Why Are/Have You Filed BK?

[mb10240]

1. I've effectively been unemployed for a year (worked a short time as a contract attorney, made probably $2K in 3 months).
2. Used my credit cards throughout law school because my school would take its sweet time in sending out financial aid refund checks. By the time I'd get the check, I wouldn't be able to pay the credit card off and other expenses were due.
3. Blew through our $8000 new home buyer tax credit in a year paying the minimum payments on my credit card. My wife's salary is plenty of money if we didn't have my debt.

I attempted to negotiate with the credit card companies, and they don't even want to talk to me until I'm a minimum 60-90 days late.

[Poorhouse64]

Husband got a new job across the state.
Bought a bigger house to care for my sick & elderly parents so they would be with US -- not across state all alone.
Former home for sale fell out of escrow -- just as the market crashed.... suddenly stuck with 2 houses DUH!!!!!
A temporary illness became a permanent disability.
Lost my ability to work in my former career.
Hospitalized 3 times in 3 years.
Became "reluctant landlords"
Tenants broke lease 11 months early (on former house we couldn't sell....or give away) oh and they trashed it over $5k in damage. Must repair to rent again....no
Drained 401k & sold valuables to pay bills for 2 years..... while we tried to get loan mods, short sale approvals, something?!?!?

Finally filed for BK after last hospitalization.....financial stress and trying to keep everything PAID was killing me and making my health condition much worse. It was becoming a life or death thing.....

Only tiny credit card amounts 10% of total BK. 90% of BK was all real estate related. Banks won't work with struggling homeowners.

[Mama2LNJ]

We had a business that failed and we closed in July of 2010. In trying to make that business work we ran up about 15,000 in credit card debt. In Nov of 2009 we were in a serious car accident that created thousands in medical debt. In June of 2010 my son fell down the stairs and spent two days in the hospital which created thousands in Medical debt. We might have tried to make it work on our own if we hadn't had the business fail. We just have so many creditors from the last few months of the business that we unwittingly personally guaranteed that we would probably be sued left and right. We just have no way out. It breaks my heart. We are preparing to file in the next week or two at the most.

[johnjan2009]

considering BK since my family wanted to salvage our home(even if it is very underwater) and wanted to protect my remaining assets like 401k/IRA, 2-cars and strip 2nd lien and credit cards.. Due to the housing mess, accumulated $60k worth of credit card and borrowing heloc to upgrade rental home which at the end, we still short sale since we cannot afford anymore as soon as house prices start sinking here in CA...This seemed to be only option for my family now unless someone can suggest some more way out otherwise...

[carlsbadmike]

Mine was due to my business failing due to the economy/recession.

[blueeyz]

Significant other lost job due to construction industry going down the crapper in AZ and just could not pay the credit cards and loans on one income.

[Abbie64]

34 years of "trying to keep up with the Jones'" has led to approx $100,000 unsecured debt and a 1st & 2nd mortage.

Hey Greg, Have you took any steps in this regard? Let us know the updates Please. Thanks in advance.

[Abbie64]

Mine was due to my business failing due to the economy/recession.

Bankruptcy may be the best, or only, solution for extreme financial hardship. However, it should be utilized exclusively as a last resort, since it always has long lasting consequences. Be sure to consult a financial expert before resorting to bankruptcy as a means of solving your economic troubles.

[Jacey]

Wow. These stories are brutal, and you're all in my prayers. Mine is more simple, so so far....company closed, took a 50% pay cut, medical premiums skyrocketed because they were paid in full at my old job, too much debt with too small of a salary now and this health care mess has left employers in the medical field scrambling to get by with the absolute minimal # of payroll hours. It's funny, my job is listed as "high demand" but my health care professional friends and I are still not employed in the fields we were trained in. The economy is brutal, government and banks are stupid/greedy/evil and we're paying the price for everyone's mistakes. (Yes, that includes my own!)

[birdo]

We filed because over 2 years we have lost 3/4 of our income. my husband has been with the same company for 18 years and I have been at mine for 10. He is in the construction industry and I'm sure you all know how that has gone. he was laid off for several moths... first time ever. He also had back surgery. I have been off since last december with a work related injury wich required surgery.Thankfully i am starting back to work slowly. We have three teenage children.... we did a debt management plan for a year and 1/2 and also successfully got a mortgage mod. We did our absolute best to stay afloat... unfortunately we were sinking. This was an absolute last resort. I have beat myself up for quite awhile and am very tired. I am thankful for this opportunity for a fresh start and things will look up! I still through it all feel blessed. The very best of luck to all!

[birdo]

Bravo Jacey! couldn't agree more! Best wishes to you!

[bobkerry]

no i have not filed BK ever before but i am little bit aware from the techniques as well as rules and regulations of it...under an ordinance we have to file it according to the specified rules and the procedures carry on...

[GrayPaint]

Lost a great job 3 years ago. At that time, I had zero debt. Refused to take a job that was "below me". 6 months later, unemployment ran out and the cc use began for me to stay alive. Became wise of my pride issue and took a job that paid less than half what I was once making. Eight weeks later the company decides to exit that market I'm in and I'm unemployed again. Unemployment for the year is exhausted (6 months was the cap back then), so I use the cc's again to rob Peter to pay Paul. 4 weeks later, take a new job at below the poverty line with the hopes of moving up. Work hard and prove myself and get a promotion 4 months later. Finally to the point where I can focus on the payback. I have cc debt of $7000. Offered another promotion out of state. Pay will increase by 4k a year, but I will have to eat the relocation myself. Put 2k on the cards to get there. Finance a new 17k car. 6 months later, "the economy" is the reason I'm given that I'm laid off from the job I just moved to. Unemployment pays the rent and the car note, but again I rob Peter to pay Paul on the cc's....

Somehow, in the worst of economic times, I manage to land a new job. The pay is low, but manageable (30k a year). I'm more than happy to have a job, but will have to take another, part time. I do so, and plan out and budget every penny. I do everything I can to pay down the debt. No phone, no cable, no fun, no social life. I cut up all the cards and keep telling myself that I CAN do this.........

For a solid year, all I do is work and sleep, and pay my bills. I'm miserable, but believe that I CAN get out if I stick to the plan. Interest rates jump. Late fees begin. The only room for adjustment in my budget is food. I stop eating. If I stop running the heat, I can pay those late fees too. I drop 45 pounds in two months. It's the end of the year, I add up the bills (that I simply did not want to look at before) and found that after all my sacrifices, I was now 4k MORE in debt than I was a year ago. How is this possible when I've given them every possible penny I' could and not used the cards in over a year?

Greedy fees.

For me, it came down to the admission that "this was no way to live", and if I didn't do it, it was going to take me to the grave.

[DaisysMom]

I, unfortunately and honestly, can say it was my own doing. I had always been frugal, living within my means, didn't even have a credit card. Then I got one and it was so easy. Kinda like Christmas. When I maxed that one, I applied for another. It was during time when CC companies were begging people to get cards....even sending them "pre-approved". Then I saw a camp site, complete with a beautiful camper....my head danced with visions of guality time with my Grandson and family. Wouldn't you know it......the next day in the mail pre-approved personal loan check from ******** (bottom-feeder) came in the mail. I drove it up to my bank and deposited it. Campsite was then mine!!!

I was doing OK.....making minimums + extra to lower balances...no problems. Then I was off work for about two months....missed a payment or two. Credit companies....Instead of trying to help keep me solvent....they punished me. More than doubled my interest rates. All of a sudden....all of my payments more then doubled. I was in deep trouble!!!

I called them trying to get them to reconsider and lower my payments. Nope...I was bad....I needed to make those BIG payments. Well it went from bad to worse....as I paid a card down, I then had to use it just to live. I was losing sleep, my anxiety level was on tilt.

I knew I had to do something.....I starting researching options and found this site. It saved my sanity. I went to see a BK lawyer and found that I qualify for a 7. I quit paying those dreaded credit cards....applied for and rec'd a home modification and started living again.

I see no downside to this. I have a new much wiser beginning and since I purchased the campsite with a personal loan...no collateral....it will be untouched by the BK.

Since I travel for work and need to charge lodging and sometimes rental cars, I will someday need a new CC. But I will never have a credit card over $500.00.

I have learned a great lesson.

DM

[lillymarlene]

My reason to file BK was that I was being sued by a couple of credit card companies. The small claims courthouse in my state now looks like a giant collection agency. This scared me, since I had several other credit cards with much larger balances. I also know that as much as I'd like to, there would never be any way for me to pay the amount of debt I had off even if I lived to be 200.