[quote=earlyretirement][quote=flu]On second thoughts….Not that I would consider this personally…But I guess someone in serious financial doo-doo…
Hypothetical situation. Let’s say some person has no house to HELOC…. No chance of ownership…Let’s say the person has no savings, no IRA….And has a job that doesn’t really depend on having stellar credit.
But the person has 10 credit cards with $10000 credit line each.
Maybe works out for them is to cash out all credit cards on credit line, and put that money into the IRA….10 credit cards $3000 each say $30000 into an IRA, invested wisely…File BK.
Why? Because perhaps even after one files BK, retirement accounts are off limits.
Not that I personally would recommend this… But just saying….If someone is really desperate.
Chances are, they won’t even go to BK court, but will settle with the collector at much less than owed.[/quote]
Flu,
I wouldn’t be surprised to hear about people doing this! And the thing is, there isn’t anything that could be done to this person besides have bad credit for many years.[/quote]
And you thought leveraging your credit card is a bad thing :)……
