Should I file for bankruptcy??

Question

well im 21 years old, and ever since I started working at the age of 14, I have got into serious debt, for instance when i was 16yrs, I ran my cell phone bill to $500, and never paid them because i couldnt afford it, i was working part time while in school, so it went sky high. When I was 19 I finaced a car, and lost my job, and my car got reposed, on top of that I had a student loan that couldnt pay either, thats just a little of my problems, I am about $20,000 in debt, and collectors keep harrasing me. I was never taught how to manage my money, my parents never even care to teach me about saving, or buying stuff i can afford. Now that im older and understand how to manage my money, and want to fix my credit, I want to file for bankrutcy. I did all my research on Bankruptcy and everything, I just need someones else opinion!! Please help, what should I do?

Thank You

Answer 1

$20,000 is a lot at your age to try to pay. Interest will keep building and no matter how hard you try it will barely make a dent. Years more of bad credit and never having a chance to start building credit or building assets to build as well. This could go on for years.

Go for bankruptcy. Once the dust settles you will be able to start again. In fact you will usually get a ton of credit offers as you can only do this so many times in so many years. Yes after that you will have to work your way up but it is better than paying it off for no result.

Answer 2

Filing for bankruptcy can seem like the immediate solution, but think about the long run. You're credit score will get even worse and you will need to wait a minimum of 5-7 years to make a significant purchase, such as a house. And any loans or credit cards you get will have obscenely high interest rates. Many times you can call the creditors and set up payment plans and resolve the debt for a lot less than you owe.

Good luck and really think about it

Answer 3

With the new laws on bankruptcy, it may be more difficult than you think. It's not for everyone; but, if you've learned from your mistakes, it could be an option. Most people just use it as a way to start fresh with new credit. But remember, it will stay on your credit for 7 years. Another thing... as soon as you file, you'll get all sorts of offers for things. Used to you couldn't buy a car or anything like that for the 7 years, because you were a credit risk. Now, they view it as... "you can't file for another 7 years, so they have you by the shorts!"

You should go to your bank, and ask to talk to a financial advisor. They'll have all the resources and knowledge about it.
Good luck!

Answer 4

I wouldn't file bankruptcy unless there was no other choice, or if your debt was in the $50,000 to $100,000 range. You're still young. If you file bankruptcy it will look horrible on your credit report and it will stay there for no less than 7 years. Try reading that book "Financial Peace" by Dave Ramsey it can really help. They also have things like "Debt Solutions" that can review, possibly consolidate your debt, go over your income and budget and figure out how to pay off some of your bills. My father is a financial wizard and has taught me a lot. If you want you can e-mail me with other questions. I'd be happy to help.

Answer 5

Anybody, whether a company or an individual can go bankrupt. This happens when the bankrupt person or organization cannot clear their debts. There are multiple reasons why the company or the person can fall into this situation. Improper financial planning, spending on unnecessary items or loss of source of income can be some of the reasons for the bankruptcy.

If you go bankrupt, file your bankruptcy under Chapter 13. Chapter 13 permits an US resident to reorganize and restructure their finances. It allows you start afresh and get your finances back on the track. The bankruptcy court will supervise and authorize the entire process of overhauling your financial situation.

While filing for bankruptcy under Chapter 13, you have to draw up a plan of action meant to pay your dues within the next 3 to 5 years and submit to the bankruptcy court. You should clear your dues as much as possible at frequent intervals. Filing under Chapter 13 will protect you against the undue pressure exerted on you by your lenders to pay your debts.

Answer 6

You are very young and to file bankruptcy at such a young age will only damage your credit even more. I filed bankruptcy years ago and it took a long time to regain positive credit. You will do nothing but have to pay very high interest rates when and if you get any future loans... so, you're really not coming out ahead. Have you thought about bill consolidation? Maybe get a second job? Their are other avenues to take besides filing for bankruptcy. I would perhaps go and talk to a financial institution to see what your options are. Good luck to you.

Answer 7

I filed about 3 years ago and so far I'm very glad I did. I haven't needed credit for anything. I own my car outright, I don't need credit cards because I use my debit card instead. I just don't spend money unless I have it.

If you think you will be fine for the next 7 years without wanting to get a loan for a car or home, then I would go for it. It will take so much stress off of you and you can start clean. :o)

Answer 8

First of all, stop spending money, at least on stuff other than food and rent and stuff. This should give you some cash. Then you get a free copy of your credit report from www.annualcreditreport.com. This will list all of the collections and open accounts that appear there and the number to call to resolve them. Tell them your situation (that you can't pay) and they should be wiling to settle. Bankruptcy looks bad for several years after you file for it, so it should only be used as a last resort.

Answer 9

Filing bankruptcy is a serious step and you should investigate all the alternatives before you file. Bankruptcy does not mean you can walk away from your debts and it will take a long time before your credit is clear.

There's a website here with some suggestions about possible alternatives. I hope this helps.

Good luck!

Answer 10

I would try to solve this problem without bankruptcy. Try to get a consolidated loan or ask family for help. Bankruptcy should be the very last resort as it damages your credit report badly for years to come.