Bankruptcy

Yes and No

My cousin and her husband are a definite yes. When people are too stupid to learn from their mistakes.. yes you will end up on the same path.

On the other hand I would have to say no. Things happen. When my husband and I got married we both carried our share of debt. Then we got an awsome deal on a house We got a house that was appraised for $125000 for $104000.

I knew the people and loved the house. We kind of jumped into this one a little to early. Then we had kids with doctors bills, and then the roof on the garage needed to be reshingled, then a hot water heater, then car repairs. It was one thing after another. Then I started buying groceries on credit card because I knew we would be short. Trust me.. we didn’t get our credit card debt by buying luxury items.

I am reading a book called “The Bankruptcy Solution“. It is great information and takes you through all of the alternatives. I am looking at all my options before anyone is decided upon.

I have to disagree there

When my husband was laid off, that isn’t a behavior, just how life deals us a hard blow at times.

I don’t know about insurance and accidents. Even though we did file Bankruptcy, we’ve never had an accident or any insurance claim (home or vehicle).

It seems a lot of these ideas are based on stereotypes.

I have no clue about the statistics. Why is it I never get polled for these things? LOL! 🙂

Your bills are pretty much gone

The thing is.. if you have filed bankruptcy.. your bills are pretty much gone. So why would you need to steel? That’s the thing. Filing bankruptcy is a legal way of asking for help. In my circumstance, if we do file I would have to file chapter 13. I want to pay all of the money back, but I just am having difficulties with trying to take care of everyone at the same time.

I haven’t talked about this with my hubby yet, but there is a job that he keeps applying for that we know looks at his credit report. They have turned down people because of debt to income ratio. Well.. If you file bankruptcy protection and reaffirm your debts.. what would be the problem.

More about advantages and disadvantages of BK:

Everyone makes mistakes. I know if we end up taking the bankruptcy road, credit cards are a thing of the past. With our credit card bills gone, we would have no problem working on a cash only basis. We would have over $1000 extra fee each month to get our student loans paid off and then to put towards our mortgage. It made me ill having to charge groceries last night.

Best prediction of future behavior is past behavior

Best prediction of future behavior is past behavior. So, a bankruptcy usually means that the person got out of control with their finances. And the statistics show that a high percentage of people who get out of debt by bankruptcy, or being given money, just do it again. It’s not usually an issue of money, but an issue of spending. It’s like weigt loss. Treat it like a diet, and you gain it back. Treat it as a lifestyle change, and you can beat it.

I know that some people have actually had somebody bad happen to cause the financial problem, such as huge medical bills, house fire, earthquake, etc. But most of us simply got in over our heads with credit and spending. And that is what they are looking for.

Also, insurance companies have figured out that people with bad credit get into more accidents. I don’t know why. Perhaps it is the stress. Perhaps they think people who are careless with money are more careless with driving. I really don’t know. But they have done studies and found that people with bad credit do cost them more in paying out insurance. So, they charge higher rates for people with bad credit.