I have around 13000 in credit card debt.i am considering filing for ch. 7.My minimums are 350 a month,should I

Question

It is not that i can't manage money, i just have been hit with a lot of misfortune- single mom, no child support, haven't finished college. i also have student loans for which i am current on. i am current on all payments, however i can't even afford my own place (living with my parents) Quite honestly, i just want to get the monkey off of my back. it is worrisome and nervewracking. Is bankruptcy that bad? I need a fresh start.

Answer 1

Yes, bankruptcy is that bad. If you are current on all your payments, I would definitely discourage you from filing for bankruptcy. If you feel that you will not be able to continue with the minimum payments in the near future, you might want to consider a debt management program (where the creditors reduce your interest rates and sometimes eliminate late charges). You have to be very careful though that you are giving your money to a reputable company. Check it out with the Better Business Bureau and do your homework on the company. One that I have had experience with is Cook County Consolidation. www.cookconsolidation.com. I am in no way affiliated with this company, I have just used them personally and have found them to be very honest and helpful. If you just want to reduce your payments and have good credit right now, perhaps the best option is a debt consolidation loan, which will hopefully reduce your interest rate and therefore your monthy payment. Student loans you can't really do much about as far as putting them into a debt management program or consolidation, but you can call them and ask to have your payments lowered or deferred. They are usually pretty flexible and you just have to give them your income and expense amounts to prove you can't afford the payments.

Answer 2

You can also check into Consumer Credit Counseling Service, CCCS. It's a non profit organization that will help you consolidate your debts into 1 monthly payment, which is a lot lower than what you're paying now. They charge a $1 or $2 dollar a month fee to help offset their expenses. They call the individual creditors and is real effective about getting your interest lowered. Things like that make the monthly payment lower.
It is a blip on your credit report but it's not nearly as bad as a bankruptcy! Good luck to you!

Answer 3

You may not have to file ch 7. There is also a ch 11 which is there for people to get caught up.

You may also want to look at a debt reduction company. There are a ton of them out there that help people settle their debt for 30 to 50% of the amount owed.

Another important key is call each of your creditors and get the interest rate lowered as much as possible. That will really help you out. You will have to speak to a manager or even several managers and let them know that the payment plans you are on are killing you and you need some help or you will have to file ch 7.

Additionally, you should be able to defer your student loans for up to a year.

If you spend a lot of time on the computer, I suggest signing up at mypoints.com and collecting points for free gift cards. that should help with your cashflow.

Good Luck!

Answer 4

If it is each and every of the debt you have you may truthfully organize a fee plan throu an outfit like Debt help Servcies, get rid of lots of the activity and component of the unique crucial and do the honorable component, pay it lower back. after all, a financial disaster won't plague you from now on than what your credit checklist sounds like real now with a collection of chargeoffs on it. i don't understand what you're doing mutually as residing overseas yet once you're nonetheless a pupil you may desire to make your mind up what you desire to do for a residing and initiate up doing it, despite if overseas or everywhere you're at and initiate up behaving like a to blame, tax paying citizen instead of dodging your everyday jobs. Having reported all that the banks are to a level to blame on your situation via loaning you the money in the 1st place. in the event that they gave a rat's rear end approximately how they invested that $20,000 of their depositors funds (they invested it in you, a bad investment) they in no way might have issued the cardboard to a pupil. So, they took a real intense and undesirable danger. the only way the Banks will exchange their lending behavior is that if some million men such as you all record financial disaster on a similar time. it would deliver a message, not approximately financial disaster yet approximately lending and borrowing. start up earning a residing and paying funds. credit card debt is for genuine chumps. study a lesson and don't repeat it.

Answer 5

Filing will not change your situation. You will still owe your debts with a bankruptcy on top of the other stuff. Once you have paid off a bill, the bad mark goes away in a couple of months if not sooner. Bankruptcy will stay on your report for 7 years. Just pay what you owe as best as you can.

Answer 6

Look into consolidating your debt. Most companies will with you. If you can get the majority of them consolidated it will help you out big time. My best friend did that. She is $160+ in debt (med school loan) and currently making about $45 a year.

Answer 7

Listen dear, I hope you are not looking for sympathy here, for you wont get it. . You made your bed, now lie in it. No-one asked you to get pregnant, there are always choices, like abortion or adoption. Get the father ( if you know who he is) to pay up, and if you don't want him to have anything to do with his child then WHY are you griping on about your debt. A lot of people get into debt, but get help to manage their money. You should do likewise.