Comments on: The Cost of Filing for Bankruptcy

By: Anonymous

Anonymous — Sat, 10 Oct 2009 04:34:21 +0000

Carmen says:

Sheila you are absolutely correct. When I lived on welfare and section 8 everything was much easier than it is now. I bought a home in 2004, the house is now worth half of what I paid for it. I am not going through a divorce. My ex-husband to be tried to get a loan modification but he didn’t qulaify, the bank said he didn’t make enought money. He makes over $20 an hour and it’s just him. My friend who is currently unemployed qualified for a loan modification. What is wrong with this picture? I’m happy for my friend, but it doesn’t make sense.

By: Sheila

Sheila — Sun, 20 Sep 2009 03:40:01 +0000

It’s all a catch 22. I’m a single parent, lost my job almost 2 years ago. I do not qualify for legal aid and cannot afford to file bankruptcy. A creditor IS taking me to court. I have no control as I can’t afford any kind of legal help. I think it is a SIN that these banks can go after the little people while they get bailed out by the government.

If I had known how easy it is to lose everything you work for, and your children as well, (Can’t have children if you are homeless, right?), I would have never worked. Ever…I would have had more kids years ago and lived on welfare. The Welfare bunch get treated like royalty in our country. The workers get treated like garbage.

I no longer believe in our country.

By: Disaster

Disaster — Mon, 29 Jun 2009 14:48:59 +0000

I’m a financial advisor and made an investment with 0% money from credit cards. It was a bad decision and now the investment is frozen and under investigation from the state. It probably won’t survive to return anything. I owe a previous financial employer $100,000 (signing bonus-8 yr. forgiveable loan), credit cards $260,000, $200,000 for a contract that is tied to the investment, house $650,000. I now owe about $15,000 a month in payments and make about $3,000 a month. Will I be fired as a financial advisor if I file for bankruptcy? I’ve learned some unforgetable lessons, can I keep my job? I’m sure I’m a better financial advisor now than when I started!

By: Yana

Yana — Sat, 16 May 2009 01:34:07 +0000

Nothing will happen if they can’t take anything, except that your credit report will suffer. Third-party creditors who call you on the phone mostly try to terrorize you with lies, so that you will magically have money to pay their pathetic wages. I don’t personally see any valid reason for someone to pay a collection agency, because the debt has been written off by the one who was owed the money, at that point. I think of them as shady bystanders, just waiting to grab some money that they never had a right to in the first place. It is a very good thing to never talk to the likes of them. Next best is to sue them for their illegal actions taken during their phone calls.

The only time something can be taken from you, if there is something to take and its existence is known to the opposition, is through a lawsuit. And in that case, if you absolutely can’t pay your debt but you do owe it and know you will lose in court, you should not even appear *unless you are legally required to do so*. If you appear, you are likely to give information that they do not already have. That information can have real collectors after your future earnings/property for years to come.

By: Lyssa

Lyssa — Sat, 16 May 2009 00:19:13 +0000

What state do you live in that has a short 3 yr statue of limitations? I am constantly being sought after by creditors who don’t understand that I can’t pay my debts. I’ve been laid off from my position and can’t find steady work. I don’t own anything so what will happen when there’s nothing for them to take? They’ve filed a legal complaint but I can’t even afford an attorney to tell me what happens next!

By: saladdin

saladdin — Sat, 09 May 2009 07:39:07 +0000

that’s what i take out of it. if medical bills are a main cause of bk the question is “why are medical bills so high?”

saladdin

By: Jeremy

Jeremy — Fri, 08 May 2009 22:57:51 +0000

There was a segment on NPR a while back that was talking about bankruptcy and a few things really stood out to me.

1. A lot of the callers were complaining about not being able to afford bankruptcy. Obviously, it can be expensive and if you can’t find pro bono legal counsel. That’s a bit of a Catch 22. You’re so broke you can’t even afford to go bankrupt legally.

2. What was even more shocking were the amounts people were talking about filing bankruptcy for. One lady owed a just over $3,000 and was trying to file but said she couldn’t afford to because it would cost another few thousand for legal fees. I know that dollar amounts are all relative, but if I had to guess, bankruptcy is clearly not the best option.

A lot of people were in similar situations where the debt wasn’t all that much and the money spent to actually file would be half as much or more of what they were trying to escape in the first place.

By: Bill

Bill — Fri, 08 May 2009 01:53:20 +0000

Why file?

Depending on the jurisdiction, many debts are effectively uncollectable in this economy.

California prohibits deficiency judgments in foreclosures on first mortgage loans.

My state has a short (3 year) statute of limitations on most debt collections (it also prohibits wage garnishment for private creditors except for student loans)

I expect state laws to become even more populist in the future, expanding the “homestead” amounts protected from creditors, and instituting add’l hurdles for collection.

By: Yana

Yana — Thu, 07 May 2009 23:14:18 +0000

I was once in a position where bankruptcy was an option, but I think it is too commonly done and without good cause in many cases. I really think bankruptcy should be a last resort. Many people say this, but it is so socially acceptable to file that they do it when they don’t really have to. First, if you can’t pay your bills, you shouldn’t be lining the pockets of a lawyer or the civil court system. If you are that bad off, nothing can be taken from you, which is the only reason ever to file, in my opinion. The time to file bankruptcy is when something IS taken from you, to get it returned and stop further actions. I never got to that point. Bankruptcy ruins credit for awhile, but my neighbors did it at the same time that they purchased a new car, and within a couple of years they bought a house.

I don’t care to use credit, but I think that its best use is for the exploitative medical system in America. It is fitting that so many bankruptcies are due to medical bills.