me and my husband owe 30k in debt together if not more and we have a repo on out credit score is it better to pay it off or claim bankrumpt, and if we claim bankrumptsy do we get our taxes back at the end of the year?
2007-02-21 20:29:52 · 5 answers · asked by oneandonlyness 4 in Business & Finance ➔ Credit
The new bankruptcy laws make it very difficult to file bankruptcy anymore. $30k and a repo probably won't cut it if you can afford to pay.
It depends on what you call "debt". Does that mean credit cards, collections, or what? Are the payments on time now?
If you own a home, you may be able to pay some debt off with the equity.
There are many numerous possibilities.
DON'T use one of the Credit Counseling services!! They take your money and ruin your credit worse than before.
Call the creditors and nogotiate lower interest rates and pay offs. You have the same ability to do this as anyone else. Tell them you will file bankruptcy if you aren't able to work something out. They'll talk.
BTW- No you will not get your refund back... the trustee will take your tax refund to pay off your debts with.
2007-02-21 20:57:23 · answer #1 · answered by CHRIS 1 · 1⤊ 0⤋
Please only use bankruptcy as a last result. It stays on your credit report for at least 10 years and isn't a fix-all for everything. Bankruptcy will do nothing for any student loans you may have, so you'd still owe those. Try to negotiate a payback plan with your creditors if you can. You may be able to get a lower APR if you call your credit card company (I'm assuming this is probably a substantial chunk of your debt and it adds up fast!). If you have credit card debt, consider opening a 0% APR card, transfer your balance, and don't buy anything else on that 0% card! Any new purchases are at a high APR and your money goes to the 0% money first, so any purchases end up accruing interest. For your new purchases, if they must be made on credit, put them on the lowest purchase APR card and try to pay at least the minimum balance each month. Try to pay your bills on time and that should help you rebuild your score. I hope this helps and good luck!
2007-02-22 06:52:30 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Bankruptcy is the term used when an individual or the company cannot pay their debts. There are various reasons why this happens. A company could go bankrupt due to any of these reasons: very low profits, mismanagement, ineffective leadership running the organization, improper allocation of resources and money, insufficient clients or lack of consumers, no further scope in the growth in the line of business. When a company or an organization files for the bankruptcy in the court, the court offers them bankruptcy protection.
2007-02-22 07:13:53 · answer #3 · answered by juli o 3 · 0⤊ 0⤋
Pay it off. Even small payments shut them up.
2007-02-22 04:34:11 · answer #4 · answered by burd p 2 · 0⤊ 0⤋
declare bankrumpcy!
All the best!/
2007-02-22 04:52:03 · answer #5 · answered by Ebby 6 · 0⤊ 1⤋