should i file for bankruptcy?

Question

im 29 and was laid off a good paying job 3 years ago killing my credit my bills were more than im making now i just gave up. have a repo and about $5k in c card bills on my record.

Answer 1

You are probably not in dept bad enough to be worth filing a bankruptcy and the time close is already running on the repo so the older it gets, the less damage it does (provided you have settled with them). You really don't owe all that much, so suffering the effects of a bankruptcy (and eliminating your right to file again for 10 years should you suffer a bigger catastrophe) is not worth it.

Buck up and do the right thing. Set up a cash plan (also known as a budget) and make room to start saving several hundred dollars a month. You may want to take on a second part time job.

Once you have a couple of grand put aside, go to the credit card companies (or rather the collection agents that now own your debt) and offer to settle the debt. If you can lump sum it, you can probably get away with 25-50% of the payoff amount.

In other words, if you owe the collection agent $3K, start by offering $800 and work up for there. You may be able to get it as low as $1000. If you do this, make sure you get in writing that they will make the debt off as "settled paid in full." If you don't they may sell the balance to another company and you'll still be haunted.

Sometimes you can offer a little more and get them to completely disappear off your report. You should do the same with the auto loan.

Surely you are not still out of work after 3 years (and if you are, get off your butt and start working).

Note you can't file a bankruptcy anymore if your income isn't below a certain limit AND you've gone through credit counseling first.

You can probably clear that amount up within a year. 2-3 years from now, your credit will be fine.

Answer 2

It depends on if you're making any money now. Are you working again? Is there any way you can pay off your credit card slowly? 5k isn't that much even though it may seem like an insurmountable balance. Bankruptcy laws changed last year and there are certain criteria you have to have (ie how much your bills are vs how much you make now) in order to qualify for a Chapter 7 bankruptcy. Chapter 7 eliminates your debts completely but you basically have to have no assets, like a house. Chapter 13 is if you have assets you want to keep and it protects you from your debtors harrassing you while you slowly pay back a settled amount. The best thing to do is to speak to a bankruptcy law firm and get a free consultation to find out if claiming bankruptcy will help your situation.

Answer 3

You're still young enough to bounce back.
If you haven't been paying your bills at all for the last 3 yrs, don't give them any money. Check with your state for the Statutes of Limitations on collecting/reporting the debt. If you pay them anything, even $50, you will start the SOL all over again.
I thought the same thing, that paying my bills, by settlement or otherwise was a good thing. You know owning up to my responsibilities. However, I talked to a mortgage lender and they said just the opposite. Like he said, that while you think paying off debts is a good thing, it will more than likely lower your credit score. As he said, the older the delinquency of the account, the less impact it has on your credit. Because paying an older account, will be reported as current/recent activity and that's bad. I know, I had ????? written all over me too.
Search for a local attorney that specializes in debt collection to get more detailed answers.

Good luck!

Answer 4

Bankruptcy is not what it was. There was new legislation passed that makes it much harder for you to erase debt. Try talking to your credit card companies customer service departments. Tell them your situation and ask for help. Most, if not all, will try to work with you (they don't want to lose that money you know). They can lower your interest, or even suspend it for a while, lowering your payments and stretching the debt out for a longer period of time.

Before taking advice from anyone here, I would contact a professional. Most cities have organiztions, both for profit and non-profit, to help people in your situation. Just google something like 'consumer debt problems' and you'll probably find something. Or you might wish to consult an attorney, although that would be a pricey way to go.

Bottom line, $5K is not that much to be in debt. You can probably work something out that won't totally trash your credit rating.

Good luck.

HTH

Answer 5

I wouldn't. I have been there and I talked to the credit card companies and just settled on a lesser price and made payments. After a few months of that, I started receiving new offers for $300.00 credit from co. to rebuild my credit again, and it took about 2 yrs, but I did it, and I am a single mom with 3 kids and 32 yrs. old. Don't give up. I even had 2 repos. Don't give up, they do work with you in time... A bankruptcy may not be in your best interest, but it's your decision......Good luck and hang in there...

Answer 6

properly, to respond to your preliminary question of no matter if you need to record financial disaster or not is amazingly as a lot as you eventually. i does not suggestion it in case your debt is decrease than 10K as commonly a consolidation ought to get you out of the hollow on that project and also you need to rebuild your credit. the subsequent project because the rules have replaced, do you qualify depending on the income rules on your kin? possibilities are extreme, curiously you do, yet then i don't recognize what you're making or what number are on your kin. Secondly, that is gonna value you a grip to record now as what replaced into $three hundred-$500 to do countless years in the past will actual value you $1500 or more suitable. Plus you'll even ought to seek credit counseling beforehand you flow ahead interior the approach. As for your reference with regard to the 7 yrs., that is not inevitably computerized as they bypass on the superb date of pastime on the account. it really is how the lenders get you and characteristic the flexibility to strengthen that 7 yrs. to an eternity. Now, you are able to always dispute any subject matters you've on your credit record, so don't be afraid to take action. they ought to deliver you an manage and get in touch with style of the creditor interior a functional era of time or the credit bureau has to get rid of it out of your credit record. many people don't recognize this, even if that is how this style of large style of people are able to have some issues bumped off, because they fail to analyze the information speedily. this may properly be sturdy for you if it somewhat is the case or you need to properly be stuck with some issues on the record. i am hoping this helped. sturdy success!

Answer 7

If you file bankruptcy now, this will affect your credit for 10 years.

If you leave your debts as is, you will be affected for 4 years.