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

Discussion in 'Wall St. News' started by noob_trad3r, Feb 22, 2011.

  1. Shopertainment addiction continues.

    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.
  2. 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.
  3. Lisa should run for office, she's got the hang of things.
  4. Looks like a large portion of our population.
  5. Too bad they had the chance to procreate and pass on their bad genes.
  6. They should start a reality tv show..perfect for tlc or some other pos station:p
  7. .

    Don't worry the current one in the office is acting similar
  8. bonds


    how are they able to still have a mortgage after filing for bankruptcy a year ago?
  9. exactly, that is impossible
  10. 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.
    #10     Feb 22, 2011