Been Discharged!!!!

[lmelville]

What is the name of your state? PA

Got home today and the discharge papers were in the mailbox!!!

Thanks so much for all your help and advice. I'll probably need more now.

 

[Who's Liable?]

Wait six months before applying for credit... You will be bombarded with auto loans from all your surrounding dealerships... Your name is now legal public information, and they get a list of everyone who filed for BK7... After six months, get a department store card, or a gas card(Chevron)... Use the card for one item or one purchase only every month... When you get the bill payt it off IMMEDIATELY... This will start you on the road to getting your financial life back together...

Remember, you have to keep clean for at least 6 years before you can file again, and MOST BK filers do file again... You need to change the way you view and deal with money. All your debt is gone, but the attitude and your spending habits got you where you are today... Assumming that all your past debt is CC and such, not Medical Bills...

 

[bigun]

MOST BK filers do file again... You need to change the way you view and deal with money.

While I agree that attitudes towards money need to change {evidence seems to state they do}-most bk filers do not file again.

http://www.towson.edu/~jpomy/Testimony.html

Almost nine percent of filings are serial where the debtor has before tasted the forbidden fruit of the discharge and has come back for another bite.

 

[VR_Hunter]

MOST BK filers do file again... You need to change the way you view and deal with money. All your debt is gone, but the attitude and your spending habits got you where you are today... Assumming that all your past debt is CC and such, not Medical Bills...

At first I was just going to blast this statement. Then I figured it was probably made without much, if any, prior research.

Most BK filers DO NOT file again. Do your own search or just use the link provided by "bigun". Spending attitudes do get a lot of people into serious debt and promote bankruptcy. However, a large majority of BK filers file due to loss of jobs, divorce, death of spouse, medical (I know you mentioned that), etc. Most filers feel like crap because they have to file. It is the last choice they make. Savings are usually depleted and people do not have any other options. There are the minority who take advantage of the system, but I believe the majority of BK filers really do need the fresh start and will benefit from the experience by watching how they spend in the future.

If you look at some stats, you will see that most BK filers DO have money left over, just not enough to cover after an unexpected change in their normal lifestyle. I know some will argue differently, but if almost any person you know lost their income or had a serious drop in income for over six months, they would not be able to make ends meet.

People jump to conclusions much to quickly. It is easy to do. I know I have done it in the past and I am sure I will fall into that trap again. It is human nature and we can't help it. We can step back and take a moment for thought though. Unfortunately, most people won't. I am not saying you are ignorant, but for many, ignorance is bliss and believing the worst makes them feel better.

 

[lmelville]

Gee....

Didn't mean to start an argument. Just was relieved to have the debt behind me and have the chance to start over.

A failed business forced us into bankruptcy...what cc debt there was, was basically groceries and regular bills (electric, water, phone, etc...).

We tried everything to get ahead but couldn't get there. Filing bankruptcy was the most embarassing and stressful thing we ever did. We should of done it 2 years ago, but couldn't bring ourselves to do it...so we just continued to sink lower.

We never want to file bankruptcy again!!! EVER!!!! But we know we have to build our credit histories up again in the event we need cars (we drive junkers) etc....

And Yes!!! We've gotten tons of letter from car dealerships...but don't want to do that right now.

 

[Who's Liable?]

Don't be embarrased about it... It's life... You took a big chance with the business... Most people will NEVER do anything they want because they are afraid of failing... Learn from this experience and live your life...

 

[bigun]

The Supreme Court got it right in 1934. {In my opinion anyway}.
The following case isn't important except, near the end when they discuss the reason for bk laws.




http://caselaw.lp.findlaw.com/cgi-bin/getcase.pl?court=us&vol=292&invol=234

One of the primary purposes of the Bankruptcy Act is to 'relieve the honest debtor from the weight of oppressive indebtedness, and permit him to start afresh free from the obligations and responsibilities consequent upon business misfortunes.' Williams v. U.S. Fidelity & Guaranty Co., 236 U.S. 549, 554 , 555 S., 35 S.Ct. 289, 290. This purpose of the act has been again and again emphasized by the courts as being of public as well as private interest, in that it gives to the honest but unfortunate debtor who surrenders for distribution the property which he owns at the time of bankruptcy, a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of pre-existing debt.

and then:

The new opportunity in life and the clear field for future effort, which it is the purpose of the Bankruptcy Act to afford the emancipated debtor, would be of little value to the wage-earner if he were obliged to face the necessity of devoting the whole or a considerable portion of his earnings for an indefinite time in the future to the payment of indebtedness incurred prior to his bankruptcy.

A little later, I'll post some stuff from the EU where they are actually, trying to enact bk laws that are far less strict than they have now. They've studies showing that draconian bk laws actually inhibit economic growth.

 

[bigun]

Here's the trend in Europe.
http://news.bbc.co.uk/2/hi/uk_news/scotland/3860307.stm

"We want to encourage people to get on with their lives and business, and make a fresh start after a period of bankruptcy."

http://news.bbc.co.uk/2/hi/uk_news/scotland/3278989.stm

Mr Wallace said the aim was to encourage small business bankrupts to set aside past experiences and move forward with an entrepreneurial spirit.

http://news.scotsman.com/latest.cfm?id=2150057


“EU citizens are, on average, less inclined to become entrepreneurs and more risk averse than their American counterparts. The fear of going bankrupt is a key obstacle to entrepreneurship and business creation in the EU.

“If the legal consequences of bankruptcy are too severe, they can deter entrepreneurs from starting afresh. Best practice examples have a vital role to play in inspiring legal reform.”