Bankruptcy question

[abelenkpe]

My parents filed for both personal and business bankruptcy last year. They still have timeshares, go on vacations, have bought new cars, bikes for the grandkids, and are remodeling their home. They literally have given up nothing. Meanwhile two of my cousins also filed for bankruptcy last year. Both of them lost their homes, their credit cards and much much more. My parents owed much more than either one. Are there different kinds of bankruptcy?

[GreenPartyVoter]

1. Yes, there are different kinds. We were able to keep our home and cars (and kids!) when

we filed.

[abelenkpe]

4. Well that's good!

Wouldn't want to lose kids :)

[HopeHoops]

2. Your parents probably filed Chapter 13 - means they'll pay back on an agreed schedule.

Chapter 7 is more risky - they can seize assets, but it wipes the dept and the credit record leaving only the fact that you filed bankruptcy.

Chapter 11 is more of a business thing and I'm not that familiar with it.

[abelenkpe]

5. Think you're right

They keep mentioning some balloon payment thing. I think my cousins must have done chapter 7.

[RebelOne]

3. I have filed both Chapter 7 and Chapter 13 bankruptcies.

I did not own any property, so that was no problem. I had to give up all credit cards whether they had balances or not. I was allowed to keep my car which I was still making payments on. I just had to reaffirm the car loan through the court. Chapter 7 wiped out all my debts. But with Chapter 13, I had to make monthly payments to the court. That was taken directly out of my paycheck. I couldn't file another Chapter 7 because my monthly income left me with extra money after all bills were paid. Fortunately, I was working and collecting social security, so it didn't hurt me too much. That's why I will never have another credit card as that's what got me into trouble both times.

[abelenkpe]

6. Yeah, I thing those things are designed to get everyone in trouble!

I have one, cancelled all others and still pretty much just use cash. It's much easier to keep track of things by taking out a little each weekend and sticking to that amount each week. Plus I think it helps my kiddos understand money. When I say: "We only have eight bucks, what can we get with that?" They actively take part in budgeting and negotiating together what we'll spend our dough on. Thanks for the info!