Rumor has it that uber considered filing bankruptcy back when worksmarternotharder first tried uber

 

Bankruptcy is a path. No credit for 7 years though.

 

At first, I thought after you declared bankruptcy they are just going to let you go financially free. But no....

Chapter 13 is basically a payment plan. Chapter 7 is you have to forfeit property/assets but the record will stay in your credit report for 10 years.

Basically, you will have trouble renting an apartment and borrowing/financing/mortgaging $$$ for 10 years.

This is the problem with capitalism.. They want you to have a borrowing mindset and to work as a slave for life to pay it back.

The only good thing I like about capitalism is the stock market---that is where the $$$ is at.

 

Chapter 7 is when faking your death and starting over on a fake ID seems like a good idea Vs actually fixing your finances.


Chapter 13 is for negotiating a payment plan on your debts.

Both should only be done if it's going to take substantially over 10 years to fix your finances.

 

Chapter 7 is when faking your death and starting over on a fake ID seems like a good idea Vs actually fixing your finances.


Chapter 13 is for negotiating a payment plan on your debts.

Both should only be done if it's going to take substantially over 10 years to fix your finances.

Both options sucks. And you also get hit with a huge credit score drop.

Bankruptcy will make you sacrifice a few things such as wage garnish.. if you are rich you have to sell your mansion to pay off debt.... It is not a free walkaway.

 

Actually, by the time a bankruptcy is finalized, credit scores are already trashed so badly that the additional BK report doesn't lower the credit score that much more. In fact, I've heard that some people have bounced back with credit scores fairly quickly after bankruptcy.

 

I think it was the GREAT Bernie Mac that told a story of a "friend" who was 8 months behind on his mortgage payment and asked Bernie for help. Bernie replied "8 months! motherF...er you should have asked me when you were 1 month behind." Your choice of profession has no bearing on whether you go bankrupt. Uber driver or CEO of a major corporation anyone can fall into it. Sometimes it's self-inflicted by living beyond their means and other time outside factors and bad luck or health issues can put you there.

 

In fact, at the corporate level, many times bankruptcy is used as a strategic tool for debt control.

 

Actually, by the time a bankruptcy is finalized, credit scores are already trashed so badly that the additional BK report doesn't lower the credit score that much more. In fact, I've heard that some people have bounced back with credit scores fairly quickly after bankruptcy.

I stand by the statement that Chapter 7 should only be used as an alternative to faking your death and starting over.

Both options sucks. And you also get hit with a huge credit score drop.

Bankruptcy will make you sacrifice a few things such as wage garnish.. if you are rich you have to sell your mansion to pay off debt.... It is not a free walkaway.

Garnishment is just a court-ordered payment plan.