[emijec]

I know it's a dirty word and there's a stigma attached to it. But, I've been working in a law office for the past 7 years and I will tell you my experience.

Yes, it costs money to file, which doesn't make sense because you have no money to begin with. BUT! consider the relief that you'll be getting and what you won't have to pay and get sued for later. It pays the lights, the office rent, the insurance, the employees, the electricity bill, the trash bill, yes the lawyer. It doesn't pay me any benefits or vacation time or sick time, but oh well, it's a job.

Ok, bankruptcy. It is a financial tool, that was set up by our congress in order to obtain relief when times are hard. It does not mean you will lose everything. The code is very specific about protecting your valuables up to a certain dollar amount. Depending on the Chapter you're filing and debt you have, you can discharge your legal obligation to all debt or some. Taxes, depends, they are dischargeable from what I understand but there's a legal analysis that's made by the attorney. If you're behind on the mortgage it helps you pay it over 3 or 5 years. Also, I have seen people get loan modifications while in bankruptcy. I have my own opinion of those things. But I digress. Student loans, man, I wish I could get rid of them this way but you can't generally speaking. There is a hardship test but its VERY difficult to meet.

When clients first come in, they're embarrassed, mad (sometimes the staff gets the bad end of that stick, but it comes with the territory), ashamed, etc. They come in for many reasons, all walks of life. The single parent who just can't make it, the dentist, the lawyer, the police officer, the teacher, the self-employed business man, wineries, vineyard companies. And they come in for many reasons, they lost their job, business fell apart, the breadmaker died, banks screwed them on their mortgage (remember home mortgage bubble bursting?). Sadly, some clients with terminal illnesses have come in, and widows. It's just everyone. The economy has impacted EVERYONE. and people still blame themselves for their situation. which they shouldn't. It's not us, the people that work, try to find work, that just try period.

We are in a changing society. We are no longer a 4 tiered class sytem of underclass, lower class, middle class, and high class. It's the haves and the have-nots anymore. The middle class is dying. That's us.

But, if the debt is drowning you, don't be afraid to consult with an attorney. Most of the time its free and the attorney might advise you on a non-bankruptcy solution.

The best part of my job (even though I have my complaints here) is telling the creditor. Nope, sorry. you're in our jurisdiction now. Because once you file almost all proceedings (I think criminal and divorce are the exception) and all collections stop. It's the one time you can tell the taxing authorities, sorry, suspend that garnishment and that levy too because they filed! and they have no choice but to do it.

At the end of the cases, people are so happy, its like a weight lifted from their shoulders and they can start life again. Everyone says 'oh my credit score' but by the time you file, your credit score is shot anyway. You just have to build it up again which you can. But it's a tight line you'll have to walk through because banks know you can't declare again for years so they try to get you into debt. Some mortgage banks get you to re-affirm the debt that was discharged. That's when you call the attorney to help. Overall, the trick is, from what I've seen is to have manageable debt. Put a little on the card, carry a small balance pay it off.

Anyway, that's my bit on it. It sounds horrible, its not that bad. you get through it, and life starts again. If huge companies can do it, why can't the individual who's struggling file and get relief as opposed to these companies who do it for strategic financial purposes, to save money, make money, etc.?

[lowinmood]

thanks for the tip, I've struggled with money all my life, and wish I'd gone for bankruptcy earlier.

[Cat_Lover_58]

I've been seriously considering this as a step to be taken! Now, I can be a little less embarrassed about it...thank you!!

[DelusionsDaily]

Deleted...TMI

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[growlycat]

Thanks for the thoughtful post. I have considered it but trying for a higher paying job. As Janis Joplin once sang, freedom is just another word for nothing left to lose.

[splitimage]

I declared bankruptcy in 2012. I was 44K in credit card debt, had no income, and no assets. It was a huge relief. It was a bit of a pain for the 9 months I was in bankrupcty, I had to file monthly income / expense statements, and go for credit counselling which I found helpful.

It was a huge relief.

In Canada it takes 9 years for the bankruptcy to come off your record, so I'm waiting it out. And I've discovered that it's quite easy to live without a credit card.

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