I am in over my head with debt and right now I can not make all of my payments. I was just wondering how any one was doing after bankruptcy. I have heard that you can get back on your feet and get loans even if you have went bankrupt. I was just wanting to get some opinions. Has anyone ever done it? What are the consequences that most people experience? I am hearing about new laws. Are they really affecting jobs? Please someone help.
2006-08-29 03:38:23 · 12 answers · asked by stephaniejere 2 in Business & Finance ➔ Credit
One way or another you will pay it. Either you are going to pay your current debt or you will pay higher (much, much higher) interest if and when you get approved for credit.
Bankruptcy is very serious and it not only affects your pocketbook but it affects most peoples self esteem because you will be explaining the circumstances of why you filed it for the next 10 years to strangers and hoping that they will treat you fairly. This includes future creditors, some jobs and rental agencies. You'll undoubtably have to explain it to a future spouse if you aren't already married.
I guess, it's all baggage but if you can pay that debt off or atleast get it managable over the next 4 years then it's probably better to pay it. Have you really looked at everything to see if you can consolidate or get a second job or is it that you are just having a difficult month? I don't really want to know the answer, I'm just saying that if you haven't then you should really consider how long this will affect you.
2006-08-29 05:46:22 · answer #1 · answered by Not Laughing w/ U 3 · 0⤊ 0⤋
I went through chapter 7 bankruptcy last year. 2 months after that I got a newer truck. However, the intrest rate was sky high, that is the only downfall i have seen so far. Most mortgage companies want to see you out of bankruptcy for at least a year before they will give you a loan. There are new laws on chapter 7 bankruptcy now. I think you have to attend credit counceling for at least 3 months before you can file bankrutpcy. Look into that for now. As far as employment goes, I think that some jobs will deny you if you have bankruptcy on your credit report, I have never heard of this happening to anyone i personally know, but from what i read online it does happen. I have had no bad experiences yet because of my bankruptcy. Although, I havent really applied for any credit since, other than vehicle.
2006-08-29 03:53:24 · answer #2 · answered by Jason 1 · 0⤊ 0⤋
I have worked with several people involved in bankruptcies.
It should always be considered the last resort. But my general rules is this:
Assuming that you sit down and write a drastic budget...cut out all the entertainment, cable tv, movies...even that daily cup of Starbucks coffee....and you applied every penny to paying off the credit cards....
Do you think you can have this credit card debt paid off within 3 years? Or 5?
If not, then go ahead and file bankruptcy. This is exactly what will happen to you, and you are going to have avery hard time for the new few years. But after that time your debts will be wiped clean and you can start over.
The alternative is you spend several years fighting with creditors, possibly having judgements placed on your credit (which hurt just as bad as a bankruptcy), and having your wages garnished.
See the link below for info on the new bankruptcy laws.
2006-08-29 08:42:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The new laws make it more difficult for consumers to simply offload debt in that if the bankruptcy court's analysis shows that you have the ability to reinstate your secured delinquent accounts and pay a percentage of your unsecured accounts over a 3-5 year period, you must file a Chapter 13 debt reorganization plan.
A bankruptcy on your credit record is reflected for 10 years. This can have a very negative affect on your ability to get credit and will greatly lower your credit scores.
You got yourself into this, you have a moral obligation as well as a legal one to work your way out. Call your creditors and make long term payment arrangements or go to Consumer Credit Counseling.
Bankruptcy affects all of us in that the losses suffered by unpaid creditors reflect in higher interest rates and costs to all consumers.
2006-08-29 03:48:57 · answer #4 · answered by Anonymous · 1⤊ 0⤋
It is very bad, but if it is absolutely your last route, you may want to do it. I would contact an attorney who specializes in bankruptcy law and see what your options are and what bankruptcy means for you in its entirety.
I once cared for a patient who said she had filed bankruptcy, and she said that she was not allowed to go to the hospital unless it was a matter of life or death (I don't know how true the story is but it worth talking to an attorney to find out).
Contact the lawyer referral service in your area. Sometimes you can speak to an attorney and ask all the questions you want for around $30. That would definitely be worth the $30.
2006-08-29 03:52:16 · answer #5 · answered by Christian93 5 · 0⤊ 0⤋
Okay. We filed maybe 2 or 3 yrs ago. We filed on medical bills for me, a car we had just bought and later went ahead and filed on our house. Now we have gotten 1 secured loan for 500 dollars, and barely got a loan for 1000 just recently. One place would take us Citi financial. Now what makes it so hard for us is that we filed our house. That's the only thing making it hard so make sure not to file a house and I'm sure everything will go smooth. Hope this helps...L.
2006-08-29 03:46:52 · answer #6 · answered by Ben h and Lisa 2 · 0⤊ 0⤋
thousands of human beings lost JOBS even as GM changed into TAKEN OVER by using the authorities. round 1000 dealerships were illegally closed. lower than financial disaster, those franchise agreements ought to not were canceled lower than regulation except those shops were unproductive. you in basic terms do not word some rural section dealership in Indiana remaining and shedding one hundred human beings. you do not see the tax gross sales lost by using a small city even as this dealership closed. you do not see the sponsorships for interior of sight community communities now lengthy gone. My husband changed into the form of GM workers who changed into given the kick to the line. With a DAYS word. The inept GM administration changed into in no way given the boot, the financial disaster courtroom ought to have tossed out the undesirable practices. authorities intervention in simple terms tosses out what isn't politically benefitting to them.
2016-11-23 12:50:26 · answer #7 · answered by mckernan 4 · 0⤊ 0⤋
due to the new laws, it makes in nearly impossible to file for bankruptcy... but if you do, it is possible to get back in the game... maybe use the filing method a last minute resource... have you tried to consolodate all of your bills into one payment a month?? try that out for a bit.... then if that doesnt work, file.
2006-08-29 03:45:14 · answer #8 · answered by Anonymous · 0⤊ 0⤋
it is hard to get a loan the first year but after that ...as long as you have money in the bank and you are working , banks are going to want it and you will soon get info on high interest loans and credit card approvals
2006-08-29 03:42:16 · answer #9 · answered by vixen77 1 · 0⤊ 0⤋
Hi there, just wanted to say, I liked this discussion. Very inspiring answers
2016-08-23 05:37:59 · answer #10 · answered by ? 4 · 0⤊ 0⤋