Is one declaring themselves bankrupt a scape goat for them?

[stella7]

I learnt that bankruptcy has some advantages which are as below,

1)For the person involved, bankruptcy provides relative peace of mind and possible automatic discharge after one year (or less in some cases).

2)For the creditors, bankruptcy allows a full investigation of the debtor's affairs to be carried out.

[moonmagick]

I had to file bankruptcy a couple of years ago. After a divorce it was the only way my ex husband and I could each get a clean slate for a fresh start. It wasnt something I wanted to do, but it has allowed me to get a new start, and I learned enough to know I dont want to mess this shot up.

[Calypso]

Bankruptcy was the only option for me, too, after some bad decisions with credit cards and an unexpected illness. Next year will mark the seventh year since I filed, and though it's almost killed me at times, I've managed to avoid going back into credit card debt. I'm not proud that I had to take bankruptcy, but I'm so glad the option was there when I needed it. I'm not thrilled about the new laws that try to make it so much harder for people to file.

[nangel78]

I can understand if people have to file for bankruptcy. Things happen. I have not had to, but I would not judge someone if they did.

[aquariancore]

Again with the new law bankruptcy isn't the clean slate it use to be.

[Tangent210]

Bankruptcy used to be so much better (for the person filing) than it is now. It is a great option one can take if there is absolutely no other way out and it's a tool that should be used without shame and responsibly. I know a few people who filed when they really shouldn't have and could have made it through if they really gritted down hard but they chose not too which is a pitty. It's not something someone should be looked down upon for though, I myself have not had to file but things do indeed happen and it's out of ones control sometimes. I've known some well to do people who had no medical insurance that got horribly sick and they went bankrupt. They weren't irresponsible or anything like that.

[aquariancore]

Now, people who could benefit will suffer the consequences for those who abused it.

[katharina]

Quote:

Originally Posted by aquariancore

Now, people who could benefit will suffer the consequences for those who abused it.

This is so true. It's a life saver for some but the ones who think "wow,
you mean I can buy 20k worth of stuff on a credit card and never have to
pay for it?!" do ruin it for those who need it... you're right.

[SageMother]

The major change I heard about the new bankruptcy laws was the requirement to go through credit counseling. Other than that it seems to resemble the wage earner plan or chapter 13 that has been available for years. What are the other changes that make it more difficult?

[aquariancore]

Creditors can petition and be awarded payments. No longer are you guaranteed a clean slate.