Is it really that bad to go bankrupt?

Question

Thanks to cridit cards, my monthly expenses are about $400.00 a month more then my income. Jan. 1st. I just spent the last of my savings... I dont know what else to do but go bankrupt

Answer 1

First, cut up your credit cards. Keep one, that is pay as you go in case you need to purchase things that absolutely require one.

What are your assets? You may be able to get a loan.

Sell those things you may be paying on, cars for one, and retire the debt. That can free up more money.

Contact the credit card companies, often they have debt forgiveness. Often the majority of what you owe them is actually interest.

There are assistance companies that can help you. Some advertised, some not.

Avoid bankruptcy. Things have changed, and you will still be required to retire your debt. There are options, but the black mark will remain on your credit rating for 7 years. Not good.

Good Luck.

Answer 2

Oh MAN!!! Don't do it. been there done that. claiming bankruptcy does nto clear all debt and for years you have to keep track of your credit report and make sure all debts are cleared. It will still be your responsibilty to clear all the debt. Not to mention that bankruptcy stays on your credit for 10 YEARS now. I did it in 1999 and it has haunted me ever since.

If you can get with a debt couseling company try that first. Your credit is all you have so try and save it before taking what seems like the easy way out. Anything you try and purchase down the road; vehicle, house or even getting a cell phone is checked through your credit. If you have a bankruptcy your chances of getting these things are lower and if you do the interest rates alone will get you.

I wish you the best and truly hope you don't have to go through the mess of courst and all that involved with bankruptcy!!!

Answer 3

I think that it probably is bad. I haven't personally done it, however am in about the same boat as you. I'm more like about $600 in the hole every month. My husband and I don't know what to do either. We have a daughter and just found out we are expecting again and don't have health insurance. I do however have faith that God will get us through anything if we just have faith. We too will not have money as of now to pay Feb bills, but our credit rating as of now is really good and I wouldn't want to ruin that. Can you maybe sell some stuff or get a part time job on the side to make up the extra? We've been trying to sell stuff on ebay and it's helped so far. Good Luck and I will pray for you.

Answer 4

Yes. Bankruptcy is bad. If you are $400 short per month, you should consider selling some stuff and/or getting a part time job to supplement your income. $400/month isn't insurmountable. You can do it!

The other thing you can do is look at your monthly budget and cut anything that is not absolutely necessary. If you want some detailed information on how you can get out of debt without going down the bankruptcy or credit counseling (they look bad on your credit too) routes, check out www.daveramsey.com.

Dave Ramsey has an outstanding, simple path to getting out of debt. I wish you the best of luck in getting out of this sticky situation.

Answer 5

I honestly do not think so because I, myself, am probably going to resort to this as well. I have tried Credit Card Settlement services and though they have been helpful and have helped me settle some accounts legally and all so I can not get sued later on, these credit card settlement places can be pricey and with my income dropping considerably in 6months which is out of my control, I wont be able to save up the final $18,000 I need to get out of credit card debt. I at one time felt guilty and ashamed but after watching a family member go through it and reading tons of stuff online and researching it, and knowing it is better for my family to take the personal hit because they can not go after my husband, I decided it is probably going to be what I do in a few months as well after I get some other stuff paid off so I dont have to list as many accounts.

It is a tough decision, I know. I even went to a Bankruptcy lawyer for a consultation and for personal reasons I was told to wait till May to file but he assured me they could not come after my husband because all accounts are personal and not joint, my house is safe, my car is safe.

So I will be taking the bankruptcy path by summers end, I am sure.

Dont be ashamed if you do, you know in the Bible it even said that every 7 years all debts should be wiped out....you are not a bad person for doing it, you are not sinning....you just fell upon hard times.

Answer 6

from what you have said, your credit is probably already shot. IF you have had a lot of late payments, and some cards maxed out/over the limit, bankruptcy would probably be your best avenue. Check with credit counselling and see how long it woudl take to pay off all the debt. If it takes anymore than 3 years, bankruptcy would be your best bet. Good luck on this

Answer 7

Before doing bankruptcy, do credit counseling (which is now the law), or really form a budget, cut out all excesses, and slowly pay off your debt.

Slow payments are better than bankruptcy, and with new bk laws, you have to do everything above first before you can pay an attorney to file bankruptcy.

Only file bankruptcy if you total debt is greater than your annual income.

Answer 8

Your credit is probably already shot, so call the Credit Card companies, and tell them you're either declaring bankrupcy or working something out with them regarding payment arrangements and a hold on the interest.

Answer 9

consolidate! It wont hurt your credit nearly as much as bankruptcy! I consolidated and in a year I will be debt free and my credit score will still be around 700 or more.

Answer 10

yes. because going bankrupt only fixes the problem. It doesn't cure the symptom