I am trying to pay off bills. I can't get a loan anywhere. I am considering filing bankruptcy. Is that wise?

Answer 1

Depends upon the amount of debt versus your expected income. If the total of your debt exceeds what you expect to make each year then you are in trouble and should consider bankruptcy. But it isn't a get out of debt free card. If you think it is hard to get a loan now just wait until BANKRUPTCY is written all over your credit report.

Consider working a second job to pay back the money you borrowed. In the meantime, cut up your credit cards and only pay in cash for the things you absolutely need. It may take a few years to get out of debt but if you keep working at it you will succeed.

Good luck.

Answer 2

Bankruptcy is never the wise thing. It is a last resort. The new laws will make go through classes if you are trying file chapter 7 and even then you might not be able to. 13 should not be a problem but then you have to pay the court a set amount for a while. If you decide to to file make sure you get everything out there not just what is on the credit bureaus. Some things may not have been reported and once it is done it can not be added on.

Answer 3

im in chapter 13 right now, it was blessing because i had gotten sick and had to quit work and go on disability , that didnt start for almost 3 years so we were really up the creek so to speak, we got to keep our home and everything else ,but we are paying for then through bankruptcy court and the money has to be there to cover your creditors at the end of the month last working day or they can come and get all your stuff and home,chapter 7 you give everything that you are paying on back to whom ever, they foreclose on your home, my husband is having his check guarnished every week to pay the chapter 13 we have about 11/2 left out of 5 years. sometimes you have to do what you have to do and at lease you do have a way of saving your home if thats what you want to do. hope this helps, the lawyer was paid out of the guarishment and there was no closing fee, the bankruptcy stay on your credit for 10 years,but tere are alot of creditor dont pay that much attention as long as you payed the bankruptcy , i know someone that said they had a friend that after his bankruptcy was over he had no problem with credit and ive heard that alot, even my lawyer said that. its not the end of the world its away to save your property ,but only as a last resort

Answer 4

"Bankruptcy wont solve your problem. With the new laws just passed, you still have to pay. It doesnt 'go away'."

Sorry, but that just isn't true in most cases even under the new law.

MOST people who are filing are being allowed to file CH 7's. Not as many are being forced into Ch 13 repayment plans as the banks who bought that legislation had hope.

BK is NOT a credit death sentence for the next 10 years.
BK IS a viable option in you have way more debt than you will ever have income to pay off.

Credit Counseling is in deep trouble, the FTC is yanking the 'non-profit status' of many CCCS companies as most of them are just as bad as a Ch 13.

CCCS is funded and controlled by the CREDIT CARD COMPANIES !! They are NOT there to help you, they are nothing more than another collection vehicle for the credit card companies. For the 3-5 years most people would be in CCCS, they might as well file CH 13 bankruptcy and at least have the protection of the courts behind you.

Credit card companies are NOT obligated to work with CCCS, and you often cannot get any 'deals' because the credit card companies controlling CCCS do NOT want people on debt management plans, they lose too much money.

The statistics are showing that the greater majority of people who go for the mandatory pre-bankruptcy credit counseling are already too far gone and CCCS can NOT help them and they go on to file bankruptcy.

You must weigh the total amount of your debt against your income potential. If you can't find a way to dig out on your own in 5 years, you might as well at least file CH 13 and pay back some portion of your bills.

BK is not the hell people would like you to believe it is. It is damaging to your credit, but so are charge-offs and lots of lates. The fact remains that you can recover your credit faster after bankrutpcy than you can if you just slog it out for years trying to pay off a mountain of debt and possibly getting sued in the process.

Answer 5

Bankruptcy is NEVER a good choice. You'll regret for a long time.

Instead, develop a plan that will help you get out of debt. Consider the following:

1) Create a written budget and use cash instead of credit
2) Sell stuff
3) Take on an extra job or two

I've been teaching a personal finance class for nearly two years now and have been able to help several families get out of debt. Contact me if you want specific help. I'm in the process of developing an on-line course and could use some people to test it (for free, of course).

Scott

Answer 6

I am seconding the Consumer Credit Counseling.

It doesn't go against your credit and a bankruptcy does, for a very long time.

Even if you file bankruptcy, you will have to pay a nice chunk of what you owe. To say nothing of attorney and filing fees.

Answer 7

If you are very serious about paying it off then read the book "Total Money Makeover" by Dave Ramsey. Don't do bankruptcy, you will not be able to buy a home for a few years. This book will help you through the process of paying it off instead.

Answer 8

Try Consumer Credit Counseling first. Bankruptcy should always be an absolute emergency last resort. It stays on your credit report for 10 years. I did it back in 1995 and am just now starting to get things back on track.

Answer 9

If you file bankruptcy you will lose your credit for a long while. Try debt consolidation or something first. If it is credit cards, call your card companys they can usually work with you. Only file bankruptcy as a last resort.

Answer 10

Bankruptcy laws have changed considerably, whereby it is much more difficult to claim. You should seek a bankruptcy attorney.

Why the rush in paying off your bills? Are these companies willing to work with you, perhaps restructure the debt you have with them?

I strongly recommend you contact CCC. It is a non-profit organization to help you with just this sort of problem.