Should I file bankruptcy??? Please any advice will help...?

Question

I need to know if I should file bankruptcy. I have read online that IF you do not have ANY valuable assets, and limited pay, meaning NOTHING by law that a creditor can take from you that there is no need to file bankruptcy? Amount owed is all credit cards (about $15,000 maybe a little more) and also a home morgage that I would be happy to include. Is it better to just let them charge off the cards or to file bankruptcy? I have NO valuable assets at all and also get a SMALL amount of help from the state. I will answer any questions... I need TRUE advice on this PLEASE!

i also forgot to mention... these debts are already about 1 to 1 1/2 years old... some are already charged off... and others still contact me. It has gotten out of hand. Some credit card debts that had a $500 limit are now at over $1500. Thanks all for answers!

Answer 1

Having $15,000 in debt is not really too bad. However, I know it can be a burden when you can't afford to pay mortgage and the necessities of life and have credit card debt. Most credit card debt is unsecured, therefore on a bankruptcy, you would not have to repay. You can keep your home and still make the same monthly payments even in bankruptcy, as long as you always pay on time and never get late. But there are many adverse things to consider about bankruptcy and the stigma remains with you for 7 to 10 years or more, depending on which chapter of bankruptcy you file.

The alternative is to work on this yourself. There have been people who have had over $100,000 in debt and have gotten out of it without filing bankruptcy. Do you think you could be strong enough to work this out without filing bankruptcy. You will feel so much better about it if you do. Here's a system I have followed, as well as many others. Please consider trying this before filing bankruptcy.

When you have a mortgage or rent, you pay that up front always the total amount, plus pay all your utility bills which are necessity as you never want to lose the roof over your head, or be without electricity, water, gas, fuel, etc.

You still need to pay those charged off debts as they will remain with you forever otherwise.

First thing of course would be to cut up the credit cards and make a commitment to never charge again. Then follow the following plan.

Make a list all your debts by amount you owe from smallest to largest. Then begin by paying the "most" amount you can each month to the smallest debt with the idea of paying it off quick. Then, only pay the minimum payment requested on the larger debts. Continue doing this every month until you have the smallest one paid off. Everytime you pay off a debt, call the company and tell them to close the account ... that you paid off the debt and that you do not want to leave the account open. Follow up on that to make sure they indeed closed the account. They will try to talk you into leaving the account open. Don't do this as it is too convenient and you will be tempted and will sink into debt again. You then start paying the most you can on the next smallest debt in line and go on from there until you have each paid off. Every time you get any extra money, whether it be $5, $10 or more, apply it against your debt even if you have already sent in a payment. You can send in payments more than once a month. Don't go out to eat. It's "beans and rice, rice and beans" as Dave Ramsey always says which just means (extremely cheap meals that you can fix at home). LOL Also do things to make money like garage or yard sales, sell on eBay, get a second job, anything to help you get money to apply toward that debt. Sell everything you don't need. And remember, it's not about obtaining the best credit score, it's about eliminating the debt. If you eliminate your debt, the credit score will work itself out.

You can get more help on how to accomplish this by reading and listening to Dave Ramsey. He has a talk show which you can hear on line through his archives, live on line, or by radio by entering your zip code in you live in the US ... and find out what time of day his show airs. Plus there is a lot of reading material on his site to get you started. In addition, he has forums from his site to get help and advice from other people who are in debt. Dave has been there (with debt) and knows what it is like and is now helping people to get out of it. There are people that have followed this method with over $100,000 in debt and have gotten it paid off without going through bankruptcy and without getting some debt help or debt consolidation company to do it for them, and without filing bankruptcy. Dave's website link is below.

I hope this information helps you and you get the relief you need. Best of wishes to you.

http://www.daveramsey.com

Answer 2

An idea...

Refi your home to get about 7k residual cash and a good interest-rate.

After you have the 7k, call each credit-card company and tell them you must settle the debt or go bankrupt. Make a firm offer of 40 cents on the dollar. Pay em off. Use the other thousand to bring every essential bill to current status, and then methodically pay down the debt on your home.

You'll do better with your credit, keep your home and dump the outrageous interest charged by credit cd co s.

Answer 3

Don't mess around with creditors, especially if you've got a mortgage. It's possible they could get a lien against the equity in your home.

At $15,000 the interest alone is going to bury you. Contact an attorney. DON'T WAIT. Here's a website:

http://www.handelonthelaw.com/

Answer 4

I would file only if I had no other choice. You should try to talk to your creditors and make a payment arrangement or try to get the bill lowered if at all possible.

Answer 5

SIMPLE !

Do not panic, get all your paperwork together and seek Professional advice !

Answer 6

go bankrupt

Answer 7

JUST PAY YOUR BILLS!!