Repaying bailouts and BK.

[sigferl]

Has anyone ever repaid their BK? I hear that Dave Ramsey has.

Most people change their lifestyle after filing BK so they should be able to afford repaying old debts after a few years.

Thanks

[JRScott]

It depends on the person's ability to pay and the reasons for the BK.

Many come to bankruptcy through loss of jobs or medical emergencies. Those who have lost jobs often do get new jobs eventually but generally at a lower pay scale than previous, so it can be hard for them to repay such money.

Many Medical Emergencies lead to lifelong changes in a person, which can include limits on ability to work and perhaps even long term medical costs.

Thus it can be hard for many people to ever repay such amounts. It is why we have bankruptcy. Dave Ramsey has been marvelously successful post bankruptcy. If I to make millions one day I'll repay my forgiven debt. I like Dave don't get me wrong and he did the right thing, it is just that the common American may never find themselves in the position to ever repay the forgiven debt.

[mamaluv]

Well that is great for Dave Ramsey...give him a cookie!

[sigferl]

Thanks for your post. I tend to have more faith in my fellow American and I think most people can repay BK if they do not have severe permanent medical disabilities.

I think that making simple lifestyle changes can quickly change someone from living in debt to living comfortably and able to save a significant amout of their money.

Should people repay portions of their debt, no matter how small?

Should people repay mortgage modifications if they have the means?

Thanks.

It depends on the person's ability to pay and the reasons for the BK.

Many come to bankruptcy through loss of jobs or medical emergencies. Those who have lost jobs often do get new jobs eventually but generally at a lower pay scale than previous, so it can be hard for them to repay such money.

Many Medical Emergencies lead to lifelong changes in a person, which can include limits on ability to work and perhaps even long term medical costs.

Thus it can be hard for many people to ever repay such amounts. It is why we have bankruptcy. Dave Ramsey has been marvelously successful post bankruptcy. If I to make millions one day I'll repay my forgiven debt. I like Dave don't get me wrong and he did the right thing, it is just that the common American may never find themselves in the position to ever repay the forgiven debt.

[Bandit]

Well that is great for Dave Ramsey...give him a cookie!

and a glass of warm milk.

[BkinTX]

If Dave was in a 13, that's how he "paid" his debts. I seriously doubt he actually paid everything back of his own accord. If he had, he would be crowing up about in every book -- which he doesn't do.

[JRScott]

Thanks for your post. I tend to have more faith in my fellow American and I think most people can repay BK if they do not have severe permanent medical disabilities.

I think that making simple lifestyle changes can quickly change someone from living in debt to living comfortably and able to save a significant amout of their money.

Should people repay portions of their debt, no matter how small?

Should people repay mortgage modifications if they have the means?

Thanks.

Ideally they should, however the world we live in is far from ideal.

Our Country is in the process of changing. Opportunities that may have existed to allow someone to return to such shape to repay such debts are evaporating in the current economic environment, and unless we have major political reform will not be returning.

For the last few decades our government has looked more and more at Europe hoping to emulate it, but keep in mind most European countries have high rates of unemployment coupled with high taxes. They've forgotten we broke from Europe over 200 years ago for a reason.

Unless we can reclaim our manufacturing jobs the USA is looking at high unemployment going forward. We simply cannot provide sufficient jobs without manufacturing. To have a return to manufacturing we need a government that realizes that the trade deals it has made in the last few decades were a mistake, and took to much from us for to little in return. At the same time they have to realize the more you increase the cost of providing jobs the less jobs you create.

Currently we don't have anyone on the political front that is the kind of person that is willing to confront these issues beyond rhetoric.

[JRScott]

If Dave was in a 13, that's how he "paid" his debts. I seriously doubt he actually paid everything back of his own accord. If he had, he would be crowing up about in every book -- which he doesn't do.

Dave I believe did go back and repay all his debts that were forgiven.

He however does not encourage people to do that because he realizes that for the average American it is not realistic for them to do so.

[BkinTX]

Could you cite a source for that information?

[JRScott]

Well having attended his seminars, I know he has said personally that he did repay all his debt, but he also emphasized that he did not encourage others to do that. He did not say why but I do believe as I said that he realizes the average American simply does not make enough money to repay large debts forgiven in bankruptcy.

If you worry about paying debts that are forgiven by law then you'll not have any real fresh start and your health will suffer as you worry about it.

[BkinTX]

Thanks for the reply.

I have read where he has alluded to paying them back (which I always took to mean through the bk, because he didn't elaborate) but I have never read him state explicitly that he did so.

That's interesting. I've only ever read his books/website. I have never attended a seminar, although my brother did early in his marriage and it's what kept he and his wife from incurring any cc debt.

[blankslate]

Hi "MyMom"! Why the new name? The message is still the same....

[falken]

Dave I believe did go back and repay all his debts that were forgiven.

He however does not encourage people to do that because he realizes that for the average American it is not realistic for them to do so.

If he did, did he also go back and calculate all the back interest that would have been owed at the default interest rate for the entire time? If are you going to truely pay back all that is owed you need to do that too.

[JRScott]

I have no idea

[OhioFiler]

Thanks for your post. I tend to have more faith in my fellow American and I think most people can repay BK if they do not have severe permanent medical disabilities.

I think that making simple lifestyle changes can quickly change someone from living in debt to living comfortably and able to save a significant amout of their money.

Should people repay portions of their debt, no matter how small?

Should people repay mortgage modifications if they have the means?

Thanks.

Why does taking advantage of the Constitutional right to file bankruptcy cause you to lose faith in your felow Americans?

If I were thinking of repaying a debt post-bk it would only be if the debt was owed to a local merchant or other small business who was significantly impacted by my bk. My bk will have no impact on my creditors share price and not much, if any, on their income statements and balance sheets.