Bankruptcy

[Anonymous]

I have never filed bankruptcy and hope that I never have to. But, could someone give me a quick overview of what exactly bankruptcy is and what it does for you?

[Tuscani]

http://en.wikipedia.org/wiki/Bankruptcy

[Anonymous]

It doesn't look like all the bankrupcies require one to pay back.  I have struggled financially for...well it seems like forever...but even when my payments were late, I struggled to pay them.  It just seems really easy to declare bankruptcy.  And a month out, I hear people talking about financing a new house, or getting credit cards and their scores are much better than mine.  Sometimes, it just doesn't seem fair. 

[Anonymous]

I understand completely.  I have personally filed and at the same time a friend filed.  I was shocked that she would have to file. The difference was that she was smart enough to file at the first sign of trouble. (At least I tell myself that).

I waited until I knew beyond a shadow of a doubt that it was hopeless.  That in itself damaged my score and caused it to take me longer than necessary to rebuild.  Lates, collections, you name it. Probably like you I was raised you pay, no matter what.

The good news is that no matter when you file, it is possible to begin to rebuild.

HTH

[Anonymous]

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Brammy wrote:

I understand completely.  I have personally filed and at the same time a friend filed.  I was shocked that she would have to file. The difference was that she was smart enough to file at the first sign of trouble. (At least I tell myself that).

I waited until I knew beyond a shadow of a doubt that it was hopeless.  That in itself damaged my score and caused it to take me longer than necessary to rebuild.  Lates, collections, you name it. Probably like you I was raised you pay, no matter what.

The good news is that no matter when you file, it is possible to begin to rebuild.

HTH

So, basically, those that I read about that can do those things are those that did not wait until their scores were already tanked? 

[Anonymous]

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daytona18 wrote:

So, basically, those that I read about that can do those things are those that did not wait until their scores were already tanked? 

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In a nutshell, yes. But with the backlash on the subprime mortgage lending industry, they wouldn't be abl to do that today.