Consequences of filing a bankruptcy

Sorry Ben, but I think your post is a bit of an exaggeration. I agree that bankruptcy has far reaching negative consequences and does have a substantial impact on one's life. However, comparing it to divorce, illness, disability, and death is, in my opinion, a bit out of line. I agree with the spirit of your post somewhat, as there are far too many people who file for bankruptcy without considering the consequences (and many times due to the urging of an eager bankruptcy attorney). However, for many people in desperate situations, bankruptcy is a good last resort. Bankruptcy does have it's positive aspects, or millions of Americans wouldn't be filing every year. The problem arises when people see bankruptcy as a quick, easy way out of debt, which it is not. If bankruptcy is treated as a final, last resort for debt problems (after all other alternatives are considered and determined to be unfeasible), then it would certainly be a beneficial tool for those who file.

I agree dmj210. We filed in 2004 and life has never been better. Those calls we were getting were unbelievable, nonstop, all hours of the day. A load is off my mind and we started over. As of today, my scores are better and I am much more careful with my money. It was the right thing to do for us. I do not view it as life altering at all. It was a sigh of relief for us.

Having been down the road of bankruptcy myself many years ago I can say I agree that it can be a life altering event.

Now on the same hand life altering event does not always mean a bad thing as Ben was trying to equate it to all the time.

I will say that in my opinion bankruptcy should be the final recourse after all else has been attempted for it is a long road back from its effect and in some cases it is a step that must be taken.

With different information many years ago I imagine I would have attempted consolidation but that was not put forth as an option to me.

Tim

TimB, great post. That is exactly the point I was trying to make. I feel that bankruptcy is a good FINAL recourse, but all other options (particularly credit counseling or consolidation) should be exhausted FIRST. 9 times out of 10, if a person gets help before it's too late, they can avoid bankruptcy. The problem is, many people wait until it is too late to get help from consolidation. At that point, bankruptcy is the only real option left. On the other hand, many people file for bankruptcy prematurely, often with the urging of a bankruptcy attorney. People do not realize that the attorney has an incentive to convince them to file for bankruptcy. Filing for bankruptcy when other options can help you out is, indeed, a negative experience. However, when bankruptcy is your only option left, it can be a great tool and a great relief, as "Guest" above said. Ben, as I said before, I still like the intent of your post even though I disagree somewhat. Many people do not consider or perhaps do not realize the consequences of bankruptcy before filing. Bankruptcy should be avoided whenever possible, and it is not an easy road back after filing. However, in some situations, bankruptcy can be a relief.

We filed chapter 13 in 2000. We thought it would be better to arrange for payments rather than just file chapter 7. Were we wrong. I was not working at the time and they began taking almost $700 out of my husband's check every month. We were suposedly out of debt, but we still could not afford to feed ourselves and our 6 month old daughter. I had to go back to work and put my daughter in daycare, even then life was a struggle. My husband got into a car accident that totaled the car, which we had filed on, we owed $3000 on the car and the insurance only paid $1700. We no longer had the car and were still paying the courts for it! I didn't think we would ever get out from under our bad decision to file.

We ended up converting to chapter 7 after the accident. It looks just as bad on our credit as the chapter 13, but we are abe to function now, and have recently bought our first home. Life is turning around.

LessIsMore, you bring up some good points. It seems some people will never learn, and it is very unfortunate. Bankruptcy is a good option ONLY when it is a LAST resort AND it serves as a wake up call and an educational experience for the filer. Unfortunately, this is rarely the case, and I think that is sort of the point Ben was making in his original post.

My ex-husband filed for bankrupcy after living life large on a shoestring budget. Collectors were calling all the time and he just kept spending. His mother paid all the legal fees for his bankruptcy and told him to let this be a lesson to live within his means. He didn't learn, of course. He went buck-wild again with spending, had two cars repo'd in two years since the bankrupcty, drowned himself in $20,000 in purchases, loans, phone-**** interenet stuff, you name it. He's a retard and it's such a great relief to be rid of him!

Some people do learn from it, some people abuse it.

[color=Red]****Adult term removed - Jason[/color]

Could someone direct me to the legalities of filing Chapter 7 and Chapter 13 in Toronto, Canada? Where I could get some literature on the Ontario laws.

Guest

I think you started a new thread about this subject. It has been replied. Check it out.

Nope - not I. Would greatly appreciate it though if you could re-direct me to the correct thread though.

Thanks!

Try this link for some legal information in Canada.

http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/90w01_e.htm

hey somebody please tell me how to close that pop up on the right for credit counseling I cannot read the e-mails thanks

Log in as a registered member and you can shift the complete panel to the left side of your screen. You might need to change the resolution of your computer if you view the page as a guest.

Bankruptcy is no way anything comparable to divorce,illness, disability, or death.
I have been miserable in my life due to several of those situations. My credit situation has not made me miserable and if I do file for bankruptcy, I will not be sad. I might be embarassed,but who really will know I filed? I will be joyful to know, that I will not be paying a collection agency money it does not deserve to get.

My cousin filed for bankruptcy. She kept two homes which were already paid for, she kept her car, and her jewlery. She got new credit cards in a few months.

If you do this in court, this is a matter of public record. I guess that's why people I know who have done this have told me that they have been bombarded with credit card offers afterwards. The companies must be trolling for them.

That's exactly what happens, kscornell! You'd be amazed at the number of credit card offers that start showing up, especially after someone files a Chapter 7 and is discharged. The credit card companies figure now that all the debt they had is discharged, they'll be easy prey, and will fall right back into the trap of running up credit cards.

And unfortunately, they're often right.