Help please! I am about $14 K in debt and only make$18K/year?

Question

I have a an awful credit score and $10K of the debt is a car charge off. I do not know if I want to file for bankrupcy or not, or if it would help me. I am 25 and I do not want to have horrible credit for the rest of my life. Will bankrupcy help me start fresh?

10k in a car loan taken out in 2000. This thing keeps getting bought and sold to various credit collections bureaus, I think It will follow me the rest of my life...Should I file bankrupcy?

Oh I forgot I am a single parent. Divorce did not absolve me of any debt liability like some people tell you it does:(

Answer 1

I suggest you not to file for bankruptcy.

I also suggest you to get a second job.

If you have a car then sell it to pay your car loan.

I suggest you to use half your paycheck to pay for your debts and you will be out of the woods in less than 2 years.

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Answer 2

Bankrupcy is the last thing you will think of. Just cuz you declared bankupcy means your credit will start over, of course it will clear all the debts but bankrupcy will stay on your credit, it will never go away, as you apply for jobs or credit cards, the employers and creditors will look at your credit, as son companies check your background as your credit too.

By delaring on bankrupcy to be able to have credit again you will have to take a class and learn how to manage money and how not to declared in bankrupcy again, if you dont pass that class, then you wont have good credit again until you pass the test.

Answer 3

Have You thought about moving to another country. Seriously, get ahold of some Credit counseling, make sure they are not out to put you in more Dept. by trying to get high interest. You need a company that is looking out for you call your bank (sounds as if they will be glad to help). This will help you alot they will help consoledate loans so your paying 1 bill, typically at a smaller amount than you would paying each bill, as well as the money you will save in the long run in paying one interest. Then Cut up all your credit cards, find someone that you trust to double sign your checks( a parent is great, not a spouse or oppsite sex friend) so you don't "go over board" have your checks directly deposited in this account with all your bills being automatically. Take just what you need to take care of your immediat needs throughout the week. Such as 50.00 fir gas and meals withdrawn. You will be suprised at how much money you not only pay off but how mch you can save also to put down on a house or car.

Answer 4

well, my parents claimed bankrupcy a 5 years ago (150,000.00 in debt), and can still keep everything they own, have a credit card, and a fresh start indeed.
i dont know exactly how they did it, but they found a loophole, where if they claimed bankrupcy, they had to attend a few seminars on how to budget, only for 3 years they could not have any credit,, but your debt is far less than that, ask around or research, there is always a loophole to a better way out.

Answer 5

NO..don't! A bankrupcy will stay 10 years!!
Climb out of debt. Okay let's say you owe 15K
over 4 years 250 a Month will pay it off not including interest. The VAST majority of people who file..REGRET is with 2-4 years later. Stick it out and become debt-FREE in a few short years...don't do a 10 year flush that will haunt you until your 35 years old

Answer 6

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Answer 7

bankruptcy is not for everyone.The credit companies can only report negative items on your report for 7 years from the date of the first delinquency.If it is a charge off of 10 k then I would let it ride the 7 years.there is no way to erase this from showing even if you paid it off or filled it on bankruptcy.credit companies will try to collect it and threaten you,they will even tell you that if you pay it they will report it to the credit beaureau as paid but that never happens so I advise you not to pay them anything and after it is 7 yrs old,they cannot try to collect it or report it.After about 4 yrs. you can go through a bank called first premier and get a small credit card.It does have a high fee for the card but you can pay it out and if you make all your payments on time then that is reported as good to your credit report and then you can apply for other cards and offers.It will cost you but you pay it out like a $300 credit limit, you get the card and it has fee's of like $225. so you actually have a $75 limit until you make payments.Bankruptcy is going to stay on your report for 7-10 yrs and credit companies do not like to see this.You can go online to www.annualcreditreport.com and get a free copy of your credit report from each credit beaureau.there are 3 major companies and you can dispute the information in each.I cleared off several collections on my report by disputing the information through the credit beaureau.

good luck

Answer 8

only have a few options- file for bankrupcy- or just start paying cash for everything and let everything slowly come off- I would choose the bankrupcy its faster.. I wish i would have

Answer 9

You have three options. Live very very cheaply and try to make payments, just stop paying, or declare bankruptcy (which costs 5,000$)

I think your best option is to stop making payments, and take a bad credit score. It will recover within 7 years which is how long bankruptcy is on your record anyway.

Inform the creditors you can't pay. They might be willing to settle for very little money.

Answer 10

try 2 loan some money. try 2 let your frenz or parents or siblings help you out. Every time on your payday save at least $50 every payday. then when you have like a bill that just popped out of nowhere(lolz) you can use that money as like an emergency thing. Thats how you should start. My parents are like, troubled wit money 2 so well, i told em 2 do that and well, we are going 2 disney land. we have saved enough money for our family time 2gether.

Answer 11

Filing for bankruptcy will ruin your credit even more, for 7 years. If you commit to bankruptcy...you commit to sticking to your budget completely because no one will give you credit or if they do, the interest rate will be so high...you will end up right back where you started.

Have you considered a consolidation loan at a lower interest rate?