When Bankruptcy Makes Sense / The Case for Walking Away

[frogger]

Right ON !!!!
And remember - filing bankruptcy is actually bailing yourself out.
Washington just bailed out AIG, banks, and automakers.

Our very own financial bailout. I like the way you think!

[sigferl]

Thanks for your post br. I respectfully disagree completely.

Your article leaves out the majority of cases where people worked hard and live frugally and AVOIDED BK. All your article talks about are people that filed BK but the reporter did not do enough research to find those that avoided BK because it is easy to find people filing BK because it is a public record.

I am sorry, it is my opinion that the majority of the people are like me and my family and friends who have been through tough times and were able to come out ahead without BK or bailout.

Vote Libertarian.

http://www.newsweek.com/id/177749?GT1=43002

[LuciluS]

Thanks for your post br. I respectfully disagree completely.

Your article leaves out the majority of cases where people worked hard and live frugally and AVOIDED BK. All your article talks about are people that filed BK but the reporter did not do enough research to find those that avoided BK because it is easy to find people filing BK because it is a public record.

I am sorry, it is my opinion that the majority of the people are like me and my family and friends who have been through tough times and were able to come out ahead without BK or bailout.

Vote Libertarian.

Sig: Don't know why you say you disagree with Br's post. She didn't write it. It was a News Articles from Newsweek LOL! If you want to disagree with someone write an article to Newsweek and/or the specific reporter.

[adviceplease]

I really hate that it has come to this point but I have no choice. I like the "bail out" idea. I am keeping my house even though it is worth less than I owe. I have looked around and I can not find a house to rent cheaper than what I pay so I might as well keep it and hope one day it will go back up in value. If everything goes well and the CC's are gone life will be looking a lot more positive.

[sisterfunkhaus]

I notice that people are so hard on themselves and others about BK. Of course big businesses try to put the stamp of shame on us--holding consumers to higher standards than they are held to themselves. They want to do the bailout grab, but then shame consumers and try to place a stigma on us.

We waited way too long to file. I wish we would have done it earlier. I originally fell into that feeling of shame and ended up having a nervous breakdown. After some intensive therapy and a visit with the best BK lawyer in town, my whole attitude changed. we decided to walk away from our debt and make a fresh start with no guilt or shame. When it comes to getting out of crippling debt, guilt and shame do nothing. It helps nothing. It just gets you further in trouble with payday loans, home equity loans, and more debt.

People make mistakes. We have laws to help us deal with that which try to make sure people don't take advantage of the system. We have a right to use these protections to start over. I think what is most important is that people learn their lesson and don't go back to their old ways. I know several repeat filers--one of them has filed twice and is way back in debt again. My parents are filing for a second time as well. I watched and learned from others around me. It's been four years since we have used credit cards. We live on one income and make it fine. Do we have a big house? no, but we have enough room for us. Do we have a Lexus? No, we have one paid for 10 yo car and another used car with a low payment and good interest that we put 1/2 down on. I would rather live this way than get back in debt to impress others. My whole point with this is that learning your lesson is the most important part of the whole process.

[sisterfunkhaus]

"If you're out of work, try not to go bankrupt until you have a new job and can see what's ahead of you," says Harvard Law School professor Elizabeth Warren.

Except that higher income from a new job could make you ineligible for filing BK.

[filingsoon]

I came to file for bankruptcy in probably the most round about way and waited so long I almost didn't qualify anymore.

In 2007 I was going broke, moved across the country in hopes of finding a good job, wasn't able to find one and almost went homeless if it wasn't for friends thagt helped me out and moved me back to the West Coast where I had originally started. Stayed in L.A. for 3 months not being able to find work and only working a menial job part time, went North to Portland where I was again taken in by friends and able to stay until I got back on my feet. It's been one year since I came back to Portland, and through all the moving I learned a couple of things that I would like to share:

Creditors will keep hounding you on the phone as long as you answer, I used to get so upset that they were calling and they will keep calling if you keep answering. If you don't have the money and don't want to keep ending up in tears like I used to, then just quit answering the phone. They will still call, but you won't have to deal with them, most of them will get sick of leaving messages. I know that if you put it in writing and certify mail them they have to do it also, but at times I actually didn't have enough money to pay for the postage.

If you move often enough and use UPS mailboxes you really can hide from creditors.

Ditto if you use Lifelock and lock down your report. I actually found this out when I thought I lost my SS card I then realized they couldn't so freely access my report anymore.

Also, while I waited over a year to file, it actually worked to my advantage since it was actually easier to file my BR paperwork wise, but I was within $1000 of topping out on the income.

If you have a case like mine (C. 7, no assets) I think the best thing to do is to file pro se.

I'm so glad I didn't invest in hiring an attorney, since I learned so much from doing my own research, reading lots of books and web pages, and seeking out additional information in this forum. Not only do I think the whole process will make me become more fiscally responsible after my BK is discharged (December 28th) but I'm glad I didn't wait too long and get a job that would have made me ineligible for a C.7.

You can always hire an attorney later if you have to.

Maybe it's just fate, after working for a temp agency for about 10 months, I received not one but two permanent offers from a top notch employer in the past week. Both supervisors who I had temp'd for. I finalized and accepted an offer yesterday and ironically, my first official day of work will be December 28th!

So I hope this will be a new beginning for me and that many more GOOD things are in my future. I have learned my lesson and hope never to be in some of the situations that I have been in the past 2-3 years.