How Bankruptcy Works

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  • Опубліковано 19 чер 2024
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    SOURCES:
    www.experian.com/.../bankrupt...
    www.thebankruptcysite.org/exe...
    en.wikipedia.org/wiki/Bankruptcy
    en.wikipedia.org/wiki/Debtors...
    upsolve.org/.../chapter-7-ban...
    www.uscourts.gov/.../default/...
    www.investopedia.com/.../what....
    bankruptcy.findlaw.com/.../pr....
    en.wikipedia.org/wiki/Debt_bo...

КОМЕНТАРІ • 871

  • @izzy4reel
    @izzy4reel 4 роки тому +895

    As a bankruptcy attorney, this is one of the most accurate videos on bankruptcy that I have seen. Props to you guys. I would like to clear up a few points though:
    1) Student loans ARE dischargable in bankruptcy, though the criteria make it functionally impossible for the vast majority of people. (Look up the Brunner test)
    2) The bankruptcy exemptions in most states mean that the vast majority of people who file Chapter 7 keep everything after filing. Having filed about 2500+ petitions myself, I have had clients get assets liquidated only a handful of times.
    3) Tax debts ARE dischargable, both in Chapter 7 and Chapter 13 for most tax debts that are at least three years old, subject to a few fairly straightforward criteria.
    4) You can easily get credit cards and most other forms of credit right after bankruptcy. Like, right after. You won't get the best rates though. Whether getting back into debt is a good idea is a whole other matter.
    5) Chapter 7 is definitely simple and fast for most people. (Often under $2000 in costs and 4 months start to finish to wipe out tens of thousands in debt). Chapter 13 is far more onerous.
    6) While Chapter 7 is usually not too difficult for many people without an attorney, Chapter 13 is incredibly difficult without one. Having said that, you won't know if your case needs an attorney until you consult with one :) Most will do a free consultation.

    • @MusicalInquisit
      @MusicalInquisit 4 роки тому +57

      They should really pin this comment. This is gold.

    • @AndrewBrowner
      @AndrewBrowner 4 роки тому +22

      so wheres this free money coming from? is the govermenting paying the debts or are the companies you owe it to just taking a loss... say you sell someone a car and a year into payments they file bankrupcy.. so now you cant get the car back and they dont owe you a cent?

    • @izzy4reel
      @izzy4reel 4 роки тому +34

      @@AndrewBrowner bankruptcy renders debts uncollectible, so the creditors take a loss. In the case of a secured debt like a car loan, you cannot file bankruptcy to get rid of the debt but still keep the car unless you make payments for the car. The bankruptcy code has many provisions built into it to prevent abuse of the bankruptcy system.

    • @naveenkala987
      @naveenkala987 4 роки тому +11

      Looking for clients?😂

    • @npip99
      @npip99 4 роки тому +10

      @@AndrewBrowner This money comes from interest rates. Mortgages have a low interest rate because its very rare for them to file for bankruptcy. Credit cards have a very high interest rate because people fk up all the time with them. That's why when you have good credit or are part of a credit union, you get better interest rates, because the creditors can calculate the percentage chance that you'll go bankrupt and make adjustments if they think you're trustworthy.

  • @Rochelletrem
    @Rochelletrem 6 місяців тому +416

    Bankruptcy is a legal process that individuals or businesses can undergo when they are unable to repay their debts. It provides a framework for financial relief and a fresh start. There are different types of bankruptcy, such as Chapter 7 and Chapter 13 in the United States, each with its own rules and implications. Bankruptcy can have long-term effects on one's credit and financial standing, so it's essential to carefully consider the decision and seek professional advice when facing overwhelming debt.

    • @ilyaveysman.
      @ilyaveysman. 6 місяців тому +5

      I believe that there are techniques that can be implemented for consistent returns regardless of the state of the economy or the market, but advisers or investment gurus with experience after the 2008 crisis often carry out such implementation.

    • @AbdoolLogodesign
      @AbdoolLogodesign 6 місяців тому +3

      The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, invt-advisors are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded nearly 300%, summing up to 7-figure as of today.

    • @Jessicahensley.
      @Jessicahensley. 6 місяців тому +3

      @@AbdoolLogodesign this is huge! think you can point me towards the direction of your advisor?

    • @AbdoolLogodesign
      @AbdoolLogodesign 6 місяців тому +3

      I've shuffled through a few advisors in the past, but settled with 'Julie Anne Hoover' her service is exemplary and she's a genius in portfolio diversification. I'd suggest you research her further on your browser, sure you'll find her basic info.

    • @Jessicahensley.
      @Jessicahensley. 6 місяців тому +2

      ​@@AbdoolLogodesign Appreciate this recommendation, hopefully I can get some insight to where the economy is headed and strategies to beat inflation with when I hear back from Julie .

  • @dylanpierce1419
    @dylanpierce1419 4 роки тому +1413

    I love watching the one that's not talking when they're both on screen. It's endearing and awkward.

    • @tommygannett3217
      @tommygannett3217 4 роки тому +25

      I Know right

    • @emilywilliams8447
      @emilywilliams8447 4 роки тому +31

      Glad I'm not the only one 😂

    • @ChonyiR
      @ChonyiR 4 роки тому +30

      why did i only just notice this 😂

    • @SuicideBunny6
      @SuicideBunny6 4 роки тому +11

      Literally what I've been doing during this video.

    • @therealpaulreiser
      @therealpaulreiser 4 роки тому +18

      I've never noticed that before... and now it's the ONLY thing I notice!

  • @steveantonioni
    @steveantonioni 4 роки тому +646

    Everyone: Files Chapter 7 or Chapter 13
    Michael Scott: "I DECLARE BANKRUPTCY!"

  • @CarlosPerez-hl6hc
    @CarlosPerez-hl6hc 4 роки тому +1926

    Damn being a student in the US is almost financial suicide.

    • @jjohnston94
      @jjohnston94 4 роки тому +194

      It happened within not my lifetime, but during my career. When I went to college, tuition was $600 a semester. Now I hear about students with $100,000 debt and they're not doctors or lawyers. I'd wonder what happened, but I know full well.

    • @sherlytanco2835
      @sherlytanco2835 4 роки тому +103

      True. I wouldn’t dare to go to college in the US. Slavery is all i see.

    • @Watch-0w1
      @Watch-0w1 4 роки тому +45

      I blame all those fake colleges. Don't ever trust anything if it sound easy. I learn that the hard way.

    • @lang8097
      @lang8097 4 роки тому +23

      I was going to argue but I guess you're right. No matter the major you go to, nothing is guaranteed.

    • @kasomoru6
      @kasomoru6 4 роки тому +3

      @@don1041 get out while you can!

  • @stevenaziz
    @stevenaziz 4 роки тому +461

    “If there were onnnnly a place to learn these lessons BEFOREHAND...” lol what a savage 😂

    • @kasomoru6
      @kasomoru6 4 роки тому +27

      Sounds like an idea called school, but why would they want to teach us there?

    • @JoelJames2
      @JoelJames2 4 роки тому +18

      What's that? I can't hear you over this performing arts class I'm required to take.

    • @MicahBuzanANIMATION
      @MicahBuzanANIMATION 2 роки тому +2

      @Brent Janney The government knows it, everyone knows it. Some schools are better than others. My public school was pretty good, but most importantly we now have free resources like educational youtube channels that can supplement sub par school experiences.

  • @xhuang101
    @xhuang101 4 роки тому +400

    Whew, student loans are becoming overwhelming. Luckily I can file for bankrupt.... wait a minute....

    • @3DPT
      @3DPT 4 роки тому +25

      Yeah, about that,... student loans have you by the balls until death. Literally. The only reliable discharge is coded 3dn for death of borrower. Bankruptcy just holds your loan (which still racks up interest daily) while you deal with the courts... i serviced loans, and i saw people in ch 7/13 double the amount owed while they were in court...man were they surprised when they came out of Ch 7/13 only to find out that student loans were worse then before on top of the cluster fusvk bankruptcy just did to them.

    • @mycelia_ow
      @mycelia_ow 4 роки тому +7

      @@thenetgamer2 or just change your identity in a first world country. Go to Sweden and look on the deepweb for fake birth certificates and citizenship

    • @thenetgamer2
      @thenetgamer2 4 роки тому +1

      @@mycelia_ow I'm not even doubting you, and that's sad; Sweden...

    • @chris0000924
      @chris0000924 4 роки тому +3

      Thank the Clintons

    • @gabrielbarrantes6946
      @gabrielbarrantes6946 3 роки тому +1

      Get a useful degree and stop crying, fuking blues

  • @bigwheelfromspidamahn1037
    @bigwheelfromspidamahn1037 4 роки тому +205

    “I declare *BANCKRUPTCYYYYYYYYYYY*”
    “That’s not how it works you can’t just say it”
    “I dint say it I declared it”

    • @anthonydalton6054
      @anthonydalton6054 4 роки тому +2

      I did use the services of a programmer called Michael Gibbs from Credit Patch Up LLC to get rid of bankruptcies and hard inquireis off my credit report and my score was also boosted to 790+ within few days. You can get to him via [Gibbs@creditPatchup.com] if you're in need of any credit help or advice.

  • @Luxyglamlife
    @Luxyglamlife 4 роки тому +48

    I filled for chapter 7 bankruptcy in 2013 and a year later I was able to get a loan on a car for 4,000. I was also able to get a few credit card starting at $300. I made my payments early and paid more than the minimum. Now my credit score has tripled from 420 in 2013 to 736 in 2019. My credit limit on my cards are extremely high. Higher than ever before. I think it was a very wise decision. I’m so much better at budgeting now , I own stocks and I’m saving up to buy a house in 2 years.

    • @studioq4560
      @studioq4560 Рік тому

      interest rates go brrrrr

    • @killermogle
      @killermogle Рік тому

      Even though this is three years old, taking on record-high levels of housing debt after filing for bankruptcy doesn't seem like the best move.

    • @Floyd_Steel
      @Floyd_Steel Рік тому

      What if you do this but you have a lot of student loan debt, Can your score still go up?

    • @amaninawhale8061
      @amaninawhale8061 Рік тому +5

      Tripled would be 1260 and doubled would be 840.

  • @Spondre
    @Spondre 4 роки тому +156

    Having been involved in one personal bankruptcy, two as an employee and multiple times as an investor I can say that a good bankruptcy lawyer on your side is worth their weight in gold and a bad lawyer on the other side is worth twice as much.

    • @ykl1277
      @ykl1277 4 роки тому +11

      How much does your lawyer weight? So I can work out how much they're worth for science.

    • @mildsoup8978
      @mildsoup8978 4 роки тому +1

      Why so many as an investor? As in the companies you've invested in went bankrupt? And what happens to your investment if they do?

    • @mildsoup8978
      @mildsoup8978 4 роки тому

      Also were the ones as an employee for a small business? Or a large corporation

    • @Spondre
      @Spondre 4 роки тому +1

      @@ykl1277 One of the lawyers weighed a -100 kg but my personal one was a lightweight at only 4 kg.

    • @Spondre
      @Spondre 4 роки тому +7

      @@mildsoup8978 Investing is risky. A lot of start-ups go bankrupt or dilute out the initial investor so much that it amounts to the same thing. I have a lawyer write things very carefully so that my investment is a secure as possible. i.e. I invest in a holding company. The holding company holds a bunch of other companies. One holds the intellectual property of the start-up, another holds the equipment, buildings etc. The actual start-up licences the IP, leases equipment etc. from these companies and also pays all salaries, bills and acquires all debt. That way when it fails the losses are nothing to do with me. (There could be a 2 Cents video in this.)

  •  4 роки тому +121

    I just came here expecting that The Office clip... and I'm satisfied

    • @_baller
      @_baller 4 роки тому

      Alán García BANKRUPTCYYYY

    • @AshleyCMoore
      @AshleyCMoore 3 роки тому

      Got mine up from 520 to 794 in less than 15 business days!!! LITERALLY squealed and jumped up and down when I checked it! Credit is one of the most important things of being an adult to learn in life and I’m grateful to Mr Jon Goven [jon@creditpatchup.com] who helped me.. Please please teach your children from a young age about credit and financial responsibility. Though many adults are not even educated sufficiently on credit and finances.. which is why every school should have a mandatory credit/money management class given to all students. So very important for our youthful start out with good habits

  • @jamesdunkerson2908
    @jamesdunkerson2908 4 роки тому +42

    The one thing my bankruptcy attorney said that really stood out is that most people wait too long and put themselves through too much before they file for bankruptcy.

    • @theemptylegend0
      @theemptylegend0 4 роки тому +1

      James Dunkerson That’s really sad

    • @seamusobrien3436
      @seamusobrien3436 2 роки тому +9

      Blame a lot of the supposed financial talk show guys like Dave Ramsey, they want everyone to walk the righteous path, while guys like Him and Trump use the system to their advantage.

    • @charlesg7926
      @charlesg7926 2 роки тому

      I mean of course he said that lmao. His job is to SELL YOU on hiring his bankruptcy services lol

    • @killermogle
      @killermogle Рік тому

      @@seamusobrien3436 Dave Ramsey himself filed bankruptcy on three million in debt, which is why he preaches against debt today. The righteous path that you're detesting is basically don't spend more than you can afford.

    • @newp848
      @newp848 Рік тому

      ​@@seamusobrien3436and the irony is both have filed for bankruptcy

  • @chandrangmakwana252
    @chandrangmakwana252 4 роки тому +165

    I knew Michael Scott was coming when I read Bankruptcy..

  • @chenaywong5188
    @chenaywong5188 4 роки тому +30

    Before watching this thinking in my head *“if they don’t play the office clip I don’t know what to do”*

  • @secretnobody6460
    @secretnobody6460 4 роки тому +70

    Before i was angry i was born in a 3rd world country. Wishing that i could be in the USA. As i grew older and realized what was going on especially the student loans. Im glad i graduated at a 3rd world university but it was affordable and cheap. Didnt have debts. My first job salary didnt go to student loans but straight to my pocket 😂

    • @likeadino8580
      @likeadino8580 3 роки тому +1

      What country did you come from?

    • @angelas5099
      @angelas5099 2 роки тому +4

      Let me guess. Indian?

    • @redrockbro3679
      @redrockbro3679 2 роки тому

      @@angelas5099 Of course, wishing to be in USA checks out, Affordable and cheap checks out, little to no debt checks out, and just roasting america in general checks out

  • @nalikepanda4006
    @nalikepanda4006 4 роки тому +35

    I'm a post millennial and I'm financially literate, thanks to you guys

  • @shadmanigat2232
    @shadmanigat2232 4 роки тому +51

    I'm a teenager and my parent is too poor
    I'm looking for a strategy to escape poverty
    that's my story
    I'm in Haiti now

    • @sensiblewheels
      @sensiblewheels 4 роки тому +12

      Hi there. The best way to escape poverty, is by fighting for basic education and then some. Once you graduate, things will start turning around. If not your country, atlest in the West so be on the lookout. All the best kid.

    • @npip99
      @npip99 4 роки тому +3

      You'll have to try to come to the US, but lots of other people have the same plan, so its kind of hard. If you're still in HS, try applying to a community college. You'll be able to get a student visa. You can pay for it by working some minimum wage job. Just don't go to any private college or for-profit, they'll rip you off and you won't be able to pay off the loan.

    • @dontfeelcold
      @dontfeelcold 4 роки тому +2

      Hard focused work is the best strategy

    • @Maxxrevv
      @Maxxrevv 4 роки тому +1

      Hard work and persistence

    • @thefirsttime7759
      @thefirsttime7759 4 роки тому +1

      Rip

  • @CreativeMindsAudio
    @CreativeMindsAudio 4 роки тому +4

    After a long term medical issue and not working, I had to file for chapter 7 bankruptcy in February this year. Before my medical issues (some of which were from a car accident) i had 10k of savings and an 800 credit score with no debt and saving 1k a month, so i'm good with money for sure. After the bankruptcy was discharged in June, I have been able to get a credit card with a very small limit (750) and have built my credit score up to 665 and rising every month. The only way this has effected my life is that i couldn't get a loan for a new iPhone and had to save up for a month praying my phone didn't die (it eventually had severe issues charging and was nearly 4 years old had a friend give me a charger since his worked while mine didn't). Anyway eventually got a new one and am doing a lot better off financially. wish I didn't have the B on my name, but here we are. I'd be fine if we had medicare for all or something similar, but we don't live in a world like that. Supposedly it's the #1 reason people go bankrupt, which is so messed up. It should never be a reason. Someone wanted to not die so they had to go bankrupt.
    In any case I am grateful it's even an option for medical debt. wish it was also an option for student loan debt. At least i don't have the stress fo 1k in minimum credit card and medical payments like i did last year.

  • @mindleaves
    @mindleaves 4 роки тому +44

    Another great video with valuable content! Thanks TWO CENTS;)

  • @Jose-lc6nj
    @Jose-lc6nj 4 роки тому +51

    5:22 can somebody explain why isn't this taught in school in the first place?

    • @carultch
      @carultch 4 роки тому +16

      Because teaching you that the past tense of teach is taught, is more important.

    • @Jose04537
      @Jose04537 4 роки тому +9

      Because is "more important & useful" courses like "gender studies, anything with studies in the end but specifically gender studies".

    • @EscTabShift0
      @EscTabShift0 4 роки тому

      carultch imagine using a comma when you don’t have to

    • @MicahPotts
      @MicahPotts 4 роки тому +3

      Bc the system is only there to keep you down mannnn.

    • @musicmonkey5798
      @musicmonkey5798 4 роки тому

      But it is....just take the right classes

  • @victorialazareva
    @victorialazareva 4 роки тому +41

    I was waiting to see the Office clip :D You did not disappoint!

  • @vedad1102
    @vedad1102 4 роки тому +7

    Usually everyone has a formula
    Income - expenses = Savings
    This concepts tends to increase the chances of inability to payback loans
    But if someone accept and understands
    "Income - Saving = Expenses"
    You won't need to borrow in the first place.
    And if have already done it. It would be super easy to pay back .
    Happy minting.

    • @liladuter856
      @liladuter856 4 роки тому +1

      Poverty = solved

    • @richardwieder885
      @richardwieder885 4 роки тому +1

      For this reason, I always pay myself first. My emergency fund and financial buildup to a CD comes first before any other expense.

    • @seamusobrien3436
      @seamusobrien3436 2 роки тому

      Sadly lots of Bankruptcy is cause because of things BEYOND your control, like a health crisis, a family member's health issue, job loss, unexpected large repairs , or a combination of these all happening at the worst possible moment.. not everyone who is having money woes is just a spendthrift

  • @luisjiron8154
    @luisjiron8154 4 роки тому +2

    Wow.... you guys are a blessing to have come out of UA-cam. I have been learning so much about how to handle my finances thanks to you guys. I will be a loyal subscriber for as long as you guys keep creating quality content. You have my undying support.

  • @josephkuper23
    @josephkuper23 4 роки тому +5

    you had me at 0:40

  • @CAAnmoldeepsingh
    @CAAnmoldeepsingh 4 роки тому +9

    Speaking of debt slavery, most Indians who were taken to the Caribbeans and South America by the British through East India company were bonded labourers, since slavery was banned by the British parliament early on they couldn't engage in slavery, so they came out with a very British scheme. If a farmer's crop fails or he fails to make his return on the crop he'd be given a loan with atrocious conditions of land pledging and a horrendous rate of interest which any farmer wouldn't be able to pay, so then his land would be ceased and he'd have to work to gain it back by paying the loan, but his monthly income would only cover the interest portion thereby caging him in an eternal cycle of debt slavery. Now the genius was that, the company was governing those territories and they were the tax collectors and the main buyers of those crops, so they had a ready supply of these "bonded labourers" whenever needed. All they had to do was marginally increase their taxes and then cut the prices of crops or just let the crop lay their and waste and then pay little for the low quality crop or buy only a portion of crop that would meet their set standards of that crop. This vicious cycle was repeated on generations until it was stopped by the British parliament. Sweet sweet colonialism!!!!!

  • @REzado63
    @REzado63 4 роки тому

    I have been asking for this episode since you guys started this channel thank you so much

  • @travisgrudzinskas8384
    @travisgrudzinskas8384 4 роки тому +6

    Wish my dad had known enough about bankruptcy to find a way to keep the house when I was a teenager... That was rough.

  • @Iffy50
    @Iffy50 4 роки тому +1

    This is a great video! I knew a few things about bankruptcy, but this video just quadrupled my knowledge.

  • @weirdnomad8868
    @weirdnomad8868 4 роки тому +7

    Just a correction. When I filed for Chapter 7 I got credit card offers in the mail right after my debts were discharged.

    • @charlesg7926
      @charlesg7926 2 роки тому

      Yes and they would’ve charged you obscenely high rates to profit from your misery lol

  • @thesunflowchannel1995
    @thesunflowchannel1995 4 роки тому +3

    It's amazing how many people are living like this. Youd think their life is amazing driving around a brand new car and going on vacations, but it's hell

    • @sheisbeetee
      @sheisbeetee 4 роки тому

      yeah it is but the BK can be deleted off your report. Life is MUCH better after deleted!

  • @TheHumphrey367
    @TheHumphrey367 2 роки тому +3

    How come they dont teach us about bankrupcy in school? I feel like this is very important along with loans and interest rates.

    • @cadejust6777
      @cadejust6777 Рік тому +1

      12. ua-cam.com/video/TDLMUvIkKPQ4/v-deo.html5

  • @WealthbuilderzTV
    @WealthbuilderzTV 4 роки тому

    Thanks for the break down. Very informative

  • @MikeBNumba6
    @MikeBNumba6 4 роки тому +37

    Use credit cards to pay student loans. Declare bankruptcy on credit cards and bam!!! No more student loans.
    I'm here for any other financial advice. :)

    • @gnarthemissinglink7541
      @gnarthemissinglink7541 4 роки тому +4

      Or maybe don’t apply for loans you can’t pay back

    • @virgil9940
      @virgil9940 4 роки тому +15

      @@gnarthemissinglink7541 Like any 17 or 18 year old is going to be financially literate enough to know exactly what they're getting into. Especially when most parents are living paycheck to paycheck and college is drilled into high schoolers heads as the only option to success.

    • @nadiaelisian7335
      @nadiaelisian7335 4 роки тому +12

      And if you put them on credit cards that give you travel points...boom! You can be bankrupt and still
      Go on vacation. I always pay my taxes on cc’s with travel points because the government gets a little and I get a little. Everyone wins!!!

    • @MikeBNumba6
      @MikeBNumba6 4 роки тому +7

      @@nadiaelisian7335 I like the way you think

  • @mrmountainhiker9646
    @mrmountainhiker9646 4 роки тому

    LOL that "office" clip was so perfectly placed...best cold open you've done yet 😉

  • @PixelBoyMiner
    @PixelBoyMiner 4 роки тому +18

    Ahh yes, everything is dischargeable except for the 1 thing that would enable you make enough money to pay them off (student loans)

  • @jaketyler7088
    @jaketyler7088 4 роки тому +2

    0:35 Everyone was thinking Michael Scott seconds before they even showed it, but I can't believe they actually put it in the video.

  • @acevisionaire8621
    @acevisionaire8621 2 роки тому +2

    Yes, I agree teaching one about financial matters early to avoid bankruptcy would be helpful to the individual in the knowledge of budgeting properly.

    • @cadejust6777
      @cadejust6777 Рік тому +1

      15. ua-cam.com/video/TDLMUvIkKPQ0/v-deo.html

  • @zotac1018
    @zotac1018 4 роки тому +23

    Can you please explain how business bankruptcy works?
    I think that would a really interesting topic and many people here will be interested .
    Drop a like if you agree.👍

  • @aanuodebode6512
    @aanuodebode6512 Рік тому

    I like how you’ll broke it down in a way for me to understand.

  • @davecrupel2817
    @davecrupel2817 4 роки тому

    1:12 i was approaching that point about a month ago. I go to trade school full time and, for the longest time, had only 1 part time job.
    Then i got a 2nd job. Just 3 weeks before this comment was made.
    Now i have doubled my income. And can pay my debts well above the minimum and still have some left over.
    What a relief!

  • @cameronmcfarrin4587
    @cameronmcfarrin4587 2 роки тому

    You guys have a good channel. Some of the financial literacy things yall talk about, I've already been doing, but some of this is informative.

  • @ShaudaySmith
    @ShaudaySmith 4 роки тому +2

    I saw that Michael Scott joke coming just from reading the title... i still laughed when it came around.

  • @ayblackie5472
    @ayblackie5472 4 роки тому +4

    "I declareeeee! ..... Bankruptcyyyyyy!!!
    ~~ Michael Scott.

  • @valueStocks
    @valueStocks 4 роки тому +4

    Love the office reference. 😂

  • @ebbiesweetngood9966
    @ebbiesweetngood9966 4 роки тому +16

    Had a family file Bankruptcy and bought new car following week. Seriously can someone help me understand why this is allowed.

    • @liranpiade4499
      @liranpiade4499 4 роки тому +3

      @Nicholas Little-Brother they'll probably just file again

    • @Jasonsmith-sr1ke
      @Jasonsmith-sr1ke 4 роки тому +1

      Because the banks and big companies will always be secure and get bailed out from the government. Remember 2008?

    • @izzy4reel
      @izzy4reel 4 роки тому +1

      It's a free country. Lenders are free to extend credit as they wish. To answer your question more directly, a person fresh out of bankruptcy may be an acceptable credit risk because they have little other debt.

  • @chanmarr8118
    @chanmarr8118 4 роки тому +6

    I swear you guys are spying on me! I was considering declaring bankruptcy due to unemployment and going back to school. Thank you for your informative videos!!!

  • @THENAGES
    @THENAGES 4 роки тому

    Your channel is very educative.... You learn a lot in a short time

  • @julzrtw
    @julzrtw 4 роки тому +11

    Still waiting on that pyramid scheme/mlm video.... people need to know!!!!

    • @smokestack29
      @smokestack29 4 роки тому +3

      They already did. See link:
      ua-cam.com/video/7iww5zIuzyA/v-deo.html

  • @noreaction1
    @noreaction1 4 роки тому +14

    So if I make minimum wage I can just file for bankruptcy if I can’t pay my medical bill? $8 an hour is barely 17k a year before taxes and deductions, I’m broke

    • @monicaloveslindy
      @monicaloveslindy 4 роки тому +2

      Medical bills (in my state) do not impact your credit score, or even end up on your credit report. I would never not pay other bills to catch up on medical debt. It's always there and not paying it won't get your lights shut off or kicked out on the street.

    • @izzy4reel
      @izzy4reel 4 роки тому +6

      Consult with a bankruptcy lawyer. It's usually free.

    • @DC-ct8tv
      @DC-ct8tv 3 роки тому

      Just don't pay medical bills, nothing they can do

  • @many244
    @many244 3 роки тому

    i literally came here because of the office and you guys put the scene on the edition... legends

  • @manikenpachi2760
    @manikenpachi2760 4 роки тому +1

    I love you guys!!! I learn so much with you! I wish you was my teacher in my high school years! Because the teachers I had before didn’t teach me shit.

  • @simplymaci
    @simplymaci 4 роки тому +3

    I’m glad you included that clip of Michael 😂

  • @gbaker9295
    @gbaker9295 4 роки тому +1

    I could watch this all day

  • @monique1163
    @monique1163 4 роки тому +1

    The fact that you used an Office reference is an automatic thumbs up😄

  • @thehollyannrose
    @thehollyannrose 4 роки тому +5

    Jeeze my old roommate made it sound like a cake walk when he threatened to do lmaoooo

  • @bryeanarose5753
    @bryeanarose5753 4 роки тому

    I love this class.

  • @shayekahsan8783
    @shayekahsan8783 4 роки тому

    Love your videos. plz never stop

  • @sonaliverma1218
    @sonaliverma1218 2 роки тому +1

    the video couldn't have been complete without "I DECLARE BANKRUPTCY" 😂

    • @cadejust6777
      @cadejust6777 Рік тому +1

      13. ua-cam.com/video/TDLMUvIkKPQ9/v-deo.html0

  • @jabarihasan1515
    @jabarihasan1515 4 роки тому +1

    I love the office clip! Really enjoy the content you create! 🤗

  • @ChristLikeLadies
    @ChristLikeLadies 4 роки тому

    Great info!

  • @zdlanedenny
    @zdlanedenny 4 роки тому

    Helped me know I didn't need it, thanks!

  • @kpatelv607
    @kpatelv607 4 роки тому +2

    I'm not sure if this has been done already or not, but could you make a video on building net worth? Why should you do it, how can you use it, and how a student in debt fresh out of college can possibly benefit from building net worth?

  • @TurkVladimir
    @TurkVladimir 3 місяці тому

    Thanks Great Video Presentation

  • @kalpeshkalal7736
    @kalpeshkalal7736 4 роки тому +1

    Michael Scott : I DECLARE BANKRUPTCYYYYY!!

    • @anthonydalton6054
      @anthonydalton6054 4 роки тому

      I did use the services of a programmer called Michael Gibbs from Credit Patch Up LLC to get rid of bankruptcies and hard inquireis off my credit report and my score was also boosted to 790+ within few days. You can get to him via [Gibbs@creditPatchup.com] if you're in need of any credit help or advice.

  • @seangrogan3622
    @seangrogan3622 4 місяці тому +1

    Schiffy Scharlozzo is that you? I recognise the moustache

  • @TheAfroSamurah
    @TheAfroSamurah 4 роки тому +4

    This kinda thing should be taught in schools

  • @reidmock2165
    @reidmock2165 4 роки тому +1

    Philip's mustache is looking really good

  • @marjorieguymon7118
    @marjorieguymon7118 4 роки тому

    Well Done!

  • @Zeakuro
    @Zeakuro 4 роки тому +6

    After filing bankruptcy my credit scores went up quite a bit and me and my wife were both able to get unsecured credit cards pretty quickly afterwards. I was also approved for two auto loans a few months after bankruptcy. We are keeping our expenses manageable and using it to build credit. Filing bankruptcy does not mean you can't get these things though. You can even be approved for a mortgage 1 to 2 years after filing.

    • @3DPT
      @3DPT 4 роки тому

      So you were bad with money once, then asked for more just to worship a FICO credit score? You're not responsible, you're a target for banks and debt collectors.

    • @itrthho
      @itrthho 4 роки тому +1

      Prior to the 1990s, seems to be when creditors had a stigma against those who filed.

  • @Uditha
    @Uditha 3 роки тому

    I am very much enjoying your videos and wish you two could have written a book on these matters. This could help peope more and also could be a best seller as well.

  • @azrael4457
    @azrael4457 4 роки тому +1

    I thought bankruptcy is where some company is so broke that they couldn't continue running it anymore. Although bankruptcy is still foreign to me, I now gained some knowledge about it that I could use in the future.

  • @ryanrobot2003
    @ryanrobot2003 2 роки тому +1

    Great work

    • @cadejust6777
      @cadejust6777 Рік тому +1

      3. ua-cam.com/video/TDLMUvIkKPQ4/v-deo.html

  • @manasmahanand732
    @manasmahanand732 4 роки тому +6

    "Today debt slavery is a figure of speech as opposed to real slavery", sadly not true in India and Saudi Arabia... There are some people who yet make the poor their slave with debt bondage... It is illegal, but not many poor people know it is illegal so they are being exploited...

  • @KevinSheppard
    @KevinSheppard 4 роки тому +1

    Always wanted to know, always forgot to look it up lol

  •  4 роки тому

    Great video explanation. Unfortunately people believe bk is one of the main solutions to debt. Chapter 13 should never be the first choice. Specially if you have other options to pay off that debt.

  • @mantrax314
    @mantrax314 4 роки тому +1

    Bankruptcy Is awesome!

  • @rodneyroque4129
    @rodneyroque4129 4 роки тому +4

    Creed Bratton:
    Bankruptcy, Michael, is nature's do-over. It's a fresh start. It's a clean slate.
    Michael Scott:
    Like the Witness Protection Program.
    Creed Bratton:
    [simultaneously] Exactly.
    Oscar Martinez:
    [simultaneously] Not at all.

  • @thenetgamer2
    @thenetgamer2 4 роки тому +6

    Debt Bondage, huh, that's an interesting way to spell slavery.

  • @HinesBrad
    @HinesBrad 2 роки тому +1

    What I wish I had known beforehand:
    - I'd spend a lot less time worrying about the side effects; There is zero long term stigma
    - Be more strategic (have.a working car before I declare. Have money set aside for emergencies because credit will be much harder to get.)
    - You'll get credit card offers days after filing. Don't use these. But do get a small secured credit card with a local credit union to rebuild credit. I've seen credit scores in the upper 600s within 2 years of filing with good payment history.
    - First Premier Bank and other scummy lenders are a rip off. Don't use them.
    - a lot of credit unions will use 2 years of good credit card payment history as the basis for a new car loan.
    - Discover, Capital One and Credit Unions often grant credit 2 years after bankruptcy. Don't bother with Amex, Chase, Wells or BofA.
    - Good car = Good Transportation = Good Mobility for job opportunities == More money in pocket.
    - Negotiate attorney's fees. If you show up with names, addresses, creditor balances due and a credit report the attorney will likely charge you far less as there's a lot less work for them to do. Easy clients pay less.
    - Wealthy people use bankruptcy strategically. Why not you?
    - Most bankruptcy comes from student loans, medical debt and lost jobs
    - NEVER steal from your retirement to pay for debts that can be discharged in bankruptcy. Go bankrupt before raiding 401Ks or IRAs. And always use credit cards or loans before borrowing against these assets.
    - You can negotiate past due balances with creditors for pennies on the dollar. Refuse to pay if they don't remove credit blemishes. You can also tell them to stop calling period. If they don't, sue. Fair Debt Collection Practices act protects you.
    - You can charge bankruptcy costs to a credit card.
    - Don't run up a huge debt before bankruptcy.
    - The moment a collection agency calls about a bill 60 days past due is when I'd consider file.
    - Banks are not your friends.

  • @jitenderaggarwal6380
    @jitenderaggarwal6380 3 роки тому

    You guys are amazing actually!! I want to know everything about bankruptcy please... Want to do a course if you can guide me 🙏

  • @ojagetabelifestyle4010
    @ojagetabelifestyle4010 4 роки тому

    Really like this information

  • @adywijaya95
    @adywijaya95 4 роки тому

    5:32 sarcasm at it finest

  • @CleverDoughKids
    @CleverDoughKids 4 роки тому +16

    😳😲😳😲Great video but you forgot to mention one very important factor. You did mention the stress being in debt brings on but I just want anyone watching this to know that bankruptcy is not always your own fault. When I was talking to a bankruptcy adviser a few months ago, she pointed out the 3 MAIN reasons for Bankruptcy. That the stigma is that if you are filing for bankruptcy then you have obviously been bad with your money. BUT that's not actually true!
    Yes, bad money management skills can definitely lead you to bankruptcy, but the vast majority of bankruptcy filers actually fall into these three categories: divorce, job loss and medical illness. That's why it's SOOO important to start funding a 'Rainy day' account as soon as you can, like TODAY, while you also build your financial literacy and learn how how to master your money.
    Life is known for throwing us all kinds of obstacles, but after a divorce, two job losses (dealing with social anxiety at trying to get your next jot) and almost dying in a coma and finally waking up with a new physical disability, can happen. Take it from someone who has been through 4 times out of all 3! Yes, I know that math is odd, but it's true!
    And while you're at it, don't stop at just starting your own Rainy day fund and increasing your own financial literacy, make sure you teach your children about money too so they'll never have to go through any of that. Debt is one of the largest factors of suicides!
    This is serious business! But there is a way out and watching and learning from wonderful teachers, like Two Cents, is a great way to start! Big hugs.😳😲

    • @xsamsungg5735
      @xsamsungg5735 4 роки тому +1

      Not having back-up money in case of unforseen emergencies is a result of poor financial literacy, though.

    • @exantiuse497
      @exantiuse497 4 роки тому +2

      theheroinfather So if someone's child gets cancer, chemo costs $60 000/year and insurance company refuses to pay, then it's that person's own fault he didn't have an extra $60 000/year to spare, right

    • @xsamsungg5735
      @xsamsungg5735 4 роки тому +1

      @@exantiuse497 I wouldn't know, in the country that I live the state makes sure you don't have to pay a dime for life threatening medical emergencies like that...

    • @Samanthayeoqy
      @Samanthayeoqy 4 роки тому +1

      There's another that makes it especially bad, "Trust" there is quite a number of people bankrupted cause they trusted a family member or friend and signed as guarantors to find that they ran away. Thats a double kick.

    • @Samanthayeoqy
      @Samanthayeoqy 4 роки тому

      @@xsamsungg5735 if that someone has even 10% of that 60k. Then they should be able to make the first month or 2 payments first. Then have at least not the stress and pressure of needing imeadiate money to make bettery financial decisions. Try selling a house quickly versus having an week or 2 . You get better offers, you get to talk to your insurance provider or get another one. Its a big difference

  • @erdafaandikri6780
    @erdafaandikri6780 3 роки тому +1

    0:32 AMOGUS???!!!! THE IMPOSTOR IS SUSSS 🥶🥶👿👿👿😏😏☹️😩😩😩💥💥💥

  • @Crashed131963
    @Crashed131963 4 роки тому +5

    I declared bankruptcy 6 times .
    Debt be gone , it's awesome.

    • @sheisbeetee
      @sheisbeetee 4 роки тому

      John - really ??? we should talk maybe? I can delete off your report.

    • @sheisbeetee
      @sheisbeetee 4 роки тому

      @Varoon people like who? Until you have walked in my shoes, do not judge me. I am talking about myself and my BK. >>>>>I also deleted it.

    • @scarletangel1997
      @scarletangel1997 4 роки тому +1

      How on earth did you have to file 6 times?! Aren’t you worried about your credit score?!

    • @sheisbeetee
      @sheisbeetee 4 роки тому

      @@scarletangel1997 I am not sure if he is kidding. I can delete it :)

    • @averyt6521
      @averyt6521 4 роки тому

      @@scarletangel1997 ways to do wat he do

  • @ChunWong
    @ChunWong 4 роки тому

    awesome

  • @MasticinaAkicta
    @MasticinaAkicta 3 роки тому +1

    Yeah, I know someone who went through bankruptcy just about a year ago. 500k in debts... 230k in creditcard debts. How do I know? Because they are public records!
    And now he has 6-7 years of trying to push through.
    I worry, he seems to have a mobile game addiction. And doesn't seems to have learned a lot about the situation. I wonder if in 2-3 years he finds out you can't request another bankruptcy that soon.

  • @ahhyesstoinks4058
    @ahhyesstoinks4058 4 роки тому +2

    You know you're bankrupt when you have ton of debt and none the cash

  • @personalfinancedeclutter5803
    @personalfinancedeclutter5803 4 роки тому +1

    Bankruptcy costs money. I like Micheal Scott's method of just shouting the word if it comes to it. lol.

    • @izzy4reel
      @izzy4reel 4 роки тому +1

      You can apply to have the fees waived to do it yourself, so that would be free :)

  • @klwthe3rd
    @klwthe3rd 4 роки тому +7

    Funny how consumers of bankruptcy services need to jump through so many hoops yet when multi billion dollar corporations need this help, they just receive it.

  • @jcrowley1985
    @jcrowley1985 4 роки тому +1

    I got an ad for a boat club before this video.

  • @stevenlerner5515
    @stevenlerner5515 3 роки тому

    great video

  • @dbadaddy7386
    @dbadaddy7386 2 роки тому +1

    As a creditor, bankruptcy does not forgive the debtor's debt. It only prevents legal enforcement of collection efforts. I don't have to pretend the debt was paid or didn't exist. I simply cannot take efforts to collect it, including reporting it to collection agencies or credit bureaus. If the debtor asks me for more credit, I most certainly can refuse on the basis of not paying the existing debt. Now, usually by then the debt has been dealt with through writing it off so it no longer appears in the accounting books, and I could ignore it and issue more credit. But I can also legally refuse on the basis of failure to pay the prior debt. If you've screwed me once, regardless of the reason, I'm not obligated to let you do it again.

    • @cadejust6777
      @cadejust6777 Рік тому +1

      5. ua-cam.com/video/TDLMUvIkKPQ6/v-deo.html

  • @mukteshkumar6426
    @mukteshkumar6426 4 роки тому +1

    Normally i watch videos at 2x but it is only your videos that i watch at 0.75x speed.
    😂

  • @larryheim917
    @larryheim917 10 місяців тому

    In my experience, do not make a mayor expenditure like a home if one’s spouse is unwilling to curtail spending habits to afford the home.

  • @tammysilverwolf1085
    @tammysilverwolf1085 4 роки тому

    Worth noting, there have been a couple cases of people getting student loans discharged by showing it was impossible to pay off in their current and future situation. Talking 6 figure debt (which is insane). It's still insane to me, but there have been people that got out of it!

  • @arikosubumo2402
    @arikosubumo2402 4 роки тому +1

    Breaking Bad vibes... to avoid bankruptcy.

  • @joeybooks4758
    @joeybooks4758 3 роки тому

    In some states you can have a warrant for arrest because of debt. You don't have to look far. In 1 state you can be arrested for not paying a traffic ticket in another for municipal fines for not painting walls or not having mini blinds. Why because the home owner did not have the money to do the upgrades. About 4 or 5 states with varying degrees of this that I causally know.

  • @Starski43
    @Starski43 5 місяців тому

    Carefully calculate interest when estimating the debts you are considering filing bankruptcy on. It may be difficult to get clarity from the creditors on how much interest that they claim that you owe: however, the courts seem to use only simple interest when it comes to calculating judgments already filed against a person.
    It also helps to check court public records to see if any creditors which hold judgments have voluntarily waived any interest to make their collection attempts appear generous and palatable to the court.
    BTW. Only one year of college for me before I ran out of $. Never went back. Stayed out of student debt. Thank God!
    I figure that a healthy chunk of college tuition goes to pay for college professor’s pensions, both working and retired. Perhaps someone can chime in with a percentage?

  • @ManuelPinner
    @ManuelPinner 4 роки тому

    You Two Rock, Like Your Videos,💗💗💗