Too Broke for Bankruptcy

[Sauce]

http://finance.yahoo.com/news/americans-too-broke-bankrupt-105500347.html

This year, hundreds of thousands of Americans are expected to be too broke to file for bankruptcy.

The average cost to file for Chapter 7 bankruptcy protection, the most common form of consumer bankruptcy, is more than $1,500, according to recent research submitted to the National Bureau of Economic Research.

As a result, anywhere between 200,000 and one million consumers are estimated to be unable to afford that steep cost this year.

Okay, this is actually quite sad. I have sympathy for these people, but I have a hard time believing that most of the people in this situation are because of medical bills and not because of spending.

My brother's sister-in-law asked him to borrow money to beat her debt. He agreed if he could control her finances and make a budget for her. She declined and filed bankruptcy instead.

[arebelspy]

FTA:

If you have been making some payments on your debts, an attorney may advise you to stop paying creditors, which can free up the money you need to pay the attorney's fees.

..uhh, yeah?  Of course they want you to pay them instead of someone else.

That aside, it actually is sensible advice.  I don't understand how someone can be too broke to do it, when they can just not pay any other bills and save up for bankruptcy.

Know how?  By not saving up.  By spending every dollar they get. 

But man, having an iPhone sure is great.

[gooki]

You're assuming they have an income stream.