BK is not only a "business" decision, it can be a lifesaving decision.The only regrets I have ever heard of are from those who wished they had filed sooner,or the ones who DIDN'T file, and wound up with shattered health,broken marriages and horrible credit.OH and yes,the poor creditors who couldn't get another pound of flesh!
I agree with all of you about people regretting putting it off for too long. I watched my roommate go crazy trying to do the "right thing" by paying on cards that had horrendous interest rates - one was 22%! She tried to renegotiate for lower percentages, but they wouldn't budge because she had been late a few times. So she continued to scrape, only barely being able to make minimum payments, which you know were mostly interest. When you get to that point, no matter how much you scrimp and how many jobs you have, it's just not possible to get back on track, not to mention the toll it takes on your mental and physical health. She was a mess. The kicker was that I had a card with the same company, with a 12% interest rate - my "reward", but how bad did I feel knowing that my roommate was killing herself picking up the slack with her 22%? She was paying more so I could pay less. After giving it her best, didn't she too deserve a "reward" for trying to do the right thing? She finally declared bankruptcy and only regrets that she lost time and money on credit card companies who didn't care to try and help her when she asked for it.
Was anyone ever nervous about the whole thing? Sometimes I feel like I'm under a microscope, wondering what i forgot, though wouldn't my attourney be contacted before hand if there was a problem. I hope you all can forgive my perpetual worrying. As far as working a second job that has been mentioned, its a nice idea, but most people aren't going to be able to handle it. I know I couldn't. I survived for several months this fall cleaning people's houses, trying to go to school. I thought i wanted another job on top, but it would have been too nuts. I wouldn't worry about what people think, everyone I've told has been very understanding. I just wish I could fast forward a bit and have the whole thing over and discharged.
I am in the process of filing a chp 7 as we speak. For the past 4 years I have made an effort to try to pay off my creditors. I have made an effort to try to pay them reduced amounts until I could afford more and they kicked me in the butt refusing all offers. I have had creditors calling me from 8:00am to 9:00pm afraid to pick up my own phone. I have worked massive amounts of overtime to pay nothing but late fees and interest. I have missed a great deal of my 10 year old daughters life due to bills. Granted, I created the monster but I also tried to put him to rest. I'm tired and the battle is over. For George who suggests that "Too many people buy too much "STUFF" and "TOYS" and CARS they can't afford, and go BK" and that maybe we should get a second job - Some of us lost our jobs and couldn't work for a while and depleted all our savings. For some of us, before we lost our jobs buying the Toys and Cars and Stuff with the credit cards weren't a problem. For some of us bk is the LAST resort after trying many different ones. George, I'm glad that you have learned how to use credit wisely and keep up your bills and I sincerely hope that you never have to suffer a financial crisis to the point that some of has have had to.
Absolutely. I had a six-figure income and perfect credit before I was laid-off. I tried my damndest to find work -- I can't tell you how many hundreds of resumes I sent out with no reply. Late last year, I entered into many of my creditors' "hardship" programs, which were usually reduced interest and payments for three months. I was hoping I'd get a job and be able to pick up from there, but it didn't happen. I sent Citibank $800 within three months just to try to get caught up, but when I couldn't, they said there was "nothing else" they could do to help me. The interest rate jumped to 25% and the late fees just keep piling up. They were the first ones I stopped paying. Amex (to whom I owe about $700) wouldn't accept any payment at all unless it was payment in full and immediately turned me over to a CA. The best of the bunch was Ford Credit (I have a '99 Saturn financed through them). They deferred three payments and tacked them on to the end of my loan, which freed up money when I really needed it. In return for their kindness and understanding, I have NEVER been late on a payment since the end of that three months. I plan on keeping up those payments (and keeping my car) even after I file bk. Unless you've ever been in serious financial straights and had to actually deal with the creditors, you have no idea how unyielding they can be. They can bitch and moan about the increase in personal bks all they want, but sometimes they have only themselves to blame for not working harder with people who DO want to pay their bills. Sorry for the rant there, but I'm just so angry and frustrated, especially when I get a hint that someone thinks I'm not trying hard enough.
Actually I completely understand what you are going through, and although my own income before i lost my job was far more modest, the results are identical. I personally don't feel sorry for any of my creditors. I begged for help initially, and was granted none, until the help the offered was of no value, the fees and interest having stretched even their reduced payments beyone my own limits. some even resorted to cruelty. I'm certain others here have been through the same, though they may not have posted.
Been there. I tried CCCS 'cause I didn't wanna trash my credit totally. Started out owing $21K, paid $24K over 5 years, ending balance was $29K. Yes, they're being investigated but that doesn't help me. I'm only sorry I didn't file when it was suggested first. I filed last year after my parent's hospital stays broke what little bank was left. Now I'm hosed credit-wise for 7-10 years. Had I filed immediately, it would come off in a year or two from now. Now I have trashed credit and don't have $29K either. Dancer PS: If you do file, I hope you owe money to Sears! They Suck!
I probably should not say anything more on this topic. 3 posts is a lot but for those who do not understand the desperation of folks filing a BK, you should remember that filing and being being given a discharge are 2 different things. The judge decides if the BKer is justified whether or not the creditors show up or not. The results are sent to you in the mail. At my hearing, a couple of people were sent home to obtain more info justifying the BK. Again, no regrets.
actually, I did have one regret. I didn't do it sooner. I also wasted a lot of time, energy, and money trying to pay outrageous add-on fees, upped interest, and exhorbidant atty fees... and I beat myself up with the idea that only lowlife losers file bk... that it was wrong, bad, evil, and just not what one does... there was a lot of agony in deciding. Once I decided, I still procrastinated months... finally went to an atty and waited another month to fill out the paperwork... Once I filed I had regrets, but after the 341 meeting I realized I did the right thing... I actually might have tried to keep paying but settling debts carried a tax implication that seemed unfair, so I did the smarter financial move and filed... again, only regret: didn't suck it up and do it sooner.
I too had lots of medical bills that were up high. it was not preventable, i was off work and i started to get behind on bills. i was shuffling money around to pay everyone. the it caught up with me. i went to CCCA and went on a program. i was still trying to do the honorable thing paying all the medical bills. all the calls and tried to work things out. i went to talk with a BK attorney and asked what my options were, which were almost none. after filing bk7 i was able to keep my home and car. i have been current with them. my bk was discharged in 10/01. i have not applied for any cc up until i found this board to help clean up some of the trade lines that were not included in the bk that were paid off. I have my new orchards card that was given to me last week with cl of 300.00 ( well its a start). My family can eat and answer the phone and not worry. it was to the point that they would come to my house and ring the door bell to collect the money. i tried to setup payment plans but they were still out of range and i would tell them and they didn't care. so if they couldn't work with me then after speaking to the bk attorney was to do the filing. Note that i was in CCCA and was still getting the calls. it was the biggest rock off my shoulders after my 341 meeting. i was even able to afford the parking meter. i was that bad.
I hope the replies continue to come in (hey, look! we've been designated as a "lively" thread on the main board! ;-) but I just wanted to say a great big THANK YOU to all who've posted thus far. I know it isn't a pleasant topic to discuss, and I really, really appreciate your willingness to share your stories with me.
to of this day i have only shared my bk with 4 other people. it has been the hardest thing for me to deal with. i'm down to earth and have learned a valuable lesson.
ggb, I survived a C13, there's always consequences to one's actions, but sometimes it really is all about surviving. I only regret I waited so long to file. Keep on keepin' on.
I'm wondering how many people are actually denied discharge. It doesn't actually sound like that many. What was the reason the people you mentioned were sent home? Did they have legal representation? Were they trying to hide propert? No, one has answered me yet, but if you have an attourney, wouldn't he know before hand of questions that the trustee had concerning your bankruptcy?
i just ditched all my stuff in 96(charge off) now in 2003 i'll be clean. I think that worked out better than filing bankruptcy which could have affected me longer to 2006 (10 years). Didn't have to go to court didn't have pay back squat I had my reasons, dont question them, but for whatever they were, This path wasn't all that bad.
Man I wish I saw this post earlier! Been busy I Bk7 young.. because of medical bills (not mine) and a divorce. At that point I couldn't give a crap about credit.. hell I was getting all of my check and able to pay cash and save. The Internet and Traveling pushed me to get my first credit card. I have more credit on CC's than I need. Haven't done a autoloan yet but have done (2) Cell phones and a screening for an Apartment. Haven't been turned down for anything yet. Next year I will return to the real working world and I will be 7 years out... I'm kinda scared of getting rejected for JOBS to be totally honest. Seems like all large employers are doing credit checks in the South. From the Education I've gotten here I know what I should and shouldn't apply for. Forget that MORAL crap. Just like Breeze said fail Bussinesses BK without skipping a beat. Out of the 5 People I've come into contact with that have BK7 3 of them are upper middle class. They seemed to have no problem talking about it with freinds and family. Im guessing because even with BK7 they know they still are financially better off than alot of us.
