Declaring Bankrupcy?

[JoeGKushner]

Has anyone here declared bankrupcy? With the laws changing soon, I thought it was something I should look into.

 

[qstor]

Most of the changes apply to people over the median income in your area. I would talk to a bankruptcy lawyer.

I'm an attorney but don't know that much about the area.

Mike

 

[der_kluge]

I've never heard of declaring bankruptcy as being a good idea. You should only do that if you have no other options. It really can ruin your financial life for a really long time.

 

[Crothian]

Unless you are really in dept and really in trouble, it is not a good think to do. It stays with you and can make life very tough for majot purches in the future.

 

[Eolin]

Yeah, its bad.

About 20 years ago, my parents declared bankrupcy. They'd bought a lot of things before my sister and I were born they could no longer afford. *poof* went the house, we were in a condo for 4 years or so. Sears allowed them to continue to make payments, and to this day they have the same washer and dryer.

Don't just declare because the laws of charging. Only declare it if there's no way out of your financial situation.

 

[Darrin Drader]

I've worked with credit before. Contrary to what a lot of people will tell you, if your credit has been good up until the point where you declare bankruptcy (made all your payments, occasionally paid something off, etc), you will be surprised how fast you'll be able to bounce back. The first things they'll start offering are credit cards. You will want to refuse all but one of them* (which you will keep at a low balance), then car loans, the home loans, and then finally retail credit. If you continue paying your bills afterwards, you could be in a position to purchase a home in one to two years after the BK.

If have payments on a house or cars, you will be able to keep them as long as you continue making payments to the bank. My advice there is to keep them only if you have positive equity in them.

* Biggest piece of advice - the credit cards will try to recycle you back into the system after you go BK. They'll immediately start offering credit cards afterwards with the promise of rebuilding your credit. What they really want to do is get you back in debt to them so that they can recoup their immediate loss in interest. Don't fall for it. Get one card for emergencies and otherwise live within your means.

 

[Desdichado]

It really can ruin your financial life for a really long time.

Eight years minimum, at least under the older laws. If you already have a good mortgage and you won't need to finance anything like student loans or a car for at least those eight years, and you know you won't be moving during that time, you might be a candidate for bankruptcy helping you. But those are some big ifs.

Not that that's based on much experience; I've never seriously considered declaring bankruptcy. Nor have I been so financially strapped that it even really occured to me.

 

[ARandomGod]

Has anyone here declared bankrupcy? With the laws changing soon, I thought it was something I should look into.

Nope. But I know some who have. Whisperfoot's pretty much got it. It can be a very good idea, but it will also limit you. However you should be able to buid back up pretty fast, as long as you don't get sucked back down into debt again.

 

[trancejeremy]

Bankruptcy is good if you are in danger of actually losing stuff, like a house or car. But otherwise, don't mess with it.

 

[Mystery Man]

Has anyone here declared bankrupcy? With the laws changing soon, I thought it was something I should look into.

I would look to a credit counselor first. If you file and later want to get a loan you'll be really hating those interest payments on anything. They really screw you.