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« You Don't Have to Make a Fortune to Become Rich | Main | Thoughts from House Hunting »

November 21, 2007


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Sometimes bankruptcy really is the best option. For example if you are middle aged or older with debts that are multiple times your income, (i.e. you will pretty much never pay them off) then declaring bankruptcy is probably best.

I'm thinking that the point at which it is a better solution probably means that under the alternative, you are likely to suffer adverse consequences anyway.

Man, I would never cave like that. I would sue the company that did not discharge the debt.

Yes, in fact you can recover damamges against both Capital One and the credit bureau, because it's obvious they did not investigate when the credit report entry was disputed. Wachovia might bear some responsibility too, as the bankruptcy paperwork should have proven the debt discharged, and they should have accepted that as proof.

But the overall point is valid - if avoidable, stay away from bankruptcy or anything that will harm your credit. When lenders see that, they get big dollar signs in their eyes because they can charge you more interest, even if the event was a long time ago.

The rest of the story is that Capital One repaid the guy his $9,523, and another $14,000 in fines and legal fees on top of that.

I'm really not familiar with bankruptcy law, but how does a factory worker who's bankrupt in 2002 manage to get a $275K mortgage in 2003 (not to mention having $9,523 in spare cash laying around to succumb to CapOne's extortion)--is that a remnant from the heyday of subprime lending or is that par for the course even today?

That story sounds pretty shady for the reasons Mel pointed out. Doesn't really sound like this guys bankruptcy affected him all that much.

I want to focus on how factory worker buys an almost $300k house a year after bankruptcy. I have a combined income well over 100k and I wouldn't dream of having a mortgage that big.

All he would have had to do is dispute it in his credit record and when they couldn't reestablish it, it would be stricken from it.

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