Is bankruptcy too easy a path to get out of debt?

Why should there be any stigma? If banks and multinational corporations can, so should individuals. Most of the people who go bankrupt had too easy of access to credit in the first place (teaser rates, high credit limit), with no ability to pay it off. So, if everyone else is living beyond their means, why be the only one who is not? Eventually everyone will suffer regardless. As to the repercussions. A few years of bad credit, but so what. Soon enough those credit card offers will come in the mail and then you can start the whole cycle over.

When you declare bankruptcy...no one really cares about how much" hit " the banks take. They have already calculated, in advance, what percentage of losses they will encounter and factored it into a bottom line which will be offset by calculated increases in fees etc.

The people that you hurt are the plumbers, contractors and suppliers who, quite often have been selected because of personal " ties ". It`s hard to look these people in the face...............they bear the brunt of your inability to pay, they have to absorb the loss...most of my associates who have " declared" , have, quite soon, been forced to re-locate their families. Their children have to leave their friends. Their partners social network is imploded as well. Marriage is hard...often its finished. I wonder if this really belongs in the " money " column.

In summary, bankruptcy is not a financial " thing " it is a social one. The carnage cannot be measured in dollars and cents. A new credit card is meaningless.

Modern society - at least in Western culture - is obsessed with the concepot that everybody has to have access to every nuance of life that makes things completely equitable.
This ranges from providing easy sidewalk access at corners for handicapped, to providing easy money access who have not earned it. Both appear to fulfill a compassionate need but are really just an example of intellectual stupidity - they both rob society of a certain momentum and a clarity of vision as to what is really necessary and important.
Until we collectively figure this out, and until we re-institute real penalties for people who end up causing harm through acts of their own volition (i.e. - debtors' prison for bankrupts) society is doomed to be "hoist by its own petard".

Absolutely, it is way too easy to go bankrupt. The problem is that some people do not know the difference between needs and wants. Also, it is the average Canadian that is paying for all of those that declare bankrupcty in fees that are charged by the banks and govt. When somebody loses their home thru bankrupcty, it is the CMHC that pays not the banks. When you go bankrupt, you should not be able to receive a discharge for at least 5 years. People are declaring bankrupcty, filing for discharge within 12 months and back on the roller coaster ride after 2 years. You should not be able to purchase a home or receive any credit until the bankruptcy is deleted from your Credit Bureau file - 7 years after discharge.

If you can't handle your debt load then declare bankrupty! Don't even think twice about it. Financial stress can kill you. Don't worry about the creditors either.

Although bankruptcy is a relief from the stresses of falling behind (lost job etc.) from my personal experience, it was and still continues to be a prison sentence! I think now about it and if I could go back and change it... I would! Best advice to someone thinking about it... "DON'T!" Unless its your very last resort!

I completely agree with Lisa. It is far too easy to go bankrupt. I know of some people who have gone bankrupt more than once. Whatever happened to responsibility and accountability???

For those of you who think it's an easy decision to make and to live with you have absolutely no idea what you are talking about!! You can weigh in on and criticize my life when you've walked even an hour in my shoes!

If you think it's "easy" try being abandoned by your "loving" partner of 15 years with no warning, leaving you with 3 children and over $100,000.00 in debt!! Try going back to school while you work and while you raise your children single handedly, so that you can find a job that pays more than just minimum wage in order to support yourself and those 3 beautiful children!

Easy?? I think not!! Regrettable?? Probably. Would I do it again for my children?? In a heart beat!! And for those that criticize that....Have a nice life!! :)

aren't most of governments we all work for claiming bankruptcy and getting bail outs? The entire financial system is a joke. Kind of like our legal system. Anyhow, they both go together don't they?

I would never declare bankrupcy under any circumstances. It is utterly wrong! I certainly would never put myself and family in this situation to begin with anyways. I have no respect for people who have declared bankrupcy. They should not get away with it, and should pay everything back even if it takes a lifetime (or life in prison doing hard labour).

Mixed feeling on the subject. When you watch the behavior of the institutions that lend money and the so called leaders of the business community who openly steal without repercussion I say rack up debt and go bankrupt. If these institutions lost enough money due to reckless lending they would fix the system and we would all be better off.
On the other hand I know of far to many people who use bankruptcy as part of their financial planning. They need a sound thrashing.
In the end the only real losers are the little people. They are the ones who pay for the indiscretions of those who use bankruptcy to clear their debts.

We both had good paying jobs and no children and then BAM both laid off and a surprize pregnancy! We paid our debts and utilized insurance that we had purchased for some of the credit we had until our son was 9 months old with one income that was only a fraction of what we were earning a year earlier. Finally one day, after the bank denied us a consolidation on our higher interest rate debts we went "wreckless" we didn't pay any bills and treated our son to a fun weekend out since we hunkered down for so long. My hubby called a trustee and we began the Bankruptcy process, they asked why we hadn't done it sooner, we paid for 18 months and brought a baby into the world, but thats all we were doing paying debt and keeping a roof over our head, it didn't feel like we were "living". Bankruptcy isn't a hard process, this is true, the hardest part is deciding if its right for you, yes we felt ashamed and embarrassed, but after 9 months of reporting we were discharged, it was still hard but way more manageable, there was a light at the end of that tunnel, my advice is don't struggle for 18 months like we did, don't let pride get in the way of your overall well-being. I am no longer ashamed or embarrassed, for us, it was the best thing we could've done and I just wish we would've thought of it sooner!

I did it...no big deal people!

We did not declare bankruptcy after nearly 2 years of a single income. We went through "Credit Counciling". It took us 4 1/2 years to pay off our credit card debt after I got a job paying $9.50 an hour. The bank raised our home loan interst rate while we were struggling, because "they could". When you are down, you get kicked. All but the mortgage are paid off. Near my 65th birthday, my job was oursourced to India. We are now with another bank, with a reasonable mortgage interest rate. We are not starving. Was it all worth it? I think Bankruptcy would have been easier, but not an option I would take, in my opinion.

i went to credit counsling back in the day and paid it all off and it cost me 7 yrs of bad credit and showed as a bankruptes and struggled and got back on my feet . started a shop and the banks wouldn t give me any money to keep it a float . and had to bankrupt and it still takes as long to get out so why not if struggling to is the same as going bankrupt .