We had another post here mention bankruptcy and I wanted to get your-alls opinion on the matter
I work in a tax office and have probably prepared 350 returns so far and it is amazing to me the number of people declaring bankruptcy. I see very few cases where I feel (not what the law says) it would be a legitimate avenue to pursue---perhaps if your in the middle of a divorce and your spouse (ex) is racking up a lot of bills on joint credit that they have no intention to pay for because of their own financial irresponsibility or for spite or whatever. People though, that just amass an amount of consumer debt and then take the easy out, are ripping everybody off---if you have a debt--you should be responsible (in all but a few cases). An attorney I work with complains all the time that when he goes to file for a client in bankruptcy court, it is absolutely packed with those also filing. It has become so prolific that we are thinking of offering bargain basement bankruptcies--fast food style (serving dozens every month).
Some of these people don't really have a large amount of debt either--some may be insolvent by about $5000.00 or less--crazyIt seems like they just feel they shouldn't have to pay it. They declare bankruptcy with relative nonchalance (sp?)
I know there a reform bills in the works (haven't read them) and I hope they really place some restriction on this BS. It's just further proof of the feelings of entitlement of many citizens
What do you think?
__________________
Looney tunes deductive reasoning:
--Me smell Mohican burning
--Me last Mohican
--Must be me!!!
--EEEOOOWWW!!!!!
I agree, there are way too many people who use credit irresponsibly, live way beyond their means and then when the bills come due just declare bancruptcy and walk away from their obligations. These people seem to have no sense of obligation to crediters who loaned them money on the understanding that the borrower would make a good faith effort to pay their debts. I think in some cases it borders on stealing.
I think the common misconception regarding personal bankruptcy is that it is some poor downtrodden guy/gal who is down on their luck -- that simply isn't the case in the vast majority of instances.
Most of these people that declare bankruptcy do so after having spent so irresponsibly that they "have no choice". Then you have the not so few cases of these dirtbags going out and getting their cars repaired, having dental work done and before the bill even hits the mail - POOF, they declare bankruptcy and it's not worth the biller's time to go after them with a lein etc.
Tard, didn't Wisconsin just change their laws about who could file for bankruptcy ??? I heard Jeff Wagner on TMJ talking about it, I just caught the tail end, and I thought he said it was a lot tougher now to dismiss these debts !!
__________________
It' s a dog eat dog world, and I' m wearing Milkbone underwear
I just caught the tail end, and I thought he said it was a lot tougher now to dismiss these debts !!
Yup,
Chapter 11 and 13 has become a bit tougher. And the reason being is that so many people were getting ripped off by idiots that it became epidemic.
It has mainly been pushed because of the massive abuses in Milwaukee. But we still have all the bankruptcy lawyers in milwaukee advertising about every 10 minutes about how they can help. Wouldn't surprise me if they found some loop holes.
Just how advantageous IS filing bankruptcy ? What are the perks ?
You don't have to pay your bills....
"generally" (and i'm not talking about all cases) as it went, you could walk away from thousands of dollars in bills that you should have never incurred.
Good example is my brother, he's owed over $100,000 in people declaring bankruptcy after he built them a new crown etc. etc. ... and it isn't worth his time to pursue them, he can't, it's more expensive recovering the money.
Personally, I think Bankruptcy laws should open the door to taking their home and their cars too -- but we can't do that, this would make people responsible for their own actions.
Location: On an Island in the west coast of New England
Posts: 13,133
RE: Bankruptcy
I heard on TV that there are people who own homes worth several million dollars that declare bankruptcy and they get to keep their homes. I think some new laws are coming to eliminate some of these loopholes. Funny thing about it is after 7 years their records are clean and they can just do it again. For some it is probably a needed thing but for most of them it is just another way to steal from the rest of us.
__________________
Too busy with fishing to spend much time here.
Bankruptcies serve a valid purpose, but the potential for abuse is much too high. I don't know all of the fine details, but in general I think Chapter 7's are akin to grand theft, while Chapter 13's are something that can be used to benefit both the lender and debtor fairly.
The people who rack up their bills and then nullify the debt with a Chapter 7 are essentially thieves. I can't believe these people can get away with 1) refusal to pay their debts, and 2) retention of assets such as property, vehicles, etc. Thieving liars, I say.
Those who file a Chapter 13 and make repayment arrangements via the court and a trustee are in many cases honest people trying to dig their way out of a hole. I think it's important to manage your finances before you get into trouble, but sometimes it doesn't go as planned. This type of bankruptcy can offer a chance to salvage an individual's finances without cheating the lenders out of their money. The problem I have is that many (if not most) Chapter 13 filers don't pay back 100% of their debts. To sum it up, I think full repayment should be required by the court in any bankruptcy.
Bankruptcy
