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Bane
06-21-2009, 04:07 PM
So 16 years into a steady career,just like everyone else,the economy is getting to me too.I hate to jump into the give up pile and ask for the bail out,but as bills,and home improvements,and everything else that comes along with family life starts to get the best of us I'm not sure which way out is best.Any of you guys ever file for bankruptcy,or know anyone that has? I have a very good credit score and have always paid my bills,and don't want to ruin my credit,but the way things are going I could be let go or laid off just like the next guy, and forced to do this very thing.I'm just kinda thinking it would be best to do it when I choose to versus having to.Any advice?

Saulbadguy
06-21-2009, 04:08 PM
Unless you are deep in the financial shitter there has to be other options, no?

Mr. Flopnuts
06-21-2009, 04:11 PM
You should never ever file for bankruptcy unless it is absolutely necessary. By absolutely necessary, I mean about to lose your house, about to have your wages garnished, or about to have your bank account garnished. Otherwise, fight through it and tighten the belt.

stevieray
06-21-2009, 04:13 PM
...most decisions based on fear don't turn out well.

mlyonsd
06-21-2009, 04:18 PM
You should never ever file for bankruptcy unless it is absolutely necessary. By absolutely necessary, I mean about to lose your house, about to have your wages garnished, or about to have your bank account garnished. Otherwise, fight through it and tighten the belt.
This.

sedated
06-21-2009, 04:28 PM
bankruptcy = last resort, not preventative act.

Mr. Flopnuts
06-21-2009, 04:29 PM
You should never ever file for bankruptcy unless it is absolutely necessary. By absolutely necessary, I mean about to lose your house, about to have your wages garnished, or about to have your bank account garnished. Otherwise, fight through it and tighten the belt.

Let me just quantify that this isn't a moral statement. It's for your own financial good.

kstater
06-21-2009, 04:34 PM
So you have a current income, you pay your bills, and you have good credit? Bankruptcy is an excellent option for those conditions.

Bacon Cheeseburger
06-21-2009, 04:38 PM
So you have a current income, you pay your bills, and you have good credit? Bankruptcy is an excellent option for those conditions.
Kinda sounds like someone who has racked up a shitload of debt and now has decided he doesn't really feel like paying it back.

Buehler445
06-21-2009, 04:39 PM
Listen to Floppy.

mlyonsd
06-21-2009, 04:42 PM
Kinda sounds like someone who has racked up a shitload of debt and now has decided he doesn't really feel like paying it back.

yea, I didn't understand the logic either.:spock:

Mosbonian
06-21-2009, 05:42 PM
bane 58:

Bankruptcy is an option, that at best, is a last resort measure. Bankruptcy can completely control your life beyond the immediate relief that it might provide by ridding yourself of certain obligations.

If you still have a job and believe that a layoff is impending, start living your life (i.e. budgeting your money) like it has already happened. Build yourself a 'cash bunker' that you can draw on during any period of unemployment. Draw up a planned budget of payments that might be able to be reduced in a small period of unemployment and speak to those creditors. let them know your plan and stick with it.

Check with your local utilities and see if they have level payment plans for a short period of time. Eventually you might have to make a larger payment to "catch up" but once you get back on your feet and have a steady income, that might not be as big an issue as you might think.

Most of all....DON'T PANIC. As someone has already stated, making decisions based on fear and panic never work well.

mmaddog
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RJ
06-21-2009, 06:22 PM
I have a friend who had to do this.....and I mean he had to. The whole thing has been a very ugly experience for him. Fortunately, he's in his early 30's and can still bounce back. Based on what I've seen, I'd on suggest it as a very last resort.

Fat Elvis
06-21-2009, 06:37 PM
So 16 years into a steady career,just like everyone else,the economy is getting to me too.I hate to jump into the give up pile and ask for the bail out,but as bills,and home improvements,and everything else that comes along with family life starts to get the best of us I'm not sure which way out is best.Any of you guys ever file for bankruptcy,or know anyone that has? I have a very good credit score and have always paid my bills,and don't want to ruin my credit,but the way things are going I could be let go or laid off just like the next guy, and forced to do this very thing.I'm just kinda thinking it would be best to do it when I choose to versus having to.Any advice?

What was wrong with your home in the first place?

Rain Man
06-21-2009, 08:04 PM
A former coworker of mine declared bankruptcy a few years ago. She didn't own a home and didn't have a new car or anything, but she didn't make a really high salary and apparently she spent a LOT on clothes and other disposables, all of which went on the credit card. She declared on a quick decision back when they were about to change the bankruptcy laws to make them less attractive (though I don't recall what the changes were).

This is a person I don't talk to very frequently, but I remember at one point her car (15+ years old) broke down, and she had to do some weird permission thing from the court to buy a new car and they initially told her no. According to her, her car was dead and she didn't know what she was going to do to get to work. Eventually they let her buy a new car, but she had to be within specific payment parameters. It didn't sound like a fun process.

joesomebody
06-21-2009, 08:09 PM
Not saying this is the case with you and your family, but...

It seems with all the talks of how bad the economy is, and all of the big banks and companies being "bailed out" by the government that more and more people are giving up.

I realize a large portion of this country is unemployed (mostly factory workers), but that doesn't mean that everyone is. I know that finding new jobs is tough, more lay offs will happen, and raises will be slim to none for the next few years, but giving up is not the answer. Tuck in, cut spending, cancel the 200 a month cable/internet, kill the cell phones, cook more, eat out less, and no more starbucks.

My brother recently lost his job of 10 years. He has a wife, 3 kids, and a mortgage. He made great money as a diesel mechanic for a major company. He was on unemployment for 3 months and never did find a job that would pay what he was used to. He now works 12 hour days and has to travel all over the state with a railroad contractor. He literally hammers railroad ties with a sledge hammer all day. When things pick up again I'm sure he will find a good paying mechanic job again, but for now he is doing what he has to.

I think people fail to realize how much money they waste in a given day. I am guilty of it too, but two or three times a year I take a good solid look at my monthly spending and it is never hard for me to cut 300 to 400 dollars a month from my spending habits when I have to, and I only make roughly 15k a year and am a full time college student.

Bane
06-21-2009, 08:27 PM
Well with us its more that I didn't really know anything about being a home owner as in fixing up the places to speak,and we really got done wrong looking back with hind sight.Well after fixing this room,that room,fixing the floors etc....Its just getting over whelming spending every last dime on the house ,just to see another problem area before Im even done with the room I'm working on.I have no problem paying the debt I have run up,I don't want a handout.I just wish I had known what I know now when we bought the house.I only have a few credit cards and none are maxed out,I guess I was just angry and ready to give up like so many others.On another note the wife took me out to dinner for fathers day,and a movie of my choice.Land of the lost.Well I have nowhere to go but up from there.Ha

joesomebody
06-21-2009, 09:02 PM
Well with us its more that I didn't really know anything about being a home owner as in fixing up the places to speak,and we really got done wrong looking back with hind sight.Well after fixing this room,that room,fixing the floors etc....Its just getting over whelming spending every last dime on the house ,just to see another problem area before Im even done with the room I'm working on.I have no problem paying the debt I have run up,I don't want a handout.I just wish I had known what I know now when we bought the house.I only have a few credit cards and none are maxed out,I guess I was just angry and ready to give up like so many others.On another note the wife took me out to dinner for fathers day,and a movie of my choice.Land of the lost.Well I have nowhere to go but up from there.HaMeh, everyone gets like that sometimes. You'll know when it's time to throw in the towel, but until then you just have to work as hard as you can and hope that someday you can look back on the hard/tough times and laugh about it all.

And happy father's day. I heard Land of the Lost was horrible though. I want to see Hang Over.

Bacon Cheeseburger
06-21-2009, 09:09 PM
Well with us its more that I didn't really know anything about being a home owner as in fixing up the places to speak,and we really got done wrong looking back with hind sight.Well after fixing this room,that room,fixing the floors etc....Its just getting over whelming spending every last dime on the house ,just to see another problem area before Im even done with the room I'm working on.I have no problem paying the debt I have run up,I don't want a handout.I just wish I had known what I know now when we bought the house.I only have a few credit cards and none are maxed out,I guess I was just angry and ready to give up like so many others.On another note the wife took me out to dinner for fathers day,and a movie of my choice.Land of the lost.Well I have nowhere to go but up from there.Ha
Heh, I know that feeling. Just do what you can and live with the rest, I have rooms in my house that have been under construction for years.

Rain Man
06-21-2009, 09:12 PM
I've had my house for 14 years and actually owe more on it now than when I bought it. By a lot.

On the positive side, all of that extra money has gone straight into fixing it up, so it was invested rather than spent, but yeah, houses aren't cheap. They're kind of like race horses, but with electrical.

Brock
06-21-2009, 09:13 PM
I'd just suggest getting rid of the things that are burdening you. You don't need them.

cdcox
06-21-2009, 09:19 PM
Heh, I know that feeling. Just do what you can and live with the rest, I have rooms in my house that have been under construction for years.

That sounds positively epic.

prhom
06-21-2009, 09:22 PM
I'm not an expert, but I thought that you had to be able to prove that you were unable to meet your financial obligations. If you're doing a pre-emptive bankruptcy assuming that you won't be able to keep up at some point in the future I don't think a judge would actually award it to you. Maybe how strict they are depends on the state in which you live.

Chaunceythe3rd
06-21-2009, 09:43 PM
...most decisions based on fear don't turn out well.

Amen.

2bikemike
06-21-2009, 11:31 PM
Not saying this is the case with you and your family, but...

It seems with all the talks of how bad the economy is, and all of the big banks and companies being "bailed out" by the government that more and more people are giving up.

I realize a large portion of this country is unemployed (mostly factory workers), but that doesn't mean that everyone is. I know that finding new jobs is tough, more lay offs will happen, and raises will be slim to none for the next few years, but giving up is not the answer. Tuck in, cut spending, cancel the 200 a month cable/internet, kill the cell phones, cook more, eat out less, and no more starbucks.

My brother recently lost his job of 10 years. He has a wife, 3 kids, and a mortgage. He made great money as a diesel mechanic for a major company. He was on unemployment for 3 months and never did find a job that would pay what he was used to. He now works 12 hour days and has to travel all over the state with a railroad contractor. He literally hammers railroad ties with a sledge hammer all day. When things pick up again I'm sure he will find a good paying mechanic job again, but for now he is doing what he has to.

I think people fail to realize how much money they waste in a given day. I am guilty of it too, but two or three times a year I take a good solid look at my monthly spending and it is never hard for me to cut 300 to 400 dollars a month from my spending habits when I have to, and I only make roughly 15k a year and am a full time college student.

This is good advice right here. Everybody has fat they can trim from their budget. You may not want to trim it but sometimes tough times call for tough measures.

I highly recommend anybody who doesn't have 6 mos. worth of cash availble suck it up and get it saved. This latest chit storm should be a wake up to everybody living on the edge.

2bikemike
06-21-2009, 11:36 PM
Well with us its more that I didn't really know anything about being a home owner as in fixing up the places to speak,and we really got done wrong looking back with hind sight.Well after fixing this room,that room,fixing the floors etc....Its just getting over whelming spending every last dime on the house ,just to see another problem area before Im even done with the room I'm working on.I have no problem paying the debt I have run up,I don't want a handout.I just wish I had known what I know now when we bought the house.I only have a few credit cards and none are maxed out,I guess I was just angry and ready to give up like so many others.On another note the wife took me out to dinner for fathers day,and a movie of my choice.Land of the lost.Well I have nowhere to go but up from there.Ha


Hell if your pipes or roof ain't leaking and the exterior walls and windows are in decent shape, the drains drain then your in good shape. You don't have to do everything at once. It took me 9 years to get everything inside and out the way I wanted. However my HGTV addicted wife to always wants something else done.

Luke
06-21-2009, 11:38 PM
My ex talked me into filing for bankruptcy in 89. 2nd worse mistake I made with her, the 1st being marrying in the first place. Depending on how much money you have it is always better to try to work with creditors. Not always possible though,.

I was told the bankruptcy would stay on my credit report for 10 years...not. It will always remain. I was also told it makes it easier to get your credit started again, after all you don't owe anything,,,, not. It took 11 years before I was able to secure a personal loan.

Now for the real crap, people with Donald Trump kind of money file for bankruptcy ever 4 years it seems. I think the trick is they incorperate everything so only the corparation files for chapters 7, or 11 or whatever.

I think bankruptcy was intially used to prevent us from entering "debtors prison", but I may be wrong on that idea.

Sometimes however it is the "option of last resort" My advice would be to make sure and list every single penny you owe. If possible buy a new vehicle and all the toys you can get. Once you have possesion, they are yours.

Remember the internet is not always the best place for financal advice, good luck!

King_Chief_Fan
06-22-2009, 06:27 AM
I suggest you take a money management course and pull out the big eye in your head that makes you think you have to have everything you see. Bankruptcy is not what you think it is.

Old Dog
06-22-2009, 06:47 AM
Kinda sounds like someone who has racked up a shitload of debt and now has decided he doesn't really feel like paying it back.

This may not be the case with bane, but it seems like it is in a big chunk of America, and that's the main reason America is going to hell in a handbasket IMO.

Saulbadguy
06-22-2009, 06:52 AM
What was wrong with your home in the first place?

No shit. Unless the place is caving in on you I fail to see how spending your money on the place in an unsure economic situation will gain you an advantage.

LaChapelle
06-22-2009, 07:08 AM
File now and you could be killing off your catastrophic health care plan. A bankruptcy later. Isn't this sad and pathetic.

Fat Elvis
06-22-2009, 07:16 AM
Well with us its more that I didn't really know anything about being a home owner as in fixing up the places to speak,and we really got done wrong looking back with hind sight.Well after fixing this room,that room,fixing the floors etc....Its just getting over whelming spending every last dime on the house ,just to see another problem area before Im even done with the room I'm working on.I have no problem paying the debt I have run up,I don't want a handout.I just wish I had known what I know now when we bought the house.I only have a few credit cards and none are maxed out,I guess I was just angry and ready to give up like so many others.On another note the wife took me out to dinner for fathers day,and a movie of my choice.Land of the lost.Well I have nowhere to go but up from there.Ha


There's $50 right there.

Before you declare bakruptcy, think about the money you are pissing away left and right. Once you take a good, long hard look at your spending habits, I think you will find that there is a HUGE difference between wants and needs. Focus on your NEEDS, and once you get out of the hole, you will find a lot of your "wants" don't seem quite so important.

Mosbonian
06-22-2009, 08:42 PM
My ex talked me into filing for bankruptcy in 89. 2nd worse mistake I made with her, the 1st being marrying in the first place. Depending on how much money you have it is always better to try to work with creditors. Not always possible though,.

I was told the bankruptcy would stay on my credit report for 10 years...not. It will always remain. I was also told it makes it easier to get your credit started again, after all you don't owe anything,,,, not. It took 11 years before I was able to secure a personal loan.

Now for the real crap, people with Donald Trump kind of money file for bankruptcy ever 4 years it seems. I think the trick is they incorperate everything so only the corparation files for chapters 7, or 11 or whatever.

I think bankruptcy was intially used to prevent us from entering "debtors prison", but I may be wrong on that idea.

Sometimes however it is the "option of last resort" My advice would be to make sure and list every single penny you owe. If possible buy a new vehicle and all the toys you can get. Once you have possesion, they are yours.

Remember the internet is not always the best place for financal advice, good luck!

Not sure where to start commenting on this post...

1) Bankruptcy stays on your records for 10 years..if it's there any longer that is your fault for not forcing the issue to have it removed.

2) Creditors are easy to work with when you are honest with them...problem is that when money troubles come, most people hide or evade.

3) The new Bankruptcy laws make it tougher for the multiple filings (Chapter 22's and Chapter 33's as we in the Credit industry call them) especially those who have the ability to pay. (BTW, a Chapter 7 filing would liquidate everything)

4) Sometimes however it is the "option of last resort" My advice would be to make sure and list every single penny you owe. If possible buy a new vehicle and all the toys you can get. Once you have possesion, they are yours.

The worst advice you could give anyone....and one that could get you in hot water with the Trustee...especially if they can see a pattern. And in Bankruptcy, possession is not 9/10ths of the law. Homestead Exemptions may help you keep valuable possessions, but when you buy that new vehicle it's got a lien on it and is a secured transaction, not unsecured, which means it will be treated differently in the Bankruptcy.

mmaddog
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