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Originally Posted by boneprone
But that makes no sence. How is home foreclosure related?
These are unsecured Credit Cards. They cant force a home foreclosure.
Two separate issues. If people cant afford the credit cards, then dont pay em.
They arent going to take your house.
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I think what it is is if you don't pay the credit card companies eventually they will sue you and they can garnish your wages. If that garnishment causes you to not be able to pay your house payment you could lose your house. It isn't too likely, but it could happen. In todays market it is very possible that if you got garnished and couldn't make the house payment you wouldn't be able to sell the house either.
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Also I dont understand why bankruptcy? That Chapter 13 doesnt sound good. You still have to make a settled amount payment and have the Bankruptcy on your record??
The card companies already have payment plans set up for people if they ask. Like 0 percent apr and lower monthly payments. Isnt that essentially what chapter 13 does but with more damage to ones credit?
I have a hard time understanding bankruptcy. Really I do.
Especially if its for unsecured credit cards. Why declare bankruptcy when you can simply tell them to fuck off for cheaper and less damage.
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I have a friend that did a chapter 13 about 10-12 years ago. Basically he was stupid and ran up a bunch of credit card debt, bought a car he couldn't afford and was renting a place that was way too much money. He was spending 100% of his income. Then he lost his job and the new job didn't pay nearly as much so the bills quickly became late. Eventually with the late fees, interest and things like that it got to the point where a couple of them started wage garnishments. I don't remember how much in debt he was, but he did the chapter 13 and his monthly payments were really small. I think he ended up paying about about 25-30% of what he owed. He did get the car taken away though.
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Sounds like an easy way out when just putting up a fight would be cheaper and less damaging. But hey thats just me.
I think the attorneys out there are smelling blood and talking people into bankruptcy when they dont need it to make profits for themselves. Thats what i think is really happening.
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Here is the interest thing. I used to work with a woman who was a paralegal for a bankruptcy attorney. She said they would get cases where people declared bankruptcy then did it again 7 years later. During that 7 years they racked up 10's if not 100's of thousands of dollars in debt. They would get credit because the companies giving it to them would assume the would pay it back because they can't do bankruptcy again for 7 years and they would just string them along. They would make the minimum payments they could to stay out of court then after 7 years do another bankruptcy. Most people weren't that way, but there were some that were doing this just because the system let them. They took expensive vacations, had nice cars, lived way beyond their means and just played the system until they could declare again.