More Thoughts

One thing that confounds me about this entire Bankruptcy process is how easy it seems to be (so far). We've had to work our butts off just to gather all the documentation pertaining to our debts/assets, etc, but that's not a big deal - it just requires making copies of stuff that already exists - not much thought and introspection. I realize we've barely just begun and don't even have a case number yet, but the one question I've expected the most is:

"So, how did you get yourselves into this mess?"

I went into this process fully expecting to have to justify how we owe so much and why we think bankruptcy is the answer and why we deserve to have our debts discharged. We may get those questions later, but I would have thought it would have been one of the first questions asked. So far, it's all been about the means test and that's it.

Surely it can't be this easy, can it?

Before we even contemplated filing for Bankruptcy, I bought Dave Ramsey's Total Money Makeover. I was all ready to get started on the debt Snowball, but the first step in Dave's plan is to create your $1,000 emergency fund. We couldn't even do that! The bills ate every single penny we brought home and we fell back on the credit cards for other expenses (gas, groceries, etc). We were surviving on the minimum payment buffer for a few months, and in the first week of June, we charged every single one of our credit cards to their limits. I wasn't paying attention and didn't take into consideration the upcoming finance charges, so not only were we maxed out, but the finance charges put us over our limits and we got charged with corresponding fees.

And that is when we realized we were in over our heads and the 'B' word came up. We discussed it and we each thought about it for a few days before finally making the appointment for the free consultation.

In regard to Dave Ramsey's plan, my logic this far is: But *he* filed for Bankruptcy! We can too! Sad, but true. Also, if it's Dave's plan for us to never have to rely on credit again, what does it matter if we have 10 years of bad credit? We don't intend on using it anyway! That's why we're filing for bankruptcy, so we can free ourselves from the debt chains and live on a cash basis from here on out. It's the Dave Ramsey plan, just 4 years faster and without the financial stress of putting every single extra dollar toward debt.

And then there is the other side of the coin - it's our debt and we are ultimately responsible (or irresponsible, however you'd like to look at it) for our actions. It isn't fair that we can just walk away from our responsibility to repay our debt. I feel guilty.

That's when I think about the laws that make bankruptcy legal and acceptable. I know our lawyer is raking in the dough, especially in this economy.

We are not alone.