Anybody here ever file bankruptcy?

[OU4LIFE]

It looks like my stepbrother and his wife are going to have to. I don't really know the details, and haven't cared to ask. It' sbeyond me how you can get that far into debt...but I digress.

I was just wondering how harmful it truly is...i've seen people I work with do it twice...same people, yes they are white trash. I've tried telling my brother that there HAS to be another way...but I'm pretty sure they don't listen. They are young and all they see is a way out, I just don't think they see the cost.

Just wondering if anybody here has had to file and what the repercussions were.

also, he has not had a hole-in-one. So that's not helping anything.

[BoogercountySooner]

CAn't remember for sure but the laws on bankruptcy have recently changed and it's not as good a deal as it used to be.

[nanimonai]

If they make less than 35k combined, then the laws are about the same as they were before.

[crawfish]

There are different laws if you've ever hit a hole-in-one.

Just sayin'.

[jk the sooner fan]

my ex did it, and within a few months, she had a new batch of credit cards

amazing...

[soonerjoker]

credit is better for a while, cause you cannot file again for 7 to 10 yrs.

[OU4LIFE]

that's the part they need to beware of, anyone will loan right after filing cause they know you can't file again.

it's a trap!

[Taxman71]

The new law basically requires most filers to file a Chapter 13 rather than Chapter 7. While Chapter 7 discharges debt forever, a Chapter 13 requires the debtor to make a monthly payment under the "plan". Thus, most debtors can't just walk away from the debt like they used to. The new rules also require credit counseling and more stringent disclosures on the asset/liability/income/expense schedules. They definitely need a bankruptcy lawyer.

[nanimonai]

Actually there are some cases where a credit report is such a cluster**** that bankruptcy is actualy better.

[yermom]

yeah, and it will be for some insano rate i'm sure

[Taxman71]

That is because the lawyers now have a duty to investigate the debtor's information to ascertain it is correct. Increased liability = higher fees. You can thank Congress, Visa and Mastercard.

[yermom]

i was late posting, i was referring to the new line of credit

[BeetDigger]

In that case, increased risk=higher rates.

[OklahomaTuba]

Wouldn't it be easier (and less ethical/honest) to just stop making payments and dispute all the charges once it goes to collections?

[nanimonai]

Wouldn't it be easier (and less ethical/honest) to just stop making payments and dispute all the charges once it goes to collections?

Eventually they are going to sue you and you'll have to pay up plus lawyer costs.

[OU4LIFE]

define "have to pay".

They can sue you and get a judgement, but it doesn't mean they will ever see a dime of it. People that don't want to pay will find a way not to pay. Even if that means not working for a living.

I just hope that they have learned form this experience. They were helped into the situation to some extent by some faulty information by a family member, but all the other debt is their own fault.

[nanimonai]

define "have to pay".

They can sue you and get a judgement, but it doesn't mean they will ever see a dime of it. People that don't want to pay will find a way not to pay. Even if that means not working for a living.

I just hope that they have learned form this experience. They were helped into the situation to some extent by some faulty information by a family member, but all the other debt is their own fault.

True but they can and will garnish your wages, put a lien on your house, clear out any savings you have, etc.
Unless you have a job that pays cash and you hide it in a jug, you will have to pay.
If the amount we're talking about isn't worth it for a creditor to sue over then it's not something to consider bankruptcy over.

[Taxman71]

If they sue and obtain a judgment, then they can put a lien on their house (if they own one). This can obviously cause future headaches. They can also seek a sheriff's sale of nonexempt assets and garnish any wages. Bankruptcy is easier than all that, especially since a judgment lien on one's residence (i.e. - an exempt asset) is not always removed through bankruptcy. Thus, if you are eventually going to wind up in bkr, the sooner the better is often the case.

[Scott D]

really the only major change for low income individuals filing bankrupcy is that they are required to have credit counselling.

4Life, nowadays it has to do more with job markets than anything. You get someone relatively young, gets a pretty decent job so they start that whole nesting for the future thing..buy a house (and odds are got screwed by either interest only loan or adjustable rate mortgage) and other whatnots that young couples do including having a kid or two perhaps. Mortgage rates begin to go up, job market begins to dry out....if both are working one loses their job or both do, at least for a time period of a few months...boom, there's your steep amount of debt that was completely unexpected.

[Taxman71]

In my experience, the most common cause of bankruptcy for non-deadbeats is unforeseen medical costs associated with health issues, including having a preemie child who requires weeks of in-hospital care.

[12]

Maybe you could use your arm hair for braiding them some boondoggles to sell.

LOL

[Scott D]

In my experience, the most common cause of bankruptcy for non-deadbeats is unforeseen medical costs associated with health issues, including having a preemie child who requires weeks of in-hospital care.

agreed, medical costs is the one part that I left out of there. Most people don't realize how company purchased insurance plans usually are worse than ones they could get on their own.