Quote:
Originally Posted by mmaddog
I'd check with an attorney before accepting this advice...just walking away doesn't wipe it from the slate. And can come back to haunt.
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If you can't make the payments, you can't make the payments. They can try to collect the deficit later on, but they have no recourse if he BKs.
Quote:
Originally Posted by mmaddog
Bad advice....but R8s already pointed that out. If he doesn't file BK then it still leaves him vulnerable to suits and judgements and those don't go away for 10 years. He'll rebuild before then and have to face the prospect of dealing with what put him in the situation first.
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It's not bad advice if he doesn't have much income. If he's broke because he lost his job or something, the judgment has no teeth. They can't take what he doesn't have. He can always BK down the road, but there's also a chance that he can scrape some money together first and settle the debts for a fraction of what was owed.
Quote:
Originally Posted by mmaddog
Good advice...to a point. Let me put up a nice scenario:
R8's sitting comfortably in his paid-for debt free home. One day he goes to work and because the boss pissed him off he says "I quit". A couple of weeks later he finds out he's got serious health issues (heart attack, kidney issues, etc) and has no insurance. While he's got the 6 figure savings account, all it takes is one trip to the hospital and suddenly that six figures includes the zero's after the decimal. Where does he go from there?
mmaddog
*******
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Why would he have no insurance? If you've got enough money to tell your boss to f*** off, you've got the money to buy an individual insurance policy. Anybody who is financially savvy enough to be 100% debt free including his house in his early 40s will be prudent enough to have the insurance thing covered backwards and forwards.
1. Health Insurance
2. Auto Insurance
3. Homeowner's Insurance
4. Long-term Disability Insurance
5. Life Insurance (if needed)
6. Long-term Care Insurance
I say "if needed" to the life insurance because, once you are debt free, it doesn't take much to self-insure.