I'm 22 years old and owe about 33,000 in debt, should I file for bankruptcy?

Question

I'm currently 22 years old, never been marry, I owed about 23,000 in credit card debt and about 10,000 in collection. Should file for bankruptcy? and how does it affect my credit score in the future?

Answer 1

If you file you have to remember that it will be on your credit score for 7 years I believe, but on the other hand having higher debit then credit hurts your score too. You should talk to a professional and get help for your credit card problem. PS CUT UP YOUR CARDS!!!!!!!!!

Answer 2

No you should not file bankruptcy. Start paying your bills and learn some responsibility. I'm sorry your parents didn't teach you any but now your an adult and it's time to grow up. Instant gratification is not the way to life your life. Your riches and toys will come to you naturally later in life.

Hold 2 or 3 jobs if you have to but pay them off and stay away from credit cards in the future. They help nobody but the card companies. It's like betting against the house in gambling. They're not going to let you win to often.

Bankruptcy will stay with you for 7 - 10 years. It could cost you your dream job because if a employer pulls your credit app and see's that you filled bankruptcy it'll show that your irresponsible.

Pay the minimums on the credit cards and pay off the collections first. Then at least triple the minimums on the cards.

Just take a look at what you've done to yourself so early in life.

Making Minimum Monthly Payments (5% of balance) on a balance of $23000 would take you 161 months to pay off with a 19.00% APR.
Total interest paid is $10608.24 ($33608.24 total paid).

I'd suggest you read the website below and make it the first thing you read each and every day until your free of your debt burden.

Answer 3

Almost sure that you will find all financial answer at: loandirectory.info-

RE I'm 22 years old and owe about 33,000 in debt, should I file for bankruptcy?

I'm currently 22 years old, never been marry, I owed about 23,000 in credit card debt and about 10,000 in collection. Should file for bankruptcy? and how does it affect my credit score in the future?

Answer 4

First off, bankruptcy does not stay on your credit report for 7 years, it is closer to 10 years. However, filing a bankruptcy WILL reduce your income to debt ratio in your favor. Bankruptcy also does not necessarily screw up your credit for 7 to 10 years either. In fact, after getting a discharge in a chapter 7 bankruptcy most people are amazed at the number of credit card offers they receive because the credit card companies often consider them to be a good risk again because with the new laws you can only file once every so many years. Also, people have purchased homes in as little as 2-3 years after having filed a bankruptcy so a bankruptcy isn't necessarily the end of the world. Debt consolidation companies often make promises they cannot dream of fulfilling, such as stopping interest, etc. Credit card companies are under no obligation to work with consolidation companies. And many debt consolidation companies are actually backed by the credit card companies themselves. So you tell me whose interests they are going to protect.

In any case, it probably wouldn't hurt to consult with an attorney, most bankruptcy attorneys offer free consultations. Good luck.

Answer 5

Don't you just love these answers?

Lemme see....you are a deadbeat. A few implied you don't have a job and should get one. Others think you need 3-4 jobs....but whatever you do...pay off your debts.

Credit Counseling? Credit Consolidation? Credit Repair? Just more ways of delaying the inevetable

I pray that some day these upstanding people find themselves in a bad financial situation. Maybe they get laid off...lots of medical bills or a family emergency. Wonder if they will be thinking about bankruptcy.

Did any of these fine, upstanding people ask the reason for your situation? Nope, don't care. You're a deadbeat.

pettyrebelette's advice is good, but keep in mind he's in the business of bankruptcies so obviously he's going to recommend you get one.

My opinion?

You are worried about your credit score and how a bankruptcy will effect it. Too late. You already have debts charged off and in collection, with several more on the way. You credit is already ruined, so why are you worrying about that? It's already ruined!

Lets pretend that all these fine creditors agree to freeze your interest payments and late fees (yes, you've moved to OZ).....so you owe only $33k. To pay this off in 5 years you need to find $550 a month. To pay it off in 8 years you need $343 a month. Can you afford this? Can you live on an extremely tight budget for the next 8 years, and pray you don't have any financial emergencies? Most people can't.

In reality, if you have to pay these loans with late fees and interest, you will be paying close to $600 a month for the next 10 years (at best).

If you file for bankruptcy, they will put you on a very strict budget, and you will have to pay back a portion of your debts (depending on your income and current assets). It's certainly going to be less then $550...and will not last more then 5 years. And you will NOT be paying further interest or late fees.

So for starters, if you file for bankruptcy you now have a clear path of what your future will be. Yeah, it's going to be rough. And your credit score will be trashed for several years (but it already is, remember?).

Nobody wants to file for bankruptcy, but many times that is your only logical choice. Consult with a bankruptcy attorney and find out what he can do for you.

Oh yeah...the moral part about not paying your bills. Are any of these creditors trying to help you out of this situation? No, all they want is their money, and they will gladly destroy your life trying to get it.

That's why the bankruptcy laws were passed.

Answer 6

First off take out all your credit cards and separate the store and gas cards.....get a pair of scissors and cut them up the interest rates are high on those than a regular credit card. Next thing you want to do is get two cards with the lowest line of credit and cut up the others and cancel the accounts. Get a copy of your credit history to determine how long it will take for you to get things together you might want to consider credit consolidation with a company like CareOne credit counseling or Cook Consolidation. You may have to consolidate your bills because bankruptcy will mess up your credit to the point NO credit card company will consider you because bankruptcy cases are high risk. Check your credit history for free at www.Freeannualcreditreport.com and check your credit report and gather all your bills and sit down with a credit counselor and work out an arrangement with your credit companies so you can pay this off. DO NOT file for bankruptcy because this will leave a black mark on your credit history.

Answer 7

You should file for bankruptcy, because you are 22 now in seven years you still wont be able to pay 33,000. So why not file for bankruptcy now and in 7 years you will be fine. Normally I would say dont do it, but if you dont you will be paying of 33k for the rest of your life, and that stuff will still be sitting on credit report. I rather have a bankruptcy on my credit report for 7 years then to pay something for the rest of my life and still have bad credit.

Hope this helps

Answer 8

Your credit will be shot for at least 7 years, and probably not great after that. And if an employer or anyone else ever asks if you've filed, you have to say yes, which may affect something you really want.

So if there's any conceivable way you can pay it, do. Call the credit card companies and try to work something out--and get a FREE credit counselor (nonprofit agencies do this, don't be confused by people who claim to "clean up your credit") to help you figure out what to do. Ask a separate question on Y! answers to find out the name of this FREE, nonprofit agency.

Answer 9

Im going with the dave ramsey idea. Live like no other so later you can live like no other. Scrimp and save and pay it off. Forget the debt consolidation idea. forget bankruptcy. Just freeze your accounts. Pay huge payments, as much as you can from smallest to largest. till you have em paid. debt consolidation is not the way. you can do it yourself with lots of discipline and hard work. If you go to a bankruptcy lawyer they will want some money just to talk to you. You can do it yourself, but you gotta stop the spending and get seriously paying it down. good luck to you.

Answer 10

I was in the same situation(not as much in debt though) and went with a credit counseling agency. (Care One.) they consolidate all your cards and make agreements with the companies as to how much you pay each month. as you pay off each card, put that $ toward another one. I figured out my cards in order of lowest to highest and watched their balances and made sure I called right away to put that amt toward the next one. It will take a while but as you pay off each card your credit will improve slightly.

when you do this, you wont be able to use your cards anymore. cut them up. If you have a Visa or MC Debit card just use that.