After BK, parents continue to spend. raid childs savings to keep going!!

N

noob_trad3r

Shopertainment addiction continues.

http://articles.latimes.com/2011/feb/20/business/la-fi-money-makeover-furry-20110220

Lisa and Stephen Furry have hit financial rock bottom, even though they're not acting like it.

The couple filed for bankruptcy a little more than a year ago, wiping out $50,000 in credit card debt, yet their household spending outstrips their income. They shop at Whole Foods, spend freely on beauty products and splurged on a wedding anniversary getaway to Santa Barbara — at a four-star hotel.


They haven't paid the mortgage on their North Hollywood home since September, and a default notice could come at any time.

Things have gotten so bad that Lisa recently borrowed $200 from her 7-year-old daughter's savings account to cover household expenses.
 
I don't quite see why they wrote an article on this couple... very boring story. Seems like they're not the sharpest tools in the shed.
 
Quote from noob_trad3r:


Things have gotten so bad that Lisa recently borrowed $200 from her 7-year-old daughter's savings account to cover household expenses.
More...

Lisa should run for office, she's got the hang of things.
 
Quote from NY0BScalper:

I don't quite see why they wrote an article on this couple... very boring story. Seems like they're not the sharpest tools in the shed.
More...

Looks like a large portion of our population.
 
Quote from noob_trad3r:

Things have gotten so bad that Lisa recently borrowed $200 from her 7-year-old daughter's savings account to cover household expenses.
More...

Too bad they had the chance to procreate and pass on their bad genes.
 
Quote from bonds:

how are they able to still have a mortgage after filing for bankruptcy a year ago?
More...

The mortgage pre-dated the bankruptcy. As the equity in the house is negative, there was no equity in excess of the homestead exclusion for the bankruptcy trustee to use to pay off the creditors. Their bankruptcy attorney "saved their home." Most people who go through bankruptcy are able to retain their primary residence if they have little equity in the home and they agree to reaffirm the debt, i.e. agree to keep paying the mortgage.

Had these people had a decent bankruptcy attorney, rather than "saving their home," they would have been advised to give the home up to the bankruptcy estate and included the mortgage in the bankruptcy. They would now be debt free and have a real chance at a fresh start. As it is, they have a 440K mortgage + a 40 home "equity" line of credit balance.

Not only is it possible for the recently bankrupt to have a mortgage because the mortgage pre-dated the bankruptcy, it is also not impossible for a recently bankrupt ot get a mortgage. It is not easy, and it typically requires a substantial cash down payment, but mortgages, car loans etc. are not out of reach once the bankruptcy is discharged. In fact, I have a friend who is a car salesman who regularly has people come in with bad credit and are unable to get the financing come back six months later with a bankruptcy discharge and the financing comes together.
 
You must log in or register to reply here.
Back
Top