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Do you think bankruptcy is fair?

Do people who file bankruptcy go back into debt within 10 years?

I cant see how people should be able to rack up alot of debt and then file and not have to pay any of it back!! What does that teach them?

I can see if it is a medical problem! I also understand that in some bankruptcy you do have to pay it back. I don't know alot about it but it seems wrong from the little i do know about it.

Please help me understand...

Answer Question
 
Anonymous

Asked by Anonymous at 9:51 AM on May. 14, 2010 in Money & Work

Answers (6)
  • eye rolling

    josiesmommy00

    Answer by josiesmommy00 at 9:57 AM on May. 14, 2010

  • Declaring bankruptcy messes with your credit big time, and in today's economy, that usually means that nobody will extend you credit for a looooong time after you've declared. It can also be detrimental to your job prospects because many employers look at your credit worthiness to help them decide whether or not they want to hire you (b/c if you can't handle your own money, they don't want you handling theirs, etc.). Once you've declared bankruptcy, you will typically need a guaranteer for any type of loan, be it a car loan, real estate, education, etc., so if your family or friends aren't willing to co-sign, you're stuck.

    I'm sure there are other consequences, but these are the things a friend of mine had to deal with when he declared. He also had to pay something to each of his creditors, so he didn't get off totally scott free.
    mom2aspclboy

    Answer by mom2aspclboy at 10:09 AM on May. 14, 2010

  • No, I think it's totally unfair. When you own a small business and people go bankrupt on you it leaves you hurting too. Believe me, I know! They should be required to pay at least some of their debt back.

    The only time I feel it's justified is medical care expenses. Those can be ridiculous. If you've overspent that's your own fault. Why should everyone else have to make up for your stupidness?
    Anonymous

    Answer by Anonymous at 10:12 AM on May. 14, 2010

  • The last two friends that filed took the system for a ride. They planned their filing and racked up as much debt as possible then walked away from what they didn't want. Both turned around and got loans and CC within six months.


     I understand the medical need or some disaster that just sinks you to the bottom but the system still has too many loop holes that leave the rest of us paying it off.

    emptynstr

    Answer by emptynstr at 10:39 AM on May. 14, 2010

  • it's not really fair at all but it wasn't fair for aig or other banks to get bail outs and it happens. my inlaws filed and they have a home and a job. they are not wasteful just didn't see how getting a second mortgage and his job loss from serious accident would put a strain on their finances down the road.
    melody77

    Answer by melody77 at 12:44 PM on May. 14, 2010

  • Actually you're more likely to be able to get credit cards and other high interest debt AFTER bankruptcy than before. Why? Because once you've filed for bankruptcy you have to wait seven more years before you can file again. The sooner credit cards and loan sharks can get their hands around your throat again, the more then stand to make.

    Also in order to file for bankruptcy you have to take a course on personal finances and have at least one session with a finance counselor. So I'm sure some people do learn- but I'm with you OP I think a lot of people just file to file. Though I do think it's gut wrenching and embarrassing for those that have a conscience.
    Anonymous

    Answer by Anonymous at 1:46 PM on May. 14, 2010

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