What is your initial reaction when you hear someone declared bankruptcy?

I've only known two people who have declared bankruptcy and I was wondering, without knowing circumstances, what your initial thought is...?

Do you immediately feel bad for them, assuming there were extenuating circumstances out of their control? Wonder what they did to get themselves into that mess? If they are using it as an escape from irresponsible behavior? Something else?

The first person I knew was many years ago and he did it because he was divorcing, decided it was a good time for a second childhood, maxed out his credit cards with cash advances for his new drug habit, and wanted to stick it to his soon to be ex wife who was also listed on a lot of his debt accounts. His new girlfriend was good in the credit area so they just used her accounts for everything.

The second person is largely a victim of their own materialism and need to have the best of anything they wanted, spending without regard to repercussions. They never cared to live lean to keep their finances in order. And now they're in trouble.

Sad situations, both of them. Most bankruptcies usually have many sad circumstances and stories. Even in clear cases where the person is at fault, maybe some innocents are hurt in the process too, so there is definitely sympathy from me.

I was just wondering what you thought, your initial reaction and if it changes later once you hear circumstances.

Re: What is your initial reaction when you hear someone declared bankruptcy?

"damn, that sucks"

Re: What is your initial reaction when you hear someone declared bankruptcy?

Shock and then probably wonder why.

Re: What is your initial reaction when you hear someone declared bankruptcy?

Honestly, I think "Wow, they made some screwed up financial decisions"...but the reality is that sometimes unforseen events such as death or illness, could result in huge medical bills, which could lead to one's financial disaster.

Re: What is your initial reaction when you hear someone declared bankruptcy?

I think "I wonder how bad it got that they had to resort to that, I hope things work out and they can maintain a roof over there head."


My father declared personal bankruptcy when I was 14 and we lost our home that I grew up in, and I had to move and leave the school district and friends I had known since kindergarten.

I'm sure people looked at us when he said bankruptcy and thought whatever they thought, be it negative or positive or judgmental or what not.

But for him, it was what was necessary after losing his job, due to his battle with alcoholism, and draining thru all of our savings to foot the bills and pay for his treatment.

I'm 30 now and work with him in our family business that he was able to hold onto, that is in its 19th year. He hopes to retire to Puerto Rico in the next few years and both his and my mother's cars are fully paid for, very minimal CC debt, and healthy & happy.

Oh and he hasn't had a drink in almost 2 decades.

Sometimes it CAN work for those who need it.

Re: What is your initial reaction when you hear someone declared bankruptcy?

Re: What is your initial reaction when you hear someone declared bankruptcy?

I find for me personally, it is a good time to mind my own business. I don't judge either way-it is not my business because I don't know the situation. Nor do I want to.

Re: What is your initial reaction when you hear someone declared bankruptcy?

Message edited 1/10/2010 9:32:04 PM.

Re: What is your initial reaction when you hear someone declared bankruptcy?

i always think...."Oh no"
and in my mind i am wondering what happened......
are they a big over spender
lose their job
bought an expensive lemon of a car/house
got taken advantage
divorce
etc......
and then i usually ask because i am super curious and need the answers before my mind takes over and creates a crazy story for them....

Re: What is your initial reaction when you hear someone declared bankruptcy?

I have someone very close to me that is delcaring bankruptcy right now. He is the victim of a divorce gone horribly wrong, that drained his bank account and he had no choice but to live off of credit cards just to keep a crappy roof over his head. His first lawyer overcharged him by tens of thousands of dollars and didn't move the case forward at all, and after having to use credit cards for a while to eat, etc. he decided to declare. He didn't do it for a while because he kept thinking he would get a good job again, get back on his feet, pay everything off, etc. but it just never happened.

It is just an example of how a tragedy can literally wipe out everything a person has ever had. This guy went from living in a 500K house to renting a small apartment and struggling every month to just pay rent and eat.

Re: What is your initial reaction when you hear someone declared bankruptcy?

sorry to hear that...it's not of my business why...and it really doesn't matter- what's done is done and they have to pay the price

Re: What is your initial reaction when you hear someone declared bankruptcy?

Posted by MrsPJB2007

I think "I wonder how bad it got that they had to resort to that, I hope things work out and they can maintain a roof over there head."


My father declared personal bankruptcy when I was 14 and we lost our home that I grew up in, and I had to move and leave the school district and friends I had known since kindergarten.

I'm sure people looked at us when he said bankruptcy and thought whatever they thought, be it negative or positive or judgmental or what not.

But for him, it was what was necessary after losing his job, due to his battle with alcoholism, and draining thru all of our savings to foot the bills and pay for his treatment.

I'm 30 now and work with him in our family business that he was able to hold onto, that is in its 19th year. He hopes to retire to Puerto Rico in the next few years and both his and my mother's cars are fully paid for, very minimal CC debt, and healthy & happy.

Oh and he hasn't had a drink in almost 2 decades.

Sometimes it CAN work for those who need it.

Re: What is your initial reaction when you hear someone declared bankruptcy?

I feel bad for them, but I don't think any less of them.

My dad and his wife had to declare bankruptcy when I was in high school. His step-daughter has severe health issues and with a "good" healthcare plan they still had to pay a ton out of pocket and it bankrupted them.

Re: What is your initial reaction when you hear someone declared bankruptcy?

As a bankruptcy attorney I see every possible scenario. Most people who file have legitimately fallen on hard times. Most people are shocked when I tell them how often people have to file because of unforeseen medical problems. The comments I get from people who have never "been there" are often out of line. If I person is so severely abusing the system, the case might get dismissed. I won't take cases where there are recent luxury purchases.

Message edited 1/7/2010 6:51:23 PM.

Re: What is your initial reaction when you hear someone declared bankruptcy?

Melissa, thank you for telling your story, it was inspirational. My father will be dry for 15 years. There are happy endings sometimes.

Re: What is your initial reaction when you hear someone declared bankruptcy?

Re: What is your initial reaction when you hear someone declared bankruptcy?

Re: What is your initial reaction when you hear someone declared bankruptcy?

Re: What is your initial reaction when you hear someone declared bankruptcy?

Re: What is your initial reaction when you hear someone declared bankruptcy?

Posted by greenfreak

Melissa, thank you for telling your story, it was inspirational. My father will be dry for 15 years. There are happy endings sometimes.

Re: What is your initial reaction when you hear someone declared bankruptcy?

I have a hard time feeling sorry for people who declare it due to overspending and living beyond their means. They obviously know how much money is coming in, so they should know better than to put themselves in that predicament. If you have to declare bankruptcy because your spending is out of control then it's your own d@mn fault and you should know better.

When it comes to medical issues, or deaths, or something of substantial reason beyond your control, then OF COURSE I feel bad for their hardship and hope they are able to get back above water and get through their tough time.

Message edited 1/8/2010 9:55:27 AM.

Re: What is your initial reaction when you hear someone declared bankruptcy?

Re: What is your initial reaction when you hear someone declared bankruptcy?

Re: What is your initial reaction when you hear someone declared bankruptcy?

My initial reaction is I feel bad for them.

I used to assume it was because people were financially irresponsible because the people I know that did declare it seemed to be the ones that lived the high life, spend well above their means, etc.

Now having to run credit checks regularly on our employees as part of a background check - I've seen there are many other scenarios - failing businesses, one spouse losing their job, medical bills piling up (even though there was insurance to cover it).

Re: What is your initial reaction when you hear someone declared bankruptcy?

I feel bad for them. It is awful to go through.