The Case for Walking Away

Banks not playing fair?
You borrow money with terms and conditions. So when the terms are not favorable to you they are not fair?
Oh- and if you realy don't like the terms file BK and get the last laugh.

Response to Scott. You wrote -
"If you want to tell people to declare bankruptcy, then you should also write in the same article about how the laws need to be fixed and put in positive suggestions that will actually fix the economy, not put all of us in a worse position. How about allowing for mortgage issuers to immediately evict when you stop making payments and having the National Guard come in and move you out if you don't get out."
Where is the National Guard to arrest the Wall Street Criminals? Don't tell me that with all the SEC Regulatory Laws that they did not give materially false statements as to the sub-prime derivatives? Oh I forgot, it is only the irresponsible "little people" you want to persecute, not the "ruling class." In Hitler's Facist State the Capitalist/Industrialists ran the show, and only after they lost the war were they tried for their crimes at Nuremberg. Ben Stein summed it up: A Special Prosecutor in Manhattan 5,000 indictments to start. Then you can tell the little people of their irresponsible behavior, and have your soldiers execute their orders.

PUT ALL YOUR MONEY IN YOUR HOUSE BECAUSE THEY CAN'T TAKE THAT AWAY (YET)

DECLAIR BANKRUPTCY EVERY 7 YEARS. WALL STEET ARE CROOKS, BANKS, DOCTORS EVRYONE IN THIS PLUTOCRACY.

ARE WE THE ONLY ONES SUPPOSE TO BE MORAL? IF YOU ARE HONEST AND MORAL YOU FALL BEHIND

Excellent article. I was one of the unlucky ones who did not have proper counsel (I was constantly told that creditors had more rights over me in my bankruptcy - my was a Chapter 13) and whenever I had a question or complaint I had to tune a deaf ear. The company I had also owned filed for a chapter 11 due to clients not paying (a major bank in Ohio didn't believe paying on time meant paying on time) so the bank pulled the plug on me. Again, like rankozilla pointed out, some attorneys are not to be trusted - I learned the hard way. Most people don't want to file for bankruptcy - I didn't. When I showed up for my creditors hearing, the judge looked at me and said "well, you have little personal debt all business related." I was one who paid my way thru two bachelor degrees and worked three jobs to pay cash for my education (no student loans) and my Graduate program was also paid via cash and working two jobs. So, not everyone out there runs up credit cards and wants society to pay for it.

As for the bank who forced me and the company into bankruptcy? They admitted in court they were out to destroy me and the family business - all this is recorded in transcripts. My attorney's comment was "don't response or they may make your life hell.: They did - lost everything but they could not take my faith away.

If Bankruptcy is "all that", why don't we all do it? I'm struggling and working class and my gut says "hang on to that mortgage for your life". It's not just pride. The way my mortgage lender calls to sell me more loans indicates that pride and common sense are not relevant. My gut response informs me that long term, somewhere the road I would be sorry to have bankruptcy in my history. Am I a romantic fool?

Recent ecnomic sitiaution is forcing peple to foreclose their homes due to bad mortgage given by greedy mortgage people they were not regulated who give mortgage .Now the situation is so bad that the some people are just surviving tp pay mortgage .Again the modifiaction regulation by fedrral housing loans is wrong they are helping those who already behind mortgage but not helping those who got into this mess by greedy mortgage lenders at high mortgage rates they needs the most help to reduce their mortgage to standard minimum mortgage rate.

I am an attorney that has not been practicing other then "thin files" and pro bono work for the last ten years. After witnessing the latest "Wall Street Bail-Out" and the pious drubbing the CEOs of the Big Three Auto Makers by "Good Old Boys" Senators with regional interests, I came to a conclusion. The government, including the military, exists to protect the interests of the Wall Street Bakers and Financiers. In ancient Rome, 99% of the population was slaves, and NOTHING HAS CHANGED. Everything, including the last election is an illusion. Marcy Kapur on you tube gave a speech in the House of Representative that nailed it. Both political parties are bought and paid for, otherwise there would have been at least some questioning about the Trillion dollars (which we and our children are expected to pay) similiar to the "show" done on the Big Three. The Big Three have to grovel for a mere 15 Billion. The contempt Wall Street has is evident, no disclosure about how they spend the money! Sufficed to say, I no longer believe Bankruptcy to be a discgrace, but a badge of honor. I believe it is no longer just a financial legal decision. Instead I believe it to be a political statement. In fact the credit card companies target 86% of discharged persons for more credit within one year. Sooner or later average people will wake up, they need us more then we need them. We are the galley slaves that pull the oars, and without us the ship stops. I am going back into practice to handle only consumer bankruptcies. I live in Michigan, and I am going to do them cheap and some FOR FREE. This is the BEST use of a law license. God Bless you all.

It's not "humiliating even to consider bankruptcy" - when credit cards double the interest, without cause. It's not "humiliating" when your employer says that we have to let you go, then in the new papers states that "though the company is not having difficulty, it is the prudent thing to do..." It's not "humiliating" when perspective employers don't even bother to return phone calls. It???s not ???humiliating??? when your house is devalued below what you owe on it. It???s not ???humiliating??? when the bank raises the ???credit score??? requirements to 740; when they are sitting on billions of taxpayer dollars. The writer of this article needs to get a little perspective.

Bankruptcy should always be a last resort. What gets my goat are the people who abuse the system by purposely NOT looking for work so they can suck up unemployment at the taxpayers' expense. There is something wrong with a system that encourages freeloaders to sit on their a**es and do nothing because they can only find a job that would pay as much or a little more than the unemployment they are receiving. Unemployment should be used only by and for those who are actively seeking employment. WORK is about more than just making money! And unemployment should be used on those who are truly in need.

If you bought "stuff" and spent money that you had to borrow, and have insufficient savings to weather what has do far been a short downturn (unemployment started edging up only in the past 3 months) and are considering bankruptcy then you should be ashamed.

Government should help those who are surviving and holding their home mortgage not those who are already late in payments..Modifiaction of loans should be offered to those who are not late in payments and cut their expnses to minimum to save their homes. Bankrptcy is not the solution for those who are surviving and current in their payments they need more help not to let them drown . Saeed Sheikh

What if every one that has very high interest rates on there credit cards( no fault of their own) stopped paying for 3 months ( boycott) the b........? I would do it , I have a good credit rating, to prove these companies do not have all the power! Will Obama help?? I doubt it.

We the Regular Jane's and Joe's of America have to pay our bills are file for bankrupcy, so why doesn't the Government make the Banks, Automakers pay theirs.or go belly up. The regular citizens weren't given any help with an influx of cash to start over like what the government did with the Big companies. To resolve this bad economy "EVERYONE" should be given a clean slate (Wipe their debt clean and have to start over from scratch with a clean slate. Yes they should have NEVER - EVER allowed the banks to be able to rewrite the bankruptcy laws too their benefits.

Did someone say free money?! Oh, I am sooo there!