What could be the worst thing that would happen to you if you go to bankruptcy and can't pay your bills?

Answer 1

All your possessions would be forfeited for a start, your car could be repossessed. If that did not cover your debt then your house would be in default! In other words put up for auction. You can claim clemency and have a judge asses what is to be sold in order for you not to be out on the street with no fixed abode. But that is the worse scenario! Hope this helps!

Answer 2

Well, seeing that its an unsecured debt they cannot take any asset (yet) as none were used to secure the account. They can go to court to get a judgment against you. This can enable them to attach certain assets, and/or garnish wages, tax refunds, food stamp payments, and unemployment checks. You cannot get them to stop charging the interest, that's how they make their money. The problem is, they raise the rates like userous idiots at the least sign of trouble which 9 times out of 10 causes people such hardship that they end up defaulting on the account. In short, their greed is a shot into their own foot. Instead they should be dropping the rate to near nothing to help the customer out and have a better chance of getting paid. Your options are extremely limited. Continue with the $25 a month payment, and live with the growing balance. Default and take your chances with the courts. File for bankruptcy. Contact a credit counseling firm who may be able to negotiate some common sense into them. Have a miracle strike you and the hubby gets a good job this week so you can get back to normal.

Answer 3

You can always convert a Chapter 13 into a 7. You risk losing your property if that happens but sometimes there is no choice. The worst thing is having to live on cash only after the discharge until you wait a few years and build your score back up. But, with budgeting and cutting back on the non essentials and living within your means is so WONDERFUL never ever again be trapped by credit cards and things you know you can't afford. Just a shame you have to hit bottom to learn the lesson. Good luck.

Answer 4

A Chapter 7 will get rid of all your debt. A Chapter 13 is a repayment plan. You can keep your car if you continue to pay for it or redeem it, or you can surrender it. A Chapter 13 is mostly if you are behind ony our mortgage payments, and allow you to catch up. A Chapter 7 will get rid of everything and you can reestablish your credit. Honestly, they wont take anything of yours, and can only repo your car if you dont pay for it. The laws haven't changed as much as most people think they have. It is based on your income and if you have children or not. If you make less than $38,000 with NO children you are eligible to file. Talk to a local attorney and ask questions. Just the fees alone to file a Chapter 7 is $299.00 (not including the attorneys fees).

Answer 5

The worst thing is that IT WILL AFFECT your credit rating for 7 years.....that means that you will not be able to borrow any money from any Financial Institution for that length of time.
That would be the cost for finding the easiest way out.

On the other hand, there are creditors out there that are able to help you by looking at your total financial situation and give you advise on how you can manage it easier >> I would go that route first!

Answer 6

Filing bankruptcy should be a last resort and you will still have to pay your bills. If you have large debt however it can be helpful to save your property from seizure.

Answer 7

Maybe not having the money to afford a nice place to live in, having to use public transport

Sometimes you have to pay the money back, so you are put on a fixed income till its paid

Having a black mark against you for most of your life

Answer 8

I would suggest you read the article "New Bankruptcy Law – Where’s The Consumer Protection?" you can view it at:
http://www.sandiegolawyerforyou.com/san-diego-bankruptcy-law-update.htm



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