I have awful credit and I am being sued I am thinking about filing for bankrupcy because I can't afford to pay anything I made a big mistake of co signing for some one and now I am being sued....
Can I file bankrupcy after the lawsuit is done or can I file now and include that lawsuit.?
2007-01-24 12:57:37 · 12 answers · asked by Jess 1 in Business & Finance ➔ Credit
I think you have to wait to see how much the final amount is. I probably would if I really couldn't afford to (assuming this exceeds at least $10,000. All credit you obtain will cost you more for at least four years. You can't file again for seven so don't take all the credit offers you get right after filing, ony what you can afford (take a little to rebuild your score) or you will probably be sued again. If you plan on starting a business or anything, you need take that into account too.
If the other bad credit you have is more than a couple years old, it doesn't really affect you anyway. You amy just need to rebuild by opening a couple secured or expensive cards and pay on time (again, it depends on the amount of the lawsuit).
Lots of jobs pull credit, make sure you have a good excuse if you need to explain to someone so you are not unprepared. and never co-sign again!!!!!!!
Good luck
2007-01-24 13:14:28 · answer #1 · answered by rob602pa 2 · 1⤊ 0⤋
Get a lawyer and get his advice before the lawsuit is settled. Usually with bankrupcy , many lawyers offer a free consult for the first visit. Anyone here does not know your own personal situation.
Chapter 7 is a total bankrupcy, where Chapter 13 is a payback bankrupcy for minimum of 30mos.Lawyer fees are cheaper for Chapter 7 than for Chapter 13, because Chapter 7 has no ongoing issues that come up after it is done (usually).
Recent law changes have made it harder to file Chapter 7. If you have a home or condo or real estate with a fair sized amount of equity (I think it is $5000), then you will probably have to do the payback bankrupcy or lose your home. You are also only allowed to have a car that is worth only so much (ie I think it is $2000). If your home equity is low, sometimes you can still file chapter 7 and reaffirm the mortgage on the house.
I am not a lawyer, but have bankrupcy DOES affect your credit and it DOES stay on your credit record for about 7 years(?) and employers DO sometimes snoop into your credit for certain jobs...I think that stinks..It is none of their business....Sometimes bankrupcy is the easiest or only way out...
Yes there are ways you maybe can negotiate bills, but probably only with a company that can negotiate on ALL your bills and organize payments for you...your creditors probably will not trust you to do these payments to them yourself. The problem is WHO are these companies doing the negociating for you?? Can you trust them with your finances and personal information?? I have not heard of any one or two that stands out reputation wise from the rest...maybe the Better Business Bureau would know.
2007-01-25 00:26:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Filing bankruptcy is not good. But if you do file you have to include all debt you have at the time of filing. Even if you dont have balances on some of your cards they can still be closed out if the find out you filed bankruptcy. It stays on your credit report for 7-10 years. You can include the lawsuit before or after its filed, it doesnt matter, you just have to get the creditors information to include in your paperwork.
2007-01-24 13:23:37 · answer #3 · answered by Fun N Sun 4 · 1⤊ 0⤋
DO NOT FILE FOR BANKRUPTCY!!
Tell the claimant that after the lawsuit has been resolved, you will be forced to file bankruptcy. Explain to them that they will incurr expenses to sue you and they will be out the cost plus the debt.
Ask them to reduce the debt and work out a payment plan so that they will be able to collect a % of the debt rather than nothing.
The write off will still affect your credit report...but not to the extent that a bankruptcy would.
If they agree to your terms, please make sure you pay on time and in full.
2007-01-24 13:12:36 · answer #4 · answered by Anonymous · 1⤊ 0⤋
File BANKRUPTCY now, make sure to include everything.
I filed bankruptcy, I am so glad I did, it stopped collections, judgements, and the phone calls. It took all my debt away.
It does take like 7-10 years to come off your credit though.
2007-01-24 17:00:20 · answer #5 · answered by Jamers 2 · 1⤊ 0⤋
If you think your credit is bad now it will be many times worse if you file Ch 11 as it will stay on your credit for a minimum of 7 years. Sorry to say this is the risk you take when you help someone out.
2007-01-24 13:08:06 · answer #6 · answered by Mike 2 · 0⤊ 1⤋
you can file now. But your credit score will be 0 and it will make it very difficult to build your credit back up.They have special programs to help assist you build your credit back. Chapter 13 bankruptcy means you pay back a percentage of what you owe.Chapter 7 is when you dont pay anything but yhe lawyer fees.
2007-01-24 13:08:07 · answer #7 · answered by Anonymous · 1⤊ 0⤋
I filed bankruptcy 2 years ago,it was the best thing I ever did.I started out with a 500.00 secured credit card, now have a 3000.00 unsecured credit card limit and purchased a 27,000.00 vehicle in the last month.They say it stays on your record for 10 years but as soon as you start paying all of your bills on time your credit improves.
2007-01-24 13:34:32 · answer #8 · answered by toledojeeper 5 · 1⤊ 0⤋
In your situation you need to evaluate your real estate property that you may own(if any). Your question is to broad, there is alot that you can do to avoid losing everything and re-building your credit along with your life.
To answer your question as it stands After the lawsuit! So you have a dollar amount etc
2007-01-24 14:06:26 · answer #9 · answered by Tamisha K 1 · 1⤊ 0⤋
No, dont file bankruptcy as it could hurt your credit score:
How to Avoid Bankruptcy:
With the rising consumerism, aggressive advertising campaigns and increasing incomes, people are living well beyond their means. As a result, they are burdened with heavy debts. If they are unable to repay the dues, they have to file bankruptcy.
2007-01-24 19:37:31 · answer #10 · answered by stew w 2 · 0⤊ 1⤋