I could pay my bills of in 5 - 7 years, but it leaves me about $50 a month to buy food on. My cousin keeps telling me to file bankrupcy and I can save all that money instead of spending it on bills. That would still qualify for a loan after a bankrucy to buy a car. I really don't know what the best choice is at this point. Pay the $60k and have zero in the end with good credit, or declare bankrucy and save the $60k and worse credit.
2006-06-14 12:21:49 · 11 answers · asked by Anonymous in Business & Finance ➔ Credit
You could pay it off, but would you really do it?
2006-06-14 12:25:49 · answer #1 · answered by Alex 3 · 0⤊ 0⤋
Get serious.
If your info is honest (you planned a budget and after all your expenses you only have $50 for food)...you can't do that for 5 years. And there is no guarantee that you will be out of debt.
On the other hand, if you file for bankruptcy you will be put on a "plan" that will severely cut into your budget. But at least it will give you enough to live on (more then $50 for food).
Yes, it's going to screw your credit. But I'm gonna bet it's already looking bad, isn't it?
As for a car, you can get one while in bankruptcy, but don't expect a new car with a low interest loan. Plan on a used car with terrible interest.
The key here is that you will be out of bankruptcy GUARANTEED in 3-5 years, with at least a chance of getting through it. You are not going to live on $50 for food for 5-7 years!
GET SERIOUS!
Talk to a bankruptcy attorney. Many of them also offer some credit counseling too. Get some advice before moving on with this.
Personally, any plan that takes you 5 years to get out of debt is impracticle.
2006-06-15 10:07:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I really think your best action at this point would be to talk to a credit councilor and see what your options are.
There are 2 different types of bankruptcy actions that could be taken. One is Section 7 which will wipe out your bad dept but has longer repercussions as far as credit availability for the future. The other is section 13 which has programs in place to pay off your dept over a long period of time as well as remove some of the dept.
Please do talk to a councilor they can really advise you as to the best action for you personally.
ps. don't believe people when they say it is a cop out. It is a tool in place to assist you when you most need it.
May you be blessed with the fulfillment of all your needs.
2006-06-14 12:39:40 · answer #3 · answered by Laurie 3 · 0⤊ 0⤋
Take a look at credit counseling. They can help you to reduce your monthly payments and still pay off your debt. Bankruptcy will haunt you for 7 - 10 years. Not likely you will be buying that new car anytime soon if you go bankrupt. Also, changes in the bankruptcy laws have made bankruptcy much harder to get. You could spend a lot on court costs and still not get your debts discharged.
There are a bunch of scams out there and a lot of people that will try to rip you off under the guise of repairing your credit. Go with a reputable organization that will help you and not rip you off. I have worked with Consumer Credit Counseling Service for a couple years and they have been great. Check them out at: http://www.cccsintl.org/
They can help you work with your creditors to reduce payments and interest and they have educational information to help you to manage credit better.
Good luck!
2006-06-14 12:33:45 · answer #4 · answered by davidmi711 7 · 0⤊ 0⤋
Determining when to file for bankruptcy depends on other factors as well as not having enough money to pay your creditors. Some debts will still be on your file after you emerge from bankruptcy. I believe student loans won't disappear. Having a bankruptcy record could also negatively affect your job prospects. Check out Liz Pulliam-Wesson's MarketWatch articles for more info.
2006-06-14 12:35:43 · answer #5 · answered by toboko 1 · 0⤊ 0⤋
If you have good credit still do not file banko. Banko is a last resort. Try to get a line of credit against your home or get a big loan to make it more managable. Try to do what you can to save your credit. Once your credit starts going bad everthing seems to go south.
2006-06-14 13:19:31 · answer #6 · answered by calikid79 3 · 0⤊ 0⤋
yes u can...in some cass filing will help ur credit.....there are some lenders now that as soon as ur case is discharged 1 day later u can get a loan to buy a house....i know all this cause im going through a case rite now for myself.... if u speak with a lawyre they will let u know the details....but i know a good lawyer only $500.00 for a case like this one othere charge around $1500.00
2006-06-14 12:29:11 · answer #7 · answered by muwah22 2 · 0⤊ 0⤋
bankruptcy is a cop out, and no you don't need to. make a budget and stick to it and don't use credit cards again. check out www.daveramsey.com
he has radio show and he offers free advice via email also. my thought on it is if you obtained goods for the debit it is up to you to pay it off. how about you try to only buy things that you have money for, just a thought
2006-06-14 12:31:03 · answer #8 · answered by Kevin S 2 · 0⤊ 0⤋
You know when you need to file for BANKRUPTCY when you can't spell BANKRUPTCY. You should jump off a cliff after you starve to death.
2006-06-14 12:27:30 · answer #9 · answered by a5shole 1 · 0⤊ 2⤋
just face it your screwed...sorry to tell you that...goood luck. or maybe try to find two jobs.. thats a real tight spot your in.
2006-06-14 12:28:51 · answer #10 · answered by Anonymous · 0⤊ 1⤋