Bankruptcy & Contracting

[Larry Tew]

Chapter 11 is still bankruptcy, but may be seen as a higher "moral" decision. The crazy thing is that while it might take 18 months or more to be discharged from an 11, a 7 can be discharged fairly quickly. You screwed your creditors worse with a 7 but you can be buying cars and houses again much faster than with an 11 where you attempt to pay your debt.

What a system.

 

[Todd King]

Chapter 11 is for the reorganization of businesses. Chapter 13 is for the reorganization of debts for individuals.

 

[Larry Tew]

Oops. I saw 11 and was thinking 13. Good catch.

 

[arnguy]

Briefcaseboy, bankruptcy is bankruptcy regardless of which chapter it is filed under!

 

[Briefcaseboy]

Larry Tew,
You had a good point when you said the most drastic mode of bankruptcy will get you in favor with credit lenders quicker. A friend of mine told me several years ago, that when someone files bankruptcy and it is all settled, the credit card companies especially say, well hell, he has a clean slate now, let's load him up with more credit cards.

 

[jmatos]

Joe, you've cleaned up your tone and it's been cool, but this one made me laugh, and laugh, and laugh. and laugh.

Plenty of decent respectable companies won't appoint with recent bankruptcies, and for good cause.

Most people who consider themselves good people would be willing to steal so their family can have food to eat, so why wouldn't they have their judgement at least somewhat clouded when they are presenting products.

Also, folks who have bankruptcies are a poor credit risk, it's not a good business decision to lend credit (advances, products, etc) to folks who are already a terrible credit risk.

Bankruptcy happens to plenty of good people for a variety of reasons, but it's understandable why carriers would not want to work with them until things cleared up.

Individuals are not the only ones that file baknkruptcy. Large Corporations do also! I agree with Joe. Bankruptcy has nothing to do with character and honesty. How many people in America are still trusting GMC with the automobile purchases, and the airlines that have had had a long history of financial problems to get them from point A to Point B safely?

 

[VolAgent]

Individuals are not the only ones that file baknkruptcy. Large Corporations do also! I agree with Joe. Bankruptcy has nothing to do with character and honesty. How many people in America are still trusting GMC with the automobile purchases, and the airlines that have had had a long history of financial problems to get them from point A to Point B safely?

Actually, its really damaged their credibility. Perhaps you've never heard of Government Motors?

Regardless of the actual cause, bankruptcy is seen as a reflection of a person's ability and character. People are generally seen as being unreliable, corporations are viewed as a bad business and more likely to cut corners. At the end of the day, if you declare bankruptcy, you have defaulted on your obligations. If you think that is something that should just be ignored, you need your head examined. People who actually want a debt repaid are much less likely to lend to a person or business that recently declared bankruptcy.

 

[easy8521]

Bad credit sucks, but underwriters are human and you need to be honest and direct with them. Your circumstances are different from one person to another. If you are real they will be real with you.

 

[VolAgent]

Bad credit sucks, but underwriters are human and you need to be honest and direct with them. Your circumstances are different from one person to another. If you are real they will be real with you.

Since when are underwriters involved in contracting agents? If you're going to post spam, at least try to be halfway intelligent.

 

[easy8521]

I didn't mean as an underwriter that underwrites a policy! But since anyone that reviews your application is mostly going to go by the company guidelines and underwriter fits the the job.

But you are correct they are more than likely human resources.

But thanks anyway Cliff

Since when are underwriters involved in contracting agents? If you're going to post spam, at least try to be halfway intelligent.