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10/20/2017 1:01:18 AM
9/22/2017 12:11:25 AM
Posted: 10/5/2005 10:13:40 AM EDT
My buddy and I are trying to convince out other friend to not file bankruptcy and just hang in there. He got divorced in September and lost 50 % of his income due to alimony and cs. One month later he was permenately laid off. His creditors are on his ass and the bank is starting foreclosure on his house. We are helping him but its kinda outa control,.He said he only alternative is to file in order to save his house even though it will ruin his credit, or does it. I have seen people do it and buying other houses and cars. Whats the real scoop ?
Link Posted: 10/5/2005 10:21:20 AM EDT
It saved our lifes. You can recover quickly. We gave up everything including the house. Within 2 years we a credit cards (That have never had a balance for more than 7 days) and at 36 monthes after the final discharge we got a Fannie May/mac convential fixed rate mortgage (so we did have to rent for 3 years, but we rented a nice 4 bdrm house with a huge yard). Rebuilding takes some time. Never pay anything late. Also be willing to pay some substantial down payments when necc. We have alwyas paid cahs for cars, but we ended up financing a tractor with John Deere. They gave us the good interest rate after we paid 50% down.

BTW we wrote off nearly $80,000 in debt after a divorce, health issues and being laid off.

Now we have a brand new house, no debt other than a mortgage and are living life better than we ever dreamed of.

Dan
Link Posted: 10/5/2005 2:15:24 PM EDT
Yes-file bankruptcy and let the rest of us pay it off for you!!
Link Posted: 10/5/2005 2:22:15 PM EDT
[Last Edit: 10/5/2005 2:22:45 PM EDT by Boom_Stick]

Originally Posted By pieceofstink:
Yes-file bankruptcy and let the rest of us pay it off for you!!


The CC companies pay it off with the billions THEY make.
Link Posted: 10/5/2005 2:25:02 PM EDT
Me and my wife had to file about 3 years ago and I bought a Jeep a year later (used) and we are actually moving into our new house we just purchased tomorrow. You can recover.
Link Posted: 10/5/2005 2:28:42 PM EDT
I got a buddy who filed a few years back... he drives a '99 Porsche 911.

His credit score ain't that great, but he got financed on it last year, and has a couple (low limit) credit cards.

I would not encourage filing, though, as it is a HUGE black mark on your credit history. If your friend has any inkling of ever wanting to buy a new car, or buy a house, it could severely hinder those options.
Link Posted: 10/5/2005 2:28:57 PM EDT
Yes you can. But the laws just changed and they will no longer just write off the debt. You will have to pay what you can. The court will deterimine what that figure is depending on what resources you have available.

For some serious cases is why bankruptcy was created. Tell you buddy to bite the bullet and get himself a good bankruptcy lawyer. It will cost about $1500. But its money well spent.
Link Posted: 10/5/2005 2:30:26 PM EDT

Originally Posted By Matthew_Q:
If your friend has any inkling of ever wanting to buy a new car, or buy a house, it could severely hinder those options.




It took a bit longer than normal trying to find a lender but they will find one if you have been doing good after you file.
Link Posted: 10/5/2005 2:30:28 PM EDT

Originally Posted By ARDOC:
Yes you can. But the laws just changed and they will no longer just write off the debt. You will have to pay what you can. The court will deterimine what that figure is depending on what resources you have available.

For some serious cases is why bankruptcy was created. Tell you buddy to bite the bullet and get himself a good bankruptcy lawyer. It will cost about $1500. But its money well spent.



+1 If he's at the point of losing his house, shit credit beats homelessness.
Link Posted: 10/5/2005 2:31:25 PM EDT
[Last Edit: 10/5/2005 2:31:44 PM EDT by Synister1]
The law change doesn't take effect until the 17th.
Link Posted: 10/5/2005 2:36:46 PM EDT

Originally Posted By ARDOC:
Yes you can. But the laws just changed and they will no longer just write off the debt. You will have to pay what you can. The court will deterimine what that figure is depending on what resources you have available.




Not true. You can still wipe everything out, if you make less that your state's median income, and that is based over the 6 months before you file. So, if anyone wants to wipe out their debt totally, sandbag your wages for 6 months...

If you make above the median, you might still be able to wipe them out, but it will get trickier. They will take into account your food and medical expenses to see how much you could potentially pay...

After the new law one will have to take a 2 hour class on taking care of their finances...big fucking deal...
Link Posted: 10/5/2005 2:37:46 PM EDT

Originally Posted By Synister1:
The law change doesn't take effect until the 17th.



I dont know if the time to file under the old law has lapsed. If that is not the case. Then he needs to get off his ass and file TOMORROW. That way he will have to repay the debt. Otherwise he will have to make good on a certain percentage.
Link Posted: 10/5/2005 3:57:30 PM EDT
Trump always seems to come back from it ok
Link Posted: 10/5/2005 4:24:33 PM EDT
You can always come back from it. Financial institutions still want you as a customer and want to make money from you. Eexpect that you will be paying far higher interest rates compared to people without creit problems? Why because a company willing to lend someone money with a poor fiscal track record need to make more money faster in case another default occurs.

Financial institutions also have other credit products available to risky, also known as sub-prime, borrowers such as secured credit cards - e.g. you deposit money to secure a credit line. As you show a good track record paying your credit line may be leveraged. In other words if you deposit $300 you get a $300 credit limit, but with good pay history, they may give you 200% credit line of your actual deposit amount.

You can recover, but the process is slow, that BK will stay on your credit file for a long time.
Link Posted: 10/5/2005 4:27:14 PM EDT
It is VERY recoverable. In fact many peoples credit is better right after. Plus have to do it NOW as the new law coming sucks. Otherwise he will be a slave to the CC companies for many years. Better to start fresh and rebuild the credit than hold down on a sinking ship.
Link Posted: 10/5/2005 4:29:00 PM EDT

Originally Posted By Boom_Stick:

Originally Posted By pieceofstink:
Yes-file bankruptcy and let the rest of us pay it off for you!!


The CC companies pay it off with the billions THEY make.



The billions they make off of all the rest of us in the form of higher rates

I realize you are personally hosed (or your friend is) but at the end of the day his own actions put him there

I wish more people would gut it out- or better yet act/spend responsibly
Link Posted: 10/5/2005 4:32:51 PM EDT
Oh do they?
I guess the high interest on a CC is normal :)


Originally Posted By Boom_Stick:

Originally Posted By pieceofstink:
Yes-file bankruptcy and let the rest of us pay it off for you!!


The CC companies pay it off with the billions THEY make.

Link Posted: 10/5/2005 4:54:15 PM EDT
If you don't like the interest rate, don't take the damn card!!
Link Posted: 10/5/2005 4:57:19 PM EDT

Originally Posted By sharky30:
Trump always seems to come back from it ok



He talked the banks into lending him MORE money just as he was about to lose everything, using the argument that doing so, they were certain to get those initial loans paid back, plus the benefits of being in business with him in the future. Or they could liquidate him and maybe get half back and no further. business.
Link Posted: 10/5/2005 5:02:11 PM EDT
[Last Edit: 10/5/2005 5:03:13 PM EDT by raven]

Originally Posted By pieceofstink:
If you don't like the interest rate, don't take the damn card!!



Works the other way, too. Banks can't hand credit cards to anyone, jack the interest rates to 28%, then cry about all the bankruptcies getting away even though they make record profits.

Well, I guess they can and do, but the whole idea of high interest rates is to compensate for higher risks. A borrower's riskiness is the bank's job to determine. But they're having their cake and eating it too with the bankruptcy law changes. It's a lack of responsibility on their part as well.

They do this with loans to foreign countries, too: happy to lend away and rake in great profits until the corrupt banana republics' games of musical chairs stops. Then the big banks are looking at huge defaults and run to the government for taxpayer bail outs before the SHTF, they lose billions, and whole countries go under. And of course, that's worse than paying it off with tax monies, so the government always agrees.
Link Posted: 10/5/2005 5:11:01 PM EDT

Originally Posted By BucsFan1:

Originally Posted By Boom_Stick:

Originally Posted By pieceofstink:
Yes-file bankruptcy and let the rest of us pay it off for you!!


The CC companies pay it off with the billions THEY make.



The billions they make off of all the rest of us in the form of higher rates

I realize you are personally hosed (or your friend is) but at the end of the day his own actions put him there

I wish more people would gut it out- or better yet act/spend responsibly



Own actions huh? Gut it out eh?
Is that why our Flight for Life bill ALONE was nearly $50,000? Because we CHOSE to have my sister wreck her car and rack up around HALF A MILLION in medical bills?

Yeah, why dont you try having a accident that lands you hundreds of thousands in mecidal bills and see what you would do tough guy. Medical bills that are so high you KNWO you will NEVER have them paid off.
Link Posted: 10/5/2005 5:12:48 PM EDT
Link Posted: 10/7/2005 5:44:30 AM EDT
I have personally heard him on the phone trying to negoiate some kind of plan with his creditors,but they were complete assholes. His house note is three months late,but he had two payments ready to send off to the (wells-farge). They would not accept a payment unless it was paide up to date in full. I f he paid the two payments he would only be one behind. Sounds to me he will have the advantage filing on the house to protect his interest and not to become homelesness. The dude was just dealt some shitty cards and is trying to hold on.
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