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Bankruptcy now... or never???
mr.Curmudgeon:
I'm deeply in debt, but not so much that I didn't plan on working out of it. I took some chances during the dot-com boom when I moved to Boston, didn't pan out, and not being a trust-fund baby, I've been working to pay it back. However, recent events beyond my control (health, second household income gone due to job loss) have made this a difficult proposition.
I'm wondering if anyone here has ever claimed bankruptcy or was thinking about the need to do so in the future. The Republicans in congress have proposed a bill, which is up for vote in the Senate. Once passed into law, it will make it that much more difficult to claim bankruptcy, should these events, and/or any further events, continue to hinder my progress.
I didn't *plan* on ever claiming bankruptcy, but should any more unfortunate events befall me and my girl, I would like to have the option of seeking help. Even though it may *not* be necessary at this time, would it be wise to do it now, while there is still a chance??
I'm still looking into it, as I don't know enough about all the provisions, but this new bill seems like it will make it almost impossible to claim bankruptcy, even if you have severe health issues which hinder you from working. Can I really count on remaining healthy until I've worked off my debt?
mrC
EDIT: Wanted to add some background, just in case this turns into a political debate. :angel:
I am *not* a spendthrift. Nor am I financially irresponsible. I put myself through college, paid my own way, only receiving grants and scholarships for the last year of my schooling. I have never been on welfare, nor unemployment. I believe in personal responsibility, and I fully intend to relieve my debts through continued hard-work. I do feel, however, that should unfortunate circumstances arise for an individual, there should be some sort of social safety net to help them back on their feet. I am fearful that this coming legislation (Bankruptcy Bill) will not allow for the very real chance that, if something should happen to my health, I may *not* be able to work everything off to the satisfaction of the creditors.
GGKoul:
Ok.. what assets do you have?
If you have car, house and other things.
missioncontrol:
Just remember it takes 14 years to rebuild your credit after filing bankruptcy....
There are also differkinds of bankruptcy:
Chap: 11
Chap: 13
Your best bet is to talk with a lawyer about your options.....
GGKoul:
In Canada it's 7.
mr.Curmudgeon:
--- Quote from: GGKoul on March 09, 2005, 02:39:56 pm ---Ok.. what assets do you have?
If you have car, house and other things. You really shouldn't claim bankruptcy because you'll lose everything and you'll have a hard time rebuilding those things once you get on firm ground in the future.
--- End quote ---
No assets worth anything. Car is worthless. No home, just a renter. Very blue collar working-class background, working paycheck to paycheck.
--- Quote ---1st) Have you spoke to a bankruptcy lawyer? If not, you should. As there are other options. As they can speak to the creditors and see if they can reduce the amount owing. Because a creditor would rather take less money then lose everything.
--- End quote ---
I will be looking to contact one shortly. Just to get the downlow on the approaching law. As for reducing the amount owed, I'm looking into that as well.
--- Quote ---2nd) If you have any investments, cash them out or change the name. As anything in your name will be claimed and deducted from your money owed.
--- End quote ---
No problem there. I have not been able to invest in anything. I really would *love* too, but the cash-flow just hasn't been there.
--- Quote from: missioncontrol on March 09, 2005, 02:42:03 pm ---Just remember it takes 14 years to rebuild your credit after filing bankruptcy....
--- End quote ---
GAAAAAACK!! This is the sort of thing that has, up until now, kept it off the table.
Thanks for the feedback so far, these seem like really good suggestions. I'm sure Bankruptcy lawyers will be working overtime in the next couple days, with this horrible bill coming down the pipe. I better get hold of one soon.. :)
mrC