Bankruptcy
 

Has anyone ever or knows someone who has filed?

My assistant is in the process of doing so. Like many, she has been apprehensive, but NOW, there aren't any OTHER options. :rolleyes: A couple of our colleagues filed last school year. When we returned to work, they had brand new vehicles.

It seems like "we" feel that filing for bankruptcy is taboo. While, others are out there doing it like its a natural part of living.

I can't lie I filed a almost 2 years ago and ended up getting a new VOLVO!!!!!!!:p :p . The bankruptcy did help me alot and I mean alot. I wasn't scared to do it but I felt as if my back was up against the wall. For me it was surely a good decision. Filing bankruptcy doesn't mean you're careless or irresponsible; I've kept my credit up since then. I now have another luxury vehicle. I make sure I make every payment on time, I only have 2 credit cards and 2 department store cards. I know I only need maybe one of each or none. But my income is better than what it used to be and I can pretty much swing it; plus I have another income coming into the house (spouse). But in all I'm very careful. My sister in law filed 4 years ago and she's just bought a house.

Honestly, I'm not sure what filing for bankruptcy is all about. Under what conditions should one file for bankruptcy? If someone could shed some light on this, I'd appreciate it.

I alos want to know how the process works. My credit isn't really "bad," but I do have some negative things on it. I KNOW that it isn't bad enough to file bankruptcy. I just want to know how one can file and start with a clean slate (i.e. buy luxury cars, homes, etc.) Doesn't the bankruptcy have any negative connotations? Doesn't it show on your credit report for 10 years? If one can start from scratch after filing, I see why it's the popular thing to do.

As you asked, 2D, I think that it is "taboo" for our people to file because it is glamorized by our people to have "bad credit." Some comedian or otherwise is always joking about how we dodge creditors or tell them off and refuse to pay. No one ever jokes about buying a house or car and actually PAYING for it or making investments. Some of us need to change that way of thinking.

In no way should filing a bankrupcty (sp?) be taken likely. It does stay on your report for 10 years and sometimes they'll (credit folks) will forget to take it off and you have to call them and tell them that your 10 years is up.
Filing has helped me indeed, I felt the need to file because as soon as I got out of college I went haywire with credit cards; and I swear to never to do such again. I mean I even tried cosolidation and that worked for maybe 6 months.
But in the mean time I see it as no joke but it was a blessing that I was able to start over.
I tell you there is a truthful change in my credit now compared to then. But some people file just to be thriffling. I know my former boss (white) filed 3 times. I couldn't believe such but she did!

I clerked for a bankruptcy judge for over two years, so I've seen pretty much everything in terms of bankruptcy (both individual and corporate). I used to review every Chapter 13 petition that came through our chambers -- so I would see what everybody owned and what their budgets were and income and everything. It was very interesting, and a good dose of reality. You'd see people with kids and hardly any income trying to get by on $200 a month for food, and you'd see people with luxury cars and boats, coming into court with their Louis Vuitton handbags. My judge's pet peeve was debtors paying 10% to their credit cards and keeping their Lexus or Cadillac and their $100 per month cell phone. I don't personally have a problem with a Chapter 13 debtor keeping a nice car if she's paying 100% to all her unsecured creditors. In that case, she's just using bankruptcy to sort of protect her from creditor collection efforts and get everything together.

There are some abuses, but overall I think that bankruptcy is a very valuable tool for those who need it. In that respect we've come a long way -- at least we don't have debtors' prison any more (although some of my clients now would not agree). Most people I saw were really trying to turn their lives around, I think.

You'd think that with my experience in the area I wouldn't have run up a huge credit card debt, right? Oh well. I'm learning the hard way. If you know any large firm in Chicago that wants to hire a bankruptcy associate, let me know. I could use the $$$. ;)

Bankruptcy is a legal court proceeding filed in Federal Bankruptcy court. There are different types of bankruptcy known by the chapter where they appear in the law (Chapter 7, ch 11, ch 12, ch 13) Both companies and individuals can file for bankruptcy. It will allow you to protect certain assets and allow you to avoid repaying certain debt. You have some state rights as well as federal rights about what you can keep and hat you have to give up (remember Toni Braxton had to auction off her Grammy?).

Personally, I think it is a good thing for those who truly need it. For instance, I have a friend whose husband left her with their daughter. She alone does not make enough money to pay the rent and day care and buy food none the less pay the car note and credit card bills (which unfortunately are all in her name although it is their joint expenditures) She is filing bankruptcy. If she can get out form under the unsecured debt, she can afford the necessities (although just barely) It is still a vast improvement over where she is now. That is one situation, the other is the person who simply was irresponsible, shopped til they dropped and not a s a result of a sudden hardship or medical bills or emergency or whatever got in over their head. One deserves the help more than the other but we do not distinguish. I feel their are abuses that occur and that it is "forgiven" by the credit industry quickly, maybe too quickly. I think it is part of how they encourage us to get in such dire straits in the first place- bombarding college kids and young people with credit cards they know they cannot afford or handle, etc. (I mean really, how do you give a person with no income or a work study job a credit card???)

Whew, that is my tirade. Clearly, all people who file bankruptcy are not gaming the system. Even those who ended up in a hole due to inability to manage their finances are not bad or doing it intentionally (most of the time) To learn more, check out the following links.

http://profs.lp.findlaw.com/bankruptcy/index.html
http://www.law.cornell.edu/topics/bankruptcy.html

(*and I am sure we all know that although I am a lawyer, nothing about this post should be construed as legal advice, right? :D )

Let me make sure I'm understanding this correctly: You file for bankruptcy and althought it stays on your credit report for 10 years, you can pretty much start with a clean slate? Being a full time graduate student with student loans, credit cards (you see where i'm going with this :rolleyes: ) I'm quite curious about how the process works.

I was always under the impression that bankruptcy was a last resort. hmmm... I'll check out the websites. :) Thanks for the information.

I would strongly recommend using bankruptcy as a last resort only. Even though it falls off your credit report eventually, it can affect you when applying for a job, loan, buying a house, etc. etc.

Yes, at the end of most consumer bankruptcies you have discharged your debt. However, all debts cannot be included in a bankruptcy. I believe, for instance student loans cannot be discharged. Neither can child support, certain tax obligations. Do your research before thinking it is a solution.

I have found that often people get credit card offers etc as soon as a bankruptcy is discharged. Why? Creditors know you are debt free and figure that they have a pretty good chance of being paid back. Many people dig themselves the same hole the just got out of. That is how some end up filing over and over again. Everyone's experience after bankruptcy is not peachy keen. Depending on where you live, and what you do people can get things like cars but at very high interest rates (again potentially setting them up for disaster all ver again.) Now this is not everyone. Many learn and come out better and never ever have a credit problem again. It just depends.

I'm only 20 years old (I'll be 21 in Dec. this year) and I've dug a $5,000 hole that I just can't seem to get out of. When I turned 18, I got my first credit card. 6 months later, I got another one. A few months later, I got 2 more. Now, all four are maxed out and waaaaaaay over the credit limit due to interest charges and late fees.:o
I can't believe how stupid I was:( It makes me sick to my stomach to think of all the debt I've accumulated at such a young age, and it just keeps on growing even as we speak. I had a part time job here and there, but I was just irresponsible. I do not have a job now because I spend so much time on my school work. It's crazy that I have to worry about my debt (let's not even get into my student loans) and getting a job at twenty. I honestly don't know what to do.

I try to pay some down on each one when I can, but it seems pointless. The sad thing is, I can't even remember what I purchased with those cards...mostly clothes during my freshman year of college (which I cannot fit into anymore) and food from restaurants. I know, I know.....STUPID. I would give anything to get rid of this debt. It feels like I have so much weight on my shoulders. Right now I have about 13 unopened envelopes on my desk. I can't even stand to look at the amounts. When I make a payment, I just scribble out a check, tear the portion needed from the bill without looking at it, and seal it. Since I've been away, my mother says those people call 2-3 times every day. She made the mistake of opening my mail one day, and immediately called me. All she could say was, "you've got yourself in a big ol mess!" as if I didn't already know :rolleyes:. I can't consolidate because I've skipped payments at a time so many times. I try not to let 90 days go by without sending something in so my credit won't be that bad.

Bankruptcy may be the option for me when I graduate because I just don't see any other way out. It's gonna be a while before I get a real job because I plan on going to grad school and then maybe even going for my doctorate. When I was making paymets on the regular, I barely had any money left for myself. I'm scared of the consequences of bankruptcy though. Would I be able to get a car after? What about a house? Can I even pass the credit check necessary to get an apartment? If I file after undergrad, can I still take out student loans for grad school?

Is anyone going through the same thing I am? I just don't know how much more I can take! I will never be that stupid again. Please help.

NOWorNEVER
 

You've got a pm!

NoWorNever,

I truely feel for you in your situation. It's disgusting the way we are bombarded as freshmen on campus by people offering free T-shirts and trinkets to people who have no real concept of money. But I truely advise you NOT to file for bankruptcy--you are way too young to have that mark on your credit history. That mark will follow you into your twenties and early thirties--this is a time when you will want to start your career, buy a home and invest money. Is it possible you could start working right after graduation? Grad school is VERY expensive and if you have money problems now, another $40,000+ expense might not be such a wise idea financially. Besides, if you work for the right company, THEY will pay for you to go to grad school.

My advice: 1. talk to you creditors, tell them the situation you are in--these people appreciate those who don't try to dodge them through lies and caller-IDs;) It may be possible for them to work something out so you can make smaller payments (in the end, they want to get their money, no matter how long it takes)
2. Get a job--yes, it'd be nice if all we had to do in college was go to class 15 hours a week, but lots of people work while they're in school. I had a part time job/internship and I made it out in 4 years. My mother earned her B.A. in 6 years, and she was working FULLTIME with 2 kids. It is possible, as long as you have good time management.

Good Luck!

To All:

Go to www.creditinfocenter.com They have really good information in regards to credit, collections, etc. Basically (to NowOrNever) you have four options:

1. debt consolidation
2. debt settlement
3. take out a loan
4. bankruptcy

This site give you info as to what these are, as well as info on how to "repair" your credit - LEGALLY!! And its all free! :D

Ladies, I know during my undergrad years, we (I was an Alpha Angel) we did seminars explaining how to avoid the college credit card debt trap. Most of us (black folks) are really unaware to what that one Visa can do to you.

When I was freshman, I wish someone would have offered a seminar for me :(