what are my other options. i owe 20,000.00 what do i do?
2007-02-20 07:37:12 · 7 answers · asked by jenks1545 4 in Business & Finance ➔ Personal Finance
Bankruptcy should be your last resort. If will destroy your credit for the next 7 years. There are also some cmpanies that will not hire you if you EVER filed bankruptcy. Remember, even though it may be off of your credit in 7-10 years, it will always be in court records. Most background checks will see that you filed bankruptcy. If you can find a way to pay things back, even if it takes years, then do it. Have you tried calling your creditors? What are your debts? You would be very surprised at how willing some companies are to work with you.
A creditor would always prefer you pay everything back in full. However, if you can't pay it back, then they know you may file Chapter 13. If you let them know you are considering this, they could be willing to 1) lower your interest rate, 2) work out an extended payment plan, 3) let you pay it back a lesser amount or a combination of the three.
Credit Counciling may help. They can negotiate lower interest rates with credit card companies, however, your savings may be eaten up in the fee that you are charged for their service.
There are some credit restoration companies out there. They will usually negotiate a small payoff for a debt. For example, if you owed $5,000 to a creditor. They may be willing to accept $3,500 to payoff the debt. You will pay a fee for this. They will not do anything that you cannot do. But they may be able to get you better terms (they know how to play the game).
Bankruptcy should be the last resort you need to take. The first thing you should do is find ways to cut back your spending (do you have cable TV? Do you go to the movies a lot? Do you eat at restaurants a lot?). Then call all of your creditors and see what they are willing to do for you. Let them know that you are considering bankruptcy.
2007-02-20 08:01:19 · answer #1 · answered by j-man 4 · 1⤊ 0⤋
Filing bancruptcy isnt that bad..it does ruin your credit for like 7 years though. You can try calling like consumer credit couseling first and see what they tell you and go from there. I believe It's free advice. If consumer credit couseling doesnt work for you and you dont want to file bancruptcy then I dont see any other option then to work with your creditors on your payments. Thats my opinion. I hope it's somewhat helpful.
2007-02-20 15:43:24 · answer #2 · answered by oxygenO 6 · 0⤊ 0⤋
Bankruptcy will hurt you for a while, but sometimes it is the only way out. I filed last year and am much better off. I still have my car and keeping that loan and paying on it will help me rebuild my credit. I tried credit counseling companies, trying to work with my creditors, etc. If you can avoid it, do so. But, if it is your only option, don't be afraid to do it.
2007-02-20 15:43:07 · answer #3 · answered by Softball Mom 4 · 2⤊ 0⤋
Depends on the country or state your in some place have anywhere from five to seven year before even able to apply for little things like VISA banks, is one of the consequences.
2007-02-20 15:43:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
How far behind are you in your payments to your creditors? Have you called them and renegotiated the interest rate and minimum monthly payment? Have you closed your account and torn up your credit cards so you don't charge any more?
Do you have any assets you can sell to pay off your debt? Can you borrow from relatives? Can you rework your monthly budget to cut down on expenses?
2007-02-20 15:40:56 · answer #5 · answered by kja63 7 · 1⤊ 0⤋
just because you owe that, filing wont get you clear of your debt the laws have change min of 10 years on your public record you better do some home work first !!!!
2007-02-20 15:41:27 · answer #6 · answered by Big R 6 · 1⤊ 0⤋
ask mc hammer and milli vannilli.
they had to sell off pretty much everything before it got reposessed. pawn off everything dude.
2007-02-20 15:42:05 · answer #7 · answered by Anonymous · 0⤊ 0⤋