The Case for Walking Away

You have got to be kidding me!!!! This mentality is EXACTLY what is wrong with our country today. I worked in a Social Service positon for five years serving people who wanted something for nothing. My conscience finally caved and I couldn't take it anymore because I saw first hand exactly what my tax dollars were paying for. Personal financial disaster is one thing, lack of backbone, ethics and personal responsibility for yourself is totally another. I work everyday to provide for myself, knowing that I will likely live from paycheck to paycheck like many others in our country do. I stuggle at times, but I pay my bills because I know I chose to acquire the debt. This approach to spending is exactly why my bills are higher each month. I am paying for the irresponsible actions of others because SOMEONE has to foot the bill. Absolutely astounding that this kind of crap even gets published on the internet or anywhere else!!!

Has anyone that is reading this post ever filed bankruptcy on past IRS debt? If so, which chapter and were there any particular stipulations?

Sometimes the truth is too bitter, but you should accept reality and learn to digest it !!

The banks that took bailout money were all technically bankrupt. They were saved from the unpleasantness of going through bankruptcy by their friends in the government.

I do not know how they can now get on their high horse and tell the people how bad they are for filing bankruptcy. These financial institutions are absolutely hypocritical. They leveraged themselves far beyond any house flipper; they spent money on bonuses and entertainment that would make a neer-do-well consumer blush. Now they want to act like puritans who are hurt by the idea that a consumer might declare bankruptcy. Screw them.

I have never posted a comment on a site like this until I read this topic.
I have never been an advocate of bankruptcy; I feel bankruptcy is what people use to get of their responsibilities. When the going gets tough they say "Oh well, we'll just file for bankruptcy and start all over" I believe we are responsible for our actions and should be held accountable for them. I use to teach personal finance some years ago. I worked with families to restructure their spending and get back on track. I would have a wife sitting across the dining room table from me in tears asking me what they should do. It was pretty obvious to me what the problem was seeing a new Lexus in the driveway, all occupants of the household had cell phones with the 5,000 minute package and they had two satellite dishes getting 2,500 channels. Now I may not be a rocket scientist, but this to me is a no brainer. Oh, and did I forget to mention, every meal was ate out and not at McDonald mind you but a fine steak house. I know this is not the common scenario but it does hold many truths.
On another note let's take a look at the banking crisis or the lack there of. According to the tabloids the mortgage mess and increase in foreclosures are the reason for the downfall of the industry. Are you aware that according to Foreclosurehelpandhope.org that 1/2 of 1% of mortgages go into foreclosure, or as they quote "1 out of every 200 homes will be foreclosed upon" So if .5% of there loans go into default why are the losses so huge. Because there is more to the story than we are being told. I used to own a business of my own for over 11 years and not once did a loss of .5% of my customers result in a financial loss of 50% and require me to seek bankruptcy protection or a bailout from the federal government. Sure I had slow times in the business but I was intelligent enough to realize that when times were good not to go to Tahiti 3 times that year and not buy a new Ford 350 Powerstroke diesel for a company truck. The money would just sit in the account and build up and even collect interest. and when the times were tough my business would start to boom. Boom you say, what???s up with that. You see my competition were the ones going to Tahiti and then when the market turned down then couldn't keep there business going and would have to close their doors. Their customers still had a need and would come to me to get the product done, hence the increase in sales during a slow time.
We have become a society of "Look what I have" and not "Look what I???ve done and am." A persons future whether it be prosperity or bankruptcy is a series of choices we make each and every day. We have become a society of accepting failure as an option and do not promote self reliance and discipline in our daily language. We all have a choice to "Save for a rainy day" but choose the Ford F350 instead. I have no sympathy for people seeking bankruptcy prote

I have never posted a comment on a site like this until I read this topic.
I have never been an advocate of bankruptcy; I feel bankruptcy is what people use to get of their responsibilities. When the going gets tough they say "Oh well, we'll just file for bankruptcy and start all over" I believe we are responsible for our actions and should be held accountable for them. I use to teach personal finance some years ago. I worked with families to restructure their spending and get back on track. I would have a wife sitting across the dining room table from me in tears asking me what they should do. It was pretty obvious to me what the problem was seeing a new Lexus in the driveway, all occupants of the household had cell phones with the 5,000 minute package and they had two satellite dishes getting 2,500 channels. Now I may not be a rocket scientist, but this to me is a no brainer. Oh, and did I forget to mention, every meal was ate out and not at McDonald mind you but a fine steak house. I know this is not the common scenario but it does hold many truths.
On another note let's take a look at the banking crisis or the lack there of. According to the tabloids the mortgage mess and increase in foreclosures are the reason for the downfall of the industry. Are you aware that according to Foreclosurehelpandhope.org that 1/2 of 1% of mortgages go into foreclosure, or as they quote "1 out of every 200 homes will be foreclosed upon" So if .5% of there loans go into default why are the losses so huge. Because there is more to the story than we are being told. I used to own a business of my own for over 11 years and not once did a loss of .5% of my customers result in a financial loss of 50% and require me to seek bankruptcy protection or a bailout from the federal government. Sure I had slow times in the business but I was intelligent enough to realize that when times were good not to go to Tahiti 3 times that year and not buy a new Ford 350 Powerstroke diesel for a company truck. The money would just sit in the account and build up and even collect interest. and when the times were tough my business would start to boom. Boom you say, what???s up with that. You see my competition were the ones going to Tahiti and then when the market turned down then couldn't keep there business going and would have to close their doors. Their customers still had a need and would come to me to get the product done, hence the increase in sales during a slow time.
We have become a society of "Look what I have" and not "Look what I???ve done and am." A persons future whether it be prosperity or bankruptcy is a series of choices we make each and every day. We have become a society of accepting failure as an option and do not promote self reliance and discipline in our daily language. We all have a choice to "Save for a rainy day" but choose the Ford F350 instead. I have no sympathy for people seeking bankruptcy prote

Wish I would have read this article before I went through my 401K and IRA to save my home. I'm now divorced and the x is doing nothing at all about the bills we made together. I tried desparately to save my credit by paying off HIS overdraft fees (account was still in both our names), the doctor bills, the insurace--he forgot to pay, etc, etc, etc. I finally said enough, but not soon enough. I have no retirement and starting over at 40. No, its not the end, just a tough road ahead. I'm stuck and probably will have to file bankruptsy, but still trying to short-sale the house so I dont have to. My credit is now under the rock that is at the bottom of the ocean. Slowly rebuilding everything.

Well there are other options...everyone needing it should try to get their loan modifide by the lending institute..Some of them will work with you, or you can attempt a short sell, contact property investment groups or market it as such. If all else fails then you might look at re-grouping. Chapter 7 sometimes allows for you to keep your home, but with modified payments. Never give up until you have to. I am a single parent and have worked 2 jobs my entire life, since18, as a Real Estate Agent, I am presently working 2 other jobs...Please for your own sake, check out your options first!!

In reference to bdick's comment, I agree wholeheartly, only the goverment isn't going to do it! That would be to easy. But in all reality wouldn't it be nice if the goverment declared bankruptcy for each & every american, as well as any corporation, privaletly owened business, finacal instution, & the list goes on & on. The only ones that proberly couldn't be elimanated would be foreigh lenders, in which case we would still have to pay.. But com Monday you & I & everyone in these United States would be debt free, would start going back in the same day if we so chosed.
Sound farfetched ? That's what they did in biblcal days, they forgave your debts every seven years, that's where the Bankruptcy laws came from. So if God says it's ok, it must be O.K.

Wish I would have read this article before I went through my 401K and IRA to save my home. I'm now divorced and the x is doing nothing at all about the bills we made together. I tried desparately to save my credit by paying off HIS overdraft fees (account was still in both our names), the doctor bills, the insurace--he forgot to pay, etc, etc, etc. I finally said enough, but not soon enough. I have no retirement and starting over at 40. No, its not the end, just a tough road ahead. I'm stuck and probably will have to file bankruptsy, but still trying to short-sale the house so I dont have to. My credit is now under the rock that is at the bottom of the ocean. Slowly rebuilding everything.

WTF??? Are you kidding me? This article is horrible! I could have folded many times after being divorced but no I didn't do it. I worked my ass off to get back on my feet and came out a better person. What is this teaching America? Horrible.

I hope no one follows this advise and just gives up. If we, as Americans, do to credit what we've done to the housing market, and 20% - 30% of the people that owe money don't pay it back, we will be in even worse shape as a country.

We are the ones who decided to get the credit in the first place. It is up to us to pay back what we have borrowed! The advice here will be the reason why I will never turn on the news at the end of the day. They are the majority of the reason we are in this mess in the first place.

Most of what we are seeing here is media driven. If everyone was just to do their part to make it better, instead of listening to the media give us a half-witted synopsis of what "you" the media feels should happen, we would be better off as a country. Until this is realized, we will always be in this situation. Sometimes its better to keep your opinions to yourself.

This WILL be the last story I will ever read from this columnist.

I am one of "those people" with A TON of medical debts. You really should not judge people unless you have walked in their shoes. I was doing very well until my husbands job was eliminated by downsizing and we have a very sick child. I am still trying to get by and he has just recently gotten a new job but the insurance has a high deductible and the pay is considerable less. I am working 3 jobs right now and we will never be able to pay off the hospital bills incurred while my husband was unemployed. Never in our lifetime.

I am one of those with A LOT of medical debts. Those of you who aren't where I am should not try to judge until you spend a week in my shoes.

In fractional reserve banking, banks lend 10x the amount of money they have on deposit. Therefore the money does not exist. They create it out of nothing!!!!! Wanna know why the republocrats are bailing out banks and not the prople??? Because they are all bought and paid for!!! or they are stupid or afraid to buck the establishment. Of course this wouldn't be a problem if the average American had any clue of how our monetary system works. Its a big pyramid scheme designed to make those at the very top (Rockefeller, Rothschild, etc) very rich!!! Something tells me that when people talk of spreading wealth, were not talking about the real wealth!!

Newsweek should not support BK, they need to print an article on the effects of people playing the system. My wife's ex is on his third, yes third, BK, I don't report him because of my stepchildren. He does exactly what the article says, maxes out his credit cards, buys new cars, travels, toys..ect, then hits the reset button and lives on cash for a couple of years. When BK is promoted by Newsweek it is no wonder why our society and children think it is OK. Newsweek, it is just wrong.

Well, it has been fun,
Now back to work- I am self employed- maybe.

Mr Obama I am waiting for my stimulating check?

I wrote last night on this subject, BK laws need to be changed to where a person allowed to file BK should only be allowed for health and safety reasons and when back on their feet, they repay the system. The BK reset button just pushes peoples bad decisions onto others. Using other bad acts in society for an excuse is just that, an excuse. Remember, there is only one person looking back at you in the mirror, do you want to turn away in shame?