Can anyone give me advice with bankruptcy?

Question

I am about 1 step away from filing bankruptcy and I am scared. To anyone else who has filed, how bad does this affect you? I in no way want to ever get this deep in debt and don’t plan on using credit cards for a long long time but really how bad does this hurt you? I understand that your credit is shot to sh*t but can anyone give me any advice/heads-up, any info that would help?
Thanks.

Answer 1

if I were you I wouldn't go for bankrupcy, just consolidate the debt instead.
Consolidating means creating a whole new loan for a longer period of time. This would hopefully lower your payments enough so you can get back on track, in this case it might SAVE your credit score.
A credit counselor will give you some tools and suggestions for reducing your payments, just keep an eye on what the % are, you want it to be lower than what you pay now.
However, debt consolidation can be nothing more than a way of putting off the evitable. It really does little to correct the problem. That's why many people come back to debt negotiation as a way of getting out of their financial problems and starting fresh start.
More here: http://finance.ebookorama.com
also plenty more to read here
http://credit.ebookorama.com
http://credit-cards.ebookorama.com
http://credit-repair.ebookorama.com
good luck!

Answer 2

Let me explain it this way, since you don't go into details about your situation.

When someone asks me if they should file for BK, I tell them this. Do a serious examination of your budget. How much money can you find to pay off your debts?

What you are trying to figure out is if you can pay off this debt within 7 years. So assuming you have $30k in debts, can you find $400 in your budget?

If not, then you have a choice. You will either spend the next 10 years struggling to find money and pay your debts, watching your credit get destroyed due to late notices or collections, and lawsuits. Remember, your creditors don't care about you or your credit problems, they want their money.

Or you can file for BK. Again, you will be placed on a sever budget. No more dining out or entertainment. All of your disposable income will be used to pay off a portion of your debts. In the above example, lets assume the trustee sets your payments at $350 a month. Over the course of your 5-year plan you would pay $18,000 and they would excuse the remainder.

The key here is that after 5 years you are debt free and you can now begin to rebuild your life. Without BK you are still struggling to get by.

What you really need to do is gather your finance information and have an attorney go over the details. Many offer a free consultation.

DO NOT take Bankruptcy lightly. It's considered the last resort. But when you are deep in debt, and the creditors won't work with you, what other choice do you have?

Answer 3

As a lender I can only tell you how it affects your ability to qualify for financing.

A BK is a last resort. It is for when there are no other answers and the debt load is growing. The key is stopping what caused the BK. If it is excess spending...a BK won't change that. However, if it is due to a 1 time event (IE lost a business, medical issues, divorce etc) then a BK can provide relief and a fresh start. It's impact on your credit record is substantial but this diminishes over a few years if you build new credit promptly after the BK ( a secured card is the easiest way to start ).

The key is preventing what caused it from happening again.

Answer 4

Its not so bad. I was pretty much forced into bankruptcy because I was leasing a vehicle and when I took it back to the dealer to get another vehicle to lease it turned out that because of a hit and run accident my loan with the dealer was what they called, "upside down" which means I owed more than the value of the vehicle. Once you have been discharged it's just a matter of time before you start building your credit back up again. Bankruptcy is so common, it really does not hurt you that bad.

Answer 5

Hire a bankruptcy attorney:

5 Tips For Getting An Attorney for your Bankruptcy
http://get-out-of-the-debt-trap.com/category/5-Tips-For-Getting-An-Attorney-for-your-Bankruptcy.html

Answer 6

I'm a bankruptcy attorney. The first thing you should do is talk to a lawyer. Many will give free consultations. Call a local bar association (state, city, county, etc) and get a reference.

Your questions are too big and the facts you give are too vague to give any real answers. For example: are you married? Do you own real property? Is it subject to a mortgage? Do you own a car? Is it subject to a lien? Do you have children? Etc.

Ira Abel

Answer 7

You most likely must dossier for chapter. If you are having problems with forms I'm certain you'll be able to submit questions approximately wording and whatnot right here. Barring that, there will have to be a chapter attorney who can aid you with out up-entrance expenditures. Check your phone book and phone round. You can do it, simply take into account to consider in your self and understand that there's a mild on the finish of the tunnel!

Answer 8

There is some useful advice here.