Bankruptcy

[Malak]

Anyone here ever done bankruptcy? Had everything taken?

 

[StageLeft]

I recall at least a few people have. It seems to me to not even be all that bad.

 

[tami]

no.

 

[Malak]

Originally posted by: Skoorb
I recall at least a few people have. It seems to me to not even be all that bad.

I was reading up on it and this one website said it'd actually help your credit, as you are more a credit risk before with all the debt than after, and it's pretty quick to get your credit up. I can see it as a very stressful experience, but you'd probably feel pretty good once it's done.

 

[PingSpike]

"You caan DOOW eet!"

 

[notfred]

I remember someone on here starting a thread about going into bankruptcy over a single debt of $2000. He got flamed a lot.

 

[Queasy]

Originally posted by: malak

Originally posted by: Skoorb
I recall at least a few people have. It seems to me to not even be all that bad.

I was reading up on it and this one website said it'd actually help your credit, as you are more a credit risk before with all the debt than after, and it's pretty quick to get your credit up. I can see it as a very stressful experience, but you'd probably feel pretty good once it's done.

But it's also a blackmark on your credit for 7 years and longer. I worked at one of the big three credit agencies and there were many decisioning products I tested where just having a bankruptcy in your credit history automatically denied you.

 

[Jzero]

Originally posted by: notfred
I remember someone on here starting a thread about going into bankruptcy over a single debt of $2000. He got flamed a lot.

I thought that guy got flamed b/c he also wanted to finance a brand new car and THEN declare.

 

[notfred]

Also, if you decalre bankruptcy, they don't take everything you own. You're allowed to keep certain things including your home, and I beleive up to $15,000 worth of property.

 

[Malak]

Originally posted by: notfred
I remember someone on here starting a thread about going into bankruptcy over a single debt of $2000. He got flamed a lot.

I had 10x that by the time I was 19.

 

[Malak]

Originally posted by: notfred
Also, if you decalre bankruptcy, they don't take everything you own. You're allowed to keep certain things including your home, and I beleive up to $15,000 worth of property.

There are categories of things you keep, with a limit on their value.

 

[pancho619]

I know it can be embarrassing for some to admit it, but I went through it in July '04 and my life has been much better afterwards. The process is stressful but in the end you feel a big load has been lifter from your shoulders. Believe me it was a last resort for me, I thought about it for over a year and finally spoke with a bankruptcy judge and lawyer to make the decision, it was one that I don't think I'll regret the rest of my life. If you have any questions, please PM me and I'll be glad to help.

-- pancho

 

[Mayfriday0529]

my mom had to do Bankruptcy for my grandfather after he died. Companies like Sears were after the money even after he was dead and they wanted to make my grandfather children pay the debt, it was a very annoying experience.

 

[Injury]

Originally posted by: notfred
I remember someone on here starting a thread about going into bankruptcy over a single debt of $2000. He got flamed a lot.

Didn't see that thread, but he probably deserved it. You can make that in two months flipping burgers.

 

[StageLeft]

Originally posted by: malak

Originally posted by: Skoorb
I recall at least a few people have. It seems to me to not even be all that bad.

I was reading up on it and this one website said it'd actually help your credit, as you are more a credit risk before with all the debt than after, and it's pretty quick to get your credit up. I can see it as a very stressful experience, but you'd probably feel pretty good once it's done.

Stop thinking about credit. If you're considering bankruptcy, borrowing yet more money is the last thing that should be on your mind 🙂 I've read that about it too, and I bet it's a myth in most cases.

Your credit will be SHOT in the head--bleeding--for a few years at least. It will stay on for longer, but you can build it up while it's still on there, but in the next few years it will be crap.

I had 10x that by the time I was 19.

Car upgrades. Am I right?

 

[PingSpike]

Originally posted by: Jnetty99
my mom had to do Bankruptcy for my grandfather after he died. Companies like Sears were after the money even after he was dead and they wanted to make my grandfather children pay the debt, it was a very annoying experience.

I still don't understand HTF they can do that?

 

[Mayfriday0529]

Originally posted by: PingSpike

Originally posted by: Jnetty99
my mom had to do Bankruptcy for my grandfather after he died. Companies like Sears were after the money even after he was dead and they wanted to make my grandfather children pay the debt, it was a very annoying experience.

I still don't understand HTF they can do that?

yeah me neither, this was back in 1993-94 in California.

 

[iamwiz82]

Originally posted by: PingSpike

Originally posted by: Jnetty99
my mom had to do Bankruptcy for my grandfather after he died. Companies like Sears were after the money even after he was dead and they wanted to make my grandfather children pay the debt, it was a very annoying experience.

I still don't understand HTF they can do that?

As far as I know, they can't, unless the person is recieving the item, like a house that still has a mortgage against it. They will try to pressure the people, but I don't believe they have any right to the money other than what could have been grabbed from the estate of the deceased.

 

[Malak]

Originally posted by: Skoorb

Originally posted by: malak

Originally posted by: Skoorb
I recall at least a few people have. It seems to me to not even be all that bad.

I was reading up on it and this one website said it'd actually help your credit, as you are more a credit risk before with all the debt than after, and it's pretty quick to get your credit up. I can see it as a very stressful experience, but you'd probably feel pretty good once it's done.

Stop thinking about credit. If you're considering bankruptcy, borrowing yet more money is the last thing that should be on your mind 🙂 I've read that about it too, and I bet it's a myth in most cases.

Your credit will be SHOT in the head--bleeding--for a few years at least. It will stay on for longer, but you can build it up while it's still on there, but in the next few years it will be crap.

I had 10x that by the time I was 19.

Car upgrades. Am I right?

Oh I'm not thinking about borrowing more money initially, but the biggest things you have to worry about are things like house loans, car loans, student loans, etc. The things you can't buy with cash most of the time anyway.

And no, it wasn't car upgrades. Well... some of it was. I have over 10k in student loans, which I don't think is even covered in bankruptcy, several credit cards, and my car which I probably still owe 15k on. It was more, but my dad took 20k of my student loans.

 

[rahvin]

Originally posted by: PingSpike

Originally posted by: Jnetty99
my mom had to do Bankruptcy for my grandfather after he died. Companies like Sears were after the money even after he was dead and they wanted to make my grandfather children pay the debt, it was a very annoying experience.

I still don't understand HTF they can do that?

They were after the estate, the children probably didn't want them to get a piece of the house or something so bankrupted him.

 

[StageLeft]

Originally posted by: malak

Originally posted by: Skoorb

Originally posted by: malak

Originally posted by: Skoorb
I recall at least a few people have. It seems to me to not even be all that bad.

I was reading up on it and this one website said it'd actually help your credit, as you are more a credit risk before with all the debt than after, and it's pretty quick to get your credit up. I can see it as a very stressful experience, but you'd probably feel pretty good once it's done.

Stop thinking about credit. If you're considering bankruptcy, borrowing yet more money is the last thing that should be on your mind 🙂 I've read that about it too, and I bet it's a myth in most cases.

Your credit will be SHOT in the head--bleeding--for a few years at least. It will stay on for longer, but you can build it up while it's still on there, but in the next few years it will be crap.

I had 10x that by the time I was 19.

Car upgrades. Am I right?

Oh I'm not thinking about borrowing more money initially, but the biggest things you have to worry about are things like house loans, car loans, student loans, etc. The things you can't buy with cash most of the time anyway.

And no, it wasn't car upgrades. Well... some of it was. I have over 10k in student loans, which I don't think is even covered in bankruptcy, several credit cards, and my car which I probably still owe 15k on. It was more, but my dad took 20k of my student loans.

Not sure how credit affects student loans, but you can definitely forget about a mortgage or a car any time soon afterwards.

Only you know your money situation now, but if you reverse what got you into this mess there is a good chance you can get out of it. I don't know how much debt you have, but $40k, for instance, is chump change for somebody who's earned themselves a degree (as long as it wasn't history and they're working at kinkos). Things like a car that you owe $15k on--sell it. Buy a junker. It's so easy to cut spending if you need to.

 

[KingPhil]

Originally posted by: malak
Anyone here ever done bankruptcy? Had everything taken?

I think if you file chapter 7?? you have to pay everything back but they prioritize your bills and take money direclty from your checks....... after its all paid back its like it never happened 🙂

 

[Queasy]

Originally posted by: iamwiz82

Originally posted by: PingSpike

Originally posted by: Jnetty99
my mom had to do Bankruptcy for my grandfather after he died. Companies like Sears were after the money even after he was dead and they wanted to make my grandfather children pay the debt, it was a very annoying experience.

I still don't understand HTF they can do that?

As far as I know, they can't, unless the person is recieving the item, like a house that still has a mortgage against it. They will try to pressure the people, but I don't believe they have any right to the money other than what could have been grabbed from the estate of the deceased.

Correct. Lenders (usually through a collection agency) will go after family members of the deceased and try to convince them that it is their responsibility to pay for that debt when they are actually under no legal obligation to do so. The best thing to do in those cases is to tell the collection agency not to call again or you will report them.

 

[Malak]

Originally posted by: Skoorb
Not sure how credit affects student loans, but you can definitely forget about a mortgage or a car any time soon afterwards.

Only you know your money situation now, but if you reverse what got you into this mess there is a good chance you can get out of it. I don't know how much debt you have, but $40k, for instance, is chump change for somebody who's earned themselves a degree (as long as it wasn't history and they're working at kinkos). Things like a car that you owe $15k on--sell it. Buy a junker. It's so easy to cut spending if you need to.

Well there's a few problems with that. I do have a degree, but the annual job openings in that field here is 14. I think more than 10x that number recieve the degree every year, so I'm SOL using it. The car is worth less than I owe, so selling it isn't an option.

I am attempting to get a job that would actually pay decently. It's a local wireless ISP that is very successful, and my friend just happens to be the lead technician. It's a start, but to be honest I think I'd rather file bankruptcy. I dug myself into a hole, spent money I didn't have, and it'd just take too long to get out. I can't start a family like this.

 

[Freejack2]

Don't do it if at all possible, bankruptcy is a black mark that stays for many many years. There are many things that require the kind of credit that a bankruptcy will automatically kill.
You could get your Fico score in the 800's (if that's possible while still under a bankruptcy) after declaring bankruptcy and still get denied for even a car loan at a decent interest rate just because you have a bankruptcy in your history. There are even some loans and credit cards that even if you have a bankruptcy 30 years ago you will still be denied.

You can't declare your student loans and the only way you'll keep your car is if you file the type of bankruptcy that you go on a repayment plan or don't file the car in the bankruptcy. Also if your father co-signed for anything you are filing for bankruptcy on, they will go after him for payment.

If you can at all manage not to declare it, don't!!!! It's the worst thing creditwise you can do to yourself. If you can sell the car and contact credit counseling for the CC debt.