Practicality and Reality of Bankrupcy?
This is may be a bit of a personal question, so please bear with me. I currently have a friend who is staying with me because in the span of less than two weeks he had very bad luck. His roommate moved out and he was forced to find a new place to stay. At the same time, the school he was teaching at decided not to renew his contract for the upcoming school year. (He does not have a teaching degree nor a four year degree, though he's working on it, so getting a position with another school will be next to impossible for the time being.) EDIT: He is trying to find work, make no mistake. As much as he'd like to get another teaching job, its very unlikely to happen. The only reason I mentioned the teaching job is that its not a position that's easy to replace. His background is in technology (computer support) and he lives in/around the Silicon Valley where there's still a huuuuuuge unemployment problem when it comes to technology jobs. (There's still many overqualified workers looking for your basic desktop or helpdesk type jobs and not nearly enough positions for them.) If he has to take a retail job to make ends me, he will, but he would like to try to find a job that's comprable to his education and experience. (And yes, the job market IS that shitty here. My husband couldn't find a tech job for nearly 3 years and he has the education experience to do so.) He's also got a lot of debt problems. He's defaulted on his student loans and other credit (store credit) he's had in the past is currently in debt rehabilitation. This wasn't as much of a problem while he was employed but now that he's unemployed, keeping up with the payments is going to be difficult if not impossible, even with a few months of UI. He's also had liens and collections due to defaulted debts. Because his credit is horrible, he has been declined several times to get an apartment. He's tried several different ways to get an apartment (most places won't allow a co-signer and even renting under his girlfriend's name isn't a possibility because while she has good credit, she doesn't earn enough for landlords to consider her for rentals.) My husband and I (as well as his girlfriend and others) have suggested that he look at bankrupcy as a possible option. By no means are we saying that he SHOULD DEFINITELY declare bankrupcy but that he should at least consider it. Can anyone tell me what he can expect if he declares bankrupcy? Not the actual process of declaring but the reality of it. What are the reprecussions of declaring bankrupcy? Will they liquidate his belongs? He has few tangible assets (save for a computer, PSP, video games, etc. He has no property nor a car.) and for all intents and purposes, he's homeless (staying at our place and at his girlfriend's.) Can he still someday be able to secure a mortgage? Will the credit cards that he is authorized as a user on (vs. being the primary user on the card) be affected by his declaring bankrupcy? Are the reprecussions worth it to be able to start off on a clear slate? Any real life input would be much appreciated! He's a really good friend and I hate to see him so bogged down by debts he may have little hope of clearing now. And any suggestions on how to score a place to live with bad credit can also help!