Did it make your life easier? Did you later regret it? Did you wish you had done it sooner? In particular, US cases, British and Commonwealth law may be different...
Bankruptcy: Any experiences?
I have a close girlfriend that did this, thank god she listened to me and bought a house about a year before she was driven to this. She would have been ruined, in her mid 40's without that house.
Also I know GWBush has made sure that it is more difficult for the common person to declare bankruptcy, but not his corporate buddies!
New bankruptcy laws went into effect on October 16 last year. Study them carefully.
I am finding myself in this situation, but I have been finding out some surprises. Those so called reforms don't really make it harder to qualify for most people, it just make it look harder, and is intended to scare people away. Most of the web sites that talk about how hard it is to qualify, and how bad it is to declare bankruptcy, are operated by Credit Counseling Agencies. And who owns these agencies? Credit Card Companies!
While a person has to provide a lot of extra documentation that they didn't have to before last October, it is still amazingly easy to qualify. If you are underpaid (which I have found out that according to the government figures, I am!) and if you don't have much of anything to begin with (other than your house, a car some crappy furniture, and your clothes), you will more than likely be able to qualify for Chapter 7 anyway, which is a complete discharge of debts! In my case, it was those #$#%@#%@#% credit cards that got us to this point. After we file, we still get to keep the house, the cars, the kids, and our sanity. Plus, for the first time in our married lives, we actually have a cash surplus after paying the "gotta pay" bills, like the house, car, electricity, water, and insurance, plus a very generous food and living budget. I mean, something that can go into a significant next egg, savings, emergency fund, you name it.
The negative is that it goes on our record for ten years, but, you know? So what! Our credit was slowly going down the glory hole anyway, we had nothing available on our cards for emergencies, and all we were doing was borrowing from Peter to pay Paul. The overall debt load was like a large bag of boulders just crushing me, and making my wife crazy and depressed. This way now, we can but meat in our grocery budget, take the kids to the movies once in a while without thinking twice about it, and still be able to sock away enough each month to build up a defense against emergencies.
I have already made a deal with my wife that if I ever come to her with some crazy idea about borrowing money for something we really don't need, she is to put her hands on my shoulders, look me deep in the eyes, and knee me in the groin as hard as she can.
I did it a year ago. I had left my husband twice for a couple of months. When I came back after the second time I left, the mortgage was severly behind, (since he never paid it only I did). I had to put off paying my credit cards and everything else, trying to catch up the mortgage. He promised he would then get a job, and he didn't, so I had no choice but to file. I was either that, or have my wages garnished by the government. Then how would I pay a mortgage.
It really sucks, I'm paying rent on a house that is a cracker jack box, and the rent is outragious. I want my own home bad, and can't buy one. It really sucks to be in this position, but if I hadn't, I would still be in a bad position. If you can do it and keep your home, I would say do it, then again, don't know the details of your situation. If you would like to PM me, maybe I can give some adivice?
I filed bankruptcy three years ago. It has made my life easier. Filing bankruptcy will not stop credit card offers from coming to you. Albeit their APR's and finance charges are very high. I got an offer from a credit card company less than one year after I filed bankruptcy. Credit cards were my downfall, too. The downside is of course, that it stays on your credit report for seven years. At least here in the United States.
If it was not for the equity in the house and me having my own company...it would have been rough. The new laws and the jacked interets rates om the credit cards are insane. Ditch those cards in a hurry and keep one for a medical emergency.
Best thing I ever did...next to leaving the cult.
A truly NEW beginning.
No regrets.... except I shoulda done it sooner...silly me was waiting on jehoooba to save my sorry ass.
I work in finance, so I see credit issues daily. No questions bankruptcy is the best choice for some. The main thing is, don't mess up the credit afterwards. You must stay perfect, otherwise you are toast in the credit world. I have seen people buy a car immediately after a BK, and a home 2 years after a BK.