Will Bankruptcy Change In Light of Economy?

[BrownButter]

I cant imagine a year from now what the banks and car dealerships are going to do when more than half of their clients have bankruptcies on their credit report. I really think there is going to be more leniency. I'm no expert. But I think there will be more leniency and maybe a new FICO score standard. Is it possible??? Has anyone noticed a shift yet?

It's like everybody's filing these days.

[okiemom2008]

I cant imagine a year from now what the banks and car dealerships are going to do when more than half of their clients have bankruptcies on their credit report. I really think there is going to be more leniency. I'm no expert. But I think there will be more leniency and maybe a new FICO score standard. Is it possible??? Has anyone noticed a shift yet?

It's like everybody's filing these days.

hope so! I wondered this same thing

[eddiep]

I had been thinking the same thing. But since I started this process I have learned that banks, cc companies have no common sense. They seem almost spiteful. They want their money, which I do understand, but if they had been willing to work with us right from the start I would not be filing bk. I called a couple cc companies when my husband first lost his job to see if they could suspend my payment for a month or two. They actually chuckled at me. They raised the interest rate in the blink of an eye from 2.99% to 29.99%, charged late fees, and lowered my credit line and then charged me over the limit fees. Common sense would tell you that if I can't pay a little, I can't pay a lot!? And I swear to you this was the FIRST time we were EVER late (in some cases these cc were opened 15 years ago!) I have no doubt that they will use this against me for as long as they possibly can by charging me outrageous interest rates. They won't care that the economy was bad they will have a whole new generation of borrowers without bankruptcys to loan their money to.

[pa308]

I had been thinking the same thing. But since I started this process I have learned that banks, cc companies have no common sense. They seem almost spiteful. They want their money, which I do understand, but if they had been willing to work with us right from the start I would not be filing bk. I called a couple cc companies when my husband first lost his job to see if they could suspend my payment for a month or two. They actually chuckled at me. They raised the interest rate in the blink of an eye from 2.99% to 29.99%, charged late fees, and lowered my credit line and then charged me over the limit fees. Common sense would tell you that if I can't pay a little, I can't pay a lot!? And I swear to you this was the FIRST time we were EVER late (in some cases these cc were opened 15 years ago!) I have no doubt that they will use this against me for as long as they possibly can by charging me outrageous interest rates. They won't care that the economy was bad they will have a whole new generation of borrowers without bankruptcys to loan their money to.

I had BOA where I was never late and they did the same thing to me doubled the payment, jacked the rate. When I called they said when you bring your debt back down we may readjust the rate. Well %^$# you That I think was when I really knew i needed to file

[momxx5]

I am pretty much counting on these times to be referred to "when the economy was bad" and tons of people were losing jobs, falling behind, etc.

I like to hope that will all be taken into consideration in the future.

Also, this is why we are leaning towards filing BK, kinda before everyone else is in the same boat.

I do wonder how the cc industry will make it through these times. I can see a lot of layoffs, pay decreases, etc. Then people will turn to their cc for basics, then they will be maxed out and end up in BK. I really can see this happening unless something drastically changes.

There will probably be a cc bailout or debt forgiveness somewhere down the road, but I think its too risky to wait and see. Thus we are leaning towards filing.

I really wish the economy would show some signs of a turn around. All the news just makes people tighten their belts more.

I really had hoped that Congress/Washington would have made a better choice for a stimulus plan. Giving up all federal income tax would be the #1 quickest and most effecient way to get people spending. It would not have added any more to the budget than this new spending plan is. People would have real money, thus start spending and paying their bills, thus not having to may as many layoffs, thus building confidence.
But hey, they did ask me so I guess I just have to figure out how to live in these sad times.

[BrownButter]

Whats worse a whole bunch of 120 days and chargeoffs or BK on credit report? Many have no choice but to file. But something's gotta give. I can see BK being redefined. I'm surprised they havent implemented any other options now.

I called the Debt Consol folks and their payments are way too high for me to afford. They told me they cant help. I'm 33, single and I dont wanna be a burden with my BK on my file when I get married.

[cityish]

But something's gotta give. I can see BK being redefined. I'm surprised they havent implemented any other options now.

.

I have been thinking the same thing. I haven't even heard of any other options being discussed, much less proposed.

Right now my only options legally are to sit back and watch my house go to foreclosure and choose between an "informal" bankruptcy (which is what I have done -- walked away from my debts) or a Chapter 13.

I want to avoid a 13 at all costs but I may be forced into it at some point.


Either way, my phone continues to ring off the hook. It would be nice if there were more options but I am not holding my breath. I guess the best I can hope for is that even though my credit will be in the toilet for many years to come, at least there will be less stigma attached.