Should I file for Bankruptcy?

Question

I have about $9,000 in cc debts. They were back in 2000. They are still coming after me. I am currently wokring but helping my husband pay the home bills *all under his name* since i have horrible credit. But is 9,000 worth filing? What are my options? I have paid some agency and went thru credit counseling but i don't have 400 a month to pay out of pocket. Can anyone help me? I have a baby daughter as well. I want a fresh start since I am now married. Any help would do.

Answer 1

From your brief description I would not file for bankruptcy yet. I am missing a lot of information that would be extremely useful.

Who was this credit counselor you went to, and when? How old are these debts? You say back in 2000, so that means they are 6 years old? You finish by saying you are "..now married"? Does this mean these debts were made before you were married?

Based on these clues here is my suggestion.

1) Every state has a statute of limitations. After a certain length of time you no longer have a legal obligation to pay them. Most states are 4-6 years. Therefore your very first step is to read the first link I've supplied and find out if the debts are still within the SOL. (I am totally amazed that your credit counselor didn't clue you in on this...reason why I NEVER recommend going to one without a lot of checking into their experience).

2) Credit reporting of debts lasts for 7 years, starting from the date of the delinquency. Therefore you will have these debts removed from your credit report within the next year. You are almost home free! But if you file bankruptcy, that will stay on for 10 years. Not a good idea at this time unless you are about to have judgements placed on you. HOLD OFF!

3) Debts made prior to your marriage do NOT effect your husbands credit. By using him as a "crutch" you can begin re-establishing your own credit.

4) If you do decide to file bankruptcy the cost of filing and other expenses will be several hundred dollars. I'm not certain of this, but I will bet that your husband's income will play a part in any determination of whether you are eligible for Chapter 7. That means you will be paying back a portion of these debts anyway! For a $9000 debt that's silly!

5) The fact that you were not married at the time these debts occurred means that that these debts are in your name only. If you were sued, they could not be able to go after your husbands property or wages (unless you live in a community property state). If you don't have a job, and don't own the home or cars, then there is no way they can collect if they tried to sue you.

I would be happy to discuss this with you some more. I am not a credit counselor or lawyer. I have been through this before and have helped a lot of other people fix their credit problems. Your situation doesn't sound that bad. You need to do some research.

Answer 2

I am not sure if $9,000 is worth filing on.
My advice would be to talk to a bankruptcy lawyer(most have free consults) they will go over all your options. It may be that you just need to lower the interest, fees and even a settlement amount on your Cards.(The lawyer will not file for you just because you mention it. They will try to help you avoid it first, if at all possible. )The lawyer will explain all this and probably set you with a credit counselor to see about a more affordable option. Usually they will lower the bills and allow you to pay it off in 3-5 years(which would be $150-250 per month)
If they come up with something that just can't be paid, then it may be your only option to file.

Good Luck!

Answer 3

Sorry bud, there's really no such thing as a fresh start unless you go out and purchase another social security number (which I don't rec, because it's illegal). Bankruptcy will "wipe the slate clean" but creditors can always see that you have filed, and may be reluctant to give you credit. $9000 isn't a huge chunk of $, but if you don't have it, and have no prospects of getting it, then I guess I'd go ahead and file, but only as a last resort. Also, be careful of those agencies and credit counselors. Remember that everyone is out to make a $, once they get their fee, they can really care less about your credit or well being. Whomever you owe the $, go directly to them and try to work it out, no middle man needed. A middle man is an added expense that you don't need and trust me, he doesn't have a 'cure.'

Credit is serious, I think that we as children should probably get that lesson young...

Good luck.

Answer 4

Shanaya this is advise for a person looking for advise on bankruptcy not to belittle them! Ok 9k is not worth filing bankruptcy, not worth it. I see that you were paying these folks and too bad you did, all of these would have fallen off of your record this year. let say you had a credit card for 2k and you stoped paying them in july of 2000, it falles off of your credit in july of 2007. so if you have any accounts like that i would just leave them alone. You guys own a home correct? you can look at an equity loan to cover some of that too. A bankruptcy lawyer will tell you its not worth it! you are not that bad in debt i have seen 50,000 plus then i would say go bankrupt

Good luck

Answer 5

I would just go ahead to File Bankruptcy. It does clear your credit and gives you a clean start. But it is hard to get your credit built back up because it will show you filed bankruptcy. But sometimes you can buy whatever you want and not have to worry about the bankruptcy because some Businesses help you reastablish new credit.

Answer 6

Relax. You don't need to claim bankruptcy, if you are willing to quit using ALL credit.

My brother let me in on a secret--it works, and this is what he did many years ago--stop all contact with your creditors.
First, get a private mail box at someplace like UPS, and have all your bills sent there. Once everything is going there, learn to recognize letters from your creditors, and just send them back marked, 'moved, address unknown' You may need to drop them in the mail some distance from your house so they don't go back through your local post office and get redelivered to you..
If any creditors call you on your phone, demand that they NEVER contact you by phone again, and continue any collection efforts in writing only, or you will file a complaint with the FCC and SUE them!
Then get an unlisted phone # with the billing address being the private mail box at the box rental service you chose, and receive your phone bill there for as least 6 months. And NEVER put your phone number on anything that could get back to your credit report. ALL your creditors have access to each other's file on you and what one knows, they all know..
These people are lazy scum who make a living off other people's misfortune, and they only go after the easy marks.You'll be surprised how fast they disappear.

So, SEVER ALL--AND I MEAN ALL--CONTACT with them. Don't be nice to them! Don't be anything to them. He also told me to NEVER get a copy of my credit report--you must update your contact information before they will give it to you, and that defeats the purpose of getting lost in the first place.

Now, a word of caution--while this does seem to be effective, I've been told by other people that this is fraudulent, and if I were considering it, I would run it past my lawyer to ensure that I stayed within the law. Nobody should put themselves in a position of potential incarceraton just to keep from paying their debts. Best of luck!

Answer 7

No. Pay your bills. Why should others, who work hard consume your debt. Bankruptcy is not magic, it does not disaapear. All of the hard working people in the long run pay for your irresponsibilities. Get another job. Do the right thing.

Answer 8

bankcruptcy is not a fresh start, it is the end as far as your finances are concerned. You won't be able to get any kind of credit, including mortgages, credit cards etc etc, for years and when you do the interest rate will be huge. I assume you mean US dollars - well $9k is really not worth sacrificing your financial position for.

Answer 9

Have you spoken with your creditors to see if there is anything you can do to lower your rates or bring your accounts current? Maybe you can make a deal where if you make consecutive on-time payments, they will stop charging the extra fees. I would always try to avoid bankruptcy, especially for under $10K.

Answer 10

hi there, I will share with you a resource that explains things you need to know before filing for bankruptcy, this really helped me, been there too!

goodluck to you, pls be guided accordingly