What do you think about filing bankruptcy?
I’ve known a couple people who have filed bankruptcy and I think they use it as an easy cop out, because they don’t want to have bills.
Two of my friends have put all their assets in their parents names, filed, and then get to keep their stuff.
I would be more concerned about the bad mark it leaves on my credit score. What are you thoughts on it?
Would you ever file bankruptcy? Why or why not?
If you have, [and don't mind sharing] how much debt did you eliminate?
Posted July 3rd, 2010 in Bankruptcy Q and A. Tagged: assets, cop, credit score, parents names, who have filed bankruptcy.
I did once. My family was sick, we had 3 major surgeries all about the same time. My HMO flatly refused to pay. I lost so much work, that I could not even pay the smallest bills. There was no way we could ever recover from the debt.
About $300,000.00 was discharged.
Your friends who put assets in their parents’s name to protect them from creditors, did something illegal. Bankruptcy is to protect the debtor, and in cases of Chapter 7, liquidation, many assets are protected. If the trustee found out about the transferred assets and reported it to the court, there is a 5 year prison sentence maximum, and a maxium $250,000 fine, and their Bankruptcy case might be forfeit.
If it was small stuff, nobody cares, but cars, houses, expensive jewelry, would probably land them in prison.
As for my credit rating, I don’t care. I will never go into debt again. So it is moot.
Some high security jobs require a credit check, but will understand a prior bankruptcy if reported on the security forms you fill out with your application.
July 3rd, 2010 at 10:41 amThat is a last resort. Absolutely the last resort. It is every citiznes duty to take responsibility for their debts. I would never file bankruptcy because it is dishonorable.
July 3rd, 2010 at 10:41 amYour friends used the system to their advantage. They committed "bankruptcy fraud." You must tell the court about any recent transactions that you did prior to filing for bankruptcy. There are people in federa prison for committing bankruptcy fraud. This is a very serious matter. Your friends and their parents could go to prison if the government found out what happened.
I filed for bankruptcy about a year ago. I didn’t have a choice. I couldn’t even make the minimum payments on my credit cards. I also had a lot of unexpected medical bills
I believe that my credit score went up after my bankruptcy was finalized. I have received numerous offers from credit card companies and banks that want to loan me money.
I hope I never have to file for bankruptcy again. I am doing everything I can to rebuild me credit.
The credit card companies also are partially to blame. They make it too easy to give credit. Also, when you start to have problems they jack the interest rate up to 35%, which is unconscionable. The credit card companies should do a better job at screening who they give credit cards to.
All of the credit card companies are very profitable. I sure don’t feel sorry for any of them.
Good question.
July 3rd, 2010 at 10:41 am