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bankruptcy - anybody ever jealous

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  • ecoadapt
    replied
    I never get jealous nor did I feel any resentment regarding how others file and handle their bankruptcy!

    Leave a comment:


  • KellyJef
    replied
    Originally posted by Cassius King View Post
    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.
    Gee, you expressed "my" thoughts better than I did! To be clear, when I made my original post, I was simply venting about how unfair the bankruptcy laws seem to be.

    Leave a comment:


  • dizzydean
    replied
    Originally posted by Cassius King View Post
    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!
    I agree. Have a close friend who purchased a second auto, bought a home she tried to get out of, foreclosed on the home, let their lease vehicle be repossessed because it was way over the allowed mileage, filed for bankruptcy, took the family on a lavish vacation, is building a new home right now through a family member, is a professional with a high paying job and lives the good life. Angry, yes I am. The System should make these kind of individuals pay back their debts. I struggle everyday, work hard, and do without. Bankruptcy is designed for those who try to do right, but have an unfortunate situation occur forcing them to file, and not for those who want to better their lifesyles.

    Leave a comment:


  • Eric80
    replied
    I know what you mean and it can be frustrating but just remember that there are ways to get around this - maybe go and speak to a debt advisor where they will be able to guide you in the best direction to suit your situation. for example they may suggest IVA or to consolidate your debt.


    Originally posted by KellyJef View Post
    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.

    Leave a comment:


  • asmom
    replied
    Originally posted by Joan.of.the.Arch View Post
    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.

    Leave a comment:


  • asmom
    replied
    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.

    Leave a comment:


  • bjl584
    replied
    Originally posted by BMEPhDinCO View Post
    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.

    Leave a comment:


  • disneysteve
    replied
    Originally posted by bjl584 View Post
    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.

    Leave a comment:


  • BMEPhDinCO
    replied
    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.

    Leave a comment:


  • bjl584
    replied
    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.

    Leave a comment:


  • jpg7n16
    replied
    Originally posted by Cassius King View Post
    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.

    Leave a comment:


  • Joan.of.the.Arch
    replied
    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?

    Leave a comment:


  • Cassius King
    replied
    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!

    Leave a comment:


  • naomibatac
    replied
    bankruptcy - anybody ever jealous.....

    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?

    Leave a comment:


  • dojo
    replied
    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.

    Leave a comment:

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