My boyfriend has alot of debt and he is thinking about going bankrupt. Has anyone ever been bankrupt? is it as bad as it sounds?
2007-03-15 12:37:28 · 7 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Yes it's bad... but wait, it gets worse... If you go to apply for a job, a lot of employers check your credit rating to make sure you are a responsible person... not only that, but if you have auto insurance, they use credit information to set your rates... deadbeats pay $$$$ more for insurance... forget a cell phone, unless you want to use a prepaid service... not to mention that nobody will give you credit... maybe just second chance credit with rates as high as 25% APR or even more !
2007-03-15 12:51:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I declared bankruptcy 6 years ago. It SUCKS! I can't get a car loan, I get turned down for housing, I am only now getting okayed for credit cards. The worst part is that without credit you can really be taken advantage of my high interest rates (my car was "in house financed" and has an APR of 28%).
If at all possible, he should consolidate. Often times one only has to mention the "B" word and credit companies will bend over backward to lower your interest rates and give you payment plans. Remember, if you are bankrupt, they lose all that money, so they really want to help you to pay them.
There are banks and non-profits that help people that are far in debt, either by giving out consolidation loans or by helping deal with your creditors or both. I would definately go to them first and see what they can do for you before you decide to declare bankruptcy.
Finally, bankruptcy laws changed this year, and now it is much harder to declare. There are also tighter restrictions on what you can and cannot file in a bankruptcy claim. For instance, student loans are not eligible. If your boyfriend decided to go for bankruptcy, he should hire a CPA. (My bankruptcy cost me $400.00.)
Good luck to you and him!
2007-03-15 12:47:20 · answer #2 · answered by Anonymous · 2⤊ 0⤋
He needs to talk to the people he owes money to and tell them he is so overwhelmed he is considering bankruptcy. Start with the one he owes the least amount of debt. Ask them for a pay out amount. Beg for a lower (even temporarily) interest rate. If they say no, ask to speak to a supervisor. Pay each off each one, one at a time while paying the minimum on the others. Get a part-time job. Don't give up.
He will not survive with high interest rates and loan rates or not being able to get a better paying job due to the bad credit report.
It is time to bite the bullet. I did it and finally see the light at the end of the tunnel. I now have a great job that I couldn't have if I'd filed
Please try this first.
2007-03-15 14:47:49 · answer #3 · answered by Hi'Lo 3 · 2⤊ 0⤋
I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.
2007-03-15 12:46:11 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Yes. It will limit his ability to get credit for a couple of years, and it won't look to a future employer. If at all possible, he should make small, consistent payments. Otherwise, filing bankruptcy is, in my opinion, is a cop out.
2007-03-15 13:08:03 · answer #5 · answered by Venita Peyton 6 · 0⤊ 3⤋
it stays on is record years
2007-03-15 12:43:26 · answer #6 · answered by joemarques68 3 · 0⤊ 0⤋
Go to this link this should answer your questions
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/CourtClaimsAndBankruptcy/DG_10023215
2007-03-15 12:48:27 · answer #7 · answered by angel 4 · 2⤊ 0⤋