Filing Bankruptcy

[southbaygirl]

Why do people file bankruptcy, and who is most likely to do so?

California.

[bigun]

[url]http://www.usdoj.gov/ust/press/articles/abi_05_2003.htm[/url]

[Who's Liable?]

Huge medical debts if a loved one gets seriously ill, Credit Card debts, judgements, etc.


It's across the spectrum of people who file...

[trustknow1]

Originally Posted by southbaygirl

Why do people file bankruptcy, and who is most likely to do so?

California.

Well, in addition to the statistical date from bigun's link...Bankruptcy (Chap 7, until changes recently) lost it's historical conception of comitting "social & financial suicide", and slowly became more of a viable financial stategy. Especially for those without assets such as home ownership being part of the equation.

Basically, (very basically)....The options become:

1)Continue to live the rest of your life in misery, repaying the debts. At 90 yrs old, hope that somebody is still alive to be proud of you, other than yourself.

2) Walk away with a "clean start". Begin building a solid financial base, avoiding the prior mistakes, and in a few years be in great shape again. Other than a few problems with purchases such as vehicles and houses in the short term, there are twice as many applications/offers for credit in your mailbox than you had before you filed! Why? because they know you can't file again anytime soon. If your circumstances fit well, it is a good decision.

Which would you choose? (particularly if the debt was accumulated by an ex partner, not your irresponsible spending)?

[Who's Liable?]

Yes... I know a girl who paid college on her Credit Crads, and as soon as she was done, she filed BK...