Bankruptcy

[ManicQueen]

Has anyone ever had to do this? I've been thinking about it but I'm not sure yet.. still thinking. Can someone tell me the pro's and con's for it? How much dept should one have in order to do it?

My boyfriend's mom did it a few years ago and she said it was the best thing in the world. It really helped her out.

I was just curious and if anyone has any insight on this topic I would greatly appreciate it.

B~

[mallochai]

I don't have any personal experience, but after the divorce, my mom HAD to. The bank was supposed to take the house right away... but they kind of forgot to for a few years, so in that respect, we got to live there rent free while my mom went to school and worked full time.

So I don't have any insight at all, but my mother is in a very good position now, so it didn't appear to have hurt her at all.

Good luck with your seeking.

[Nienna]

I was a bankruptcy specialist at 5/3 bank for awhile, and I know alot about the process, and what it will and won't do to your life.... PM me or IM or something and I'm happy to answer your questions!

[Fierce Critter]

Nienna can probably give you the best advice.

But here's what I learned from starting my own process.

My debt, at the time I initially filed, was in the neighborhood of $12,000-$15,000. Not a ton, right?

However, at that time, I had been unemployed for 2 years, seeing what used to be lucrative desktop publishing skills become horrendously outdated by people who had much more talent & education in it, and beginning a new life with a new husband.

I had always swore I wouldn't bring my debt into a relationship with someone. And, to be honest, it's not like I was marrying into money. So even if I were to be willing to let my new husband "bail me out" - which I wasn't - there's no way he could have.

So I went through with the initialization of the process.

The cons: That bankruptcy stays on your record for 7 years. There is the stigma of having to take the so-called "easy way out".

The pros: As my attorney stated, yes, that stays on your record for 7 years. However, it's not as bad for your credit as you might think. Apparently, some creditors will look more favorably upon a bankruptcy on your record than on a huge list of unpaid debt. They know that you no longer have outstanding debts hanging over you, and so are more willing to extend offers to you (not always, but some).

Also, there's that huge weight lifted off your shoulders. You don't get daily calls and can start actually answering your phone instead of screening everything. You can work a job without worrying about garnishment. etc.

But if you go that route, you have to be sensible. My husband and I have one single credit card to our name, maxed-out at $1,500. We canceled the account, and are planning to pay it off lump-sum and throw it out. Besides that, the only things we use are debit cards. Luckily, we have a mastercard through our PayPal account (yes, even I have one), and a visa through our bank account. So we're well covered if we need to charge things like rental cars, etc.

I have listened to Dave Ramsay (Ramsey) a lot on satellite radio. He's a specialist in freeing yourself of debt, and has great advice. He has a website out there you might want to check out. He tends to advise against bankruptcy, but allows for it in extreme circumstances.

But he can give you great tips on how to pay off those debts without it, too.

Good luck!

[Hellion]

:devil I wanted to let you know that they had changed the bankruptsy laws; so I am not sure what the changes are. If you know a good friend or relative who has a good lawyer then find out all the info on what to do and I hope it all works out in your favor!

[Homicidalheathen]

I have had to do it. At the time, yes...it was the best thing I could have done. I just owed so much on loans and stuff and when I graduated I just didn't make enough money like I thought I would.

I owed allot. like 30,000. It was in the late 80's to early 90's. The laws are different now. You may have to pay some back over time.

They are making the laws more difficult all the time so hurry....

Has anyone ever had to do this? I've been thinking about it but I'm not sure yet.. still thinking. Can someone tell me the pro's and con's for it? How much dept should one have in order to do it?

My boyfriend's mom did it a few years ago and she said it was the best thing in the world. It really helped her out.

I was just curious and if anyone has any insight on this topic I would greatly appreciate it.

B~

<{POST_SNAPBACK}>

[Fierce Critter]

I only read a tiny little article about the change in the bankruptcy laws in the paper. From what I could gather, it appears the changes don't affect people below a certain income.

I'm thinking that with no income, I'm not going to be adversely affected. Depending on your personal income, you might not be, either.

But a bankruptcy attorney can tell you all that in a free consultation.

By the way, if you're married, you still have the option of filing strictly on your own behalf. I don't know if new laws have affected that, however. Technically, my husband is supporting me, which my attorney seemed to be saying was a good thing in regard to getting the bankruptcy through sucessfully. But only because he wasn't included in the bankruptcy.

[Nienna]

The new BR laws pretty much just prevent people with high incomes from sneaking out of paying full price for their Escalades and stuff. I saw a lot of "serial filers" who made over $100,000 a year and were filing every chance they got.. some as often as every 3 years!