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Bankruptcy vs Missed Payments

VoltaicShock
Established Contributor

Re: Bankruptcy vs Missed Payments


@Remedios wrote:

@difringe wrote:

@kugel wrote:
Bk is not a good choice if u can find a way
I do I do believe that the whole system is crazy because the banks instead of to ruin your credit when you owe money with placing collections and judgments they should come up with a different solution and help you out to pay it and not stain your credit report
so they don’t get the customer to file bankruptcy and not get paid even a penny And whoever ends up loosing is the bank

This is the part that I'm struggling to understand. Under some bankruptcy chapters, you don't have to pay the debt, right? So they don't even get the money but then they give you credit again?


I thought you said " Not being judgemental" 

 

I am fairly certain for majority of those who had to file, it was an agonizing choice. 

It's hardly as simple as *I'll get credit again*. 

 

 

 

 

 


You are right it is not an easy choice.  For me I was young and bought a house during the time they were just handing money out to people.  I will be the first to admit I was stupid to buy it when I did.  However, it came to loosing my house or keeping it I choose the BK route to keep it.  Need a roof over my families head.  I learned from my mistake and have since corrected my bad ways.



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Equifax636707
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Experian623726
Message 11 of 16
Remedios
Moderator

Re: Bankruptcy vs Missed Payments


@VoltaicShock wrote:

@Remedios wrote:

@difringe wrote:

@kugel wrote:
Bk is not a good choice if u can find a way
I do I do believe that the whole system is crazy because the banks instead of to ruin your credit when you owe money with placing collections and judgments they should come up with a different solution and help you out to pay it and not stain your credit report
so they don’t get the customer to file bankruptcy and not get paid even a penny And whoever ends up loosing is the bank

This is the part that I'm struggling to understand. Under some bankruptcy chapters, you don't have to pay the debt, right? So they don't even get the money but then they give you credit again?


I thought you said " Not being judgemental" 

 

I am fairly certain for majority of those who had to file, it was an agonizing choice. 

It's hardly as simple as *I'll get credit again*. 

 

 

 

 

 


You are right it is not an easy choice.  For me I was young and bought a house during the time they were just handing money out to people.  I will be the first to admit I was stupid to buy it when I did.  However, it came to loosing my house or keeping it I choose the BK route to keep it.  Need a roof over my families head.  I learned from my mistake and have since corrected my bad ways.


I'm glad things are looking up for you! 

 

Also, you really do not owe anybody an explanation about such a tough choice. 

Thank you for sharing your story. 

 

 

Undead Danny Trejo looks strangely like dead Danny Trejo, who looks exactly like alive Danny Trejo. Thanks, Netflix!
Message 12 of 16
difringe
Regular Contributor

Re: Bankruptcy vs Missed Payments


@Remedios wrote:

@difringe wrote:

@kugel wrote:
Bk is not a good choice if u can find a way
I do I do believe that the whole system is crazy because the banks instead of to ruin your credit when you owe money with placing collections and judgments they should come up with a different solution and help you out to pay it and not stain your credit report
so they don’t get the customer to file bankruptcy and not get paid even a penny And whoever ends up loosing is the bank

This is the part that I'm struggling to understand. Under some bankruptcy chapters, you don't have to pay the debt, right? So they don't even get the money but then they give you credit again?


I thought you said " Not being judgemental" 

 

I am fairly certain for majority of those who had to file, it was an agonizing choice. 

It's hardly as simple as *I'll get credit again*. 

 

 

 

 

 


I'm literally just trying to understand the process, so I apologize if it comes across as being judgmental.

 

I don't know how else to reiterate I am not making any judgments on anyone's history, lord knows I don't know what anyone has gone through. I'm simply asking questions as someone who doesn't understand. Idk how that means I'm judging anyone.

 

Someone earlier stated they couldn't apply for the higher end cards again for 10 years after BK, that part I could understand.  

 

I get that it's obviously a touchy subject, no one wants to do it, etc. etc., I'm simply seeking understanding.  Obviously once you've done it you have to go through steps to rebuild your credit, etc., at no point am I saying 'gee bankruptcy seems like a breeze, why don't we all just declare bankruptcy!'

 

Edit: Also, didn't think I had to say this, but obviously I'm not asking why anyone declared BK (or judging why someone declared BK), or else the title would be 'Why Did You Declare Bankruptcy?'

Scores as of 1/27/2021


Planning to garden until April 2020 (started Jul 25 2019)


Message 13 of 16
difringe
Regular Contributor

Re: Bankruptcy vs Missed Payments


@VoltaicShock wrote:

@kugel wrote:
Bk is not a good choice if u can find a way
To pay the debts but if u can’t pay it and its a really high amount the debts than yes bk is the choice
the downside is it takes time to rebuild back credit unless u really know how to do it
I filed less than 3 years ago and I am now at 180k in available credit ,

I do I do believe that the whole system is crazy because the banks instead of to ruin your credit when you owe money with placing collections and judgments they should come up with a different solution and help you out to pay it and not stain your credit report
so they don’t get the customer to file bankruptcy and not get paid even a penny And whoever ends up loosing is the bank

You would think they would take something over nothing.  Most of the time if you file for a BK they get nothing (Though with a Chapter 13 they usually get some of the money).  If they work with you maybe they can get some now and the rest later but they end up just writing it off (I think they do that) so I guess it doesn't matter to them.


Maybe this is the piece I'm missing; since they just write it off, it isn't as big of a deal? I admit I'm still struggling with the logic, but big companies do all sorts of things that make little sense to me.

Scores as of 1/27/2021


Planning to garden until April 2020 (started Jul 25 2019)


Message 14 of 16
VoltaicShock
Established Contributor

Re: Bankruptcy vs Missed Payments


@difringe wrote:

@Remedios wrote:

@difringe wrote:

@kugel wrote:
Bk is not a good choice if u can find a way
I do I do believe that the whole system is crazy because the banks instead of to ruin your credit when you owe money with placing collections and judgments they should come up with a different solution and help you out to pay it and not stain your credit report
so they don’t get the customer to file bankruptcy and not get paid even a penny And whoever ends up loosing is the bank

This is the part that I'm struggling to understand. Under some bankruptcy chapters, you don't have to pay the debt, right? So they don't even get the money but then they give you credit again?


I thought you said " Not being judgemental" 

 

I am fairly certain for majority of those who had to file, it was an agonizing choice. 

It's hardly as simple as *I'll get credit again*. 

 

 

 

 

 


I'm literally just trying to understand the process, so I apologize if it comes across as being judgmental.

 

I don't know how else to reiterate I am not making any judgments on anyone's history, lord knows I don't know what anyone has gone through. I'm simply asking questions as someone who doesn't understand. Idk how that means I'm judging anyone.

 

Someone earlier stated they couldn't apply for the higher end cards again for 10 years after BK, that part I could understand.  

 

I get that it's obviously a touchy subject, no one wants to do it, etc. etc., I'm simply seeking understanding.  Obviously once you've done it you have to go through steps to rebuild your credit, etc., at no point am I saying 'gee bankruptcy seems like a breeze, why don't we all just declare bankruptcy!'

 

Edit: Also, didn't think I had to say this, but obviously I'm not asking why anyone declared BK (or judging why someone declared BK), or else the title would be 'Why Did You Declare Bankruptcy?'


I think the issue is a lot of people are ashamed (not saying everyone is) of having to go this route (I admit it was not fun and I felt bad doing it).

 

Chapter 7 = 10 years

Chapter 13 = 7 years (5 years of payment sometimes shorter and it drops off your report after 7 years)

 

Each one has their pros and cons.  You have to figure out what is best for you.  I believe some cards offer you a card mainly because they know you can't apply for a BK again that soon.  Others do it because they are considered sub prime lenders and they are willing to take the chance on you.  Other high end ones won't touch you until you have a clean record.  Which is what I am waiting for.



FICOBeginning (6/2017)Current
Equifax636707
Transunion627725

Experian623726
Message 15 of 16
VoltaicShock
Established Contributor

Re: Bankruptcy vs Missed Payments


@difringe wrote:

@VoltaicShock wrote:

@kugel wrote:
Bk is not a good choice if u can find a way
To pay the debts but if u can’t pay it and its a really high amount the debts than yes bk is the choice
the downside is it takes time to rebuild back credit unless u really know how to do it
I filed less than 3 years ago and I am now at 180k in available credit ,

I do I do believe that the whole system is crazy because the banks instead of to ruin your credit when you owe money with placing collections and judgments they should come up with a different solution and help you out to pay it and not stain your credit report
so they don’t get the customer to file bankruptcy and not get paid even a penny And whoever ends up loosing is the bank

You would think they would take something over nothing.  Most of the time if you file for a BK they get nothing (Though with a Chapter 13 they usually get some of the money).  If they work with you maybe they can get some now and the rest later but they end up just writing it off (I think they do that) so I guess it doesn't matter to them.


Maybe this is the piece I'm missing; since they just write it off, it isn't as big of a deal? I admit I'm still struggling with the logic, but big companies do all sorts of things that make little sense to me.


Exactly they have so many laws that help them while the consumer struggles.  One "nuclear" option consumers have is filing for a BK, this does an automatic stay and they are not allowed to contact you at that point.  They can contest it but most won't.



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Equifax636707
Transunion627725

Experian623726
Message 16 of 16
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