Bankruptcy - anyone gone through it?

[Dayze]

well, after a 12 month fight with our mortgage company and creditors; exhausting all savings; cashing out 401ks; stopping 401k contributions.....

it appears the end is near. We are being foreclosed upon 10/15/09.

our lender has being jerking us around for 5 months with a loan modification and I was informed today by the VA that even if the mod is approved, it will likely be a very miminal impact to our monthly commitment/cashflow etc.

Anyone have any suggestions, opinions on the matter? It's really tough right now.

Thanks guys/gals.

Dayze

[R8RFAN]

Originally Posted by frazod

My best friend is a miser who saves ever penny he can. We bought new cars at roughly the same time back in the late 90s - he recently, finally sold that car (a hideous little 4-door forest green Saturn), and I'm on my sixth different one.

Of course, he got wiped out when the stock market went to shit. Now he wishes he'd blown the money on new cars.

if a man saves his money and wants ANY car on the planet and can pay for it without financing it...

Go for it, you work for it, you earned it, spend it as you wish.

But....

When you have a mortgage taking 60% of your salary, you do not need a 40k suv and a few credit cards

Theres where the problem is, people start using their cards to live when they are in rough times when they should have saved when they were having good times.

[btlook1]

Seems like there is some good advice in this thread!

[R8RFAN]

Originally Posted by mmaddog

A couple of questions....

When you were in debt up to your ass, did you want some arrogant asshole helping you, or someone who had been there and was helpful in guiding you? ( I am guessing if you are honest you would want the latter not the former)

Are you a disciple of Dave Ramsey?

mmaddog
*******

ya know, you thought I was an arrogant bastard first and formost because of my username.
I prefer give it to me straight answers, I don't sugar coat it, I say it the way I mean it, if that comes across as being an ass, I am sorry.

As far as Ramsey is concerned, I was debt free except the house before I started listening to him and basically figured out most on my own... but his teachings are great and he helps alot of people... and I do listen to him, until people call in with 60k worth of debt and is 60 yrs old and nowhere to turn, it makes me sad to see people who live like that...

If people could only wait until they have cash for everything in life except a home, you wouldn't see all the ruined hopes and dreams of people in this country.

[Param]

I think you offered a lot of good advice in this thread R8ers, keep it up. Most people don't want to hear a straight shooter in regards to $.

[Saul Good]

Originally Posted by mmaddog

A couple of questions....

When you were in debt up to your ass, did you want some arrogant asshole helping you, or someone who had been there and was helpful in guiding you? ( I am guessing if you are honest you would want the latter not the former)

Are you a disciple of Dave Ramsey?

mmaddog
*******

Where do you get arrogant out of his posts? I read the entire thread, albeit rather quickly, and I didn't see anything arrogant. He owned his past mistakes and is giving advice as a person who has been in the same situation and overcome it. That's the best kind of advice.

[Saul Good]

Originally Posted by R8ers

The great thing about bankruptcy is you can't buy jack shit you can't afford anymore...
Screw a FICA score pay cash
Good luck to you, you are not alone, many are in the same boat as you.
(not directing this at you but) Too many people are buying shit they can't afford and the best advice I can give to you is don't make the same mistakes twice

100% debt free (including the house) since 04/09
I make 6 digits a yr got damn near that much in my checking acct
I drive a 1000 dollar Mazda pickup truck everyday and can afford a 40k Truck
I live in a 1500 sq ft house but I could have afforded a 3000 sq ft
I have a Platinum card which carries a 0 balance
I could easily live off about 1200 bucks per month...

Life Is Good
Good luck to you,Not bragging,I sincerely hope you are in the same boat as I am one day, I am not rich but I have everything I want and need, life will get better for you if you don't make the same stupid mistakes you made to get in the situation you are in now.

Again, Good Luck

I remember cheering for you in that thread a few months back. Has it even fully sunk in yet? It's kind of funny that so many people were telling you that you shouldn't pay off your house. Congrats, man.

[R8RFAN]

Originally Posted by Param

I think you offered a lot of good advice in this thread R8ers, keep it up. Most people don't want to hear a straight shooter in regards to $.

Thats all I intended to do, I want to see people live good and not give their money away to thieves.
I don't like to rely on other people, I want to rely on me...

My wife does not work outside of the home, I can afford that because I don't have a 40k suv or 25k on a credit card, when the 9th of the month comes, wife says, ok all the bills are paid for the month.

When things come up, you write the check and move on, septic line broke in the front yard somehow, had to get it dug up, 1500 bucks, no problem, no loan, write the check and move on.

Need the driveway sealed by a pro... stroke the check and move on. When you don't have your money spoken for before you even make it, popup emergencies are not a problem. Want to go to the beach for the weekend, no plans have to be made, just go.... want to drop a 100 at a restaurant on steaks and drinks... No pain whatsoever

You have so much more wiggle room when your paycheck is not spent before you even get it...

It's not about me being rich, I work everyday just like most here, it's about being smart with what you have and taking care of the things you have.

[R8RFAN]

Originally Posted by Saul Good

I remember cheering for you in that thread a few months back. Has it even fully sunk in yet? It's kind of funny that so many people were telling you that you shouldn't pay off your house. Congrats, man.

Thanks man, it is the best move I ever made finacially... I got sceered when my bank account dropped so low, I have saved the hell out of some cash since april

[Marcellus]

Originally Posted by R8ers

Thats all I intended to do, I want to see people live good and not give their money away to thieves.
I don't like to rely on other people, I want to rely on me...

My wife does not work outside of the home, I can afford that because I don't have a 40k suv or 25k on a credit card, when the 9th of the month comes, wife says, ok all the bills are paid for the month.

When things come up, you write the check and move on, septic line broke in the front yard somehow, had to get it dug up, 1500 bucks, no problem, no loan, write the check and move on.

Need the driveway sealed by a pro... stroke the check and move on. When you don't have your money spoken for before you even make it, popup emergencies are not a problem. Want to go to the beach for the weekend, no plans have to be made, just go.... want to drop a 100 at a restaurant on steaks and drinks... No pain whatsoever

You have so much more wiggle room when your paycheck is not spent before you even get it...

It's not about me being rich, I work everyday just like most here, it's about being smart with what you have and taking care of the things you have.

Nice.

[Saul Good]

A little advice for Dayze if I may. It's free, and it's worth what you paid for it.

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.

VA loans suck. They were developed as a benefit, but they are now much more expensive than conventional loans.

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.

Don't ever take out another credit card again. Rebuild with cash and never look back. Everything you own will be crap for a few years. That's okay. It may be embarrassing to have your neighbors see you driving a POS, but that's nothing compared to having them watch your BMW get towed away by the repo man. Buy a $2,000 car for cash and put $300 a month into a car fund. After a year, you can sell that same car for $1,500 and buy a $5,000 car for cash that will last you 3 years. By that time, you'll have enough money saved up to buy a nice car for cash. That's about the same time that you will be completely rebuilt financially.

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.

[Saul Good]

Originally Posted by R8ers

They can't eat you man, don't be scared, it's business and happens everyday.
Get away from debt, rent for a few yrs, act your wage, live well within your means and take care of the things you do buy.

Don't buy new cars, they depreciate 100 dollars a week for the first 4 yrs you own them on a 30k car

30k car
Payments 500 bucks a month
Depreciation 400 a month
Extra cost of the collision 100 per month at least

Shiny car costs you 1000 dollars a month to drive.

Stay away from credit and you will be able to do what I did in a few years.

I wish you luck

I do have to call you on this, though. Your math is wrong. The depreciation is part of the 500 bucks a month, so you are counting that $400 twice.

If you spend $10,000 on a car, don't insure it, and then set fire to it, it depreciates $10,000. That doesn't mean that the car cost you $20,000 because you spent $10,000 and it depreciated $10,000.

In your example, the true cost of the new car versus a used car would be the depreciation of the new car plus the extra insurance minus the depreciation of the used car. It's still a lot, but it's $600 a month in your example, not $1,000.

[Mosbonian]

Originally Posted by R8ers

ya know, you thought I was an arrogant bastard first and formost because of my username..

Probably the worst assumption you've made....your screen name has nothing to do with why i said you were appearing arrogant.

Originally Posted by R8ers

I prefer give it to me straight answers, I don't sugar coat it, I say it the way I mean it, if that comes across as being an ass, I am sorry...

Straight answers are fine....but trying to pretend to be an Internet Dr. Phil is what makes you less sincere

Originally Posted by R8ers

As far as Ramsey is concerned, I was debt free except the house before I started listening to him and basically figured out most on my own... but his teachings are great and he helps alot of people... and I do listen to him, until people call in with 60k worth of debt and is 60 yrs old and nowhere to turn, it makes me sad to see people who live like that...

If people could only wait until they have cash for everything in life except a home, you wouldn't see all the ruined hopes and dreams of people in this country.

The above is the most interesting part....I have nothing against Dave Ramsey, but what people pay him to hear they could have learned from their parents or grandparents if they listened while they were young.

mmaddog
*******

[Saul Good]

Originally Posted by mmaddog

The above is the most interesting part....I have nothing against Dave Ramsey, but what people pay him to hear they could have learned from their parents or grandparents if they listened while they were young.

mmaddog
*******

Just out of curiosity, where do you stick the money into your radio? I have a feeling that the coin slot is really your A/C vent.

[R8RFAN]

Originally Posted by Saul Good

A little advice for Dayze if I may. It's free, and it's worth what you paid for it.

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.

VA loans suck. They were developed as a benefit, but they are now much more expensive than conventional loans.

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.

Don't ever take out another credit card again. Rebuild with cash and never look back. Everything you own will be crap for a few years. That's okay. It may be embarrassing to have your neighbors see you driving a POS, but that's nothing compared to having them watch your BMW get towed away by the repo man. Buy a $2,000 car for cash and put $300 a month into a car fund. After a year, you can sell that same car for $1,500 and buy a $5,000 car for cash that will last you 3 years. By that time, you'll have enough money saved up to buy a nice car for cash. That's about the same time that you will be completely rebuilt financially.

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.

The only problem with not paying the bills is the creditors placing judgments on you, and if that happens, you will never be able to get another house until they either give up or you file BK .

I hope you get yours paid off soon to Saul but having only the mortgage is a big accomplishment in itself and you are probably living in a 4 percentile group of Americans that can say that

[R8RFAN]

Straight answers are fine....but trying to pretend to be an Internet Dr. Phil is what makes you less sincere

I am not telling anyone what to do I am giving common sense advice is all, my hand is not in your bank account, spend what you have or don't have how you choose

The above is the most interesting part....I have nothing against Dave Ramsey, but what people pay him to hear they could have learned from their parents or grandparents if they listened while they were young.

Dave's radio show is free and his book costs about 10 bucks, if you want to go to financial peace university it is more but I think only the people that have real bad problems need that