No, you left out the part where all your assets are seized and sold to pay your debts. Of course, there are exempt assets, but that varies with the situation, and none of the toys you mentioned would be exempt. So, yes you don’t owe your CC companies anything after it’s all over, but you also don’t have any possessions either. And you will probably never get credit again (forget the 7 year thing, under these circumstances you’ll live a cash only existence until you die).
So, yeah the creditors get screwed, but the debtor doesn’t exactly walk away…
And you will probably never get credit again (forget the 7 year thing, under these circumstances you’ll live a cash only existence until you die).
So, yeah the creditors get screwed, but the debtor doesn’t exactly walk away…
Chris
How so? the Ch7 only stays on a report for 7 years, then bye bye and no one knows about it and off you go back to CC spending.
Personally I think a ding on your credit for 7 years and losing a few possessions is a cheep price to pay for 75 grand in fun. And yes I hope my guy does get screwed and I hope he is stripped of every assets he owns, and I won’t feel the least bit sorry for him. i bent over backwards to help him and he walked all over me.
Before I got into rentals I had a friend tell me that whenever he has a tenant that is more than 3 days late, he shows up at their house with $500 cash and a moving van. He tells the tenants he will take them wherever they want, and give them the $500, but they have to move out now. He said they always take him up on it. At first I couldn’t believe he would throw away $500 like that. Now I think it’s the best $500 he spends.
I’ve never had to do that, but when I hear stories like yours, I know I definitely will.
I don’t know if this will help you, but I have a company that I use that does a credit check on my tenants. If they have any history of non payment for rent, I tell them I can’t rent to them. If there is a company like this in your area, you may be able to report this to them. Won’t do you any good, but may save the next guy from unknowingly renting to them.
**How so? the Ch7 only stays on a report for 7 years, then bye bye and no one knows about it and off you go back to CC spending. **
Just as an FYI, BK’s stay on the credit reports for 10 years now…the “just-out-of-BK” credit lending industry has become a boomer in the last decade as well, preying on those that have filed and then discharged a BK. It is actually relatively easy for someone coming out of a BK to re-establish credit, though many end up going right down the same path, being late on a $300 credit line as opposed to a $5k or more limit.
The stigma of a BK has essentially dwindled down to nil nowadays; banks and other lending institions merely charge exorbitant rates to those who have filed and are having trouble getting themselves established again. Once a track record has been established and a few years have gone by, the credit scores go back up pretty dramatically and it’s almost—almost—as if nothing ever happened.
As has been mentioned, the new law signed into effect just recently (and actually going into force in 6 months) will make it much, much more difficult for the described scenarios on this thread to take place…most BK’s will now end up being 13’s as opposed to 7’s, and just about any lending institution won’t lend money to someone with an open BK which will make the credit life much harder on those who end up filing since they will be in a repayment plan for up to 5 years.
The real reform should be with the credit scoring agencies----a BK still showing up on file should automatically keep someone below a certain score threshold. In my business, I’ve seen folks who discharged a BK within the past 5 years up over the 700 mark—admittedly, they have handled themselves in essence perfectly since the BK, but nevertheless it is somewhat of a dichotomy that their score reflect a well above average score.
Last thought: go to the trustee meeting. The attorney representing the debtor won’t really pose much of a threat to you, especially if you have a legit claim against the debtor. Virtually none of the creditors ever show up at these “meetings” (since they have large accounts on their books for just this reason and can afford to write off the debt–just by charging us consumers more for their goods) and because you are not really in a position to be able to afford to lose this money you might get something.
I’ve heard sheetrockers make good money, but I can’t believe $90K? I mean, this is essentially unskilled labor that anyone with a strong back could do. Why aren’t the crop pickers and day laborers doing this for $10/hour? There should be a lot of people willing and able to do this job for a lot less than that.
Why don’t you make an appointment with the trustee and ask him/her yourself?
I wasn’t aware you could get a one on one one with the trustee? Is that the case?
I’ve heard sheetrockers make good money, but I can’t believe $90K? I mean, this is essentially unskilled labor that anyone with a strong back could do. Why aren’t the crop pickers and day laborers doing this for $10/hour? There should be a lot of people willing and able to do this job for a lot less than that.
Living in Northwest Indiana this is Union territory and he is a or was a union contactor. After hanging about 30 sheets in my basement last winter I wouls not go so far as to say Drywall work is unskilled labor. It is very hard work, and does require a good deal of touch to finish. Crop picking requires zero skill, and is less physically demanding. The $90K was with a ton of OT, he makes in the range of $30/hour So a 60 hour week at $30/hour (with no OT pay) equals $90K/yr