Conslidation vs Bankruptcy

[anniewalker]

"you've already lost everything".  Yes, hence bankrupt.

Bankruptcy isn't a magic wand to make the debt go away.  It is a punishment and a way to make ammends to your creditors to whom money is owed.  Since the US doesn't allow debtors prison, bankruptcy is the next best thing.

It is not impossible to qualify for bankruptcy.  It is now more difficult to file, thus weeding out people who abuse the system.

[Ann Marie]

The divorce has just become final and we are working on clearing up the financial mess we are in.

Does anyone have any links that I can look at that would pinpoint the merits of consolidations of loans vs a Ch13 or Ch7?

<Matt>

I don't have any links, but consolidation isn't going to destroy your credit for more than 7 years.

Not to mention that the current idiot in the White House has made it next to impossible to declare bankrupcy. 

That's because bankrupsy is being used as stealing money.

So the IDIOT finally caught on and is nipping it in the butt!

Allot of people run up their bills, get all they want and then file for it.

The idiot? He's a smart idiot in my opinion.

People should not spend more than what they have. If they don't have it? They don't get it. Simple as that!

[gone4good]

not to step on a hot potato here..

but I filed a chapter 7 with no trouble.  STBX had run up 6 figures in debt that I found out about after the fact.. I am supporting the child with no child support, and work, but make a modest income.. and I had no trouble at all.  They dont come and take what little you have around the house, they don't take your car, they even will let you keep a primary residence if you want to keep it.

The changes were apparently to keep people from living in McMansions and driving mercedes benzes from charging up a zillion dollars and then keeping all those luxury items.

[Matthew62]

Just checked this. LOL!

Thanks for all of the advice.

[msbaffled]

Bankruptcy is not the end of the world like I thought it was. I am in the middle of filing for Chapter 7 for many reasons. Mainly, medical, divorce, and unemployment. I did not 'rack' up a bunch of bills before this decision. I had no choice. Those of you who think it's easy to even make this decision have evidently led lucky lives. The new laws concerning bankruptcy are not that bad and can be found all over the internet. The means test and and financial 'classes' are very easy to do and take a few short hours. The best thing about filing for bankruptcy is, if done with an open mind, can relieve financial stress and allow a person to begin again with a fresh slate and have better control over their lives. It's not the end of the world. For those people out there who think that they would never file bankruptcy consider this:  What would happen if you lost your job right now? What would happen if you had a spouse who;s taken everything in the divorce and didn't leave you with enough to fight him/her? What if you had an ill child, who would you pay first, Visa or medicine?