Bankruptcy Question

Discussion in 'Credit Talk' started by Zoe, Apr 17, 2001.

  1. Zoe

    Zoe Active Member

    My sister is a compulsive shopper. She single, has a great job ($80K per year) and has over $130K in credit card debt! At this point, she has perfect credit because she has been borrowing money to keep up the minimum payments.
    She is filing bankruptcy this week. She will re-affirm her mortgage, one of her cars and a couple of credit cards. Our question is this: Is there anything she can do to repair her credit reports when the bankruptcy and all the accounts are reported to the bureaus? Any advice? Thanks.
  2. tessa

    tessa Guest

    Now , this is an example of why BK laws are being changed. The judge should force her to repay a good part of her debt.(no offence to you, but your sister is doing something wrong. $130,000 isn't much debt for an $80,000 income. She could pay it off. Maybe she deserves no credit for a few years)
  3. csm

    csm Guest

    You must be joking. Your sister is getting ready to "steal" 130K by filing Bankruptcy, and her only concern is how to get more credit after the bankruptcy. She makes 80K, she can afford to pay and she should have to. We the public, are going to pick up the tab for her pathetic shopping spree. Makes me sick...

    She needs serious counceling, not more credit!!!!
  4. Zoe

    Zoe Active Member

    As one of the people who has loaned her money, I definitely agree with you. Actually, she owes much, much more than the $130K. She has student loans, back taxes, etc. This situation has caused horrible problems in the family. She borrows money from family members and friends to make the minimum payments and then goes shopping!!! I definitely agree with you about the counciling.
  5. Bigun

    Bigun Guest

    Time will help. As long as she stays current on her mortgage, car and the couple of cards she is reaffirming, creditors will eventually pay more attention to the more recent good stuff. The bk will still be there for 10 years but will be manageable after a few years of good payments. I don't think I'd apply for any credit for a year or so.
  6. mother2

    mother2 Well-Known Member

    Let's be nice people. I agree that she should pay back some of the debt but I don't condone her. She is a "compulsive shopper". That is an addiction, just like anything else. What do you say to a compulsive gambler? What if this compulsive shopper was YOUR son or dgthr. Think of it that way.

    Zoe, I would try talking with her. Explain to her what she is doing is wrong and will hurt her in the long run. Obviously, she is still young by her wanting to obtain credit soon after claiming BK. Counseling is another option. YES, they do have support groups for compulsive shoppers. Maybe she's depressed or she is trying to "buy" her happiness. Maybe YOU need to take control and call her creditor and see what they can do for her. Eliminating intrest fees will help a great deal. Cut up her cards. You need to take control for her before she ruins her life. Believe me, she'll thank you for it later.

    Hope this helps. :eek:)
  7. Shantel

    Shantel Well-Known Member

    I agree with mother2. Granted, it's disheartening to know if she's allowed to go through with the bankruptcy that the John and Jane Q. Public will be paying for it, but she's got a serious problem that your family needs to intervene or she'll drag you all down with her.

    Coming from someone who had a problem with impulse buying and shopping, there's such a rush from it. But after it's over you come down from that high and you feel awful for what you've done. And what do you do to cheer yourself up? You go SHOPPING!! It's a vicious circle. I didn't go through counseling. I took baby steps. My mom helped. I went the credit counseling and had all my cards cut off. I had to go cold turkey. It was hard because the impulse was still there, but hey, I HAD to get over it.

    Anyhow, I went through a form of therapy and realized WHY I was doing it (long story). Anyhow, the first step to getting over it is to know WHY you do it. Then I started to break the circle. No, I'll NEVER not be an impulse buyer. But instead of being on automatic, I am fully aware of what I'm doing and I CHOOSE to do it and I CHOOSE to deal with the consequences. Plus, I don't go buy $300 worth of stuff. Now, it's a CD or a tube of lipstick. Still "satisfies" that impulse without breaking the bank or messing me up financially.

    Whew, now about your sister. No matter what you all do, until she "gets it", nothing will work. But I WOULD keep talking to her. And by all means, if your family keeps coming to her aid, you all are ENABLING her to continue. Show some tough love and let her sink or swim.
  8. ptbarnum

    ptbarnum Guest

    Could some one explain why she is allowed to keep any credit cards if her problem is that she's a
    complusive shopper? Would that be like giving an alcoholic 3 drinks a day or a complusive gambler
    cash to go out and bet?
    Granted she may have an addiction, but the question and responses seem more concerned with
    fixing her credit (so she can get in trouble again?) than fixing her addiction.
    I've gotta go with "she's got enough money to pay" , she should have to repay at least some of the cc
  9. mother2

    mother2 Well-Known Member

    How do you stop an alcholic??? A gambler??? You don't. They have got to first ADMIT and want to stop.

    Creditors don't care if she spends until her heart is content (which is what she's actually doing). All they care about is the money. Obviously, she is paying some way or another or they would have closed her account by now.

    Yes, I understand that her brother is trying to help her but I think he is thinking more towards the aftermath and not the present.

    I do agree, she should repay her debt but unfortunately that's not up to us (the public). I just hope her brother, Zoe is getting all of this and its not a bogus post. Seems to have hit upon a "sore" topic. ;o)
  10. mickey

    mickey Guest

    Are'nt some of you being a little bit mean? Just because she makes $80K does not mean it's all spendable income-
    how much is her house and car payment? (is it really your business anyway?) and sorry to bust yer bubble Tessa,
    the bankruptcy laws were changed so the rich could get richer. You can blame this lady for spending up her plastic, but how "responsible" is it to give someone
    DOUBLE their GROSS income in UNSECURED cash? I say
    make sure all that plastic is maxxed before she files!
  11. Zoe

    Zoe Active Member

    Unfortunately this isn't a bogus post. The company she works for "contracts" her out to various companies. These companies sometimes run credit reports as part of her employment. The main concern here is not getting new credit but how the bankruptcy will effect her employment situation.
    I sincerely appreciate the answers to my question. You folks really seem to understand that she is really compulsive about the shopping.
    P.S. Zoe is girl - not boy!!!! LOL
  12. mother2

    mother2 Well-Known Member


    LOL. I didn't mean it. I sometimes forget to generalize my posts. ;o)
  13. judyputy

    judyputy Well-Known Member


    The laws are being changed so that people can't have a party and then walk away from all the obligations if they have the ability to pay some or all of the bills. IT HAS NOTHING TO DO WITH HOW RICH THE ARE OR ARE NOT. People are too used to walking in and saying..."sure I could pay these off, but I don't feel like struggling anymore".

    This is not a conspiracy from the "rich". The credit compnaies are behind most of the changes. They are tired of people borrowing money and walking away with their salary. Rightly so.

    Zoe, please get your sister help. She will likely lose all her cc's. Even the ones she reaffirms. They will jack up the rates to 35% and then even close the accounts because they fear being included in the bankruptcy.

    She doesn't need any cc's for a few years. She needs to learn to control herself first or she will end up filing again in 10 years.

  14. tessa

    tessa Guest

    Re: Mickey

    well said, judyputy.

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