Debt matters

madlilnerd · **Wed Jul 19, 2006 4:33 pm Debt matters**

Recently, on TV, there has been an increase of adverts saying that a loophole in the law allows you to cancel out any debt you've aquired from credit cards, loans etc. It's like declaring bankruptcy, but you don't have to be a business to do it.

I personally think that this is ridiculous! It means that people are no longer responsible for their financial actions- anyone can take out loans and loans and credit cards, spend spend spend and then just cancel this "unaffordable debt". What happened to responsiblity? If someone gets themself in debt by buying things they can't afford it is their own fault and they should have to suffer the consequences.

Thoughts and comments?

jonathan95 · **Wed Jul 19, 2006 5:18 pm Re: Debt matters**

squiggy · **Wed Jul 19, 2006 6:22 pm**

It should also be pointed out, that in canada, and possibly the US:
1)You don't NEED a business to declare bankruptcy.

2)If you DO abuse this "legal loophole", you must sell off anything of real value, including houses over a certain set price, vehicles over a certain set price, and practically anything not work-related, or co-owned with someone else.

3)Abusing this "legal loophole" has a few OTHER detrimental things to your future.

A: Your credit rating becomes a negative number. Think this isn't possible? It is. This means: No credit cards will be approved, no Pay-Day loans will be aproved, You can't even get three words of any pay-monthly car agreements written out, and lastly, Some banks may even refuse service to you.

B: Some Credit agencies require that you make minor-payments to the companies you owe money too. Also, if you do not finish this process by the time any said companies discover you are going through this process, they can sue you for some form of fraud or another, and regardless of wether or not you finish out this process, you will STILL have to pay the companies. It should also be noted that, as these are a matter of public record, any OTHER companies are likely to be notified of this law-suit, and launch one of thier own. This may actually cause the person to owe MORE money then they originally did.

C: If your home, or car is to expensive, guess what? YOUR HOOPED! You have to sell it. That's right. BY LAW you are required to sell any thing over a set limit for it. This money is then available to replace this item with a cheaper version of it, and, BY LAW, the remaining money must be divided between these companies.

D: You may get royally shafted on this. If your debt is BELOW a given amount, instead of just comming out of it scott-free, or almost scott-free, guess what? YOUR WAGES GET GARNISHED UNTIL YOU PAY IT OFF.
Think about that for a minute. If your working for minimum wage((8.00 in canada)), and you are having problems making ends meet, what happens when a company takes TEN PERCENT of your wages until you pay it off? That's like living off of SEVEN TWENTY an hour. Good luck with that.

E: This process also includes approximately 13 pages of additional tax claim paperwork. That's right. NOT ONLY YOUR WAGES, but YOU TAXES RETURNS may be GARNISHED or COMPLETELY TAKEN AWAY!
I know my tax bonus cheques tend to go practically directly into my vacation fund, and, this year, my laptop.

D: One last interesting thought for you: RRSP's, and the like. People accumulate this money, however, if you file for bankruptcy, and have over 2500 dollars stored up, guess what? You have to use that money to help buy your way out! Retire at Fifty? Not so likely.

In the end, the ends are often not worth it to the person using them as the means in which they have to do it. Anyone thinking about this, beware. It's not all fairytails and flowers.

jonathan95 · **Thu Jul 20, 2006 4:43 am**

yer declearning bankrupcy isnt the easy way out but a lot of people only get told have the facts about going so it doesnt sound as bad in the last few years the courts have seen a dramtic increase in the number of non buisness people seaking bankrupcy.

I am trying my best to ovoid this option myself.

madlilnerd · **Thu Jul 20, 2006 5:13 am**

jonathan95 · **Thu Jul 20, 2006 5:27 am**

yer I hate those people who go oh I am in debt,

I have a sports car a hudge house tones of money but I wasted it all and didnt pay it back cas I am too lazy those people make me anoyed, that they can waste it then say woh is me,

PrankishSmart · **Thu Jul 20, 2006 6:06 am**

I agree with Jonathan's comments.

I think in those situations the people who racked up the bill should legally contribute to paying off the bill. Is there some record they were living at the premises at the time.

madlilnerd · **Fri Jul 21, 2006 8:34 am**

I go round people's houses and they have all this pointless material stuff- big car, huge television + satellite Tv, 3 or more computers- and then they go on and on about how they can't afford the monthly repayments.

I ask them why they don't just give up some of their material goods, and the reply is nearly always, "But we need it...". NEWSFLASH- television is not a human necessity!
They just go on spending, get themselves in deeper debt and teach their children bad money habits.

Otter · **Fri Jul 21, 2006 8:47 am**

yeah, it's a mad world.. people spend way ott.

squiggy · **Mon Jul 24, 2006 10:39 pm**

I learned alot helping my dad do the paperwork for his bankruptcy 2/4 times, lol...
anyways, I happen to think that the way some people spend money... is crazy.
My sis's friend works for 6 bucks and hour and decided she needed to by a 500 dollar cd player.
What the heck?

madlilnerd · **Tue Jul 25, 2006 5:40 am**

Exactly. I hate it when people feel they have to have the best things. Like people who work minimum wage but buy their kids I-pods and the latest mobile phone and games console. They need to learn to say no to their children.

Theresa · **Sat Jul 29, 2006 11:40 pm**

I hate it when people use a handicap as an excuse to not get a job, live off the state/government, and rack up the bills.

For example. I know someone who pops the kids out one right after the other. They get more and more money each time. They don't pay for their housing, their food, and get about $8-9000.00 a month. And to top it all off, at income tax time, they get a HUGE refund. Guess how much they had to pay in in taxes? If you said $0, move to the head of the class.

And having a disability like dyslexia, etc... shouldn't keep you from work, either. "That job is beneath me." When you aren't making any money, no job is beneath you.

And to make this little rant have to do with debt, people like me who bust their asses at work have to pay for all of this crap, and have to go into debt to get necessities, while lazy ass people sit at home w/ their plasma tvs, etc... and complain.

I love welfare. Get a damn job.

*I'm not knocking real disabilities that do stop you from working, either. But not being able to spell counting as a handicap? Come oooooooooon.

madlilnerd · **Sun Jul 30, 2006 3:57 pm**

Lord Borg · **Mon Jul 31, 2006 12:46 am**

It's a two way street. Debt is drowning a LOT of people, and it isn't always becuse people work and others don't, or vice virsta. However, you ARE right. There ARE people that all out refuse to get a job, while the people that work are counting pennies for soda and one dollar burgers from McD's, you have people on welfare sitting down to steak dinners. /grumbles

madlilnerd · **Mon Jul 31, 2006 7:06 am**

But it is hardly surprising that everyone's in debt? Just look at the world we're presented with- you sit down and watch a kid's TV channel and just see how many adverts are on there. That's wrong. It should be illegal to brainwash kids from a young age into wanting overpriced pieces of garbage. The advertisers are clever- they put them out 3 or 4 months before christmas, so that children can say "But I've wanted that for ages!" to get their parents to buy it for them.

I haven't currently got a job. And yes, I should probably get up, resign to the fact that I need money and go and get a Burger King uniform. I mean, I'm selling loads of my stuff on ebay (but I can't for more than a week because my dad has taken the digital camera away with him to scout camp and would you buy something without seeing what it looked like?), and I'm trying to start up a company, but I guess I'll just have to swallow my pride and learn to flip burgers.
Which is gross, because I'm vegetarian.

Theresa · **Mon Jul 31, 2006 8:52 pm**

I've decided to only get one credit card, and that is for travel only. Everything else I can pay for up front, or I don't need it.

Starbuck · **Mon Jul 31, 2006 9:02 pm**

Whatever happened to the good old days when we all fought for every single we had? Credit card companies make it too easy for us to forget that we need to fight. While its true that having a credit card can improve your credit score, you have to use it right. You can go spend thousands and then make the minimum payment, thats a one way ticket to more debt than you can handle. People need to stop living beyond their means.

madlilnerd · **Tue Aug 01, 2006 6:33 am**