The Case for Walking Away

I think It's a great idea...... In fact I'm going to call a BK attorney tomorrow!!! Cheers

Horrible advice. Selfish and self serving. If you cause debt, you should repay it. This mentality is what will create a recession. Unbelievable.

I would only consider this as a last resort. Five years ago I filled for BK protection due to a divorce, loss of job and a severe medical condition at the same time. Before the BK, I held high level positions in sales management with a six figure income. Since most of my savings was distroyed by a greedy ex and her attorney, I really did not have any other choices. When I applied for new positions, I could not pass a background check due to the BK and was forced to accept positions that payed 30% of what I used to make. Employers do not seem to care about what happen.

Hopefully, this letter will help someone along the way.

BK laws need to change, those who take advantage of the system need to pay back the system. We cannot point at all that is wrong to justify our lack of responsibility. There is only one face looking back from the mirror, be proud, do everything possible before pushing your mistakes onto others. Don't point, don't make excuses, and let's change the BK laws to make it fair! Newsweek needs to stop reinforcing the easy way out!

I fully agree with loyal129. Yet, no, bankruptcy should never be used by each and every individual in this country. Yet, it is also a self-respecting tool as a financial clean up. My bankruptcy gave me the dignity through 4 years to realize that I could complete and clean the financial mess that myself, and many other factors created. Think of all routes before considering, as well as find a trusting lawyer. Be aware that there is a light in that tunnel. From ceditors viewpoints, too bad that 100% of Americans are not, and will never perfect through their lives.Be strong. Thank you Temma Ehrenfeld.

Agrees fully with loyal129
No, bankruptcy should never be abused and overworked by the moral majority. But, since life occurs, and a mere MANY of us are not perfect, it is a respectful way to 'clean up'. My chapter 13 is complete, and it has given me the self respect and dignity to know that there is light at that tunnel. Think hard though before attempting, and find a trusting lawyer.

I would have to agree with the author on this one. The economy sucks right now. As much as I believe in paying your bills, I have had too file once before myself. My reason: Identity theft. Even with the protection nowadays, it's a little easier for them to track people down and what not. I had this happen to me over 10 years ago- before I was 18 years old. I didn't find out about everything until about 2-3 years later. These people got and apartment in my name, defulted on the lease, cell phones, utilities, etc. I found out when I moved out of home. When they ran my credit- all of the people wanted to collect for something I hadn't done. Can't file a police report 2 years after the fact... Try it...The police look at you like your stupid. After nearly four years still trying to figure out everything and trying to pay everything back that I didn't owe in the first place. It got old. I was engaged, in college, and was wanting to get my own house. Can't even do that when your credit sucks. I was even being harrassed by creditors at work. How embarrasing eh?! I needed a fresh start. I felt like bankruptcy was the only option, and at that time it really was. So- I did it and I don't regret doing it at all. I was able to rebuild my credit afterwards fairly quickly. It gave me a chance at life again. No ore busting my ass at the expense of someone else...just for myself and my family!

I would have to agree with the author on this one. The economy sucks right now. As much as I believe in paying your bills, I have had too file once before myself. My reason: Identity theft. Even with the protection nowadays, it's a little easier for them to track people down and what not. I had this happen to me over 10 years ago- before I was 18 years old. I didn't find out about everything until about 2-3 years later. These people got and apartment in my name, defulted on the lease, cell phones, utilities, etc. I found out when I moved out of home. When they ran my credit- all of the people wanted to collect for something I hadn't done. Can't file a police report 2 years after the fact... Try it...The police look at you like your stupid. After nearly four years still trying to figure out everything and trying to pay everything back that I didn't owe in the first place. It got old. I was engaged, in college, and was wanting to get my own house. Can't even do that when your credit sucks. I was even being harrassed by creditors at work. How embarrasing eh?! I needed a fresh start. I felt like bankruptcy was the only option, and at that time it really was. So- I did it and I don't regret doing it at all. I was able to rebuild my credit afterwards fairly quickly. It gave me a chance at life again. No ore busting my ass at the expense of someone else...just for myself and my family!

Allseeingeyeball, this country needs more lawyers like you. We are the slaves of the elite and once the majority of the population realizes this i believe we will have another civil war where the little guy gets even with his abusers.

americanrebel...Do you know who initiated NAFTA??? George Herbert Walker Bush, NOT Bill Clinton. The republicans backed it, and so did the democrats. The only one who opposed it, was Ross Perot during the presidential debates. The Washington culture of greed and eliteism under G.W. Bush, and the out-sourcing of U.S. jobs in Asia and India by huge American corporations have nothing to do with NAFTA. Should we end NAFTA? Yes! But not for any of the reasons you have mistakenly sited. We should require by law, any American corporation to pay the same wages to workers overseas, as they would pay here in the U.S. Then it would not be profitable for them to outsource, and it would save American jobs.

Bankruptcy is used by Corporations with bif and fat boardmembers and C.E.O.'s making mutli-million dollar salaries. The Government taxes the American public to death to pay the corporations those hefty multi million dollar contracts and $1,000 toilet seats for the Pentagon, $5,000 flashlights for NASA, etc... The little guy should never feel bad for filing bankruptcy!!!!!!!!!!!!!!! The government and corporations are ran by the greediest of all human beings, After all over 95% of politicians have law degrees. They are worse than your regular blood sucking lawyer because they don't even work as hard to earn an income. DOn't be ashamed of filing for bankruptcy because the C.E.O.'s don't!!!!!!!!!!!!!!!!!!!

Bankruptcy is used by Corporations with bif and fat boardmembers and C.E.O.'s making mutli-million dollar salaries. The Government taxes the American public to death to pay the corporations those hefty multi million dollar contracts and $1,000 toilet seats for the Pentagon, $5,000 flashlights for NASA, etc... The little guy should never feel bad for filing bankruptcy!!!!!!!!!!!!!!! The government and corporations are ran by the greediest of all human beings, After all over 95% of politicians have law degrees. They are worse than your regular blood sucking lawyer because they don't even work as hard to earn an income. DOn't be ashamed of filing for bankruptcy because the C.E.O.'s don't!!!!!!!!!!!!!!!!!!!

This is an article that needs to be known to the public. Sure it is wrong to max out bills and then go bankrupt. But, when your spouse is out of work and you make only enough for food, there has to be some relief for these people before they kill themself as many have chosen. Those that feel otherwise better be careful or bankruptcy could be knocking at their door. Be careful who you judge or you could be in their shoes. This article is great and brings relief to many that needed to see hope. You addressed it in the right way since you never stated anything about maxing out cards and then filing bankruptcy.

Sometimes life throws us more hard times then we can handle. I???ve repeatedly had to up my hours to cover shortfalls in my husband???s earnings as the manufacturing sector takes hit after hit which has made it all but impossible to maintain savings for any length of time. In 2007 I worked a full time job at a professional firm while still operating my business of one when my husband became suddenly ill and was on disability insurance for a year. Towards the end of that year I realized I was going to work myself to death if I kept up like that. I didn't want to uproot my family, or default on my creditors but what good would it do for me to work myself into an early grave? Still I forced myself to keep going. Just after my husband was cleared to work again but before he???d found a new job my body quit and I became quite ill I managed to keep my business running and just barely afloat as I battled a serious respiratory condition for over 4 months. Despite lingering health issues I have fought to keep our bills paid often pulling ridiculous hours to get jobs done just in time to pay my mortgage before it went 30 days late. I usually paid the price for my insane hours and became sick again. In mid October the economic slowdown hit my business with a vengeance when the turn around on my accounts receivable slowed way down. Since my business covers the majority of the bills we are in a dire position as we haven???t recovered yet from my husband???s disability and the associated costs. Like some other people out there I am also in a highly toxic relationship and I see the toll it is having on my children. My marriage is a joke and brings tremendous emotional pain on a daily basis, my spouse isn???t interested in therapy and I can???t fix it by myself. The truth is I should have left him years ago but didn???t because there wasn???t enough money to support two households (nothing fancy just the basics). It took the events of the last two years for me to finally come to the painful decision to declare bankruptcy and file for divorce. Some of the posters on this board are heartless and don???t seem to realize that people sometimes have to make a painful choice despite their best efforts to avoid it. I am an incredibly ethical person and usually I am proud of that but to honest I wish I had seen the cost to my family and made this painful choice years ago as it would have been less damaging to my children. When it comes down to it my kids are what really counts and I have to do what???s best for them. Please try to put aside your politics and the need to point fingers and try remember the importance of empathy. Many people are hurting try treating them with kindness which will brighten their day instead giving them a cold shoulder and adding to their hardship.

Bankruptcy is used by Corporations with bif and fat boardmembers and C.E.O.'s making mutli-million dollar salaries. The Government taxes the American public to death to pay the corporations those hefty multi million dollar contracts and $1,000 toilet seats for the Pentagon, $5,000 flashlights for NASA, etc... The little guy should never feel bad for filing bankruptcy!!!!!!!!!!!!!!! The government and corporations are ran by the greediest of all human beings, After all over 95% of politicians have law degrees. They are worse than your regular blood sucking lawyer because they don't even work as hard to earn an income. DOn't be ashamed of filing for bankruptcy because the C.E.O.'s don't!!!!!!!!!!!!!!!!!!!

4 dollars a gallon, taxes through the roof, credit card companies are legalized loan sharking, welfare the highest is ever been, I work 2 jobs and I am filing , and dont feel one bit guilty about it.

I have a real hard time feeling guilty about filing bankruptcy, gasolune companies pounded the working man with 4dollar a gallon prices, new york which has the highest welfare per capita in the country just put another 1000 new taxes on the working man, just to take care of the lazy man in the state, politicians all come out of office miiionares, credit card companies are nothing but legal loan sharks, and you think I am going to feel guilty about bankruptcy I think the entire working class should stop paying everything and start a trend .

one day my best friend took his son to get a check-up; and in 72 hrs his life changed forever! an otherwise healthy young man had a rare form of cancer. he looked and felt fine but in 14 months he was dead. it happened that fast. what did my friend lose?? everything! what was he left with? almost $200,000 in medical bills WITH INSURANCE! even with bankruptcy he still has a long way to go in rebuilding his life. all you people here pointing fingers with those "living within your means" ideals... you never know what hand you'll be dealt. the same thing could happen to you.