Just would like to see some answers on this. I owe nothing but, my credit report sux like i am over extended. Give me some help please. I have heard a bankruptcy is bad but, good at the same time. how is that possible?
2006-10-22 04:29:27 · 4 answers · asked by heavyhauldad 3 in Business & Finance ➔ Personal Finance
New laws (since January) say unless you're the poorest of the poor that you can't get all your bills charged off in a bankruptcy. So what's the use of trying for one when you can pay your creditors back by yourself or thru the CCC. If you do it by yourself it will take longer but you'll end up still having credit cards and a better credit report than you would if you went thru CCC.
Ok, so you're overextended, put your cards in the freezer, that way you'll think twice about using them again. And, make yourself a budget.
It used to be that unless you owe over $65,000 or if you are truly overwhelmed with lots of high medical bills that you still have to have doctor appointments because you're ill, that you should not go bankrupt.
2006-10-22 04:35:50 · answer #1 · answered by sophieb 7 · 0⤊ 0⤋
Bankruptcy is good in the fact that it gives a you a clean slate per say. That is the only pro.
The cons:
1. It is costly and with the new laws it makes it a bit harder (Your income and the size of your family is the factors in what kind of bankruptcy you can file, if you make under a certain percentage for example a family of one person has to make under 40,000 in order to be able to wipe the slate clean. If you are one person and make over 40,000 you have to file bankruptcy where you make payments)
2. It shows on your credit and your credit still kind of sucks and takes a few years to correct. They say 7-10 years but no so much. My BIL filed bankruptcy 3-4 years ago and he was able to buy a house with my sister.
3. Some people see it a bandaid. They will spend a few years running up credit, than file bankruptcy to wipe the slate clean and start all over again. If you can't learn from your past mistakes and keep relying on bankruptcy to get you out of the hole than it is bad thing.
IMO bankruptcy is not a bad thing. If you file and correct your mistakes and don't have to file again than it is great you were able to get a second chance. Sometimes we have things that just screw our credit up (hosptial bills, loss of job) and we need a leg up so to speak. But if you don't learn your lesson and you keep making the same mistakes than bankruptcy is bad.
2006-10-22 11:41:47 · answer #2 · answered by butterflykisses427 5 · 0⤊ 0⤋
On a daily basis, I deal with bankruptcy on a great variety of homes.
I know the cons very well.
1) Ruin credit record for the next 10 years
2) Lose your home immediately to pay off what you owe
3) Will show up on record that it is much harder to obtain a job that you will have to take whatever they offer, if they offer you a chance
4)Any new credit card will be at extremely high interest rate
5)You still have to pay the bill, it will not be wipe clean as a slate any more
2006-10-22 16:40:16 · answer #3 · answered by SweetBrunette 5 · 0⤊ 0⤋
i see what you mean, bankrupcy can solve problems, but it wont just wipe away your debt etc. they can reposess you house, car etc as well. so be careful. if i were you i'd seek some advice from a solicitor as well.
2006-10-22 11:37:18 · answer #4 · answered by jimi 4 · 0⤊ 0⤋