Why Are/Have You Filed BK?

[Bandit]

This is an interesting thread. I read through the entire topic. I thought that medical bills or divorce would be a higher reason due to that instant unexpected huge bill(s) [lightening bolt jolt] that comes right afterward. I was a little suprized that more people file for credit card debt than any of the other possible reasons.
I am guessing that is because the lenders offer more credit to people than what they can pay back then top the interest rates & take minimum payments to get your bill interest up. (?) & CC debt kind of creeps up on people in a slow way where the other possibilities are instant and unexpected.

I have not filed any bankruptcy. It has never crossed my mind before. I hope that some way I wont have to. If I should need to in the next year or so, it will be due to an accident with large unexpected medical bills.

This really is a neat thread. It was kind of relaxing & very informative.

[Dirk Squarejaw]

Mine is two-fold. I had acquired quite a bit of cc debt, but had take out a couple of loans to consolidate that. I was actually starting to pay it down when my wife took a new job, got a new boyfriend, and we divorced. Had we stayed together I would have had it payed off in 2010 w/o filing BK. Now after taking on the entire mortgage payment, utilities, etc. I'm up the creek.

[Shalynn]

I'm filing because I cannot keep doing this juggling act. I fought it for so long. I suppose I've always carried some credit card debt, probably more than I should have too. But, we were always able to pay the bills. Then, I got sick and was unable to work. I never thought what I made accounted for a whole lot, but it's obvious now that it did.

My DH has a good job, and makes a decent wage. But, with three teen aged kids (the older two are working, and pay for their own clothes, gas, etc.) kids, and mounting medical bills, plus helping out some family members...well, we just can't do it anymore.

It has been very hard for me to accept that this is the only way out for us now. I've talked with a therapist, lawyer, and a financial counseor, and they all agree this is the only solution that makes sense.

I keep hoping I'll be approved for disability, or our house will sell. We've had it on the market for two years. We've dropped the price 15k. The most recent drop should finally get some action. It's really one of the best deals around. We've had several interested people, but their houses have to sell before they can do anything.

I'm glad that I found this place. I have learned so much. There are so many different stories. People from so many walks of life, people with many different things that brought them to this point. Somehow, I don't feel as bad about myself as I did before I decided to file. I know a lot of that is due to what I've learned here. Thanks everyone.

I've always been the kind of person who tries to find the good in what they are going through. My DH and I have had a good marriage, but it is even better now because we are talking more about finances. That is one of the good things, I guess.

Sorry for the ramblings.

[6ftladycop]

FW: Desperation/U sound Just like Me....

Really
I thought I was the only person who was going through this when I read your post, I did not feel so alone. Even though there is no easy solution, I still feel for you. I too have no idea what to do. I am tired, I have tried and I make less than the bills that are owed. I have my twin granddaughters to think of(one who is autistic) and I have tried everything I know to do to stay above water with all her medical bills and everything. My daughter and I have combined our income and its still not enough so we too were living off credit cards to buy food, pay bills etc. Now is run out, no more savings, no more credit, no more overtime, no more second job....all gone....over.

[6ftladycop]

My Reason that I will File

I am a grandmother who is 53yrs old and has two special needs children(one with autism)living in my house along with their mother. She is a single mom and has to have 24hrs care for the special needs child who is autistic. This has caused a problem for our family as we can not afford to pay for a babysitter and this prevents my daughter from working legitimately.

Because of the medical needs of the child, the special formula and diapers that she still has to have and the constant doctors visits, we have racked up debt beyond anything I could possibly explain here on this forum. My issue is this, the children receive SSI, but that money along with my salary is just not enought to cover all the needs of the child. I started taking out loans and using credit cards to cover whatever medical issues needed to be addressed at the time and I tried to solve this problem with a part time job on the weekends which caused me to have medical issues as well. This month is the first time I will ever be behind in anything. I am trying real hard not to have to file bankruptcy or chapter 13 but I see no way around it unless a miracle happens.

[desperation]

Long, sorry

My CC debt started in my late twenties.(this was in the early 90's)

Ex said "why don't you just apply for a store card?" (when I needed business clothes for new position) So I did, and next thing I know I'm on the radar. Offers came in. Most I didn't apply for. Then one really nice offer from Wells Fargo for $3000. This was about 15 years ago, and they were giving me a nice interest rate of 6%....so I said what the heck, and got the card. I got pretty close to my limit in about a year. For me at the time the appeal was getting what I wanted "that day" and not having to save up. Next thing I know...I'm buying a motorcyle, then a new truck. Then my motorcyle blew apart on the highway, but I still owed around $2000 on bike. I took the bike to a shop to have it repaired....another $1000...(new engine) .but bike was still inoperable...blowing gas everywhere since repair guy decided to repair the carbs.

Around that time I owed about 6000 in debt. I went to work on second job in the evenings driving a forklift 3 nights a week until 2 am, and paid off what I owed on the bike. My ex decided to part ways at that time, and worked at the same place. I couldn't handle that, or her, and decided to get as far away as I could.

Skip to a year later..
New wife... New apartment ...new move...in a state 3000 miles away.

I didn't take out any new credit at first, as the interest at WF was starting to creep up. New marriage and I wanted to give DW all the best of things afraid of being left again. So I started to take out new credit lines to buy things I thought we/she/I wanted (but really never needed) to keep her and myself happy, or at least that's how I rationalized it.

We actually were doing okay, then my mom stepped in and asked me to help her buy a house (she was newly divorcing from my dad). Thinking I'm being a good kid, I sign with her to help her get her house. Made me feel like a knight in shining armor.

After I signed with my mom on the house the credit offers start really rolling in, and it seems there are things I need, that I didn't know I needed. Like a 2nd TV, or a home computer, or some new living room furniture. This was 1998.

Skip two years forward....we move 3000 miles back (relationship wtih mom has gone south) and try to start over again. I'm back at job I had before..but making less. DW is also making less, but still we are able to make the bills.

Finally we buy a house together in May of 2001. Things are looking up...economy seemed to be good. No worries ...I got a little bit of a raise. So I started applying for credit cards to get stuff to fix the old house up.

Then came Sept 11. After that the company I worked for started going downhill....and the layoffs started left and right. I managed to survive these, but went without a pay increase for 2 years... During the interim I used my CC cards to pay bills, . buy food, and keep us going. Heck....our President did say it was our patriotic duty to shop and buy things. (not that I'm blaming him BTW), but now I realize how ignorant I've been.

So for the last 3 years I've been struggling to pay just the mins on the CC bills, rarely late, but on the occasion that I paid the bill online just 10 mins late....I got nailed with late fees, and interest rates jacked up to 35%.

15 years later, and I am 40,000 in debt. I make around 32,000 a year if I'm lucky with bonuses. Last year I cashed out my pension (about $5500 after taxes) to try and stay ahead of the creditors... it worked for about 6 months


Now I'm just tired, broke, and over it. I wish with all my being that I had never ever seen a credit card. When I was just starting out making $7.50 an hour I could afford my own little apartment, and was doing what I'm doing now. Paying cash and money orders for every bill. Heck ....I could even afford to take a vacation. I knew at that young age that I was poor, but I had pride that I was taking care of things, and I was doing just fine.

Now I'm just hacked off...mostly at myself for lettiing things get so out of hand. I will learn from this experience, and have started putting together plans for retirement.

If I could suggest one single thing to Congress or the Senate it's that we need to educate our young people about credit cards, and interest percentages, late penalties, and how long it will take to pay off CC debt.

I'm a child of the 70's/80's, and I don't remember ever the first class on personal finance, although I do remember being taught economics...but that was during the Reagan years. This not a slam on Reagan, but just my own personal memories.


To all that have been there and done this, and post their knowledge to this board to help the rest of us going thru this ....my most profuse thanks, and know that you are a godsend to those of us in need.

[CurtInKS]

Mine, like so many is a combination of factors, but the main reason is a divorce. The bulk of my student loans, most of the credit card debt, the repo'd vehicle, the attorney's fees, the cell phone bill, and the leftover mortgage and vehicle payments I continue to make, are all leftovers from my divorce.

[mommytima]

business going down the tubes too much credit card debt, and then medical bills

[jenrw74]

We were being sued by CitiBank after missing one payment. They wouldn't accept one of those credit counseling plans so we either had to file or go to court and end up with wage garnishments for eternity.

[HeatherB]

I said CC, though it was really through a drug addiction.
My husband (who was a fiance at the time) worked for himself and was going through a "rough" time. He claimed that he needed my money because he didn't have enough to pay his workers. Always blamed it on someone breaking things or not working efficiently. I knew something was going on, but not sure what. Stuck with him for about a year (during this time I had our son). Found out he was using, he promised to quit. A month or so later I caught him again, he said he just slipped up once. This went on until I starting thinking about my son. I told him that he could kill himself if he wanted to but he wasn't taking me and his son with him. I left him with nothing. It was too late, though. Buy this time I found out he had maxed out all of our credit cards (which were mostly in my name with him having the pin number) I filed a 13 hoping to keep my home. But it was impossible to keep up on the bills with my credit alone. At the end of the month I had about 150 dollars for food, gas, medical bills, diapers, etc. My fiance did give me money when he could, but he had to voluntarily take a leave of absence from work to avoid a drug test. A year later and my fiance came back into my life - totally clean. Now, he is the person I fell in love with, but things are still lingering from the past. He works now supporting me (and we now have a daughter). He is drug tested regularly at work and I am in charge of all of the moneyStill, the struggle to catch up on past bills is impossible. We are converting to a chapter 7 the end of this week. (or should I say "I" because he wasn't on the bills)

(And I did want to say thank you to whomever pointed me to this sight. Not sure if they were a member of these boards or just someone who knew about them)

[troublmaker_98]

i'm in this position because made decent money as a single guy with no kids... i had too many "good times" with my friends on my tab. when i got laid off, the bills came in like tidal waves. after i took the time (had to) and reviewed my spending pattern, it sure came to light and my goodness what mismanagement. i'm upset most that i was to "occupied" to really understand my spending habbits. and once the lay off cut off my cash flow, it was too late and the damage was done. and i am equally upset that i did this to myself. i guess it would be eaiser for my mind if i blew it on a girl or a bad habbit (just someone or something else to shift blame haha). but i only stupidly spent the money myself.

[tofargone]

I found out the hard way that making a budget and making a realistic budget are two different things.

My wife and I used to make almost twice what I make now, we bought a house and then when our second child came along we ran all the numbers and decided that we would only loose about $1000 per month with the wife staying home instead of putting both kids in Day care for ( I was wrong, but I don't regret my wife being home with our kids for a few years. It was great for the kids )

Well then gas prices hit us, home heating prices hit us, our car died. I took out a second mortgage with, Centex ( now NationStar ) which I will say now was the biggest mistake of my life, and a company of liars., but it paid off my car so I could get another one.

One thing led to another and after juggeling bills between disconect notices and other threats for almost 3 years here I am.

Kind of sad to say, but filing BK has been the best decision I have made for a while. Now the only peaple who call and ask for my money are telemarketers.

[Ortgeist]

Snowball effect........Bought house, hours at work decreased, affected pay during maternity leave, got caught up, then put stuff on credit that we couldn't buy- clothes for kids, xmas stuff. Then got caught up. So decided to buy furniture, get flooring with no pay til 2007. Wham- medical bills, time off work for my son, medicatio co pays, counseling & therapy for family, separation from alcoholic husband. Ever since then we've been paying minimum balances on cards & now we only have $30 left for groceries and need to replace the tire on my card. Any questions?,,,,,Next...............

[juststupid]

too much credit card debt, and then medical bills from having kids, seems the first time I didn't have active insurance when the baby was born, than second time I had insurance but we still ended up with a couple thousand in bills.

[HRx]

Sorry to all those that tried to take this poll but could. I didn't realize that this poll was only open for one year. It's now open again!

Please vote if you haven't, I have also made this poll anonymous this time around too.