Bankruptcy
September 18th, 2007 | by admin |
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Bankruptcy
I have a confession to make. I’m in way over my head when it comes to debt. It’s my own fault and I admit that. For several years, I couldn’t afford to buy anything I wanted, so I paid with plastic. Little did I know that decision would come back to haunt me. I owe close to $20,000. My credit score is very high and I am very proud of that. I live paycheck to paycheck, not always have the slightest clue how I will pay my bills each month. And I’ll also admit that last year, when I heard that the laws for bankruptcy were changing, I contemplated filing. I hated the mere thought of contemplating something that I knew would hurt my excellent credit. As the deadline for filing for bankruptcy before the new law approached, my husband and I debated for days. In the end, we decided to not do it. I realized that it was our own carelessness that had gotten us into debt and I should accept responsibility for it. Our best friends however, chose to file while only being in debt a few thousand. What I found exceptionally
irritating was the fact that right before they filed, they purchased two brand new cars and went on a cruise. Basically, since they charged the cruise, they didn’t pay a cent for it. To me, that’s the same concept as stealing.
The amount of people filing for bankruptcy in 2005 jumped almost 30% as people rushed to get their filings completed before the new laws took hold. Personal bankruptcy totaled almost 2.1 million across the country. Those statistics make it the largest number of bankruptcies filed in any 12 month period in our history. That’s scary. Think about that - 2.1 million people found themselves in financial trouble last year. Everyone who filed has their own reasons, whether it be credit card debt, job loss or medical bills. The list of reasons goes on for miles. As a matter of fact, high medical bills are the main reason for the large number of people filing for bankruptcy. Let’s face it, most people do not have adequate health care. All it takes is for someone to get hospitalized or ill and suddenly they find themselves in severe debt. That’s worse than scary, it’s sad.
I understand the need for the new laws, I really do. That doesn’t mean I agree with them in every case. The reason that laws are changing is because too many people were taking advantage of filing for bankruptcy. They’d charge up their credit cards with new furniture purchases, exotic vacations, and many things they absolutely had no true need for. Then, they’d file for bankruptcy and poof - their money woes were over. On the other hand, since the new laws have gone into effect, the people who face overwhelming debts that could not be controlled are facing more hurdles in order to get a fresh start. Is that fair? Of course not. But, as you know, it only takes one person to ruin it for everyone else. And lots of people did.
If the main reason for the onset of bankruptcy is high medical bills, why doesn’t the government take a look at altering those issues? If credit card companies are complaining that they don’t get paid when people file for bankruptcy, why give people such a high credit line? Sure, many bankruptcies could be avoided with some common sense usage, that’s for certain. But what about those who really are struggling? Who is looking out for them?
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9 Responses to “Bankruptcy”
By patricia guinn on Oct 5, 2007 | Reply
please tell me if i’m a co-sighner on a friends xar if i go bankrupt will she loose it? she has been paying her payment on time
By Kelli on May 27, 2008 | Reply
Hello,
Would you be able to tell me if I filed personal bankruptcy, and I have a business that is incorporated, will I lose the business? Any info would be greatly appreciated. Thank you
By muriel on Jul 27, 2008 | Reply
i own my own home can i declare bankruptsy and keep my home I CANNOT RAISE A MORAGE BECAUSE I CANNOT PAY IT back my income has dropped iam a 65 year old man
By Amanda on Aug 20, 2008 | Reply
My husband and I have a sick little girl that is disabled. As she grew worse I had to quit my job to take care of her full time. We continued looking throughout the last two years for some sort of assistance (either through state or charity) but without success. During this time we needed to ensure she still received the medical care. Insurance barely covered us at all and we are now up to 34,000 in debt total. We do not know what are options are, or even the difference between chapter 7 and chapter 13 and are lost to what alternatives are out there for us. We are truly struggling just to pay monthly payments not including rent and other necessities. What would benefit us best to do at this point? What is the difference between the two bankruptcies? (if that is all the options we have left) What will be the lasting affects of bankruptcy if we declare? Will bankruptcy hinder us from obtaining future assistance for our child? (We still have major surgeries in the future)
By Pat on Sep 23, 2008 | Reply
If my bankruptcy was dismissed, can I go backand pay that balance somehow to get my bankruptch discharged.
By Thomas Wood on Sep 29, 2008 | Reply
We contiplated BK 13 last year but due to our belief we accrued the debt via bad income and a lasting affect from 911 changing our self employed job we opted to go with an attorney to debt consolidate. We pay them automatically $1100 monthly of which for the past 15 months we would have paid $15,800 but they took $6,800 right from the beginning for their fees now we have $9000 banked with them but we have a lawsuit on a credit card requesting $14,500 in the next 20 days and another card that has now accrued up to $35,000 and they want $19,000 now, same law firm that sued us for the first card. We now are afraid to offer any money to either of them for fear they will set up an unrealisic payment plan and then we are worried if we agree to that if we can still include them in BK13 if my husbands self employed job is decreased as suggested this morning by his contractor.
We do not know what step to take and we are very worried. I work at a bank and I am nervous about filing BK 13. We tried refinancing before any of this but were not approved. We currently have our home listed on the market hoping it would sell to stop the madness but the market is too slow.
we need advise fast on what options are available and finally with the new change our President is trying to implement we are not even sure how that change will even affect what we should do such as BK and credit card companies???
Thanks.
Worried and tired and needing options….
By Grace on Dec 11, 2008 | Reply
Is there someone that can tell me of a good bankruptcy lawyers who will not charge a high fee to file bankruptcy. I am in need of a lawyer. Please help.
By edna on Dec 23, 2008 | Reply
can some one help me with a number for a bankruptcy lawery thank you
By melinda on Jan 4, 2009 | Reply
i just finished chapter full bankrupsy have a job and other income live in rent and would like to buy some property with a home how complicated it would it get to get about $40.000 to get finaned.got told to find a seller who is helping to finane the property is this a good idea and how long would it take need some good advise..