Personal Bankruptcy--A Rant
By Suebee
@Suebee (2013)
Canada
June 7, 2012 3:32pm CST
Ok, I get it that some people have to declare bankruptcy but whatever happened to just paying your bills, being responsible and living within your means?
I have known a few people who have declared personal bankruptcy and they think it's a joke. One girl that I worked with, knowing that she was going to be going through this process, went out on a shopping spree, bought a new 50 inch TV, re-decorated her home etc, racked up all her credit cards to the max, and then declared personal bankruptcy knowing full well that she wouldn't be paying any of these bills.
A family member recently filed for bankruptcy and is laughing all the way to the bank. He got all but $2,000 of his debt wiped out (he was well over $25,000 in debt) and he thinks it's a big joke because all it cost him was 2 credit counselling sessions. WTF? How can people do this and still live with themselves? What makes them think that they don't have to pay their bills?
I asked this family member about consequences of declaring bankruptcy and basically, there were none for him. I had heard that you couldn't get a mortgage for x number of years afterwards but he said not so. Even though he is not married, he has been living common-law with his g/f for 11 years now, so I asked him how it affected her credit and he said that it doesn't.
Although I have never researched the rules of bankruptcy personally, as I PAY my bills, from what I've seen happen with other people it's just a way for them to live beyond their means and then get their debt wiped out.
Why are some people so irresponsible with money and expect the rest of society to pay for it? And we do end up paying for it in the long run, even if only in outrageous interest on credit. Whatever happened to paying your bills and not buying something if you can't afford it?
6 people like this
3 responses
@god_is_good (683)
• Philippines
8 Jun 12
We are living in a generation where most people want to get things now, spending money before they can even earn it. The use of the credit card or cards has been a way of life for many people. Thus, many had been led to depend on it without even thinking about the consequences. The outcome has been a lot of heartache and financial ruin, leading to family and personal problems. You have a wonderful input about questioning the sanity of us in paying our bills and not buying anything if we can't afford it. A financial degree can't even solve this phenomenon.
@Suebee (2013)
• Canada
8 Jun 12
Oh I have nothing against credit cards or buying on credit, as long as you pay your bills. Most people I know, myself included, don't have the money to just go out and buy a car so we have car payments. I see nothing wrong with that, taking a few years to pay it off. What I disagree with is people who use credit to buy just about everything knowing that they have no intention of paying for any of it. Total abuse of the system, and they think it's great. They're actually proud of themselves for having found a way to get something for nothing.
@cher913 (25782)
• Canada
8 Jun 12
oh boy, i so know what you mean. we seem to be the weirdos and people who max out their credit seem to be the norm. its not cool to pay your bills anymore ever since credit became invented. even my hubby's sister goes out to eat once a week, pretend they have lots of money (although they don't) and are trying to be something they are not.
too bad you can't be a whistle blower on these people. i sure would be one!
@Suebee (2013)
• Canada
8 Jun 12
Well, I do own a credit, more for emergencies than anything else, but I pay my bills so I guess I'm not cool either. It just makes me angry when I see people who deliberately go out and rack up a bunch of bills and then expect other people to absorb the cost for them.
@JenAC1984 (233)
• United States
8 Jun 12
Since the recession and lay offs, some people have no choice but to file I guess. There are many people who had careers that paid very well and in one day became unemployeed, never expecting it to happen to them. They had nice things, a home and living a good life. When the economy went under, so did a lot of decent, hard working, smart people. It was not by choice. If you have no money after enduring something like this, you cannot pay your bills. There were no job openings for hundreds of thousands of people and the sad thing is, as I am sure you already know this, many of those people have college degrees. It's very sad! It does hurt your credit by far, but some people have no other choice. Life happens and some things are just not fair. Also, after filing, your credit is completely cleared of all bad credit within 5 to 7 years but no longer than 7. Some people feel that 5 to 7 years is worth waiting for because if you consolidate your bills, you end up paying the consolidation company. Plus, it will take you twice to three times the amount of years to pay off your debt. So, on average, 14 to 21 year...wow, I think not.
I have never had to file, thank goodness, but I can completely understnad why some people may have no other choice. Thanks for posting this discussion!
