I'm on my way to claiming bankruptcy and I just wanted to know for those that have, is it really as bad as everyone says it is? I don't plan on purchasing anything major (ie- house, car, etc) anytime soon, I just want a fresh start. What are the normal fees for this process? I don't own any valuable assets, or owe anything besides credit card debt.
Your advice would be much appreciated
Thank You!
2007-01-10 03:18:27 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
It will follow you for a few years. Just make sure that you make good on paying in the future. The thing about it is to make sure that you learn from your earlier mistake & dont repeat it. Nothing looks worse on your credit than a bankruptcy a while ago & now you are not paying on time, again.
I also am not sure about the tone that you are using. It seems to me (and maybe that is not what you had in mind or want to portray) that you are doing it just to get away from paying your bills. If you are just tired of paying them, than bankruptcy wont help. Under the new laws, if the court finds that you do have enough money to pay some of it, you will. They will put you on a plan to pay a reduced amount of the debt.
2007-01-10 03:28:33 · answer #1 · answered by ricks 5 · 0⤊ 0⤋
You do know the creditors have successfully lobbied and had the bankruptcy laws changed now. In most all cases you will be referred to credit counseling and have to pay anyway in reasonable small payments. If no resolution can be made then you might be able to have it cleaned off.
It usually cost about $800 to $1200. They cannot take your homestead house or one vehicle, clothes. They can attach everything else as an asset. If you are forced to do credit counseling they will garnish part of your wages and manage paying your creditors for you.
The good news is if your debts are wiped clean or settled and payed, you become an actual good credit risk. Reason is you cant file for another 10 years. I have seen people six months to two years after a bankruptcy having credit cards, new cars and a house after that.
Bad debt can only stay on your credit report for 7 years from the date of the last activity. In another words the last time you paid anything. Bankruptcy last for 10 years on your credit. Creditors only have 4 years in which to sue you after you quit paying them.
Creditors can write or call you frequently or have a collection agent do it for them. If you write a collection agent a letter stating you are unable to pay they have to stop contacting you by law. The creditor can hire another collection company to start the process over though.
Creditors and collection agents break federal law often. The fair debt collections practices act forbids them to do the following which they will violate often:
They cannot visit you at work or home.
They cannot threaten you with jail.
They cannot threaten you with a lawsuit if they have not filed one.
They cannot call you at work if you tell them not to.
They cannot call anyone else but you if they have a valid mailing or phone number for you.
If they violate any of these file a complaint with the ftc.gov. Contact a contengency lawyer and sue them.
If you file bankruptcy, none of them can contact you any longer. They must contact your lawyer.
2007-01-10 03:32:29 · answer #2 · answered by ? 5 · 0⤊ 0⤋
If all you have is credit card debt, have you considered debt consolidation? Bankruptcy really is a last resort - not to be entered into lightly. Please do your research before making a decision: there could be alternatives. Have a look at these websites - they may help you make up your mind.
Good luck!
2007-01-10 10:28:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋
My opinion is that it is a horrid black spot on your record and an easy out for someone who went overboard spending on credit.
If you can't afford to pay cash, then don't buy it. Why should the rest of us pay for your things?
They have changed the laws so it might not be as easy to declare and you may be forced to pay back what you owe.
2007-01-10 03:54:01 · answer #4 · answered by parsonsel 6 · 0⤊ 0⤋
How did the credit card debt come about? Make sure that history does not repeat itself.
2007-01-10 03:23:30 · answer #5 · answered by acmeraven 7 · 0⤊ 1⤋