Personal bankruptcy is a pretty drastic step. That seems to be a last resort option. I would look at maybe picking up some extra part-time income first, re-analyzing their budgets (are they really bare bones?), then looking at some sort of credit counseling to try and work with those creditors first. We are all a bit guilty of trying to live above our means, but I personally believe that bankruptcy is really a last ditch option.
If U can do it..what about Personal Bankruptcy
- Thread starter N628AU
- Start date
Flufdriver
Senior
- Aug 20, 2002
- 396
- 6
There seems to be a wide range of knowledgeable people on this forum so I thought I would throw this out to you for some info. I have a family friend that both the husband and wife both work for U and due to the massive paycuts are thinking about Personal Bankruptcy. They have talked with others who have and been told all about it being on your credit report for ten years and some of the other obvious things about re-establishing credit through SECURED credit establishment. Has anybody been through it and can give me GOOD info about the HOWS and WHAT''s going to happen, and how fast you recover. I would appreciate it. They live in a state where you can keep your house and cars, I think it''s simply the unsecured debt that''s wiped out. ALOT like U!!!
Thanks for any info.
![8.gif'']](/proxy.php?image=http%3A%2F%2F%5Bimg+src%3D%27%27http%3A%2F%2Fwww.usaviation.com%2Fidealbb%2Fimages%2Fsmilies%2F8.gif%27%27%5D+%5Bimg+src%3D%27%27http%3A%2F%2Fwww.usaviation.com%2Fidealbb%2Fimages%2Fsmilies%2F8.gif%27%27%5D&hash=6e3682045af43e61801547d692be233b)
Thanks for any info.
Hello Newman
Senior
- Aug 23, 2002
- 376
- 0
Before bankruptcy, go to Consumer Credit Counseling first. See if they can work out a dept repayment plan where your creditors will take less interest and lower principals. Hopefully you'll have better luck than I did with it. But if all else fails, consult a bankruptcy lawyer.
While I'm not proud of filing bankruptcy, I'm not
ashamed of it either.
While I'm not proud of filing bankruptcy, I'm not
ashamed of it either.
Severed-N-Happy
Senior
- Dec 21, 2002
- 395
- 0
[blockquote]
----------------
On 1/20/2003 8:53:12 PM Hello Newman wrote:
Before bankruptcy, go to Consumer Credit Counseling first. See if they can work out a dept repayment plan where your creditors will take less interest and lower principals. Hopefully you'll have better luck than I did with it. But if all else fails, consult a bankruptcy lawyer.
While I'm not proud of filing bankruptcy, I'm not
ashamed of it either.
----------------
[/blockquote]
Definitely nothing to be ashamed of in getting help from any source..I am piggy backing unemployment chks with full severance chks and living high off the hog, so to speak.
----------------
On 1/20/2003 8:53:12 PM Hello Newman wrote:
Before bankruptcy, go to Consumer Credit Counseling first. See if they can work out a dept repayment plan where your creditors will take less interest and lower principals. Hopefully you'll have better luck than I did with it. But if all else fails, consult a bankruptcy lawyer.
While I'm not proud of filing bankruptcy, I'm not
ashamed of it either.
----------------
[/blockquote]
Definitely nothing to be ashamed of in getting help from any source..I am piggy backing unemployment chks with full severance chks and living high off the hog, so to speak.
willnotworkforfree
Advanced
- Aug 29, 2002
- 196
- 0
[A href="http://www.ftc.gov/bcp/menu-credit.htm"]http://www.ftc.gov/bcp/menu-credit.htm[/A]
drifterreno
Veteran
- Aug 21, 2002
- 611
- 3
How do you find out which states allow you to keep your home and cars?? Thanks
Unfortunately, bankruptcy for many people comes only after poor management of their own finances and living well beyond their means with no landing cushion in the event of obstacles like salary cuts, job loss, etc.
Many people also take advantage of the bankruptcy laws to wipe the proverbial slate clean, only to run up new debt with creditors who will extend the money to them at steep interest.
There has been a lot of talk on "the hill" about re-writing the personal bankruptcy laws to make the process much more stringent.
That being said, I concur with many of the other posters here - make personal BK your last possible choice. Sell higher priced assets in favor of lower ones, even consider moving into more affordable housing, look at all your monthly fixed expenses, etc. Then, if your credit card balances are all over the place, look to a credit counselling agency(non-profit) to help you consolodate them into one payment at a lower combined interest rate.
First and foremost(if this applies to you) - dump the gas and department store cards. They're the worst interest rates. Often above 20%. If you have a MC or Visa, see if any of them will raise your limit and give you a good low rate to transfer balances. Chase Manhattan, for example, offered me 0% interest on transferred balances for a year. I did it, and am well on my way to having it paid off by the time they start tacking on interest. Citi was offering 3.9% balance transfers that would remain for the life of the balance. These are just two examples, but they are indicative of what many banks are willing to do to build up their own assets.
These steps can often make a world of difference in your disposable income each month.....
Many people also take advantage of the bankruptcy laws to wipe the proverbial slate clean, only to run up new debt with creditors who will extend the money to them at steep interest.
There has been a lot of talk on "the hill" about re-writing the personal bankruptcy laws to make the process much more stringent.
That being said, I concur with many of the other posters here - make personal BK your last possible choice. Sell higher priced assets in favor of lower ones, even consider moving into more affordable housing, look at all your monthly fixed expenses, etc. Then, if your credit card balances are all over the place, look to a credit counselling agency(non-profit) to help you consolodate them into one payment at a lower combined interest rate.
First and foremost(if this applies to you) - dump the gas and department store cards. They're the worst interest rates. Often above 20%. If you have a MC or Visa, see if any of them will raise your limit and give you a good low rate to transfer balances. Chase Manhattan, for example, offered me 0% interest on transferred balances for a year. I did it, and am well on my way to having it paid off by the time they start tacking on interest. Citi was offering 3.9% balance transfers that would remain for the life of the balance. These are just two examples, but they are indicative of what many banks are willing to do to build up their own assets.
These steps can often make a world of difference in your disposable income each month.....
It should be illegal! Personal and Corporate.
I was taught if I owe someone and don't pay it is THEFT.
I know all the scenarios you can throw at me but I still feel that way (my opinion).
You should pay something 1, 2, 3, dollars or something to show effort and if that is not good enough for the debt holder then give back what you borrowed for and keep paying till you satisfy YOUR obligation.
Its about responsibility folks.
Bankruptcy is a copout and legalized theft!
I was taught if I owe someone and don't pay it is THEFT.
I know all the scenarios you can throw at me but I still feel that way (my opinion).
You should pay something 1, 2, 3, dollars or something to show effort and if that is not good enough for the debt holder then give back what you borrowed for and keep paying till you satisfy YOUR obligation.
Its about responsibility folks.
Bankruptcy is a copout and legalized theft!
Some thoughts on bankruptcy from an attorney:
Bankruptcy may be a drastic step, but it is often the best or only solution to tough financial problems. There are two forms of bankruptcy for individuals, Chapter 7 liquidation and Chapter 13 reorganization, which is somewhat similar to the corporate Chapter 11 with which you are all so familiar. Bankruptcy law may be federal, but what you can keep varies a lot depending on the state you live in. If any of you are considering the need to file bankruptcy, I urge you to find a bankruptcy lawyer who can walk you through all of the possible steps and consequences of filing. With planning, you can make bankruptcy work to your advantage in the long run.
Credit counseling agencies are often very helpful in reducing payments amd interest; use one that is NON-PROFIT, they do the same work for less money.
There is legislation pending that would make it more difficult for people to file Chapter 7 and force a filing under Chapter 13 instead, which is something to keep in mind if you think you might need to file.
LaTreal, I'd like to know what you'd do if the choice you had was between paying for medical care needed to stay alive or paying off credit cards. I've seen a few people for whom that was the choice. Most people, given a choice, would pay off what they owe, but sometimes life doesn't give you that option.
I'm not a bankruptcy specialist, nor am I admitted in PA or NC, but I'd be happy to privately and confidentially answer any general questions you might have out there.
Bankruptcy may be a drastic step, but it is often the best or only solution to tough financial problems. There are two forms of bankruptcy for individuals, Chapter 7 liquidation and Chapter 13 reorganization, which is somewhat similar to the corporate Chapter 11 with which you are all so familiar. Bankruptcy law may be federal, but what you can keep varies a lot depending on the state you live in. If any of you are considering the need to file bankruptcy, I urge you to find a bankruptcy lawyer who can walk you through all of the possible steps and consequences of filing. With planning, you can make bankruptcy work to your advantage in the long run.
Credit counseling agencies are often very helpful in reducing payments amd interest; use one that is NON-PROFIT, they do the same work for less money.
There is legislation pending that would make it more difficult for people to file Chapter 7 and force a filing under Chapter 13 instead, which is something to keep in mind if you think you might need to file.
LaTreal, I'd like to know what you'd do if the choice you had was between paying for medical care needed to stay alive or paying off credit cards. I've seen a few people for whom that was the choice. Most people, given a choice, would pay off what they owe, but sometimes life doesn't give you that option.
I'm not a bankruptcy specialist, nor am I admitted in PA or NC, but I'd be happy to privately and confidentially answer any general questions you might have out there.
BillLumbergh
Veteran
This is a pretty general topic, so I'm going to move it to Just Conversation...
drifterreno
Veteran
- Aug 21, 2002
- 611
- 3
Bill--why move it??? Many of us are facing the same fate. It helps to get information on the US site. Most of us went from a salary of over 20 per hour to nothing and need some help and advise. Sorry you moved it--I never read just conversation---only need to talk to US people.
Flufdriver
Senior
- Aug 20, 2002
- 396
- 6
I agree Reno, bad move by Bill, it may be a general subject but there a lot of U employees that have a lot of interest in this subject. Look how many views the subject attracted. Reconsider Bill, it's NOT a dead subject. I feel it is VERT appropriate on the U board. MHO is, should be back on U.
