The Case for Walking Away

teacher, unemployment does not incur debt...only people incur debt...

Instead of some slick talking no experience "change" crap we needed someone to run on a platform of "Changing America Back". I don't think people get it when they see our goverment (both Bush and now Obama) spending like drunken sailors. We need to get back to having morals/values/discipline/RESPONSIBLITY!! Our goverment is failing us. Too many Americans are clueless in what's going on up in DC. We do need a grass roots effort or a succession from the union.

While I agree Bankruptcy is a great vehicle, it is not the answer until you exhaust all other avenues. I help people save their homes, assets, and cut their unsecured debt most times by 50%. This system takes 12 to 36 months. Bankruptcy 7 to 10 years. Bankruptcy also hurts small business. Vic

While I agree Bankruptcy is a great vehicle, it is not the answer until you exhaust all other avenues. I help people save their homes, assets, and cut their unsecured debt most times by 50%. This system takes 12 to 36 months. Bankruptcy 7 to 10 years. Bankruptcy also hurts small business. Vic

I take exception to Ms. Quinn's comment about using credit cards prior to filing bankruptcy. If you know that you're going to file bankruptcy and use credit cards up to it anyway, the bankruptcy may potentially be denied. At the very least charges up to a certain time frame may not be allowed to be discharged in the bankruptcy.

Normally I respect her opinion on most things but on this she is either misinformed or not aware of the consequences of charging up until filing bankruptcy. Frankly, I feel that it would show a lack of character to charge knowing that you can not pay it back. Which has unfortunately become common in this country.

Just a thought since the oil companies had a record year....maybe they should be made to help bail out the car companies. It would be in their best interest. Imagine the possibilities. Detroit could use the help along with the rest of the companies that depend on them. Maybe we could save some jobs.

nunyabizziness....You are absolutely right. We sold the American dream and we are paying for it. I say get the manufacturing companies going, tell the banks to renogotiate these loans for everyone, and lets get rolling......I still believe we can come out of this.

I can't believe what I just read!! BK was created to help certain debtors experiencing financial difficulties beyond their control. Debtors should always try to the very end to satisfy their obligation; even if it means using "exempt assets" to accomplish. Indescriminate use by consumers to avoid paying debts they voluntarily took on only serves to weaken the already fragile financial system. BK doesn't just "stiff" the lender, it drives up the cost of credit for everyone. This situation is simiilar to healthcare in that the uninsured (borrower filing bankruptcy) means that those with insurance (the financially responsible borrower) are left to cover the overhead , write offs and profit requirements of the lender. And, in extreme circumstances when the paying population isn't sufficient to cover all of those costs, the American taxpayer is asked to fill in the gap.

So rather than giving your blessing and advice for people to start the new year off with a fresh, brand-new BK, you'd be better off serving your readership with more sound advice like don't borrow or over extend yourself to the point where you can't weather a financial storm. How about starting the new year off with a resolution to save 10% of your income rather than spending money like drunken sailors??

I belive that you should be counseling people on their financials more than teaching them the cheap and easy way out. It is not fair to the creditor who lends out real money and has to take a lose because the debtor went hog wild on plastic cards!!! BK is like stealing.....

Wow. What about the that the money is owed to? As a small business owner I have been on the wrong side of the bankruptcy equation, having to write off people's bad debt. These are people to whom I have, in good faith, rendered a service with the expectation of payment. I think it is a slippery slope to make it socially acceptable to just walk away from your debt. Next time you write a column please consider self control, responsibility and frugality as possible topics.

if you think about it. the stimulus plan that is being proposed will go to building roads and such.. hmm how many born in the US workers do you know that can do that kind of work. so the unintended consiquence of this will be a disproportionate transfer of wealth to the illegal work force that help contribute to the downfall of our economy. and so we build new roads and bridges... hmm to were... all the factories have gone overseas guys. so we need to stop our fixation on the woes of this economic mess and think hard about the best way out of this mess. a new polictical party.. working from the grass roots.. starting locally where we have a fighting chance... with our primary mission of re-industrializing the US and removing the illegal immigrants that are draining the economy.

Is it right to make students come out of college with $100,000 in debt? WTF? Then graduate school, how much? No the politicians have allowed the Education lobby and the Health Care Lobby and the Insurance Lobby destroy the American Dream. Government for sale, and now we pay the price. A good music video is titled "The Beast that Swallows It's Young. " http://www.youtube.com/watch?v=xtIM_TEQxwA

That's exactly right. I've personally seen thousands of industrial manufacturing jobs leave this country in the last decade. You never hear politicians talk about it unless it's a big company like the auto guys. We can't all work in the retail and service industries and expect to continue to maintian or even raise our standard of living. In trying to enrich other countries (MX and China primairly) to be able to afford more made in USA we've began to off-shore our wealth. We've lowerd the US buying power and shipped out many made in America products. My father and Grand father provided a decent middle inciome standard of living on these type jobs. We don't need more credit in this country we need jobs. Industrial jobs are the easiest and fastest way to get out of this. Does anyone remember how the US got to be the lone world super power --- The Industrial Revolution -- Manufacturing. High quality Made in the USA. It's why the world bought from us. When were broke (trillions in debt) and have nothing left to offer we will fail.

Wow! Ms Quinn, you sure stirred up a hornet's nest. I never thought I'd read an article by you that even mentioned the idea of declaring bankruptcy Imuch less commended taking action and gave good suggestions on how to save a home that is being devalued below the remaining mortgage balance. Credit card companies did manage to get bankruptcy made more difficult for individuals, but it is still do-able. Given all the handouts for the big boys, I see no reason Joe the Plumber shouldn't also get help.

carde98....I agree with you that the article should have presented more options to people. As far as the medical bills, my mother worked for a company that allowed her to pay for her medical even after she was not working. It was 450.00 a month and then went up to 670.00 a month. Since she could not work she went on disability. That gave her 600.00 a month....hmmmmm. I don't think you can do it. If you know how, then please share it with the millions of amercian people. Even for myself to keep my medical insurance on Cobra for 18 moths on the cheapest plan is 475.00. Now, if I go off of it I will have to pay more for independent insurance. That is for one person. When I asked for help with my mothers medical expenses through Welfare, they told me outright that they would not pay for her transplant and to keep her insurance as long as we could at the time. I watched a young girl die at the age of 20 because she was on Welfare and unable to afford what was needed to save her life. I am haunted by her image and dilema every day. Most people live paycheck to paycheck even without buying a house. Again, I do agree that there should have been other options for people. Websites, federal agencies, and other help in this article.

reality check161..... I was also taught not to spend what you don't have. To save up for a rainy day. My grandfather and father worked in the steel mills in Pittsburgh. The reality to that is that my father lost his job in the mills. They shut down. My grandfather spent the last 15 years fighting to keep his retirement plan and medical benefits after he retired. We did not live high on the hog, have big cars(most look like something out of a bad body shop...lol). My grandparents had a small home. We did not buy fancy things. I was taught to work hard and take care of your people. Sometimes things happen that are beyond your control. Losing your job is not necessarily the end, but during todays times it is devastating and within a year can drain your savings just to pay for the high cost of living. I don't think if you live in a mansion and have a bunch of expensive cars that you should file. I think you should start to cut back and do what you need to do, but I do agree that too many people do not live by the rules of my grandfather or your father. They could learn much from the people that went through the depression. Personally, I think we are in one. We just have better technology today.

dear cardee98 - I think you have a limited view of the total situation. I'm sure in some cases you are right. As human beings I believe we have a tendency to over simplfy things and we tend to think not beyond our own world. The truth is the world is much larger than our own. I can say I owe my situation to being in a profession that is on the front lines of this economy. I know several people with extroidinary experience that are in dire strats. Personally I never intended to spend twelve years in college - working part-time; going to school part-time - to have this happen to me. But it has. I am a licensed architectural engineer in Florida.

Bankruptsy does not cover bad checks, and with bankruptsy laws now different than they were say 8 years ago, bankruptsies may not stop the calls from collectors. I agree that people should not live beyond thier means, but let us not forget those who are currently in final stages of education that demand us to take full time internships that are un-paid requiring us to take out abnormally large loans to cover health, living, and educational costs. So not all this debt is, or should be considered bad debt.

Pre Service Exceptional Education Teacher in Florida