Does anyone have any advice about filing bancruptcy?

Question

I am only 24 and live on my own. I have too much debt that I can not pay back. I haven'tmade payments on anything in almost 10 months because I have been jobless. I recently started working some temporary jobs here and there and am still trying to get a full time job. I used to have great credit and now my credit is terrible and I can barely afford food and gas for my car. If anyone has any information on claiming bancruptcy it would be greatly appreciated. Thanks!

Answer 1

I've read many of Debt Guru's answers in the past and they usually are fairly decent. But this one I have to comment on. It's very self-serving and borders on spam. I don't suppose you are the owner/employee of this company, are you?

Telling people not to file because it "stays on your public record the rest of your life" is the exact sort of scare tactic nonsense that collection agencies tell you. Yes, the statement is true, but very few creditors go through the trouble of referencing bankruptcy records, and depend more on credit reports. BK filings drop off credit reports after 10 years. You know that! So why are you passing on this sort of advice, other then scare people enough to do business with you?

One more reason why people need to look carefully at these "credit repair" companies.

To answer your question, it really depends on how much debt you are in. You need to look at your individual situation and see if it's the right thing to do. A bankruptcy attorney will give you an hour of free advice, so call around and do some research. NEVER file a BK on your own.

Answer 2

Contact a lawyer that specializes in bankruptcy. If you decide to file a BK then file chapter 7, not 13. Chapter 7 clears all of your debts and gives you a new start. You can probably find a BK attorney that will handle the paperwork for $500.00 to $750.00. You do not need a lawyer that charges more because the end result is the same. You will also have to pay for the filing fee. It will take a couple of years to establish good, new, credit. I would suggest a secured credit card to start with. Then build from there.

Answer 3

Bankruptcy should be a last resort.

It also costs $ to file. Make sure you fill your gas tank and eat before you file.

You are young and can still salvage your credit.

I would reccommend contacting your creditors and making arrangements to either pay in payments or settling the debts for less then you owe.

The older they get, the less they are worth to the creditors and collection agencies.

Here is a good article about bankruptcy, and the things you should know before you consider filing. http://www.expert-credit-advice.com/bankruptcy_facts.htm (basically talks you out of filing, but good facts)

Keep you head up, things will get better.

Answer 4

Bankruptcy is always the last choice. In your case, no employment for 10 months, and the fact that you are young and will have many years to repair your credit, I think you should consult with a reliable bankruptcy attorney. Good luck.

There should be no charge to ask questions of an attorney. Free consultations are the norm for this sort of thing. They can answer all questions about bankruptcy.

Answer 5

If you file bankruptcy it will remain on your public file for the rest of your life with the new BK law in place. When your 50 you will still be explaining to banks why you filed BK when programs such as http://www.fdnsolutions.com exist to help yu aboid that sort of thing. FDN Solutions can help you negotiate with your creditors so that you can pay back half of what you owe over the next 2 years to avoid them getting nothing in a BK scenario.

Don't Go BK!!! http://www.fdnsolutions.com

Answer 6

You have to go to a lawyer to file. It will wipe out all your debt, but stays on your credit report for 10 years. If you owe less than say 10 thousand, it might not pay to do it.

Answer 7

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Answer 8

new law now! It is vey hard to do now if only you prove that at the time, your income could not support all your bills because of unemployment, medical bills from sickness and so forth.