O/T- bankruptcy pros and cons

Anonymous

I am trying to research the pros and cons of someone declaring bankruptcy, but seem to be encountering nothing but advertisements and opinions. Does anyone have any solid knowledge or experience with this issue?

Marin

LisaAlissa

Check w/ a local legal aid office for pamphlets on consumer bankruptcy. If you were in CA (where I am), I'd send you to the CA State Bar's consumer pamphlet on debts, bankruptcy & insolvency. I think it's a very user-friendly description of a lot of very emotional questions. It might be useful for your friend, but I would "vet" specifics with a local lawyer. While federal law is (arguably) the same everywhere, B/R law is an interface between state & federal law and can very in application (because of the related state law) from state to state.

I did find a NC bar pamphlet here under "Filing for Bankruptcy", but think it is likely to be less user friendly for your friend.

Best wishes to your friend!

LisaAlissa

booklady

Marin,

You may want to do a search on NC bankruptcy law to get state specific info, and also go to the FTC consumer credit web site. Both should give you good info on things to consider, what property can be excluded and the pros and cons. I know someone who filed and it seems to come down to how much debt you have and ability to pay within a specified period of time vs whether there are any assets that someone might not want to part with in order to satisfy debts.

Good luck in finding the info you're looking for.

NoH8

Been there, done that. It was the best of a lot of bad choices at the time and the right. decision.

althea

I filed bk five years ago as my marriage came apart. I think the pros and cons depend a lot on why someone needs to file in the first place.

wallan

I almost had to file bankruptcy once. But the bankruptcy advisor or trustee told me to file a "consumer proposal" instead. This why I paid back part of my debt with no interest.
Yes, I still lost my credit standing for seven years. But the trustee told me "it looks better" if you try to pay back your debts...
I didn't notice any kudos for it. Just a loss of credit..

Good luck to your friend

Wendy A

Fitztwins

I would first recommend buying a copy of Financial Peace. You can be amazed what you can do. After my divorce I was over 30K in debt. I was out in 3 years. It can be done!

If the debt is out of control and there is no way out, yes I would do it. But as the very last resort. They wont take your car or your house.

My dad did it.

booklady

Hi, just remembered two more places to go for free info and assistance. If you are a member or can become member of State Employees Credit Union or contact Consumer Credit Counseling Services in Raleigh they will help you avoid scams and help with decision.