Personal Bankruptcy

[starchkr]

Isn't there another BK that allows you to repay your debt at very reduced payments and little or no interest? I thought there was...maybe chapter 13?(something like that) I don't think it damages your credit as bad because you still must repay your original debts..it just makes it much easier. Maybe something to talk to your lawyer about.

 

[wingnutt]

its a sucky position to be in for sure. as has been pointed out, not everything can be planned for. one good divorce in which she keeps the house, the car, and the furniture...and guess who gets the bill for it

starchecker makes a good point. im unsure how the others work, but a Ch 13 wont hurt your score as badly as you might think...this is not to say it wont have a negative impact, but if you go Ch 13 and make your payments on time, and get it discharged within your plan limit, youre scores will be in the 600-650's by the time its discharged.

again, i dont know the inner workings, but nowadays, anyone with anything over a 600 can get an unsecured card, and then youre back in the game before you know it.

...good luck with your decision.

PS. dont bother with a credit counseling service, its just as bad on your credit as a BK. in fact i can recall some applications that ask if youve ever been involved in a BK, or credit counseling...they look at it the same way.

 

[GogglesPisano]

Swass:

WTF is that avatar of yours? A wet cat cross-bred with a human?

It gave me a nightmare last night!

 

[quigs]

BK is BK according to the fair isaac scoring model(credit score model). I have seen a lot of incorrect info posted about this subject. I would recommend anyone who is interested about credit or has any questions to go to a very informative board called www.creditnet.com this is the most thorough information I have found. To say after BK that you would have a 600-650 score is false. There are too many factors that go into a score, I forget the amount, but I will tell you that the model is kept secret from most. They do not want you to know exactly what it is based on in fear of what people would say. Two exact people with identical credit will most often have different scores and no one knows why except the folks who designed it.

Good Luck..

 

[KigAir]

So i must side with the folks who believe that it is NOT always a show of ones character when they file BK.

True but how does an employer know what the true circumstances are? How are they to know if the person is a deadbeat? Given 2 individuals with equal work credentials, the person without the BK will probaly get the job.

 

[wingnutt]

Two exact people with identical credit will most often have different scores and no one knows why except the folks who designed it.

agreed, but...

To say after BK that you would have a 600-650 score is false.

...this was exactly the situation i found myself in long ago, so on this point, i disagree

 

[starchkr]

Kingair..

You are right, and i agree that to an employer it could have an impact on who gets the job. Now is that right or not, well i don't think it is. As i have said before, circumstances change in ones life that might force the BK even though they are not of "bad character." I personally think credit should be kept between the consumer and those who that specific consumer seeks "credit" with and thats it. My employer does not need to see it, my insurance company does not need to see it, and the most recent i have heard about health insurance companies needing to see it. All of this just to raise our premiums... go figure, anything for more money.

And no i do not have a BK in my past, so i am not trying to hide anything....for now.

 

[100LL... Again!]

Very interesting thread.

I have enough in savings to cover rent and basic expenses for 12-18 months. I did this by delaying gratification on MANY thing for years. Maybe I'm different.

I'm a real 'personal-responsibilty' sort of guy, but I'll tell you what I suggest:

Declare BK. You will never outrun it on a pilot's salary.
Get a night job and be a CFI for a year or two. Pay your dues.

Bridge programs are, as we can see here, not all that they are made out to be. Accept the consequences. Earn your airline seat the old fashioned way. I expect to see many other such cases as yours.

There are few shortcuts that really work.