okay.. i have a car and a few other loans that i can't really afford to pay for. i'm running around crying everyday because i've managed to come up with nothing to solve my problem. i know i have a few options but i'm not sure what ones are right and what ones aren't.
not only that but i'm young and don't have much credit so my grandfathers name is attached to every loan i have. him and my grandmother have perfect credit and i don't wanna go screwing his up. i don't much care about mine..
is there anyway i can file for bankruptcy and not attach his name as well..? or debt consolidation?.. will he be involved also?
any suggestions are really appreciated! someone just HELP!
2006-08-14 11:46:06 · 12 answers · asked by luckystar_469 1 in Business & Finance ➔ Personal Finance
First off, you should be worried about your credit, even though it might not mean much to you now it will later in life. By avoiding debt now, you will only bring on bigger problems in the future. Also, filing for bankruptcy sound like a cop-out in your particular situation.
In my opinion, you should find a good bank that will help you consolidate all your debt into one easy to handle account, this way you can lock in a "hopefully low" interest rate and you won't have to worry about several different lenders coming after you to collect.
I know Chase is a good bank for loan and debt consolidation, there are a lot of others too, but Chase has helped me a lot with student loans.
Good Luck! and don't panic, just get your debt under control and take it a day at a time. All The Best!
-Todd Knows Stuff
2006-08-14 12:30:35 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Although his name won't be affected in the bankruptcy; your creditors will expect the co-signer on the loans to pay. Which means you'll be leaving your grandfather fully responsible.
The other thing with a bankruptcy is that it will stay on your credit report for 7 years. This may not seem like a big issue right now...but it will make it much harder for you to buy a car, a house, get a credit card. You may hear great stories about filing and then getting all sorts of great offers in the mail. Well, you do get a lot of offers; but they come with a price. For example, just to have a credit card after bankruptcy will charge you at least $80 per year...just to HAVE the card.
Quite possibly the best option would be for you to find someone who will let you do a debt consolidation. This will give you one monthly payment and it's generally a lower pmt than what you are currently paying AND there will be an end in sight. If you get a 4 year loan, you know the debt will be paid off in 4 years.
Good luck! I hope you are able to consolidate. I think it will be much simpler for you.
2006-08-14 12:04:11 · answer #2 · answered by Lily 1 · 0⤊ 0⤋
I've been practicing law since 1993 and I have yet to see a case where a debtor is better of with debt consolidation instead of bankruptcy. With a Chapter 7, you can usually wipe the slate clean. If you don't qualify for a Chapter 7, then a Chapter 13 can accomplish the same thing as debt consolidation. Chapter 13 is generally less expensive and can force ALL of your creditors to deal with you on your terms if you qualify.
2006-08-15 04:45:36 · answer #3 · answered by Carl 7 · 0⤊ 0⤋
I think the better question is:
Suicide vs. Bankruptcy
Bankruptcy is your last, I repeat, last option! Never ever choose bankruptcy if you have another way to go. Debt consolidation ain't that bad. I mean, it'll mess up your credit score a bit but nothing compared to the hell your credit score will go through when you go through bankruptcy.
2006-08-14 11:52:40 · answer #4 · answered by Ahmalya 3 · 0⤊ 0⤋
Hi, these articles might help:
Debt Consolidation - Get Out Of Debt
http://www.askaquery.com/Answers/qn1643.html
How to Hire a Debt Counselor?
http://www.askaquery.com/Answers/qn1584.html
What is Debt Relief?
http://www.askaquery.com/Answers/qn1583.html
Debt Management and Building Wealth
http://www.askaquery.com/Answers/qn1581
2006-08-15 06:47:37 · answer #5 · answered by curtain r 2 · 0⤊ 0⤋
I was in the same situation with a large sum on a credit card with my father. And I had to re-affirm and continue to pay otherwise it would effect him so basically with either way you are screwed because since he is co-signed he is responsible if you can't make the payment so when he signed he was saying if you didn't pay he would and unfourtantly there is no way around this at all! IF you have any questions email me at glock27guy@comcast.net good luck!!
2006-08-14 14:58:26 · answer #6 · answered by David H 1 · 0⤊ 0⤋
Filing for bankruptcy is not as easy as a few years ago. now they want you to consolidate all your debt. they want you to pay all of the people you owe money to.
2006-08-14 11:54:34 · answer #7 · answered by Nicko912 3 · 0⤊ 0⤋
If you declare bankruptcy, they go after him. Call a consumer credit counseling agency and ask for advice. I was in collections and they used to call me all the time asking for better terms for debtors.
2006-08-14 11:55:58 · answer #8 · answered by stick man 6 · 0⤊ 0⤋
he can be held responsible for your debts if his name is on them, filing bankruptcy isnt as easy as it use to be, you have to have a major life change or crisis, like a divorce, or a medical reason for not working to be able to file. but it will still go back on your grandparents if there name is on it.
2006-08-14 11:54:29 · answer #9 · answered by Mom 5 · 0⤊ 0⤋
consolidate your debts, as filing bankruptcy would be difficult:
Strategies to Reduce Debt Quickly
http://www.complete-debt-info.com/category/Strategies-to-Reduce-Debt-Quickly.html
Online Debt Consolidation
http://www.complete-debt-info.com/category/Online-Debt-Consolidation.html
2006-08-14 22:05:46 · answer #10 · answered by hen d 2 · 0⤊ 0⤋