To file or not to file

[Drazil65]

I just hate mentally to have that stigma that I filed BK. I had excellent credit before the job pay cuts mid 700's, I know bad things happen to good people and pray to be guided the right way

As the others have posted, the credit score and the stigma were/are created by the banks and creditors so they can keep the upper hand in the economy. It used to work but people have way too much information now and don't worry about what or how the banks think. The banks do (did, still doing) it, businesses do it all the time and don't think twice. Its business as usual for most of them after they file.

It is no one elses business what you do in the best interest of your family. It is a business decision period. Also, the banks do not care what your credit looked like all these years as long as they were getting theirs. You will not be treated any different or given any hall passes for having that stellar credit because now you are just like everyone else that fell on hard times and will be treated as such. They do not care if you used every last cent you have in your 401k or any other account. That is one of the biggest mistakes any of us can make when it comes to this stuff, fighting for the banks, making sure they are ok while we go bankrupt.

Take away a very simple lesson from this adventure, never get yourself in a position again to have to make this decision. Protect yourself and yours and you will be fine. Good Luck!

[nmocean]

Yes I could use the lawsuit money to settle but it is not settled yet, been over three years court keeps getting postponed it is now scheduled for the first part of May. I think some of that could be exempted but I forget how much. I do believe these banks are all crooked and all they do is try to screw people everyday. I have a AE card I was current and never missed a payment etc and they cut my credit to the balance. I call and ask why they told me because they can. Then I pay over 1/2 of it off, as soon as I do that they reduce the credit line again to what I owe, I called them and asked why because they can. We have tried to work with the others after the pay cuts explained the situation and they don't care, the insurance company's are the same in dealing with my accident, just plain unreal.

[Blossoms]

My husband and I are in our second bankruptcy in 10 years, due to be discharged soon. Not by choice, but due mainly to job losses/layoffs and high medical expenses.

I know so many people - relatives, friends, acquaintances, who have filed for bankruptcy in recent years. My brother owns a small business, and says he has many wealthy customers who have had to file for bankruptcy. Heck, look at how many ultra rich celebrities have filed!

It's nothing to be ashamed about. Plus, the odds of anyone finding out about your bankruptcy (other than your creditors), unless you personally mention it to them, is slim to none.

Yes, it feels scary at first, but honestly, once you file, it's really not so bad. I know I don't miss my phone ringing off the hook all day long, with phone calls from creditors, dreading getting the mail, because i know it will have bills I can't afford to pay, and having to worry about potential lawsuits and garnishments. My husband and I had three garnishments in a row, from old debts, over the course of about a year and a half, from 2012-2013. It ruined us financially. I'm so glad not to have to worry about that any more.

As others have said, the banks and credit card companies don't have your best interests in mind. These mega banks and credit card companies aren't going to suffer financially if you file for bankruptcy. With the interest rates, late fees, and penalties they charge, they more than recoup any losses from bad debts. Not to mention that they get tax write offs for bad debts too.

You need to look out for yourself, first and foremost.

Good luck with whatever you decide to do.

[keepmine]

I'd suggest you really nail down how much of that settlement can be exempted and then, time your filing to give you time to spend down any non exempt funds.
BTW, we can add another celebrity to the bk filing list. Just saw on a sports site that former NFL qb Vince Young just filed a Chapter 11.

[raymondkrobe]

debt consolidation

Settlement is surely a good option rather than trying out bankruptcy which is considered to be last option in debt settlement. Consolidation of loans by lowering interest rate or spreading your payment period can help you in debt consolidation. Other options such as negotiation with creditors and proposals can help you get rid of this situation. A trustee can help you in debt consolidation and paperwork so as to avail the best settlements and proposals. For my debt consolidation I did appoint a trustee in Torontoo (mod-snipped due to the fact we don't allow spam or advertising in posts) and they were the ones who helped me getting best available options in debt consolidation.

[keepsmiling]

spam spam spam spam spam spam spam spam SPaaaaaaaaM....
we were overdue

[nmocean]

I just came back from the attorney, we make too much right off the bat for chapter 7 so he is going to do the means test to see if we could qualify. If not he said 13. So who knows, my lawsuit settlement and court date has made it complicated, he was kind of leaning to try to wait and see what I would get. My wife has two summons that were brought to the house last week and they have dates of october and September on them and he seems to think that a judgement was done then without her even knowing, so he is checking into that. I have no clue he even hinted at her filing alone. I have no clue what is going to happen this has been the third attorney we have went to so who knows at this time.

[nmocean]

Still have not heard anything from the attorney yet on the means test. This marriage of mine and my wife's so called mid life crisis is really troubling as well, I have been thinking just take the loan out of my 401 take care of myself and let the chips fall where they may. At least if something does happen to marriage she won't get as much money. She has a pretty carefree attitude about all this anyhow. I'll will give the attorney some time to see what he says.

[bcohen]

Settlement is surely a good option rather than trying out bankruptcy which is considered to be last option in debt settlement. Consolidation of loans by lowering interest rate or spreading your payment period can help you in debt consolidation.

Bwahahahaha ahahahahaha hahahahahahah ahahahahahaha haha ha! Aside from the poor use of English, your idea that settlement is better than bankruptcy is so funny that it's comical! And borrowing money to consolidate old or unaffordable debts? That's an even bigger joke.

[justbroke]

It's interesting that businesses will use Chapter 11 Bankruptcy as the first option rather than last option. Why should consumers be any different? While a Chapter 11 is a major bankruptcy (restructuring) tool, these creditors can still shed debt in just a few short months while reorganizing. Why shouldn't the consumer do the same thing?

[nmocean]

I saw the other day a pro player filed that