Is there a "downside" to filing personal bankruptcy?

[tvguy]

Some people file due to job loss and medical expenses. It's not only people who buy big screen TV's and new cars and so on. I just wanted to throw that out there...

Absolutely. But I know two different families who got in financial trouble due to medical bills about a dozen years ago.
One family filed bankrupty, and are just now getting back on their feet credit wise.
Second family had debit over twice as big as the first. They sat down with the creditors, set up a payment program, and paid every penny back in 11 years. Their credit rating survived this, and they preserved their pride.

As some one else mentioned, to some folks personal responsibility is still alive.

 

[LoraJ]

You buy it, you pay for it, otherwise it is stealing. (I'm talking consumer debt, not medical).

The one person I know who filed for BK never learned their lesson. They racked up more debt and ended up filing again.

 

[padawans]

If this wasn't a troll I'm sure they were scared off. Gosh you people are harsh. I have several friends who have been out of work for over a year I certainly would not blame them for filing bankruptcy. Things are really tough out there for a lot of people. I wouldn't be so quick to pass judgement. We could all be in their shoes some day if this economy continues to go south.

 

[DisMN]

I wouldn't file bankruptcy if you can avoid it.

Debt management is a great solution for anyone considering bankruptcy!

Unfortunately, if you do the research, most folks go to the debt management counsellors when it is already too late and they have fallen far behind or they lack the discipline to stay on it and end up declaring bankruptcy anyway and lose even more.
That is one reason though, why the bankruptcy laws now require debt counselling to help determine the situation. Bankruptcy should never be the first option but no one, who is truly in trouble financially, should ever be made to feel ashamed for opting for it or told that they are frivolous, lazy, and immorale and unwilling to take responsibility. Things happen in life and it isn't all pixie dust.

I don't agree about "most folks" being too late by the time they get to debt management. We tried consumer credit counselling 3 times over the past 10 years and each and every time they barely looked at our numbers before proclaiming they couldn't help us, that they highly recommended bankruptcy. That was their first and only suggestion for us. Talk about discouraged.

We refused that option and felt we were left with no options. Our debts got worse and worse especially exploded when the interest rates got jacked up to ridiculous heights.
Earlier this year we heard about debt management and after checking out several with the BBB we picked one that had a high rating. So far we are very happy with the results, are paying our debt back in full which was our goal in the first place.
For most of the people we see on the forums it isn't too late, even when they've fallen behind. I'd encourage anyone to go this route rather than the bankruptcy route.

 

[Carly_Roach]

Debt management is a great solution for anyone considering bankruptcy!

I don't agree about "most folks" being too late by the time they get to debt management. We tried consumer credit counselling 3 times over the past 10 years and each and every time they barely looked at our numbers before proclaiming they couldn't help us, that they highly recommended bankruptcy. That was their first and only suggestion for us. Talk about discouraged.

We refused that option and felt we were left with no options. Our debts got worse and worse especially exploded when the interest rates got jacked up to ridiculous heights.

Earlier this year we heard about debt management and after checking out several with the BBB we picked one that had a high rating. So far we are very happy with the results, are paying our debt back in full which was our goal in the first place.

For most of the people we see on the forums it isn't too late, even when they've fallen behind. I'd encourage anyone to go this route rather than the bankruptcy route.

But here's the problem with Debt Management:

You pay back your debts for five years, which is honorable and decent, true. But during those five years your credit suffers just as badly as it would have if you'd have declared bankruptcy. You won't be able to get credit or, if you do get credit, it'll be at the same interest rate as those who've declared bankruptcy.

Here's another kick in the head for Debt Management: Once that debit is paid in full, your credit will still have that horrible rating for the next 3 - 7 years while you try to rebuild it using higher interest rates.

You see, the credit card companies continue to report you as being 120+ days behind the entire time you're paying back your debt. Then it takes a few years after it being paid back for your credit rating to straighten itself out.

So if you and your neighbor had the same debt to the same companies, but he declared chapter 7 when you started your Debt Management plan, he'd be out of the woods in 7 years and would have built his credit rating back to where it should be while you'd still be looking at another 3-4 years of bad credit reports.

And don't get me started on what may happen in those 5 years while you're making your payments back to the credit card companies. If you miss even one payment due to an emergency or job loss, you my friend are back at square one: all bets are off, the contract for lower payments are cancelled, and your credit card companies have all put your debt back at an interest rate of 29%, making you now have to declare bankruptcy anyway and go through another 7 years of bad credit on top of the 4 you just went through paying back your debt.

I've personally watched one family and one single person go through that particular nightmare and I now recommend bankruptcy over Debt Management for anyone who has more than $5,000 in credit card debt. If you had several consumer credit counsellors recommend bankruptcy, I suggest you reconsider your current course of action and decide if you can truly afford to have disasterous credit for the next 12 years instead of just 7 (and more like 4 nowadays).

But don't just take my word for it: pull your credit reports after being on this plan for six months, talk to an attorney, get more information off of credit boards, talk to people who've been through it.

 

[pat fan]

But here's the problem with Debt Management:

You pay back your debts for five years, which is honorable and decent, true. But during those five years your credit suffers just as badly as it would have if you'd have declared bankruptcy. You won't be able to get credit or, if you do get credit, it'll be at the same interest rate as those who've declared bankruptcy.

Here's another kick in the head for Debt Management: Once that debit is paid in full, your credit will still have that horrible rating for the next 3 - 7 years while you try to rebuild it using higher interest rates.

You see, the credit card companies continue to report you as being 120+ days behind the entire time you're paying back your debt. Then it takes a few years after it being paid back for your credit rating to straighten itself out.

So if you and your neighbor had the same debt to the same companies, but he declared chapter 7 when you started your Debt Management plan, he'd be out of the woods in 7 years and would have built his credit rating back to where it should be while you'd still be looking at another 3-4 years of bad credit reports.

And don't get me started on what may happen in those 5 years while you're making your payments back to the credit card companies. If you miss even one payment due to an emergency or job loss, you my friend are back at square one: all bets are off, the contract for lower payments are cancelled, and your credit card companies have all put your debt back at an interest rate of 29%, making you now have to declare bankruptcy anyway and go through another 7 years of bad credit on top of the 4 you just went through paying back your debt.

I've personally watched one family and one single person go through that particular nightmare and I now recommend bankruptcy over Debt Management for anyone who has more than $5,000 in credit card debt. If you had several consumer credit counsellors recommend bankruptcy, I suggest you reconsider your current course of action and decide if you can truly afford to have disasterous credit for the next 12 years instead of just 7 (and more like 4 nowadays).

Yes, that may be true, but YOU (not you, but fictional you) will be paying back what YOU got in trouble for, not the rest of us paying off your debt so you can get a better credit score in a shorter amount of time! Personal responsibility people! You made the debt, you pay for it!

And I agree that someone who had a catastrophic health problem or has been out of work for years is different. As long as they didn't go nuts with CC's while they were out of work trying to live the same lifestyle as when employed.

My DSIL is a case in point. She says she's going to let the bank take her house and my DFIL just had to bail her out (AGAIN) of a CC bill or she'd be arrested for fraud. Got a CC, racked up the max in hunting gear and never paid a dime of it back. We just paid a towing fee for her and paid off her ins. to get her car on the road when it got towed for no insurance. Cry's all the time about creditors calling and lights/tv/phone being shut off. But she has 2 horses, 2 dogs, 2 cats, goes hunting/shooting every weekend, gets her hair colored by a colorist etc...We are done. She's on her own. Those people need to man up and pay their bills back, not me. and yes, she is full time employed, just stupid and selfish with no responsibility.

 

[eliza61]

sorry - filing for BK is slightly scummy, but more STUPID

How many times do you read that someone does not have health insurance because they are healthy and do not feel like paying premiums?

How about people who live outside their means?

Or refinanced their homes to buy boats?

Or unmarried, pregnant again by another man?

Or pregnant when you cannot afford the kids you have?

Filing BK is problematic. With the credit checks run during the employment process, we would never hire someone who filed. Shows a lack of morals too - you incurred debt and oops just not going to pay it back. Not trustworthy or someone I want to associate it with.

I would have more respect if after someone gets on their feet they at least attempted to pay back previously discharged debts.

Wow!! talk about stereotypes. I think you need to turn off the tv. According to the whiz kids at Harvard (and I think they are pretty smart dudes, they are always running around doing studies). the number one reason for bankruptcy is not having babies by other man (talk about stereotypes) its Medical bills.
http://www.consumeraffairs.com/news04/2005/bankruptcy_study.html

Now the study is a few years old but I'm willing to bet it's probably only gotten worse.

2007 62% of bankruptcy was due to enormous medical bills and ooh by the way 78% of those filiers did have medical insurance.
http://www.businessweek.com/bwdaily/dnflash/content/jun2009/db2009064_666715.htm

Maybe instead of simply not associating with a class of people you get better reading material. Who the heck files for bankruptcy then discloses how many sexual partners they have had? So according to your post some one comes to apply for a job with you, you see a bankruptcy and your mindset automatically assumes the are of "poor morals".

Isn't there a bible passage about before you start taking the toothpick out of someones eyes you remove the tree branch out of your own?

Jeez, Stop with the bigotry please.

 

[chicagodisneyfan]

Who the heck files for bankruptcy then discloses how many sexual partners they have had? So according to your post some one comes to apply for a job with you, you see a bankruptcy and your mindset automatically assumes the are of "poor morals".

Isn't there a bible passage about before you start taking the toothpick out of someones eyes you remove the tree branch out of your own?

Jeez, Stop with the bigotry please.

I have no idea what you are speaking of when you mention sexual partners? When I referred to poor morals - I meant someone who signs an agreement to pay - whether a mortgage or a credit card - and then does not. To me that is stealing. To me that is immoral.

So yeah, we do screen out people with bad credit. If you cannot manage your own situation, how will you handle clients?

Banks have incredibly tough requirements as well - if you have ever been prosecuted for bouncing a check - you can never work at a bank - you have committed a crime against a financial institution.

Listen I am not saying all BK is bad - there are truly heart wrenching stories. But a number of people have contributed to their own problems.

 

[Liberty Belle]

I have no idea what you are speaking of when you mention sexual partners? When I referred to poor morals - I meant someone who signs an agreement to pay - whether a mortgage or a credit card - and then does not. To me that is stealing. To me that is immoral.

So yeah, we do screen out people with bad credit. If you cannot manage your own situation, how will you handle clients?

Banks have incredibly tough requirements as well - if you have ever been prosecuted for bouncing a check - you can never work at a bank - you have committed a crime against a financial institution.

Listen I am not saying all BK is bad - there are truly heart wrenching stories. But a number of people have contributed to their own problems.

Originally Posted by chicagodisneyfan
sorry - filing for BK is slightly scummy, but more STUPID

How many times do you read that someone does not have health insurance because they are healthy and do not feel like paying premiums?

How about people who live outside their means?

Or refinanced their homes to buy boats?

Or unmarried, pregnant again by another man?

Or pregnant when you cannot afford the kids you have?

Filing BK is problematic. With the credit checks run during the employment process, we would never hire someone who filed. Shows a lack of morals too - you incurred debt and oops just not going to pay it back. Not trustworthy or someone I want to associate it with.

I would have more respect if after someone gets on their feet they at least attempted to pay back previously discharged debts.

 

[eliza61]

sorry - filing for BK is slightly scummy, but more STUPID

How many times do you read that someone does not have health insurance because they are healthy and do not feel like paying premiums?

How about people who live outside their means?

Or refinanced their homes to buy boats?

Or unmarried, pregnant again by another man?

Or pregnant when you cannot afford the kids you have?

Filing BK is problematic. With the credit checks run during the employment process, we would never hire someone who filed. Shows a lack of morals too - you incurred debt and oops just not going to pay it back. Not trustworthy or someone I want to associate it with.

I would have more respect if after someone gets on their feet they at least attempted to pay back previously discharged debts.

I have no idea what you are speaking of when you mention sexual partners? When I referred to poor morals - I meant someone who signs an agreement to pay - whether a mortgage or a credit card - and then does not. To me that is stealing. To me that is immoral.

So yeah, we do screen out people with bad credit. If you cannot manage your own situation, how will you handle clients?

Banks have incredibly tough requirements as well - if you have ever been prosecuted for bouncing a check - you can never work at a bank - you have committed a crime against a financial institution.

Listen I am not saying all BK is bad - there are truly heart wrenching stories. But a number of people have contributed to their own problems.

Time out!! YOU mentioned women with babies with different fathers. YOU mentioned (as reposted) women who are unmarried and cannot afford their kids. YOU mentioned people chosing not to have health insurance, when studies have shown that most medical filiers have health insurance and still went under.

I did not pull this out of thin air.

My question to you is simply.

#1 wht the heck does a persons reproductive issues have to do with bankruptcy?

#2 how the heck does it even come up!!

#3 and how filing bankruptcy shows a lack of trustworthiness. since studies have shown that the number one cause of bankruptcy is MEDICAL issues. What now a person is irresponsible because they contracted cancer or diabetes?

and banks do not, I repeat do not get to ask you any personal information like how many kids you have or how many baby daddies there are when applying for a mortgage.

If you are going to post such offensive bigotry at least own up to it. Bouncing a check is illegal, having kids is not.

 

[bettymae1121]

All I have to say is "There but for the grace of God, go I".

It's easy to say "I'd man up and pay it back". Much harder to do when your back is against the wall and you have to keep the heat on and the kids fed.

There are those that play the system, just as there always has been and likely always will be. But the majority of those that file hit bad times through little to no fault of their own.

I only know one person who filed for BK (chap. 7). She had racked up a lot of CC debt and private school loans while putting herself through college. The CC debt was for living expenses while in school (she lived at home and drove to college each day but need to pay for gas, food, books, clothes, etc). Yes, she was dumb but her parents told her this was a GREAT way to go, since she could pay it all back when she landed a good job after college. After college (top tier private school, graduated with honors) she couldn't find a good paying job. After a layoff where she lost her health benifits, all she could find was temp work with no bennifits. She was scrapeing along, making minimum payments to everyone and living at home with her parents and drove a cheap used car that her uncle bought for her, when she had to have emergency surgery. That pushed her over the edge and she had no choice but to file, her mimimum payments were now more that what she made each month and she still wasn't able to find work.

She did make poor choices, but it was all with the intent to pay it all back. She didn't buy frivolus junk, she spent all that money to get a good college degree (she went about it the wrong way, but that's what her parents taught her). She HATED having to file, she thought as many here do, that anyone that files just didn't try hard enough. She found out for herself it's not always that simple.

The BK got her out of the CC hole and medical hole, but of course student loans are not dischargeable in BK. She's still paying for her degree all these years later, in fact with the interest as high as it is, I don't know if she'll ever pay it all back.

 

[chicagodisneyfan]

Time out!! YOU mentioned women with babies with different fathers. YOU mentioned (as reposted) women who are unmarried and cannot afford their kids. YOU mentioned people chosing not to have health insurance, when studies have shown that most medical filiers have health insurance and still went under.

#1 wht the heck does a persons reproductive issues have to do with bankruptcy?

#2 how the heck does it even come up!!

#3 and how filing bankruptcy shows a lack of trustworthiness. since studies have shown that the number one cause of bankruptcy is MEDICAL issues. What now a person is irresponsible because they contracted cancer or diabetes?

If you are going to post such offensive bigotry at least own up to it. Bouncing a check is illegal, having kids is not.

Well since you asked - over the past twenty years, the number of single mothers in bankruptcy has increased more than 600 percent. Kids of single parents are more likely to be in jail, drop out of school and have problems with alcohol and drugs.

The examples I listed are real life DIS examples - the pregnant by another man and not married was a post about how she could not afford gas (back when gas was expensive) and her kids needed to be driven around to their fathers.

There have been posts of people who cannot afford the kids they have to only find out they are pregnant again.

Those examples prove that some people contribute to their own problems.

And if you have no health care coverage (because you are healthy and do not feel like paying for it) and get into a car accident -should you not have to bear any responsibility?

Nothing to do with sex and number of partners - I am all for expressions of love.

 

[Planogirl]

Absolutely. But I know two different families who got in financial trouble due to medical bills about a dozen years ago.
One family filed bankrupty, and are just now getting back on their feet credit wise.
Second family had debit over twice as big as the first. They sat down with the creditors, set up a payment program, and paid every penny back in 11 years. Their credit rating survived this, and they preserved their pride.

As some one else mentioned, to some folks personal responsibility is still alive.

That depends on the situation IMO. I spoke to a nice older couple once who were slammed with medical bills that they had no way of ever paying back. It happened just before retirement and took their savings They were on a fixed income beyond that. As one said, imagine filing BK just before retirement.

 

[P.I. Squirrel]

Well since you asked - over the past twenty years, the number of single mothers in bankruptcy has increased more than 600 percent. Kids of single parents are more likely to be in jail, drop out of school and have problems with alcohol and drugs.

The examples I listed are real life DIS examples - the pregnant by another man and not married was a post about how she could not afford gas (back when gas was expensive) and her kids needed to be driven around to their fathers.

There have been posts of people who cannot afford the kids they have to only find out they are pregnant again.

Those examples prove that some people contribute to their own problems.

And if you have no health care coverage (because you are healthy and do not feel like paying for it) and get into a car accident -should you not have to bear any responsibility?

Nothing to do with sex and number of partners - I am all for expressions of love.

Ahhhh. Must be nice to be so perfect in every way that you sit in judgement of others.

To all of you on this thread, and the Dis board in general, that feel you have the 'right' to judge the actions of others, your hate and bigotry have ruined the boards for everyone else, especially those new to the Disney experience that just happen to come here for assistance.

You feel that you and your family are perfect, and any member who happens to post something you disagree with becomes a quick target for derision. The name calling begins, and soon these people are labelled as thieves, bad parents, child abusers, and all around hellions.

Frankly, the reasons someone chooses to file a bankruptcy, take their kids on vacation during school, re-use a mug, pool hop, request an upgrade when their rooms are not available (the list is endless) are none of your business. But you gossip fence riders feel the need to butt in, and express your displeasure at whatever the subject is. Usually, this reply begins with "I'm not trying to be rude, but..." Well guess, what, YOU ARE RUDE!!!!!

Next time you go to post one of these asinine responses, DON'T. Do the world a favor, and keep it to yourself.

As for me and the Dis, I quit. I'll go enjoy my Disney vacation in private, because you certainly can't enjoy it here.[/SIZE]

 

[Darsa]

It's easy to say "I'd man up and pay it back". Much harder to do when your back is against the wall and you have to keep the heat on and the kids fed.

There are those that play the system, just as there always has been and likely always will be. But the majority of those that file hit bad times through little to no fault of their own.

AMEN!!

 

[eliza61]

Well since you asked - over the past twenty years, the number of single mothers in bankruptcy has increased more than 600 percent. Kids of single parents are more likely to be in jail, drop out of school and have problems with alcohol and drugs.

The examples I listed are real life DIS examples - the pregnant by another man and not married was a post about how she could not afford gas (back when gas was expensive) and her kids needed to be driven around to their fathers.

There have been posts of people who cannot afford the kids they have to only find out they are pregnant again.

Those examples prove that some people contribute to their own problems.

And if you have no health care coverage (because you are healthy and do not feel like paying for it) and get into a car accident -should you not have to bear any responsibility?

Nothing to do with sex and number of partners - I am all for expressions of love.

Uhmm excuse me, once again you totally choose to ignore one basic fact.

70% of all bankruptcy are caused not by pregnant people, not by people who have a car accident and do not have insurance or any other stupid stereotype.

The NUMBER ONE CAUSE OF PERSONAL BANKRUPTCY UP UNTIL 2008 (last time harvad did their study) was drum roll please........

Medical Conditions REQUIRING extensive, expensive treatment.

So sorry, your single mom whipping girl with 4 different babies is not responsible for the moral and financial degredation of the country.

And while we here on the DIS like to think the entire country follows in our footsteps in reality we are a very teeny tiney part. We are probably just a drop in the bucket of the number of people who even go to disneyworld, much less effect the countries economy.

 

[Scurvy]

Ahhhh. Must be nice to be so perfect in every way that you sit in judgement of others.

To all of you on this thread, and the Dis board in general, that feel you have the 'right' to judge the actions of others, your hate and bigotry have ruined the boards for everyone else, especially those new to the Disney experience that just happen to come here for assistance.

You feel that you and your family are perfect, and any member who happens to post something you disagree with becomes a quick target for derision. The name calling begins, and soon these people are labelled as thieves, bad parents, child abusers, and all around hellions.

Frankly, the reasons someone chooses to file a bankruptcy, take their kids on vacation during school, re-use a mug, pool hop, request an upgrade when their rooms are not available (the list is endless) are none of your business. But you gossip fence riders feel the need to butt in, and express your displeasure at whatever the subject is. Usually, this reply begins with "I'm not trying to be rude, but..." Well guess, what, YOU ARE RUDE!!!!!

Next time you go to post one of these asinine responses, DON'T. Do the world a favor, and keep it to yourself.

As for me and the Dis, I quit. I'll go enjoy my Disney vacation in private, because you certainly can't enjoy it here.[/SIZE]

When someone asks about it, it does become our business. Plenty of times people ask what other posters think of a subject and then get mad when they don't agree with the responses. This thread started because someone asked if there is a "downside" to filing bankruptcy, so people were anwering that. Many people perceive it to be immoral and so they think that is a downside. I personally only know of two couples who have declared bankruptcy. Probably I know more people who have done it for the right reasons, but they didn't broadcast it the way these other couples did. One couple was my aunt and uncle, the other was my sister-in-law and her husband. I know both of their situations because they bragged about them. Both of them declared under the old rules, so hopefully their sort of abuse of the system wouldn't be possible now. They were immoral. They could have paid their bills but it would have meant getting jobs they didn't think they'd like as much as their current ones. (Or in the case of my uncle, getting a job at all.) They took vacations knowing they couldn't afford them. They both went on shopping sprees after they decided they'd be declaring. They both worked the system and bragged about it afterward. By not honoring their debts, they might well have left other people in the position of having trouble with their bills. Now that's coming back to bite my sister in law. It's something to keep in mind when you're deciding whether you really have to declare. It ought to be a last resort, but for some people it was just a way to get free stuff. Hopefully with the new rules that isn't an issue any longer, but I'm not familiar with them so I don't know. Is it really a surprise to you that people like me (and some previous posters) who actually know someone who abused the system might have negative feelings about bankruptcy, and might want to express those feelings?

 

[mhsjax]

Abusing the system is disgusting, and I find it to be immoral also, but so many people here are stating that it is never to be done, no matter what. They act as if there are no good reasons to file, sometimes there are. WE should pay back what we owe but sometimes things happen and people just can't. I don't think people should let their kids starve or lose their house and BK can help avoid this sometimes, and it should be done as a last resort and for the right reasons.

 

[chicagodisneyfan]

Uhmm excuse me, once again you totally choose to ignore one basic fact.

70% of all bankruptcy are caused not by pregnant people, not by people who have a car accident and do not have insurance or any other stupid stereotype.

The NUMBER ONE CAUSE OF PERSONAL BANKRUPTCY UP UNTIL 2008 (last time harvad did their study) was drum roll please........

.

Well I can find a study too!

The idea that large numbers of Americans are declaring bankruptcy due to medical expenses is a myth.

Dranove and Millenson critically analyzed the data from the 2005 edition of the medical bankruptcy study. They found that medical spending was a contributing factor in only 17 percent of U.S. bankruptcies. They also reviewed other research, including studies by the Department of Justice, finding that medical debts accounted for only 12 percent to 13 percent of the total debts among American bankruptcy filers who cited medical debt as one of their reasons for bankruptcy.

 

[DisMN]

But here's the problem with Debt Management:

You pay back your debts for five years, which is honorable and decent, true. But during those five years your credit suffers just as badly as it would have if you'd have declared bankruptcy. You won't be able to get credit or, if you do get credit, it'll be at the same interest rate as those who've declared bankruptcy.

On the contrary, your credit takes a hit for maybe...maybe 6 months at the beginning of this program.and then starts to climb. You absolutely CAN get credit for things that are necessary. House. Car. School loans. I have not seen one single person who had their credit worse than bankruptcy by going through debt management. Debt settlement YES, but not management. They really are two different things. Settlement is almost exactly like bankruptcy so perhaps that's what you're talking about.

Here's another kick in the head for Debt Management: Once that debit is paid in full, your credit will still have that horrible rating for the next 3 - 7 years while you try to rebuild it using higher interest rates.

Again, not true with debt management.

You see, the credit card companies continue to report you as being 120+ days behind the entire time you're paying back your debt. Then it takes a few years after it being paid back for your credit rating to straighten itself out.

Where is your information coming from? This isn't true at all with debt management. LOL

So if you and your neighbor had the same debt to the same companies, but he declared chapter 7 when you started your Debt Management plan, he'd be out of the woods in 7 years and would have built his credit rating back to where it should be while you'd still be looking at another 3-4 years of bad credit reports.

Again, not true. You must to be talking about debt settlement. Debt management is another dog entirely. I definitely think there needs to be much much more education on the differences between debt managment and debt settlement.

And don't get me started on what may happen in those 5 years while you're making your payments back to the credit card companies. If you miss even one payment due to an emergency or job loss, you my friend are back at square one: all bets are off, the contract for lower payments are cancelled, and your credit card companies have all put your debt back at an interest rate of 29%, making you now have to declare bankruptcy anyway and go through another 7 years of bad credit on top of the 4 you just went through paying back your debt.

Oh my, what we've encountered is quite the opposite. We've only been met with flexibility and zero threats if/when there's a glitch in our payments. There have also been no threats about raising our now reasonable interest rate nor has there been any discussion of cancelling our contract.

I've personally watched one family and one single person go through that particular nightmare and I now recommend bankruptcy over Debt Management for anyone who has more than $5,000 in credit card debt. If you had several consumer credit counsellors recommend bankruptcy, I suggest you reconsider your current course of action and decide if you can truly afford to have disasterous credit for the next 12 years instead of just 7 (and more like 4 nowadays).

Please look up the differences between debt management and debt settlement. The people you've encountered personally have probably gone the debt settlement route.

But don't just take my word for it: pull your credit reports after being on this plan for six months, talk to an attorney, get more information off of credit boards, talk to people who've been through it.

LOL Do you think we haven't already done all those things? LOL

IMHO People filing for bankrupcty these days is anyone and everyone.....young and old. Responsible or irresponsible. Divorced or married couples, women with no children and women with many. I try not to judge anyone who might be going through it but would hope they've been given other opportunities with accurate info for paying back their debt.