Woman encourages people who can’t afford their cars to file for bankruptcy

@lifeaskiki_/TikTok LIGHTFIELD STUDIOS/Adobe Stock (Licensed)

‘The rich utilize this resource way more’: Woman encourages people who can’t afford their cars to file for bankruptcy

‘The best decision I ever made.’


Stacy Fernandez


This woman claims bankruptcy might be the solution to your financial woes, in particular to avoid getting your car repossessd. Is she right?

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Bankruptcy is a legal and financial process that helps people (and businesses) struggling to pay their debts start over. Contrary to popular belief, bankruptcy doesn’t immediately wipe away all your debts (sorry, people with student loan debt).

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Depending on the type of bankruptcy, some of your debt may be wiped or you may have to liquidate your assets (like your second car, luxury goods, or an extra residence) to go toward your debts and enter a repayment plan that’s more manageable, NerdWallet reported.

Once you file for bankruptcy it should put an end to calls from debt collectors, debt lawsuits, and any wage garnidshment you may experience.

Last year 434,064 people filed for bankruptcy, up from 374,240 in 2022, marking the first increase in a few years, the United States Courts reported.

In a viral video with more than 3.3 million views, content creator Kiki (@lifeaskiki_) said—especially as she sees more posts online complaining about cars getting repossesed and credit score drops—that she thinks more people should take advantage of the ability to file for bankruptcy to get their finances back in order.

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“Before the credit defenders come on here saying how ‘You wrong for not paying your bills,’ and this and that,” Kiki said. “Please do not defend a company that wouldn’t even come to your funeral. Like, really think about that. Like, don’t fight so hard for them.”

Now, based on Kiki’s online profile, it doesn’t seem like she’s a licensed financial professional (no shade), so we’re going to fact-check her claims to make sure you’re getting accurate information from the internet.

You can still buy a home after bankruptcy

“For those who say, ‘Oh, good luck buying a home.’ You could buy a home in two years if you file chapter 7, easily,”

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While a bankruptcy filing will stay on your credit report for up to 10 years, your credit score can improve within months of filing, NerdWallet reported.

In fact, those who file Chapter 7 bankruptcy, on average, see an 80-point score improvement by the time their case is discharged (usually within six months), according to 2014 and 205 reports from the Federal Reserve Bank of Philadelphia and the New York Federal Reserve, respectively.

While most conventional loans require a two-year, post-bankruptcy grace period before you can apply for a new mortgage, you still stand a chance at securing a home loan, especially if you’ve been improving your credit score, Property Club reported.

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“I filed bankruptcy in 2020 and bought home in 2023!!!” a person shared.

It’ll stop your car from getting repossessed

“Yes, it is generally true that if your car is out for repossession, you can temporarily stop the repossession by filing for bankruptcy,” Kiki said. Right again.

Once a bankruptcy petition is filed, creditors need to leave you alone and go through the courts. They can’t pester you for payments or to get back their collateral.

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Bankruptcy isn’t just for the rich

“It is so weird to me that the rich utilize this resource way more than the people who actually need it, which is the poor,” Kiki said. “So just ponder on that.”

She added that she had this realization after meeting a well-off man who shared that he’s filed for bankruptcy twice in several decades to start with a cleaner financial slate.

To be clear, bankruptcy benefits anyone, no matter their social status.

“And please ignore strangers on the internet telling you that you’re less than by filing. They are literally miserable,” Kiki said.

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Viewer reactions

The comment section, which had a whopping 12,000 comments, was filled with success stories and people virtually nodding along to what Kiki was saying.

“honestly it’s the just a restart button,” the top comment read.

“My grandparents have filed bankruptcy every 10 years like clockwork,” another revealed.

@lifeaskiki_ And please ignore strangers on the internet telling you that youre less than by filing. They are literally miserable #bankruptcy #broke #struggling #creditrepair #bankrupt #chapter13 ♬ original sound – LifeAsKiki_
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“I filed chapter 7 years ago. I have an 800 credit score now. The best decision I ever made,” a commenter wrote.

The Daily Dot reached out to Kiki for comment via email.

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