Bankruptcy - anyone gone through it?

[Mosbonian]

Originally Posted by Saul Good

Dump the house. It's an anchor. You need a fresh start. Try a short sale, but don't fool yourself into thinking that a deed in lieu is any better than a foreclosure. It's the same thing..

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.

Originally Posted by Saul Good

If you don't have much income, there's really no point in filing for bankruptcy. It'll cost you a couple thousand dollars and wreck your credit. If you just don't pay your bills, your credit will still be wrecked, but you won't have spent the money on the BK...

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.

Originally Posted by Saul Good

R8ers is right. Mortgage debt is the only debt worth having, and even that is a necessary evil at best. I don't know what it feels like to pay cash for a house yet, but I'll tell you when I do. Take R8ers's advice. He's got a paid for house. The guy can pretty much tell anybody to f*** off, including his boss, without worrying about how he's going to support himself. Not bad at all.

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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