bankruptcy - anybody ever jealous

[KellyJef]

I realized the other day that I felt a little jealous when a woman at Curves was bragging about all the new expensive furniture she bought. She declared bankruptcy this summer so she "doesn't have any bills to pay anymore". I had an awful urge to tell her off.

I guess I felt resentful because there have been several times in my life when I've worked two full-time jobs to pay off my debts (mostly medical expenses).

I think too many people declare bankruptcy simply because it's easier than working to pay their debts

Don't get me wrong, though, I have NO problem with bankruptcy if it's due to situations that can't be helped like medical expenses, death, etc. I am only upset with those who have lived beyond their means with fancy vacations, cars, houses, etc.

[disneysteve]

No, I have never been jealous of anybody who filed bankruptcy. I can't imagine ever being jealous of that. I don't care what material items you have that you got as a result of filing - it wasn't worth it. My reputation and morals and credit score and self-esteem are worth far more than any furniture or electronics or anything else.

[MonkeyMama]

Originally Posted by disneysteve

No, I have never been jealous of anybody who filed bankruptcy. I can't imagine ever being jealous of that. I don't care what material items you have that you got as a result of filing - it wasn't worth it. My reputation and morals and credit score and self-esteem are worth far more than any furniture or electronics or anything else.

Agreed.

Jealous of some new furniture? Nope. Not much jealousy for material things. Likewise, I wouldn't trade my financial security for a bunch of material stuff. No way!

[jpg7n16]

I don't feel jealous, but I do feel a bit of pity.

This lady obviously didn't learn the lessons from bankruptcy. She's already not paying attention to how her actions will affect her finances. I see her filing again down the line and losing everything. Again.

Can you imagine what her retirement will be like?

Do you think she paid cash for the new expensive furniture?

[LivingAlmostLarge]

No because while it's good at first, it does catch up. Imagine having to worry about repo and creditors calling.

[wolfy]

Don't be jealous. Trust me on this one. My wife and I just got our discharge papers for our bankruptcy. It is nice not to have to pay the hospital or other bills that caused us to file bankruptcy, however, you feel like crap and your morale is lower than dirt because you couldn't pay the bills you owe.

Also for us bankruptcy was last resort. I would much rather have worked to pay off our debt instead of filing. I couldn't get a job to save my life and then had a major medical problem come up. If someone could have told us how to pay off $145,000 in medical and some other debt on one income I would have been happy to listen. But when the credit counselors and your attorney both tell you the only option is bankruptcy you generally listen.

Then of course there is the stereotype out there that people feel the need to share about how everyone who files is a deadbeat just skipping out on bills. Nothing more fun than hearing those conversations and feeling worse than you did before.

And lets not forget can't get credit for crap. And what you do get will be insane. It's a lot of fun to not have a credit card or whatever to pay for a vet visit or a car repair when you don't expect them and haven't saved even close to enough cover those expenses. I highly doubt the car repair people will take monthly payments and still give me the car.

So trust me you don't need to be jealous, it is no fun, and I bet that woman isn't as happy as she seems.

[Shewillbemine]

"The loudest guy/girl in the room is the weakest guy/girl in the room"

-Denzel Washington, from American Gangster

I would pay no mind to anyone who has no sense but to discuss her personal bankruptcy as an accolade.

[photo]

Originally Posted by KellyJef

I realized the other day that I felt a little jealous when a woman at Curves was bragging about all the new expensive furniture she bought. She declared bankruptcy this summer so she "doesn't have any bills to pay anymore".

Which occurred first, the bragging or the bankruptcy?

[jteezie]

The events and mental anguish leading up to bankruptcy would override any elation from "financial freedom" from debt.

A bit more abstractly... I have thought about how life would be if I lived outside the modern financial system by abused it fully - living off borrowing and never intending to pay. I think it would cause so much uncertainty and stress that it isn't worth it.

I would prefer to live an honest life, building up personal wealth and having real financial security.

[dojo]

Kelly, don't envy her. Bankruptcy is not a pleasant thing and any person with a trace of a brain would NOT want to repeat the mistakes done before this. She hasn't learned her lesson. Never put your financial security in danger, just because you see reckless people do. That's not life.

[naomibatac]

Well said by almost everybody, there is nothing to be jealous about filing for bankruptcy. I have a friend who did that, traveled a lot after filing and now suffering again from financial indebtedness. I don't know if they can file for another bankruptcy?

[Cassius King]

First off, I don't think bankruptcy should be an option at all. Do away with it.

Secondly, I can see some of your jealousy/aggravation. The way bankruptcy laws and procedures are setup, someone can file, and in five years have decent enough credit to get the things they need, mortgage, etc.
Someone doing it properly will be paying on their debts probably longer than that. Until they change the laws/policies regarding bankruptcy, it'll always allow, almost encourage people to file.

I have an acquaintance who has filed bankruptcy. He now has a new house in a great part of town, family trips to Disneyland, etc. The whole time I'm paying off student loan, mortgage, adding to savings and Roth.
The way the bankruptcy system is setup right now, just like mortgage reform, it benefits the least responsible people in our society while it hurts the responsible, and as a bonus makes us pay for it. Welcome to the new USA of today!

/gets off soapbox/

Cheers!

[Joan.of.the.Arch]

I thought that bankruptcy laws in the US were tightened up about 5 years ago, making it more difficult to qualify, especially for the kind of bankruptcy that obliterates debt. Anyone know?

[jpg7n16]

Originally Posted by Cassius King

I have an acquaintance who has filed bankruptcy. He now has a new house in a great part of town, family trips to Disneyland, etc.

And so you assume they are doing this all without debt? They likely have a mortgage, and are borrowing on CCs to keep up that unsustainable lifestyle.

The whole time I'm paying off student loan, mortgage, adding to savings and Roth.

Don't worry about that. Even if you filed bankruptcy, your Roth is protected from creditors, SLs are not bankruptable, and many states have homestead exemptions.

In other words, even if you filed, you'd be in essentially the same spot.

[bjl584]

I have a friend that filed bankruptcy. It cleared most of his debts, but it didn't change his lifestyle. Here we are two years after he first filed and he is getting himself back in the same spot that he was in before. So, I am not jealous of any aspect of his approach toward finances.

[BMEPhDinCO]

Not jealous because I wouldn't be in that situation to start with! I have a mortgage and a student loan - that's it.

I think it's sad when people do that, and then when they brag about it, but I guess they have nothing better in their lives.

I do think reform is needed - instead of declaring bankruptcy and getting off free, you should be required to pay back the principle but all further interest would be gone (ie, you would be readjusted to a 0% loan) AND you would not be allowed to get any credit for 3 years - no car, no house, no CC, nothing. Plus, you'd have to go to at least 4 weeks of credit classes (paid for by you).

Ah well....people love to milk the system so the system won't change.

[disneysteve]

Originally Posted by bjl584

I have a friend that filed bankruptcy. It cleared most of his debts, but it didn't change his lifestyle. Here we are two years after he first filed and he is getting himself back in the same spot that he was in before.

That isn't unusual at all. Many people fail to learn any lesson from filing. And many people file more than once which I think ought to be illegal.

I remember during the housing boom when everyone was doing cash out refis and using the equity to pay off consumer debt. Within a couple of years, about 60% of those people were worse off because they ran up their credit cards again so then had the bigger mortgage and the credit cards because they didn't change their bad behavior.

[bjl584]

Originally Posted by BMEPhDinCO

Not jealous because I wouldn't be in that situation to start with! I have a mortgage and a student loan - that's it.

I think it's sad when people do that, and then when they brag about it, but I guess they have nothing better in their lives.

I do think reform is needed - instead of declaring bankruptcy and getting off free, you should be required to pay back the principle but all further interest would be gone (ie, you would be readjusted to a 0% loan) AND you would not be allowed to get any credit for 3 years - no car, no house, no CC, nothing. Plus, you'd have to go to at least 4 weeks of credit classes (paid for by you).

Ah well....people love to milk the system so the system won't change.

Real reform would be to change the laws of how borrowed money is viewed by the legal system.

Robbing a bank for $100,000 is a federal crime, a felony, and is good for a 10 year prison sentence.

Filing bankruptcy to get out from paying off a mortgage and credit cards in the amount of $100,000 ruins your credit score for 7 years.

While not an apples to apples comparison, it is perplexing at times that one scenario is theft and the other is not. It obviously depends on the individual circumstances, but to knowingly and maliciosly use bankruptcy to avoid paying back debt should be a crime.

[asmom]

I used to work as a nurse at the Federal building where US bankruptcy court was located. About once a month, we would get an emergency call or someone would get escorted down to our offices with what was essentially panic or anxiety attacks and they were always people coming in to file bankruptcy. For example, we had one woman who actually passed out and another who worked herself up into a full blown asthma attack she was so upset, we had to send her out 911. They all felt guilty and ashamed, there were lots of tears and desperation. Now I don't know what proportion of all bankruptcy filers those folks represented and I'm sure there were many others who felt the same way but whose health was unaffected. I think that there are probably a significant number of people who do feel regret or remorse about bankruptcy. It's very popular to paint all people in dire financial straits as irresponsible and uncaring these days but it's simply inaccurate. So no, I don't feel jealous.

[asmom]

Originally Posted by Joan.of.the.Arch

I thought that bankruptcy laws in the US were tightened up about 5 years ago, making it more difficult to qualify, especially for the kind of bankruptcy that obliterates debt. Anyone know?

Yes, they were. I don't know the details but essentially it was made more difficult to file and I think there was some sort of limit as to how much debt you could eliminate.