Question going the NO BANKRUPTCY route anyone?

[SURV69]

I wonder how many people have ever just thought "screw it" and stopped paying bills . . . not bothering to file bankruptcy or seeking it's protection?

Every state has exemptions that apply to everyone in that state. NOT just to people willing and able to set down $1000(plus costs) to have it done. In Ohio, there is maybe one or two additional exemptions that apply in a bankruptcy only, but most exemptions always apply.

I venture to say in some states the allowable exemptions are more than enough to make a person virtually untouchable as long as the person can put up with the continued calls and mail etc..

Actually, in some ways it appears that bankruptcy is not much more than a method of putting everything into a neat little package for everyone involved.

[StartingOver08]

Bankruptcy IS just putting everything in a neat little package for everyone involved - just like you said.

Bankruptcy draws that final line in the sand with an actual file date for reference. There are even posters on here that do not file bankruptcy but take advantage of the exemption laws in place for all debtors. Look at Treehugger in the collections forum. For some people bankruptcy is not an option for various reasons. For those of us that have been successfully discharged in a Ch 7 or Ch 13, I think we are lucky because we know exactly when we got our fresh start!

[AngelinaCatHub]

Bk route was the last thing in my life I ever contemplated. Credit score 820, and plenty of money. Things change.

My bk was the best thing in our lives. We are happier, and we are making it work. Oh, do we still have problems? Of course we do. That is not the issue. we will not let our new start down.

Those who can survive with the judgments and all, would be near life end as the Judgment will haunt a person. Only my opinion. 'Hub

[MSbklawyer]

I venture to say in some states the allowable exemptions are more than enough to make a person virtually untouchable as long as the person can put up with the continued calls and mail etc...

That's true. Most people don't have any non-exempt assets. The big exception is wages. Some states, Texas most notably, exempt all wages from garnishment, but most don't. And that's what pushes a lot of people over -- wage garnishments.

[DeadManCrawling]

Honestly, I sort of like the formality of BK proceedings. It adds a dimension, in terms of intellectual weight, to consider in the equation.

For us, that meant examining things from a perspective we might not have seen otherwise. Over the three years we have been preparing, we have decided to simplify our lives, reduce expenses, find ways to do things that would have been unthinkable before, like growing ALL of our own vegetables, and so on. We are also teaming up with other families in similar situations. One family is going to barter eggs with us from their new chicken coop. Another will slaughter said chickens and package them for the rest of us. Another family may raise livestock. We are setting up a barter system that will benefit everyone and cost little for each family involved.

On another note, BK has taught us the value of frugality in other areas, such as financial matters. We have, as a group devised a plan that will ensure each family has access to the necessities and can save money for other necessities and more luxuries than any of us enjoyed before.

I like this new, simpler, way of living. We will all benefit enormously in so many ways.

[WaitNSee]

Haven't thought of it as deciding to say "just screw it", but that's actually what I am going to do. I was living a simple happy life...then an unplanned necessary move and medical bills...so now I intend to just stop paying cc's and surrender car to CU.

I've done a lot of research and I think it is do'able for me. At first I was leaning toward BK, but would have needed some time to pass on a certain transaction.

I am retired so they can't get a garnishment, don't own anything they can get. I'm actually looking forward to not making those payments each month to CU and C1.

Always had great credit and could borrow/get most anything "I wanted"...Now I think I can be quite happy having just what "I need". I believe I have lived long enough to finally know the difference. But from what I understand from these posts I probably won't out live the judgments

I'm sure I will continue to watch this forum and seek support and help from this new "family".
WaitNSee

[justbroke]

(Chuckle...)

I like to think of Bankruptcy as going "all in". Sure, it drives the other people at the table mad (your creditors). Sure they may "call" you out (enter into an adversary proceeding by filing a 'complaint"), but many won't call your bluff.

I mean, think about it... practically everyone has the "all in" ace card up their sleeves. Can't pull it all the time, but if you do it at the right time... you actually walk away from the table with more than you would have... had you not.

With that... I'm all in!

[killinstinct]

It's certainly been worth the stress reduction for me, personally.

[freefall]

The problem with never filing is that you never increase your net worth. The debts you have always remain debts against your assets. Granted, that may not matter to many people. But I'm a writer, and I don't want future copyrights to be in jepordy.

If you don't file bankruptcy and you never use credit again (good idea), and you don't plan to try to build up any wealth, then I can see just walking away, especially if you can't be garnished. But if you truly want to start over, then you have to get your previous debt legally discharged.

But it's interesting that it costs so much to file bankruptcy. That would mean that the people who are most broke can't file.

[dealingsdone]

But it's interesting that it costs so much to file bankruptcy. That would mean that the people who are most broke can't file.

With all the effing stimulus money the govt throws around to undeserving parties, I've wondered why they have neglected the poor who truely have a difficult time pulling together 1k for the BK. It is all hypocrisy to me.

[frogger]

I can't think of a reason not to file in my situation. It will be the fresh start that I've needed for many years.

[OhioFiler]

With all the effing stimulus money the govt throws around to undeserving parties, I've wondered why they have neglected the poor who truely have a difficult time pulling together 1k for the BK. It is all hypocrisy to me.

The system allows for waiver of filing fees, waiver of mandated pre- and post-counseling and free legal advice or pro se filing.

BK can be accomplished for no out of pocket expense if the need truly exists.

[Snickers]

I've done a lot of research and I think it is do'able for me. At first I was leaning toward BK, but would have needed some time to pass on a certain transaction.

I am retired so they can't get a garnishment, don't own anything they can get. I'm actually looking forward to not making those payments each month to CU and C1.

Always had great credit and could borrow/get most anything "I wanted"...Now I think I can be quite happy having just what "I need". I believe I have lived long enough to finally know the difference. But from what I understand from these posts I probably won't out live the judgments

Everyone's situation is different, but not out living the judgments could cause trouble for your heirs if any exist.

After a certain age, if you own a home etc, BK is a cleaner way. Although being 'collection proof', one could just not answer the phone or summons and live happily ever after. But upon death, those judgments will have claims against the estate causing undue trouble for the heirs dealing with death and debts.

[justbroke]

The system allows for waiver of filing fees, waiver of mandated pre- and post-counseling and free legal advice or pro se filing.

Unless you're deaf, blind and mute, I haven't heard of any Court ever waiting the counseling (pre/post). I'm sure it has been done, but it doesn't happen that often. (I know there's an exception for active military in an actual 'war zone", but I believe that even that can be difficult as an exception.)

Some Districts have gone so far as to let everyone know in advance, under local rule, that they do not ever the waive pre-counseling requirement.

[OhioFiler]

Unless you're deaf, blind and mute, I haven't heard of any Court ever waiting the counseling (pre/post). I'm sure it has been done, but it doesn't happen that often. (I know there's an exception for active military in an actual 'war zone", but I believe that even that can be difficult as an exception.)

Some Districts have gone so far as to let everyone know in advance, under local rule, that they do not ever the waive pre-counseling requirement.

My bad word choices.

The law requires the credit counseling agencies to waive the fees if the consumer is unable to pay. Absolutely, the requirements of taking the courses are mandatory.