bankruptcy and walk away from their obligations, thereby leaving their debts to the REST OF US to pay should be ashamed of themselves; I don't know how they sleep nights.

What if we ALL just went out and bought all the cars, trucks, houses, furniture, vacations, jewelry, etc. that we wanted???? Geez.

I am NOT talking about people who find themselves in dire financial straits due to illness, death, or other situations beyond their control. I AM ONLY TALKING ABOUT PEOPLE WHO CHOSE TO LIVE BEYOND THEIR MEANS -- AT THE EXPENSE OF EVERYBODY ELSE!!

[Ima saver]

I agree with you Kellyjef. But millions of people do it every year!

[autoxer]

Originally Posted by KellyJef

I think people who declare bankruptcy and walk away from their obligations, thereby leaving their debts to the REST OF US to pay should be ashamed of themselves;

How are the REST OF US paying for other peoples bankruptcies?

While I believe that bankruptcy fraud exists, I don't think it is so prevalent that it is worth getting all fired up about. I would give the benefit of the doubt to the debtor, because the creditors are way more corrupt.

Jacquelyn, If you can clear your debts within a few years and avoid bankruptcy it will be extremely empowering for you. Good luck.

[greedy4chips]

Jacquelyn,

Congrats on your choice to face your obligations. I look at bankruptcy the same way I do abortion. Too many people do all the fun part and then the responsibility smacks them in the face and they run in fear.

It won't be easy to bail yourself out. Kids are expensive, but you will see the monthly amount spent go down quite abit.

Can you list all your debts and earnings? With some insight into your situation others may be able to give you suggestions.

I am proud of you!

[sweeps]

Originally Posted by autoxer

How are the REST OF US paying for other peoples bankruptcies?

Because companies are stuck with the bill, which means they have to increase their prices, cut employee wages, and/or decrease investment -- all of which hurt those who actually pay their bills.

[LuxLiving]

And not all the creditors are companies. Sometimes they are just working Joes like you and me who are carrying notes for friends, families and other assorted beings!

[Saving in So Cal]

This is the second bankruptcy related thread I've read recently and I am surprised at the passion the topic engenders. When I was in law school, I externed at the bankruptcy court and found it very enlightening.

I worked on one case involving an elderly person whose only source of income was a monthly social security check. Somehow, and not by any fraudulent conduct, this person had been extended over $1 million (maybe $2 million) in unsecured debt and had no tangible assets to show for it. This person had 4 credit cards from a single department store chain, which is astounding by itself. I don't know this person's personal circumstances, but I suspect some sort of obsessive compulsive disorder. Was it right for this person to incur so much debt? No. Did this person have any other viable alternative to bankruptcy? No. There was no way this person could have paid off this debt in this person's remaining lifetime.

Another case I worked involved an immigrant couple who fell on hard times. They had a small business that was doing well, but then the economy got bad, their business went under, and they couldn't get jobs that paid enough to cover the bills. They tried Chapter 13 (reorganization), but they just couldn't make consistent payments to their creditors. So, their case was involuntarily converted to a Chapter 7 (liquidation). I sat in court the day the judge took their house away and watched them leave the courtroom in tears.

Bankruptcy is a difficult process and not one to consider lightly. However, it has a noble history and it serves important purposes. Not the least of these purposes is that it gives people with no hope, like the elderly person, an opportunity for fresh start. It also eliminates the need for debtors prisons so people like the hard-working immigrant couple don't have to go to jail just be they've fallen on hard times.

[Ima saver]

That was a very interesting post, saving in so.cal. You are right, sometimes bankruptcy is necessary.

[LuxLiving]

I agree Ima! Some times. BUT, So. Cal, lots of people who could do better by their creditors don't! AND, those creditors are tied up for long periods of time waiting for the courts to sort it out. The lady who bought my folks place tried to tell the judge that she was working it as a farm and couldn't make a go of it.

Well, of course she couldn't because only the front 10 acres of it was flat, the rest of it was a mountain! Judge says fine, tell me about your farm equipment. She had a riding lawn mower. He said fine, what else? Nothing your honor. You should of seen the look on his face - utter disbelief! I guffawed right out loud!

She lied to him and told him she had paid the taxes. He also did not look kindly upon her when we showed him that we had gone and redeemed the unpaid taxes by getting a Lien Certificate. She was finally thrown out on her fanny! FINALLY after about two years and a lot of heartache and her broken promises later.

Sometimes people who should be nice - aren't! There are times when I know that bankruptcy is the only out for people and it hits them hard. But there are other times when the creditor takes it right on the chin for lazy folks who try to bilk and milk the system!

Not everyone plays by the rules.