Why Are/Have You Filed BK?

[jasonb]

My father had to file BK because of his divorce from my mother several months ago. It is actually a quite hard time for him because there is still the pressure of paying my mother money every month because he actually wants to but he just can't because he's got no money left, neither he does, nor my mother, though they work quite hard to keep themselves ahead [and of course their children including me though I am currently working besides university].

[jlybean]

I chose excessive credit card debt but my real answer should have been stupidity Honestly most of the credit card debt was to help us live but I can't say I didn't buy things we didn't need from time to time. Also took out a LOC to consolidate the debt but like the genius I am didn't cut up the cards and racked them up again. In my defense we are a family of 6 living on one paycheck (I am a stay at home mom) and the debt has been building for 4 years but I am still amazed at my stupidity sometimes Now I am looking forward to the new start and will never go back. I am proud to say this Christmas all the present were paid for before they were opened and that hasn't happened in a long time!

[Spagal]

Divorce was my reason. I charged 2 years worth of rent, utilities, groceries, gas, and living expenses as well as picked up really cheap living room, dining room and bedroom furniture. Then CC raised my rates when I had never been late. So one thing lead to another and I could no longer afford the payments. I cried, threw my hands up in the air and called an atty. I plan on living cash only in the future. I have never defaulted on anything but I feel I have been driven to this.

[ItsNot2L8]

The poll allows only one selection but I fit three of the four. It was a domino effect of sorts.

Lost job 18 months ago, used up savings but credit card debt + mortgage was greater unemployment plus savings. Became ill and was hospitalized 4 months later. Did not have COBRA, so no health insurance coverage.

Now I am to the point of only being able to pay mortgage.

[seamoonil]

After reading some of you guys posts I have few thoughts.

I think I am the disgrace of this forum .

I am 35k in debt, only because I spent the credit cards with trips to vegas, restaurants every other day, clothing, shoes, laptop, GNC supplements, personal trainers, Itunes.

about me: I have six packs abs; but my stomach is hurting so bad.

People say that I have the most beautiful smile; but I cannot sleep at night.

I can play the guitar and sing better than the most of those foes that you see on TV; but I am so depressed.

I have no problem finding dates. I don't even ask them out. I have been asked out almost everyday all my life; but they don't know who I am, they don't know that I live with a gost by my side.

Shame on me !!!!!!!

[Gingerdc9]

Credit card debt, mostly. And re-fi'ing our house to put the debt there and then racking up more CC debt. Around 120K in credit card debt. PATHETIC. We still have a great house and a nice enough car, so we're very, very lucky. We're filing 13 because we flunked the means test. Oh, and we do have a paid-off Durango!!! How we managed that I'll never know. LOL

[Redfish]

Poor financial management for years then a year ago I had to take around a 30% pay cut. A few months later (July 2009) I was laid off. We managed to stay afloat until January by not paying credit card bills. Mid January we learned exactly what cross collateral means. Our credit union had my wife's car repo'd because we were 2 month behind on car payment and 4 months behind on the credit card that is tied to the car. I knew we were in over our head as I watched the repo man drive away with the car at 2:00 a.m. Filed Chapter 7 last week.

[BrokeOR]

Credit card debt and a home mortgage that is deeply underwater. The circumstances:

Husband left a corporate job when the company (along with its industry) began to tank. Started a business based on a national reputation and 10 years of a previous, successful small business in the same industry. Was expecting the recession, not the Almost Depression. Clients, once known for being the best, most reliable paying group, began to go out of business, sticking us with large bills related to services rendered. Larger clients who weathered the storm began to pay at Net 50 days, which killed us. Real income went down by over $80,000 in one year.

Meanwhile, son entered college and we continued to help. Unfortunately, we did so on our credit cards/LOC which were substantial. Also used credit to live and pay obligations like mortgage, taxes, private health insurance etc. A way to live, of course, but also a way to inevitable financial insolvency.

Combine all this with a local real estate market, once a skyrocketing way to great equity, that completely fell apart. We bought our home near the height of the market (never again), put 20% down and had a fixed 1st at 5.185%. Thought we were set, until the above started happening. Thought we'd sell our home to get even and-SURPRISE- found out that not only was all of our equity gone (100,000) but the house had depreciated in value another $100,000 since purchase.

Took a hard look at it all, saw a great attorney, and decided to file to save our sanity. It would have been a lot more fun to say that we bought shiny things and took really expensive vacations to get to where we are, but then the Trustee might not look at a 7 so favorably.

I don't regret for a minute our attempts to help our son pay for school and avoid debt-a trap that we will continue to help advise him through. Don't even regret the decision to start a business, as things have stabilized and the outlook for 2011 is rosy. And, after the sleazy banking affairs of the last two years, I don't even regret having to stick several banks with credit card debt. And given that our home has turned from an investment to a depreciating liability, I am almost glad that it all happened, if only so that I could legitimately discharge house debt on a property that would take us a decade to ge EVEN with, let alone make any money. I do, however, regret having surrendered a great credit rating-something we worked our entire adult lives to have.

[beachchick]

We filed because we got caught in that insidious credit card debt, yes I accept we should have known better but once you get in that hole it is so hard to get out especially when the cc company doubles your interest rate because you are carrying too much debt, it is modern day slavery. I was feeling pretty bad about the whole thing but then I read this book, Bankruptcy, How To Survive and Prosper, and now I don't feel so bad at all, matter of fact I feel pretty good, gave me a lot of hope and inspiration for the future, knowing now I have one thanks to bk.

[Mari]

BAD marriage

Well true answer is being "in love" with loser. When first married, had sorta a job, none since...but always had business ideas that costed money and failed. At same time, spending $$ like outta style while I went dutily to RN job everyday. He smoked pot daily, drunk every other day, online gambling. Decided to take some cash and buy few houses in his name fraudlently with hardly nothing down in 2006...worth much less now and rental income never quite enough.
Plus he was a jerk to me. I was told that I should "trust" him so never looked at credit card statements etc.
Finally had basically a nervous breakdown...and left him. Have 100K in cc debt, 150K in home equity line of credit. He is still being an ass as I try to get divorce done and get a new life. I never thought this would be at the age of 51 and working hard my whole damn life. My lawyer told me "I turned off my brain", my counselor told me "I was hiding from my life". Both right. But fear of getting divorce and being alone was in back of my head. Pretty pathetic. Yet, I am surviving and will get my life back. tx for listening

[user33]

I am surviving and will get my life back. tx for listening

That's the right spirit! Our material lives are nothing but the external manifestation of our inner spirit (or whatever you like to name it), with the right spirit you will create positive realities of your inner desires.

Don't beat yourself up for your mistakes, we all made some dumb mistakes in our lives, it is what we do after we recognized them, that really matters. I myself went through the divorce and bankruptcy after enjoyed over two decades of prosperity and "success", but if I can do it over again, given the choices of ability to avoid these mistakes but remain ignorant as was before the adversities, or, adversities and my current level of conscious awareness gained through the adversities, I will, without doubt, take the latter: making these mistakes and learned from them and become become a more evolved conscious human being. The adversities are just a very small price to paid for such enormous gains in enlightenment!

I have no doubt, that the materials (money, power, business, professions, prestige, etc.) that I had lost now, I can create them again. It's obvious isn't it: I had done it once before without the wisdoms and experience I have now, from scratch, so what is to prevent me from doing it again? The answer: my own attitudes and believes, if I let myself to have negative attitudes and negative believes, but I am not going to allow that to happen, so, I will emerge stronger, better in every way, wiser, and I want to help others to realize this simple truth, everyone one us has the same power to create anything we desire in this physical realm.

[NanaOf11]

Well true answer is being "in love" with loser. When first married, had sorta a job, none since...but always had business ideas that costed money and failed. At same time, spending $$ like outta style while I went dutily to RN job everyday. He smoked pot daily, drunk every other day, online gambling. Decided to take some cash and buy few houses in his name fraudlently with hardly nothing down in 2006...worth much less now and rental income never quite enough.
Plus he was a jerk to me. I was told that I should "trust" him so never looked at credit card statements etc.
Finally had basically a nervous breakdown...and left him. Have 100K in cc debt, 150K in home equity line of credit. He is still being an ass as I try to get divorce done and get a new life. I never thought this would be at the age of 51 and working hard my whole damn life. My lawyer told me "I turned off my brain", my counselor told me "I was hiding from my life". Both right. But fear of getting divorce and being alone was in back of my head. Pretty pathetic. Yet, I am surviving and will get my life back. tx for listening

Boy do we have alot in common.....BK at 52 is crappy. Hang in there.. it WILL get better, would love to buy a sister in Nursing a cup of coffee

[tigergem]

In love with a loser! Wow, is this an epidemic of the lonely hearts club or what? Try this on for size! TWO losers in one decade! Back to back! "Trust me". Yeah right. HA! Beat that! But... those were my choices and I still feel like I have nobody to blame but myself! You cannot be a victim unless you give somebody permission to take advantage of you!

[NanaOf11]

In love with a loser! Wow, is this an epidemic of the lonely hearts club or what? Try this on for size! TWO losers in one decade! Back to back! "Trust me". Yeah right. HA! Beat that! But... those were my choices and I still feel like I have nobody to blame but myself! You cannot be a victim unless you give somebody permission to take advantage of you!

The first step to change is admitting there is a problem.
So congrats, both of you!
Your on a new road now... One where you choose where it leads!

[tigergem]

Amen to that, sister!