Why Are/Have You Filed BK?

[nickels22]

I just filed 6 weeks ago. Excessive credit card use is the reason behind my debt and wage garnishment was the final straw that finally made me file. I've been thinking about bk since I first with a bk attorney in September 2008 but like others have said, I kept thinking I could get myself out of this hole.

When I started leasing my old car in October 2006, the salesman was raving about how great my credit was. In October 2009 when my car lease was up and even though I made every lease payment on time, they would not approve me for a new one. That really showed me how bad my situation had gotten in such a short amount of time.

My only regret was that I didn't file sooner. I know the next few years are going to be rough when I try to rent an apartment and buy a new car but at least now i'll have a little bit of savings.

[boomerkae]

I'm filing jointly with my husband. We take some blame for living beyond our means, but the economy and medical bills really did us in.

In 2005, my husband had open heart surgery (at 35) for a congential defect. We were able to save almost enough money before hand to make ends meet while he was out of work with no benefits. We used CC some, equity line a little.

He is an auto mechanic, and since 2006, has lost 75% of his income. In 2008, we had a son. I go out on short term disability, DH has to have another heart surgery when my son is 6 weeks old. No time to save and no income to do it. Stupid us, we make an agreement with the mortgage company to forgo 3 payments so we can make all the other bills - including CC while we are out of work. I mail the morg company National City - now PNC a check at the end of the three months and theymailed it back, asking for the full amount. I have a long story here, but it took until Feb of this year to get it settled. Never went to foreclosure. As PNC started dinging our credit like made, the CC all lowered our limits or cut them off. Jacked up the interest rates. I keep getting more fees as I juggle payments.

In September this year, I had a little girl. Out on leave again. Car dies - that even my DH can't save. Have to buy a new (used) car. More daycare, car payment, way under water on the house - that needs repairs. I usually carry the burden. DH finally wakes up and sees how bad things are and agrees to file. He has depression, and takes it all to heart - if he hadn't lost his income.... but it's not his fault. I'm hoping filing will brighten our future, even if we have to go 13 and pay back - I'm ready for the new slate.

[BrokeinMD]

I got laid off in 2005, lived as normal off credit cards for 9 months and then some. My other half made the credit card payments, but then the minimum balance went up and up and up along with the interest, along with my credit being cut, even though I was on time. I fought for 5 years to protect my credit integrity. All for unsecured debt, and now my other half doesn't have that money we could have used for other things. It's funny to think that if another person had changed their loan terms on me, charged excessive interest, etc. for no reason, it would be considered extortion, but when a bank does it to you, it's credit card interest. I could have relieved myself of 5 years of anxiety, worry, lack of sleep, etc. if I filed then, but my pride didn't let me. Pride has been given it's walking papers in my life, and I'm glad that we have the bankruptcy process to fight back. I filed October 2010, and hope to have my discharge by February 2011.

[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.

[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

[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.

[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...

[birdo]

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

[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!

[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!)

[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.

[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.

[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.

[carlsbadmike]

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

[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...