https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Wed, 20 May 2026 05:16:23 +0000 https://boards.hellobee.com/topic/bankruptcy/page/2#post-1745971 Tue, 08 Jul 2014 15:39:33 +0000 Crisark 1745971@https://boards.hellobee.com/ <p>Wow, I've learned a lot from this thread!<br /> Thank you all for your information. I just generally had no idea what it all entails or the processes.<br /> I believe those that I know that have filed, filed chapter 7. And I do believe they all retained lawyers.<br /> You all are a wealth of knowledge. </p> https://boards.hellobee.com/topic/bankruptcy/page/2#post-1745087 Tue, 08 Jul 2014 10:14:19 +0000 Mrs. Blue 1745087@https://boards.hellobee.com/ <p>@yoursilverlining: Interesting. I work for a judge, so we see everything, but I don't have to do as much with chapter 7s, which maybe explains your perspective v. mine. Although, I'm not sure that saying that 62% had "medically related" bankruptcies actually equals that being the cause of filing for the majority of cases. For example, they considered any case that had over 5K in medical bills "medically related," which for some people would certainly be the driving force in them getting behind, but for others that wouldn't be the primary reason; instead it might be their 200K of student loans, their 80K in credit card debt, etc. I'd have to read more about those studies. It's a minor point to this thread anyway. I think we both agree that medical expenses certainly can be a major factor for many people. :happy: </p> https://boards.hellobee.com/topic/bankruptcy/page/2#post-1745077 Tue, 08 Jul 2014 10:12:21 +0000 psw27 1745077@https://boards.hellobee.com/ <p>I "knew" a lot of people but only because I was a divorce attorney.... all walks of life file for bankruptcy and for most people it does allow them to move forward in a way their debt would not have allowed otherwise. I would definitely recommend an attorney, there are a lot of procedural steps to follow. </p> https://boards.hellobee.com/topic/bankruptcy/page/2#post-1745046 Tue, 08 Jul 2014 10:05:16 +0000 yoursilverlining 1745046@https://boards.hellobee.com/ <p>@Mrs. Blue: thes studies referenced in these articles were my reference point:</p> <p><a href="http://www.cnn.com/2009/HEALTH/06/05/bankruptcy.medical.bills/" rel="nofollow">http://www.cnn.com/2009/HEALTH/06/05/bankruptcy.medical.bills/</a></p> <p><a href="http://www.cnbc.com/id/100840148#" rel="nofollow">http://www.cnbc.com/id/100840148#</a>.</p> <p>These are a few years out of date though, so maybe they are not the most accurate anymore, or might depend on your client base too. </p> https://boards.hellobee.com/topic/bankruptcy/page/2#post-1744998 Tue, 08 Jul 2014 09:50:58 +0000 Mrs. Blue 1744998@https://boards.hellobee.com/ <p>I slightly disagree with @yoursilverlining: about the majority of people filing because of medical bills. There are many reasons people file for bankruptcy, but in chapter 13s, it is almost always to save a house. We do, however, see a lot of medical bills and student loans that have crippled people's ability to meet their obligations. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744988 Tue, 08 Jul 2014 09:47:40 +0000 Mrs. Blue 1744988@https://boards.hellobee.com/ <p>I know a couple of people personally that have been through bankruptcy. I work in bankruptcy, so I see it all the time and can tell you it's pretty common. Most people do (and should) retain an attorney. Bankruptcy is a fairly complex world of it's own rules, so there are some landmines you can miss if you're pro se (representing yourself). The cost depends on the type of case the person is filing and how complex it may be. How long it takes again depends on the type of bankruptcy. A chapter 7 bankruptcy is one that liquidates all non-exempt property and they're shorter usually, unless there are some issues. Chapter 13 bankruptcy (what people often do if they're trying to save a house or some other type of property) take longer for you to receive a discharge. A confirmed plan doesn't take that long (a matter of months typically), but then you make payments for 3-5 years depending on if you are above or below the median income. You're not discharged until you've completed all your plan payments. Chapter 11s are a different deal, but the average individual doesn't file for Chpt. 11. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744808 Tue, 08 Jul 2014 08:52:45 +0000 LuLu Mom 1744808@https://boards.hellobee.com/ <p>I've known 2 people, one is a cousin who for lack of better words married into trash to a women with a lot of debt + found his credit cards and then quit her job...his job income could not support their family. She is still not working after all of this. I have zero respect for this woman. </p> <p>The second is someone who was in real estate and when the crash of 2008 hit he lost his job &amp; just couldn't keep up. It was really sad because he tried everything, but no one was buying and he had multiple houses to unload. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744804 Tue, 08 Jul 2014 08:52:05 +0000 yoursilverlining 1744804@https://boards.hellobee.com/ <p>I personally know people who have filed for bankruptcy, and I used to work at a legal aid clinic for low income (poverty level and below) clients and helped prepare many bankruptcy filings. The majority of people who file for bankruptcy in the US file because of medical bills - *and* the majority who file have insurance! Sad, huh?</p> <p>It did get frustrating preparing filings for people who were disabled and whose only source of income was SSI/SSDI, and who filed every 6 years (min amount of time between times you can file for bankruptcy) and who had racked up 60, 70, 80k or more in credit card debt in that time. On one hand, it was frustrating that there was a total lack of financial understanding or responsibility, on the other, those credit card companies should never have been lending to those customers. </p> <p>I think there needs to be more education on finances in high school and college, and much stricter regulations on the subprime lending industry. When you have car lenders who charge 20%+ in interest for car loans, payday lenders charging more than 300% interest, credit cards that jack the rate to 24% upon 1 late payment, etc. how do you expect people to get ahead? The people most likely to use those services are the same ones most likely to get in trouble and not be able to meet their lending obligations. Then they turn to bankruptcy. It’s a nasty cycle. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744787 Tue, 08 Jul 2014 08:47:03 +0000 cmomma17 1744787@https://boards.hellobee.com/ <p>I used to frequent a debt support group message board. There was an older lady among the frequent posters who had filed bankruptcy. It was due in large part to health issues of both her and her husband (lot's of medical bills, time off work). </p> https://boards.hellobee.com/topic/bankruptcy#post-1744782 Tue, 08 Jul 2014 08:45:04 +0000 Alivoo01 1744782@https://boards.hellobee.com/ <p>I know someone that has, and they filed twice! :( </p> https://boards.hellobee.com/topic/bankruptcy#post-1744743 Tue, 08 Jul 2014 08:24:54 +0000 mrsjyw 1744743@https://boards.hellobee.com/ <p>Yep we know two couples who filed for bankruptcy. One was during the recession and they're back on their feet in their forever house and with a much better financial future than before. One is going through it later in life right now and it breaks my heart because they're losing their home in the process. But in the end better since they are not living beyond their means and sizing down that is better suited for the two of them as well. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744742 Tue, 08 Jul 2014 08:24:31 +0000 looch 1744742@https://boards.hellobee.com/ <p>No one has shared it with me, I bet I would be surprised, though.</p> <p>This is one of the reasons I am a big proponent of teaching money management in schools. I think a lot of the time, people don't understand financial instruments and debt. There's no shame in not understanding, but there is no excuse for not standing up and saying "I don't understand" to your lender. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744716 Tue, 08 Jul 2014 08:17:46 +0000 snowjewelz 1744716@https://boards.hellobee.com/ <p>I don't know anyone who has but I feel like it's not something that they'd share esp if I don't know them that well! </p> https://boards.hellobee.com/topic/bankruptcy#post-1744527 Tue, 08 Jul 2014 06:34:00 +0000 BananaPancakes 1744527@https://boards.hellobee.com/ <p>I know plenty of people who have filed. All stemmed from either divorce or failed businesses during the recession. All walks of life and all ages. And I know tons of people who have lost their house. This area was hit really hard in the past 5 years. We had one of the worst housing markets in the country. It was awful and it made me so much more empathetic to people's financial troubles. I feel grateful every day that we're still doing ok. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744511 Tue, 08 Jul 2014 06:12:40 +0000 Crisark 1744511@https://boards.hellobee.com/ <p>I'm so glad the majority of those you've all known have bounced back. My dad is about to be foreclosed on and it's a sad thing to watch.<br /> @DillonLion: See, you're full of info!! If I end up deciding to file I know who I'm coming to with questions ;) </p> https://boards.hellobee.com/topic/bankruptcy#post-1744307 Mon, 07 Jul 2014 22:26:23 +0000 Katrocap 1744307@https://boards.hellobee.com/ <p>My parents did in the mid 90s. My father had started a construction consulting business and had trouble getting work during the recession. I didn't really know what was going on because I was in high school, knew they were upset and tried to stay out of it. They are both retired now and living comfortably.</p> <p>@gingerbebe: I'm glad you're parents were able to bounce back. My dad lost his business and they almost lost the house, too. It was a pretty unsettling and scary time. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744298 Mon, 07 Jul 2014 22:17:22 +0000 DillonLion 1744298@https://boards.hellobee.com/ <p>@Crisark: if your credit is shot, bankruptcy wipes everything off and you have a clean slate. You can develop a solid score pretty quickly if all of your negative items are removed. Can't get a mortgage for 2 years, but can after that. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744295 Mon, 07 Jul 2014 22:11:49 +0000 HLK208 1744295@https://boards.hellobee.com/ <p>MIL did during the recession. My old boss did as well. I don't know the details though.</p> <p>ETA: MIL was still able to buy a new car a few years later and my old boss bought a new house only 2-3 years later too. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744270 Mon, 07 Jul 2014 22:05:06 +0000 Crisark 1744270@https://boards.hellobee.com/ <p>I wonder if it's really as detrimental to your credit though. Wouldn't you be pretty low on the credit score side of things if you're at the point of filing? From the personal situations I've been made aware of it doesn't seem to have hindered their car buying/mortgage getting abilities. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744261 Mon, 07 Jul 2014 22:02:22 +0000 DillonLion 1744261@https://boards.hellobee.com/ <p>@Crisark: It is separated by the federal districts, and there are a few that span my state that we file in </p> https://boards.hellobee.com/topic/bankruptcy#post-1744253 Mon, 07 Jul 2014 21:57:29 +0000 gingerbebe 1744253@https://boards.hellobee.com/ <p>My parents did during the 90s recession. Lost their business and home. After the bankruptcy came off their credit 7 years later they were able to buy a small, old fixer upper and they still live there. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744176 Mon, 07 Jul 2014 21:22:50 +0000 Mrs. Lemon-Lime 1744176@https://boards.hellobee.com/ <p>I know a few people - work related- that have filed for bankruptcy. Every single one of their financial woes stemmed from divorce. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744175 Mon, 07 Jul 2014 21:22:33 +0000 Crisark 1744175@https://boards.hellobee.com/ <p>@DillonLion: that's interesting. Do you work with just certain states? I believe I read that all states have different rules. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744170 Mon, 07 Jul 2014 21:21:37 +0000 Crisark 1744170@https://boards.hellobee.com/ <p>@IRunForFun: oh no you didn't imply at all!!<br /> It's a shame when things like that happen. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744167 Mon, 07 Jul 2014 21:19:58 +0000 IRunForFun 1744167@https://boards.hellobee.com/ <p>@Crisark: I hope my response didn't imply a stigma! It's definitely an avenue I would take if I needed to. I honestly think it depends on the individuals and how they handle it. The couple I know kind of seemed to "take advantage" of it and just act like filing alone would solve all of their problems. There didn't seem to be an effort to rebuild in a smart manner...it was more taking vacations and going out to eat constantly and "forgetting" to pay the mortgage even after going through bankruptcy. That's what bothered me about that situation.</p> <p>But for those who need to do it to get back on their feet, and who actually put effort into it, absolutely, there should be no shame! </p> https://boards.hellobee.com/topic/bankruptcy#post-1744162 Mon, 07 Jul 2014 21:18:55 +0000 DillonLion 1744162@https://boards.hellobee.com/ <p>I've worked in bankruptcy for 5 years. You'd be shocked at how many people of all walks of life file bankruptcy. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744157 Mon, 07 Jul 2014 21:17:13 +0000 .twist. 1744157@https://boards.hellobee.com/ <p>@Crisark: Oh yea. and I agree about merging families. My husbands ex did a number to his bank accounts/credit. She is something special. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744151 Mon, 07 Jul 2014 21:15:00 +0000 Crisark 1744151@https://boards.hellobee.com/ <p>@.twist.: I knew what you meant :) I hope that for anyone who struggles with money issues. It's so stressful. </p> https://boards.hellobee.com/topic/bankruptcy#post-1744147 Mon, 07 Jul 2014 21:14:03 +0000 lawbee11 1744147@https://boards.hellobee.com/ <p>I don't know anyone who has (or if they have I don't know about it). </p> https://boards.hellobee.com/topic/bankruptcy#post-1744140 Mon, 07 Jul 2014 21:12:27 +0000 .twist. 1744140@https://boards.hellobee.com/ <p>@Crisark: I will say, the couple who did file, they have more than risen above their money matters. They are doing quite well from what I can see. ;) Anything is possible.</p> <p>ETA: I don't want to sound misleading, they are very comfortable considering their past. They are not "rich" by any means. </p>