OK ladies and gents, so today was the big day.
Yes. I officially filed for bankruptcy through no other alternative. It's going to be my own long hard slog to quote my favorite rummy.
I just wanted to inform bUSHco on why I had to do this, and relate it to current "new" laws (or new rules as b.m. would say).
More after the jump.
Many republicans would probably think after reading the above -- ah! so he's going bankrupt. Dodging all his bills! Slacker, freeloader, socialist! Not so fast. Let's do a review:
IN 2004 there were 71% chapter 7 filings. and 29% chapter 13 filings. Rumor has it Chapter 13 filings will substantly increase following the new laws.
www.abanet.org/publiced/practical/books/family_legal_guide/bankruptcy_7_13.pdf
According to the Administrative Office (2005) of the U.S. Courts, yearly bankruptcy cases have jumped from under 300,000 to 1.6 million in the past couple decades - that is 1.6 million individuals filing for bankruptcy every year. Hmm. So I'm not alone in this.
My series of events that led to this is probably not too much different from the average person who will file. Out of work (and officially on the unemployed list) for 8 months and paying basic expenses will really add up quick when you have no income (we could go into what "unemployment" pays and how that's not sufficient, but that's another diary. Add in college credit card companies who sold me on cheap interest back in the day (yes i was young and foolish - i admit!) and you have a debt that would realistically take 30 years to pay off via "minimum payments".
Is it as much as Delphi? Not even close. Did I screw a bunch of employees like Enron? Not that I know of. Nobody at MBNA will be affected personally. Will people lose lots of money like Northwest, TWA, ATA USAir(lines) and the like? NO! I even have to pay it all back, unlike all the idot companies above.
Now do I want to pay these cronies until i'm 58? NO! it's unrealistic. I'd pay them over 8 times what I owe. So this leads to yet again..no other choice. Yet with this new bankruptcy bills ALL MY CREDITORS WILL GET WHAT IS OWED. . Let me repeat that. They will get every dime from today of what I owe. NO, there will not be anymore interest accrued, but they will get what is owed to them right now. Honestly I'm happy that they will get their money, I didn't want to NOT pay back, it was the situation that I couldn't! with the MINIMUM payments going up, interest rates, etc, it got so disposable income was LESS than what the minimum payments were. Doesn't take a math whiz to figure that one out - it's no-can-do. Negative equity.
A portion of the bill that is under fire is the "test" that is to be administered to would-be bankrupt individuals. Democrats argue that the test fails to look into unforeseen reasons for debt.
IT Does! I'm basically being put on the same program that someone who ran up 20K in plasma TV purchases would be put on.
Due to the fact that I "pass" the means test (which, in this fine state f MO means a couple making $40,001 is considered "fine" to not file Chapter 7 (true bankruptcy) and must file Chapter 13 (repayment)
Also remember I'll get the blemish of "bankruptcy" on my credit report when in fact they will got all their money back (minus future interest).
Fine and good, no more credit ever. It's to the old fashion way of save and spend. Maybe bUSHco should take that approach too. And we'll all be better off in the long run.