Faking the good life just got harder

[shabam]

Ummm....Ok,
I actually dislike the words "only".....and "legitimately".

I really don't think you can lump all people who file BK into a box. Many of us are here for different reasons. Just because someone has a house that is currently above their means or a car they cannot afford does not mean that at the time it was purchased that was the case.
People get laid off from jobs, death of spouse, unexpected things occur. Many people are here because of more than medical illness, being defrauded and didn't live above their means.

I however....was not one of them
But I have recovered and I live well within my means now.

Legitimately in terms of could not foresee a problem if something changed or happened. While we cannot plan for everything, planning for the unexpected is part of a sound economic plan. Most people who have a 12 month emergency plan can weather a storm.

Every case is different but I just don't buy that people couldn't have protected or minimized the impact of an event if they had planned. Planning may mean, what would we do if a spouses loses a job. Excluding the mortgage, a family with little to no debt and a 12 month emergency fund could probably weather a spouses job loss.

[shabam]

Shabam - I don't like your assumption to why someone is living above their means.

So if you make a lot less(mid 6 figures to lower end) but have the same things, how is that living above your means?

Even though this article is about those who accumulated debt living above their means, someone who makes over $100,000 and is claiming bankruptcy should be questioned. Chapter 7 should not even be an option for someone earning over $150K. Let alone for someone earning over $200k. Anyone who fits in this income bracket is working the system. Exemptions should not be a allowed in such cases. People who earn that type of cash generally have a pretty good idea about money and could definitely afford to hire a financial adviser or two if they do not.

This is why I believe they need to change the laws to state that anyone who has filed ch 7, yet earns more than x after being discharged, should have to pay money back. Where once you earn over x, 50 cents of every $1 above this threshold should go to the trustee for a few years. You should also be limited to the amount of cash, property you can own during the bankruptcy. Effectively, no more 4 month discharge for anyone earning over $150K..

[Scott50]

I'm amazed at a few posts on this board of people who make six figures who file Chapter 7- a few lifestyle changes and they could easily repay their debts.. Do they need that $4-5K house payment or the $800 a month car payment?!?

[Help!]

Excellent article - maybe those of us filing BK are ahead of the curve in making the necessary lifestyle adjustment.

[Cali]

shabam - why does it bother you so much, that people that do make 6 figures can file C7? and how are they using the system? if the trustee didn't have a problem with it, why should you?

And another thing to remember, 150k isn't the same everywhere. If I lived in Alabama, 150k would make me rich, but I live in SoCal and that isn't much.

And since you have selective reading, I will state this again, we had 2 6 figure incomes. I no longer have my job, which means we aren't in the same category but still have the same bills.

Scott- you assume way too much about how someone that earns 6 figures lives their life.

I can't stand judgmental people, if you were so concerned about anyone paying their debts, you would be trying real hard to pay yours now wouldn't you.

[shabam]

shabam - why does it bother you so much, that people that do make 6 figures can file C7? and how are they using the system? if the trustee didn't have a problem with it, why should you?

And another thing to remember, 150k isn't the same everywhere. If I lived in Alabama, 150k would make me rich, but I live in SoCal and that isn't much.

And since you have selective reading, I will state this again, we had 2 6 figure incomes. I no longer have my job, which means we aren't in the same category but still have the same bills.

Scott- you assume way too much about how someone that earns 6 figures lives their life.

I can't stand judgmental people, if you were so concerned about anyone paying their debts, you would be trying real hard to pay yours now wouldn't you.

I am not being judgmental at all. My views are not directed at you or anyone in particular. Rather stating what I believe is obvious.

Conduct a simple google search and you will find quite a few countries out there which prevent anyone earning a high salary from simply walking away from debt. The logic behind this decision is based on the statistics which indicate that wealthy individuals were using bankruptcy as a means of wiping off debt. Only to return to 6 figure salaries a few months after.

[fltoo]

I don't think it is personal but just hard for middle class America to imagine going BK with over a $200,000 income even if one income is lost.

Some of my family live in San Diego and yes, very expensive, but they live very well and not in debt on an income of $110,000. The key is, they have no debt, have saved and have been very good money managers their whole lives.

I think the problem is, barring those with severe hardship, most of us are here because of poor money management.

[Cali]

When you come on a board and say because you make x amount you shouldn't be allowed to file BK, you are judging. Unless you are on some board somewhere that oversees the BK Laws, then you have to follow the same rules as I do. And the rules say I qualified for the BK I filed.

The cost of living isn't the same in all of San Diego. So wherever your family lives at, the cost of living isn't that high or they've been living there forever.

Cheers and enjoy the board..I am taking a break.

[fltoo]

Off topic, but I must say, and I have travelled extensively........All things considered, San Diego has to be the most beautiful city for living.

[rfassett]

Off topic, but I must say, and I have travelled extensively........All things considered, San Diego has to be the most beautiful city for living.

No way. Any place with more than 10 people does not qualify for that award. Actually there are some really nice places in Colorado. Pennsylvania has some pretty spectacular places too. And of course Texas - well, because of its size, has something to satisfy just about anybody's "most beautiful city for living". Now, all of that said, I admit, I have never been to San Diego - so you could very well be right. But then, there are alot of places I have never been. Now I am starting to wonder why not.

[fltoo]

LOL

There is something fabulous in every city and state. I said "all things considered."

[Bandit]

shabam - why does it bother you so much, that people that do make 6 figures can file C7? and how are they using the system? if the trustee didn't have a problem with it, why should you?

And another thing to remember, 150k isn't the same everywhere. If I lived in Alabama, 150k would make me rich, but I live in SoCal and that isn't much.

And since you have selective reading, I will state this again, we had 2 6 figure incomes. I no longer have my job, which means we aren't in the same category but still have the same bills.

Scott- you assume way too much about how someone that earns 6 figures lives their life.

I can't stand judgmental people, if you were so concerned about anyone paying their debts, you would be trying real hard to pay yours now wouldn't you.

We do not know for sure why it bothers him so much or why the law is only good for those who he feels it is good for.

You have just as much of a right to file making 6 digits as someone who makes more or less than you do.
I finally understand why you were saying this, Cali.