Why Are/Have You Filed BK?

[Snax]

Wobbly,

You didn't choose to have medical bills or unemployment. These are factors that all of Wall Street are guilty of having a hand in, whether it be through outsourcing or the status quo of a for-profit health care system. Have no guilt about it. If the tables were turned, they'd be doing the same.

You are now on the road to recovery. Enjoy it!

[wobbly]

Hi,

Poll: What Caused You to File BK?This poll will close on 10-01-2032 at 08:23 AM

Divorce/Separation
Long-Term Unemployment
Excessive Credit Debt
Excessive Medical Bills

Other : )

A series of unfortunate events and some poor financial decisions over a few years?

Our household income dropped from the 150K to 100K. Out of work for 6 months.
I refinanced my home with an 80/20 loan at the worst possible moment. The house appraised at 428K in 2006 and is down to 265K in 2011.
I had some credit card debt but it was manageable. I paid all the bills on time and spent most of my savings to stay current.
I worked with our mortgage servicers for over a year attempting to modify our loans. This was a ridiculous farce.
I went to a lawyer to see if we could MAKE the mortgage servicers modify our loans.
The nice lawyer said, "We can file chapter 13 and strip the $75,000.00 on your second if you like.

This was a very difficult decision for me. But I decided, either pay every cent we make on debts, risk loosing our home, and struggle until we die, or file and recover in 5 years.

We chose the latter.

I do feel like an idiot and failure sometimes, but also like I was cheated by the mortgage industry. But it's really on me. I made those stupid mistakes.

Thank You for asking. : )

[Me2Broke]

This was a difficult poll to answer, as we are filing due to job lost and debt, a combination of both. Although, we most likely would not have the amount of debt had I not lost my job. Of course we used money and thought we would always be in a position to pay it back. Little did i know.

[larajackson]

One of the important reason to file bankruptcy is worst financial condition. If someone have unsecured debts, medical bills, home loans and many more. To come out of all this & for having strong legal protection filing for bankruptcy is essential.

[laszlonagy]

hey guys,

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[548dakota]

1. Wife unable to find job
2. Wife had $150k in student loans from Med School
3. House worth 55% of what we paid
4. My job just pays the student loans as a Police Officer

Looking to file around end of year if things dont change quickly. About to miss my first payment ever in my 40 years of life. Feels really strange too. Spoke to GMAC this morning about it, but they didnt seem to care. Just wanted to know what I had in my retirement and if I could use that to make the house payment. So tired of banks.

[Snax]

Why did I file? Because after 51 years of playing "the game" of life and buying into the rat race of western civilization, I lost a round. Haven't been knocked out, but I certainly hit the mat pretty hard.

Well put. I think that describes the vast majority of us pretty well, having found relief through the bankruptcy process after years or even decades of barely staying afloat.

[fileda13]

Why did I file? Because after 51 years of playing "the game" of life and buying into the rat race of western civilization, I lost a round. Haven't been knocked out, but I certainly hit the mat pretty hard.

[tmkats]

Now planning to file on my own. Went on civil service disability in 2002 (retroactive to 1996--fought all the way to US circuit court of appeals). Unfortunately 2003 was the end of my computer career--haven't been able to find anything lucrative since, but kept hoping I would. Kept using credit card advances to keep on keeping on. Then my husband's home building business tanked in about 2007-2008. We kept paying on credit cards but then interest rates skyrocketed. The cards are mostly in my name for about $70000. We talked about filing joint a year ago and I should have filed alone then, but didn't know I could. We had about $17000 in retirement funds at the end of 2009. Now we have $1500. Kept paying those greedy banks: I'm sure I still owe more than I ever borrowed even after paying back about $35000. We modified our 1st mortgage and now our line of credit is a closed end loan. I've filed for social security disability and retirement.

Quit paying all unsecured debts: we have enough for mortgage, food, utilities by doing that. One son due to graduate college in 2012; daughter starting college in September. Just need to pay the attorney now and see if I'll file Chapter 7 or 13. I still have $15000 in Parent Direct Plus Loans deferred until December 2012. Hubby is paying Sears $216 a month, doesn't want to file. I had had all sorts of payment agreements with Citi, Chase, BoA, CapOne but the MINIMUM was at about $2000 a month. Wish me luck. I don't want any more credit except maybe to replace the cars (should lease though).

I waited to file also. We have about $50,000 in cc debt for various different reasons, but the cards are all in my name. I'm filing alone as wife has her own cards which have little balances on them and can be paid off fairly easily. I've come to terms with the fact that it is what it is and we can't go back and change anything. Our minimums are almost up there with yours and I decided enough was enough.

I've retained a lawyer and have started telling creditors to contact him. The next 6 months should be fun.

[IamOld]

Best of good luck! And maybe tell hubby - he isn't paying SEARS - Sears got paid already - he's paying 30% interest to Citibank! (issues Sears card I believe.)


Look, we did the same. I could have like...$70-100K in 401k by now - but have about $3K why? Paying bills (and childcare years and years ago).

[BRDownAndOut]

Now planning to file on my own. Went on civil service disability in 2002 (retroactive to 1996--fought all the way to US circuit court of appeals). Unfortunately 2003 was the end of my computer career--haven't been able to find anything lucrative since, but kept hoping I would. Kept using credit card advances to keep on keeping on. Then my husband's home building business tanked in about 2007-2008. We kept paying on credit cards but then interest rates skyrocketed. The cards are mostly in my name for about $70000. We talked about filing joint a year ago and I should have filed alone then, but didn't know I could. We had about $17000 in retirement funds at the end of 2009. Now we have $1500. Kept paying those greedy banks: I'm sure I still owe more than I ever borrowed even after paying back about $35000. We modified our 1st mortgage and now our line of credit is a closed end loan. I've filed for social security disability and retirement.

Quit paying all unsecured debts: we have enough for mortgage, food, utilities by doing that. One son due to graduate college in 2012; daughter starting college in September. Just need to pay the attorney now and see if I'll file Chapter 7 or 13. I still have $15000 in Parent Direct Plus Loans deferred until December 2012. Hubby is paying Sears $216 a month, doesn't want to file. I had had all sorts of payment agreements with Citi, Chase, BoA, CapOne but the MINIMUM was at about $2000 a month. Wish me luck. I don't want any more credit except maybe to replace the cars (should lease though).

[iswmle]

Drazil, I wish you the best of luck, you situation sounds horribly stressful. But be leery of those private student loans. I finished my 4 year degree back in December, and only have fed loans... I feel for having loans that I am fortunate with that. Student loans, especially the private ones, are horrible! The horror stories are terrible and you can't BK them. I don't mean to be so negative, just warning you to be cautious.

[Drazil65]

Sorry to all, I guess its nerves and the need to vent/let it out but thanks for the comments.

[Snax]

@Drazil65, please don't take this as a jab, as no doubt your story is as sincere as any, but my eyes simply can't track it.

That said, it gets better! It may seem overwhelming now, but once you emerge from the end of the BK process with the realization that your finances are at least somewhat if not fully in-check, you won't regret it. The worst part about all of this is the realization that you simply can't keep going the way you have been going, followed by the relief that the pool you have been drowning in is starting to drain.

[BKOnce]

Oh my God... My eyes.. are sorely watering RED...after reading your long msg.... LOL