Bankruptcy
Elder User
Joined: Oct 2003
Posts: 693
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haulingboat- "Why bankruptcy instead of debt consolidation?"
Why would a bank loan money to someone in trouble to consolidate? The answer is they don't unless there is some equity in the house to write the loan against. Anybody that is seriously in trouble would first use up the house equity.
hkiefus- They would typically only take the house back if you are late on the mortage- but if you keep the mortgage up to date, you probably will be able to keep the house even though you don't pay the plastic.
Oh, to be young (or just niave) and invincible again.
Just got word tonite that my brother in law had a heart attack and can't work for 3 months minimum- they think they will be losing the house and going BK. His wife had just got laid off about six months ago and then this happens.
Funny part is- they were the ones that gave me and the wife a hard time cause we are so cheap and lived with what we had. They gave us a hard time about home made Christmas presents, like we were cheap for giving them while they were charging their way to hog heaven.
Another family that thought they had it made bites the dust.
Why would a bank loan money to someone in trouble to consolidate? The answer is they don't unless there is some equity in the house to write the loan against. Anybody that is seriously in trouble would first use up the house equity.
hkiefus- They would typically only take the house back if you are late on the mortage- but if you keep the mortgage up to date, you probably will be able to keep the house even though you don't pay the plastic.
Oh, to be young (or just niave) and invincible again.
Just got word tonite that my brother in law had a heart attack and can't work for 3 months minimum- they think they will be losing the house and going BK. His wife had just got laid off about six months ago and then this happens.
Funny part is- they were the ones that gave me and the wife a hard time cause we are so cheap and lived with what we had. They gave us a hard time about home made Christmas presents, like we were cheap for giving them while they were charging their way to hog heaven.
Another family that thought they had it made bites the dust.
Post Fiend
Joined: Jun 2003
Posts: 5,983
Likes: 2
^But people in this tread have said that folks get to kepp the cars and house. So they just file on CC debt and continue to pay on the home and car loans? I didn't think this was allowed.
Let's see, I could charge up about 85K on my cards and then file? No thanks. Not worth it to this guy.
Let's see, I could charge up about 85K on my cards and then file? No thanks. Not worth it to this guy.
Thread Starter
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Elder User
Joined: Nov 2003
Posts: 723
Likes: 1
From: Spring, Texas
With all the credit counseling and commercials for debt consolidation there must be some way to get help without filing bankruptcy.
Didn't Clinton pass some kind of bill that made credit help manditory?
Didn't Clinton pass some kind of bill that made credit help manditory?
Elder User
Joined: Mar 2003
Posts: 574
Likes: 0
there is
There is thos debt consolidationplacces that wil lcall all your creditors, get your interest rates dropped and then you just pay them one monthly payement and like $35 for their services.. Kinda like Ameridebt, etc..
Bankruptcy Laws vary.. It depends on the equity you have in your house..
If you have 50,000 Equity in your house, then yes you will have to sell it, if you only have 10,000 equity in it, then in most states you can keep it, because selling it would solve nothing..
Same deal with the Cars. Although I cant remember the numbers.
Bankruptcy Laws vary.. It depends on the equity you have in your house..
If you have 50,000 Equity in your house, then yes you will have to sell it, if you only have 10,000 equity in it, then in most states you can keep it, because selling it would solve nothing..
Same deal with the Cars. Although I cant remember the numbers.
Elder User
Joined: Oct 2003
Posts: 693
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You got to watch the places that offer to help pay off your credit and get you out of trouble. Many are scams hiding behind non profit status fronts.
Many of them take your money and don't do anything, just forcing you into BK even quicker.
Many of them take your money and don't do anything, just forcing you into BK even quicker.
Elder User
Joined: Aug 2003
Posts: 727
Likes: 0
From: Texas, just south of NY c
..................Debt consolidation is only a choice for those who are gainfully employed with a regular paycheck. Anybody that is self employed , probably will never qualify for DC.......s.kuteman
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