Anyone here gone bankrupt?

[911-m5]

Just curious. Well, actually feeling that I'm in way over my head and having a hard time digging out. I'm contemplating it, but I would hate myself for doing it. problem is - I see no other way to get my life back on track.

[RANDY P]

Ditto what So Cal said.

Also you have to do what you have to do. It isn't the end of the world. Nowadays within 3 years you can be reestablished to the point where you can get reasonable financing, even zero down on a home.

5 years out and most new creditors ignore it. Sometimes it's the only way to get your life back.


Good luck.

rjp

[Vipergrün]

Let me provide another slant......don't do it. Do not be fooled into thinking this lending market will continue forever. Also, your handle seems to imply a Porsche and a Beemer. If so, dump them and buy a Honda or something cheap and reliable. If you own your house, consider an equity line to pay off credit cards, etc. You may only be able to sell you non-essential toys for 30-40 cents on the dollar, if that, but that can be straight debt pay down. You cannot look into the future, so you have no way of knowing how bad the bankrupcy can potentially hurt you.... Take a serious look at "what" is taking you under and decide from there. Best of luck!

[911-m5]

Unfortunately, the only thing of anyvalue i have left is my Porsche and it isn't running right now - 1970 911T. At best it is probably worth 10 grand. I don't own a home or anything else of value.

[Dantilla]

Originally posted by RANDY P


reasonable financing, even zero down on a home.


rjp

I don't think zero down on anything is reasonable financing.

[930addict]

Is your 911T dependable or is it a money pit? If it's dependable I would just keep it as you will need a commuter anyway. If not then I would sell the 911T and get something cheap that'll get you to where you need to go. If possible, move in with a sympathetic family member who will not charge rent and put everything you make toward paying down your debt.

[Vipergrün]

Ok, i'll be nosey.....even though it's none of our business. You state the 911 is the only thing of value you have, yet, you are deep into debt? Are you talking student loans, of just living off of credit cards, going out to nice dinners, buying CD's, etc? Something else to think about is that a lot of employers will now do a credit check prior to hiring a person, I do not know how a BK would affect that. Most professionals I have heard would recommend that you get a second job and pay off your debt. You should try to negotiate down high interest rates with your creditors. IMHO, it would be a shame to file for bankruptcy, you really are not having to protect anything, such as a house. If there is an underlying issue being a 'spendaholic', you may want to seek help with that too.

[RickM]

Originally posted by 911-m5
Unfortunately, the only thing of anyvalue i have left is my Porsche and it isn't running right now - 1970 911T. At best it is probably worth 10 grand. I don't own a home or anything else of value.

I'd avoid bankrupcy at any cost.

Negotiate better terms with your crditors. If they realize they might be left high-and-dry they'll likely offer lower or no interest. You should also try and consolidate to one or two low/no interest lenders if possible.

If you can sell your car then apply that towards your nut.

If you have a job consider that an asset.

[Purrybonker]

Bankruptcy laws are there for a reason. Most jurisdictions/cultures have evolved well beyond the debtor's prisons and social stigma of being unable to meet one's financial obligations, for whatever reason. *

Ignore the social implications and the "morality" lessons referred to here. Creditors make scads of money via sloppy lending practises. If you are deep in a hole, digging your way out may hurt you big time in the long run. Take the easy (not really so easy, actually) out. But...

1) Take the advice of an insolvency specialist in view of your specific situation.

2) Fix the problem - adopt fiscal discipline so you don't ever get back in the same hole again.

*(well, notwithstanding the new US legislation on the subject which will help to protect the poor bankers from themselves due to their ridiculously open handed credit granting practises. Think of the changes to bankruptcy legislation as being akin to retailers being given license to chase down prior customers for buying stuff from them too cheaply in the event they start to "go bust". In other words, if I run my business sloppily - I need government protection from my customers- this is capitalism at it's best?)

[Vipergrün]

Morality lessons? Maybe we should refer to it as being responsible. So, if I go out, rack up a million bucks in debt, I should just file for bankrupcy and pass along the associated costs to my fellow consumers? Someone DOES have to pay for these losses. Again, I believe we are, and have been living in a society where lenders will give cash, cars, and houses to just about anyone with a pulse. When this trend changes, I believe lenders will be much more stringent with their lending practices and a bankruptcy will hurt. And, yes, there should be social implications. I know of someone who filed for BK and continued to charge expenses, from TV's to expensive meals and drinks. That my friend is being socially irresponsible and taking advantage of the aforementioned "system".

[RANDY P]

From a lenders standpoint, there really isn't a difference in qualification between someone whom is consistently 60-90 days late on payments vs. someone who has a BK on record. It's the same in most cases.

If I see that on someone's bureau it's graded the same as a recent BK.

rjp

[pwd72s]

Financial happiness for me lies in not paying interest on anything. It's much nicer to have people paying interest to me. There you go, free advice from an old fart who took too long in learning the above simple truth...Sure I use credit cards, as cash. I'm one of those the credit card companies label a "deadbeat", because I always pay the bill in full before the deadline, yet still use the services (extended warranties, discounts, ect.) that the card companies offer. I heard a cute one on a radio show the other day. This caller, with a super credit rating, takes the credit card companies up on their "zero interest for six months" offers. He then uses their money to buy short term treasuries, pays the bill before any interest is due, pockets the treasuries interest, cancels the card account. I haven't done this, but I'm thinking about it...just doesn't seem moral somehow...

[911-m5]

Well, I have already moved in with somebody and it fing torture - but I have been doing it to improve my situation - it isn't helping much and driving me insane. No, I'm not irresponsible - I don't want to start over again to end up in the same boat - I want to start over and live my life - the one I haven't had for as long as I have been living with my relatives - not that I'm not thankful. YES, it is my fault that I am where I am, I do not deny that. This is not a decision I take lightly. I don't want to do it - but I don't want to be in this situation 'til I'm sixty. I have no money, no place of my own, obviously no girlfriend - nothing but a car and the clothes on my back. It seems to me short of somebody giving me a fixed term loan that I could pay off in say..5 years I'm sunk. My pride, dignity, whatever is what is standing in the way of me doing it and getting it over with. I hate the thought of throwing in the towel on this one - it's very hard for me to stomach.

[911-m5]

And no I havent been living a lush life or anything - some is from school, some is from normal living, etc. I haven't been to Tanzania or own one of Elvis's girdles or anything. I really dont have any stuff.

[pwd72s]

consolidation loans at a fixed rate are usually the beginning of the end. Why? Because you are exchanging short term debt for long term debt. Short term debt is usually built up when buying non durable goods...goods that will NOT last the lengthy time of the long term debt taken on to pay for them. Frankly, it seems to me you need to figure out a way to generate extra income to get out from under. If this means a 2nd job, so be it. Once debt free, try to remember the lessons learned...Credit card debt is an insidious trap that many fall into, but there IS the possibility of escape. Go to consumer credit counseling..these are good people who have helped many who were once in the same boat as you. (edit) The reason I suggested consumer credit counseling is that they do have clout in negotiating interest rates. Some companies will reduce rates when faced with the possibility of getting nothing. How'd I learn all this? A guy who has never paid a dime of credit card interest? My daughter's first hubby was a spendthrift. Since she was the one with the highest salary, under California divorce law, she not only had her own debt to work out of, she had her ex hubby's debt as well. Life was pretty miserable for her for quite some time, but she managed to escape without filing for bankruptcy...she still hasn't learned good money management, but at least she learned her lesson on credit card debt...

[Purrybonker]

Originally posted by bb80sc
Morality lessons? Maybe we should refer to it as being responsible. So, if I go out, rack up a million bucks in debt, I should just file for bankrupcy and pass along the associated costs to my fellow consumers?

Do you want free enterprise and capitalism or don't you? I love how the right wing argues in favor of more aggressive bankruptcy laws (protective to lenders) in one breath while characterizing themselves as the epitomy of capitalism in the next.

Nobody's putting a legislative gun to a lender's head to make him loan money on imprudent risk parameters. Why put legislative guns to the heads of the borrowers because of the lender's stupidity? Lenders only get "crazy" out of competition with each other.

So be it!!!! Let the stupid lenders go bust for being too slack - the rightwing always argues for survival of the fittest, here's jungle law in action. Let Darwinian capitalism prevail, don't muck with well evolved social policy to insulate sloppy business people from themselves.

[RickM]

Well, a second job sounds great. But look at the bigger picture. Many employers review one's credit report before hiring. Bankrupcy aint gonna look too good. At least attempts to work your way out of the situation will show them your fortitude.

[Moses]

Originally posted by 911-m5
And no I havent been living a lush life or anything - some is from school, some is from normal living, etc.

So how much debt can you be in? How old are you? What do you do? Can you swing a second job for a while?

[vash]

BKsy doenst wipe the slate clean, right? isnt, it more of a breathingroom/type of gameplan? the money is still owed? sorry, i dont know much about this. but it gets the creditors off your back.

i would fight and claw to get out of the situation. if you hate your roommate, find another one. get a second job, unload the 911, get a beater 2k car. what is the magnitude of debt? 10's of thousands? 100's of thousands?

[amity914]

You have the power to negotiate with your creditors. I would advise avoiding bankruptcy. If the creditors won't negotiate with you then try credit counseling, they will negotiate for you. If that fails then do what you have to do, but do it soon because the bankruptcy laws will be changing. If you file bankruptcy, then you will find that you will be paying high interest rates on any credit you obtain, and you will have a hard time getting credit from anyone.

Hiedi