I spoke to my father just a few minutes ago and he has been toying for years to file for bankruptcy. His credit was trashed back in 2002 when my step-mom passed away and he hasn't had credit cards since at least 2005. He is going out of the country for 6 months this winter and was considering filing for bankruptcy next summer. The question I asked him is "Why File for Bankruptcy?"
Personally, I seek to pay off all my creditors, but for him he does not want to. He also does not plan to buy a house in the coming years, he is on social security disability payments and does not own anything of value. He also does not have any retirement money put aside. Due to his health, all he wants to do is rent a place to live, have a basic car to drive places, and spend time with friends and family.
His concerns was that people were telling him that they can potentially pull money out of his bank account or take his social security benefits. I let him know at least in Illinois that they are not able to do so since he does not receive wages and all of his income is from social security. At the end of the call, he agreed with me and is considering not filing.
How many others out there in the foreclosure fiasco will be like my dad in 5 years and realize that all they really want out of life is a place to lay their head, a car to take them places, the ability to spend time with friends/family, and a tv to entertain themselves when no one is around?