when should i file bankruptcy?

Answer 1

Never! Do what ever you can to prevent it! I used to work for a mortgage company and I've seen the hell people go through with all their creditors! Avoid it at all costs!

Answer 2

When you can no longer keep up the payments and creditors are threatening suit or have a judgment, and are going to seize your bank account, garnish your wages,repo your car, or foreclose on your house.

Since BK laws changed last fall you have to go through a 6 mos counseling session for a chapter 7.

If you file a a BK 13 that gets everyone off your back, but you have to pay the trustee each month the arrearage plus the secured creditors the regular payment as well. If you fail to pay, the plan will be dismissed, and the creditors will be on you again.

You maybe able to convert the plan to a chapter 7 if you pay for 6 mos. then get dismissed.

If you own a home, and car and want to keep them you will have to sign a reaffirmation agreement to do so. You will have to continue with those payments, and can't file another BK 7 for 7 years, but all of you unsecured debt is wiped out.

However, you can file another chapter 13. If you don't pay that time the creditor files a "Motion for Relief" and takes the house and car.

You need to take a serious look at your unsecured credit, and maybe set up an appointment w/Consumer Credit Counseling Service through United Way depending how far gone this situation is. They are able to stop the interest, and get payments down to a manageable level for you. They can't help w/the secured credit.

A bankruptcy stays on your credit report for 10 years.

Hopes this info helps you.

Answer 3

Never.

There are so many options available to help you avoid going down this path. You may not like the options, but bankruptcy is really little more than making your own plan to improve things...except now it becomes forced!