Consumers Race to File Bankruptcy Petitions

Discussion in 'Up to the Minute' started by Buzz Mills, Oct 14, 2005.

  1. Buzz Mills

    Buzz Mills New Member Staff Member Forum Coordinators

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    Consumers Race to File Bankruptcy Petitions

    DENVER - Hundreds of consumers across the nation crowded into courthouses Friday to file bankruptcy petitions to beat the start of a new federal law that sets stricter standards for seeking protection from creditors.

    Across the nation, about 100,000 petitions were filed in the first three days this week, according to Burlingame, Calif.-based Lundquist Consulting, which compiles bankruptcy statistics. The firm said 102,863 were filed last week, a record expected to fall.

    http://tinyurl.com/axegm
     
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  3. lilpony

    lilpony New Member

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    Good Grief, thats a lot of people. I know a family that filed for Bankruptcy, but when they went to court. The judge reviewed everything, and threw it out, said they made to much money, He said to them PAY YOUR BILLS. I was glad when the judge told them that. They spend a ton of money, and then they wanted their debt wiped away.
     
  4. Buzz Mills

    Buzz Mills New Member Staff Member Forum Coordinators

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    If they spend it, they should own up to their debts; it's OK if the stores put them on separate payback plan, but I think it should be a rarity when anyone is allowed to walk away from a debt that they themselves incurred. Too often the bankruptcy is uncalled for and they shouldn't be allowed to get away, with it, that easily.
     
  5. BirdieBoo

    BirdieBoo New Member

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    Hmmm...someone I know just filed.

    She is apparently being allowed to keep her brand new BMW SUV, new fancy-schmancy laptop... among other "toys".....I don't understand.
     
  6. Casshew

    Casshew Former Member

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    Can someone explain how the rules are changing? what will the difference be for new bankrupt cases after the deadline?
     
  7. pjop

    pjop New Member

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    I'd like to know that, too. Once we were sitting around at work talking and I was asking "How do people afford to live in these huge, beautiful new homes? It seems young couples don't go for "starter homes" but straight for the nice big homes." One of my coworkers said she knew people who charge and charge and charge and then go bankrupt every 7 yrs. I had no idea people did that. Honestly. No wonder it seems everyone else has way more nicer things and nicer clothes than I do. I really had no idea. If this is true they did need to do something about it.
     
  8. kylie

    kylie New Member

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    This bill will devastate middle class people with high medical bills or who suffer a natural disaster while still protecting corporations.....I predict a swift business in false id's as people seek to escape permanent debt....you see, if your home is destroyed by an earthquake but you lived in an area where no insurers would insure you...you will be responsible for the house payment....your wages will be attached for life.....welcome to the decline of the middle class and the beginning of America's descent into third world status...and we have only ourselves to blame for not uniting against the oligarchy in charge.
     
  9. Buzz Mills

    Buzz Mills New Member Staff Member Forum Coordinators

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    Here you go Cass--it will make people more honest.
    http://tinyurl.com/87ct6
     
  10. tired.old.hag

    tired.old.hag New Member

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    I used to work with a woman who was making about $40,000 a year. For a while she said she had financial problems, and finally said she was going to lose her house. People in her group of friends started making her house payments for her. Finally, they couldn't do that any more.

    So she filed bankruptcy. And on her way into work after she went to court, she stopped at the mall and did some Christmas shopping -- and got some things for herself. Because they were 'so cute' and she 'needed to cheer herself up'.

    Well I was making more than three times what she was, and there was no way I would have - or could have - spent as much as she did on the gifts she got or the stuff she bought for herself.

    7 years later, she filed bankruptcy again. That time, nobody made her house payments for her. She lost a lot of friends during those years. It was just awful.
     
  11. Details

    Details Former Member

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    Yeah, the new bankruptcy rules seem like they're going to reform a fair amount of abuse of the system. There are times when it is necessary, but it needs to be harder. I've often seen divorcee's have to file for bankrupcy when debts their spouse incurred are shared equally in the divorce, but the income is not equal. My sister almost had to do it (managed to avoid it just barely by scrimping and saving like crazy - her ex-husband was a spender), and my husband did have to do it when he divorced his ex-wife - but he still paid back all he could - he had nothing, was living as cheaply as possible, driving a beat up old pickup, living in the cheapest possible converted garage. Not everyone abuses it, but there are a lot of abuses that I think are going to be fixed now.
     

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