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My friend has gone through bankruptcy twice. It was a breeze both times. Paid a court fee and had to go through a simple online course. I wish there weren't suc
by ahallock 5y ago
My friend has gone through bankruptcy twice. It was a breeze both times. Paid a court fee and had to go through a simple online course. I wish there weren't such a stigma because companies do this all the time.
- codeddesign 5y agoAre you referring to company bankruptcy or personal? Company is easy, personal is extreme.
- ahallock 5y agoPersonal. What's extreme? My friend (or me if you think I'm doing that joke) is rebuilding their credit now. They discharged a bunch of medical and credit card debt.
- toomuchtodo 5y agoAbsolutely. You’ll be issued credit right away (at higher rates), since you can’t go BK again for a number of years [1] and you’re eligible for an FHA mortgage 1-2 years after filing BK. It’s not great, but it’s not a financial death sentence either. It’s arguably one of the reasons for financial dynamism in the US, where failure is less risky (compared to other OECD countries without such debt forgiveness mechanisms). [1] https://upsolve.org/learn/how-often-can-you-file-bankruptcy/ https://upsolve.org/learn/how-often-can-you-file-bankruptcy/ (Control-F “Time Limits”)
- heavyset_go 5y agoDepends on if you can afford bankruptcy. I have a friend from high school who went through bankruptcy for medical debt. All it took was their landlord not renewing their lease for them to be homeless afterwards, because no one else would rent to them with a recent bankruptcy on their credit report. They don't make enough money for that bankruptcy to not have ruined their life.
- the_only_law 5y agoYeah this is my concern with every having to file bankruptcy. I can live without credit, loans, etc. I cannot live without a place to live.
- ahallock 5y agoThat's a good point. You definitely need family or a significant other to provide a safety net while you rebuild.