Is filing bankruptcy better than having bad credit?

Question

I have bad credit i owe about 4,000. 2 credit cards, one is for $1200, and the other $850, and i have 2 doctor bills nothing major, i think one is $144, and the other $350, and my credit score is 554, but everywhere i go such as apts., or if i try to apply for anything i get denied, always. but a friend of mine filed bankruptcy and she was able to get in an apt. i tried to apply for and was denied, it doesnt make since i mean if i will get approved after bankruptcy then is that what i should do?

Answer 1

Back-in-the-day', as they say, when I was a young lad in my early twenties, I was given some fundamental advice on getting all I could out of life. It didn't make a whole lot of sense to me then, since it actually went against everything I'd experienced up until that time. 'Debt', as I was told, was now the preferred means of rapid asset acquisition and even good credit, no less, which meant approval for even more debt. The experts were preaching 'the more debt, the better'. It provided the opportunity to acquire and new home, a new car, new furniture, new appliances, and exotic vacations, to name just a few. It didn't make sense to me, simply because I knew it had taken my father and grandfather nearly a lifetime to purchase some of those things, since they had to save nearly all of the cost before even considering the purchase. So I'm thinking, "what is going on with this new approach to financial freedom?" And, exactly what kind of 'leverage' is it that I'm creating with this ownership of massive debt?

Frankly, I never totally bought into that revolutionary new philosophy. I settled instead for a much less stressful lifestyle, where paying off my credit card each year, utilizing my long awaited federal tax refund, was challenging enough. I simply never understood the life of constant worry over debt service that so many were willing to sign up for, just to have a few bigger and more expensive things. Get all information about credit card bankrupcy at: http://www.credit-card-gallery.com/article/180,Debt_Leveraging_Your_Way_Into_Bankruptcy

Answer 2

bankruptcy is a dual edged sword. One the one hand it will wipe the slate clean and give you a fresh start. Your friend probably could get that apt because she had no debt after her discharge. Believe it or not post bankruptcies are actually sought after as fair credit risks for that reason alone. On the other hand it will devastate your credit for several years. It will ensure you are always charged the highest interest rate possible, if you're even able to get a loan at all. It will severly limit your credit options for quite some time and when you go to make a major purchase liek a house, you'll feel it. Although it stays on your report for ten years that does not necessarily mean it will hurt you for that long. If you re-establish a good track record of debt management and paying in time your credit will rebound within 3 to 5 years. But your situation does no sound all that dire. If you cannot afforf to pay these bills then credit counseling is probably a good option for you.

Answer 3

There's no clear, absolute answer to this question, but there are some things you should think about. Have you paid anything on these debts at all over the last 4 years? If not, it is probably only about 3 years until they MIGHT roll off your credit report. Bankruptcy stays with you for a long time, so there are some advantages to just letting it go. The best answer would depend on a lot of personal issues that are beyond what we could talk about in this setting, so I'd suggest talking with a trustworthy credit counselor.

Answer 4

I'm certain that you might find every financial solution at= loaninstantsolutions.us-

RE Is filing bankruptcy better than having bad credit?

I have bad credit i owe about 4,000. 2 credit cards, one is for $1200, and the other $850, and i have 2 doctor bills nothing major, i think one is $144, and the other $350, and my credit score is 554, but everywhere i go such as apts., or if i try to apply for anything i get denied, always. but a friend of mine filed bankruptcy and she was able to get in an apt. i tried to apply for and was denied, it doesnt make since i mean if i will get approved after bankruptcy then is that what i should do?

Answer 5

For Finance and credit solutions I recommend this site where you can find all the solutions. http://your-finance.us/index.html?src=mawjtTQ64

RE :Is filing bankruptcy better than having bad credit?
I have bad credit i owe about 4,000. 2 credit cards, one is for $1200, and the other $850, and i have 2 doctor bills nothing major, i think one is $144, and the other $350, and my credit score is 554, but everywhere i go such as apts., or if i try to apply for anything i get denied, always. but a friend of mine filed bankruptcy and she was able to get in an apt. i tried to apply for and was denied, it doesnt make since i mean if i will get approved after bankruptcy then is that what i should do?
Follow 3 answers

Answer 6

Almost sure that you will find every financial solution at= financial-care.info-

RE Is filing bankruptcy better than having bad credit?

I have bad credit i owe about 4,000. 2 credit cards, one is for $1200, and the other $850, and i have 2 doctor bills nothing major, i think one is $144, and the other $350, and my credit score is 554, but everywhere i go such as apts., or if i try to apply for anything i get denied, always. but a friend of mine filed bankruptcy and she was able to get in an apt. i tried to apply for and was denied, it doesnt make since i mean if i will get approved after bankruptcy then is that what i should do?

Answer 7

I was facing a similar situation and was happy when I found: http://badcreditloansway.net/bankruptcy-badcredit

Bankruptcy is a two-edged sword. On the one hand it'll compensate all your debts and give you a fresh start.
Past bankruptcies are actually sought after as fair credit risks for that reason alone. On the other hand it will devastate your credit for several years. You will always be charged with the highest possible interest rate and it will fiercely limit your credit options for quite some time. However the site mentioned above will certainly help you decide which solution is the best for you...

Good luck with making the right decisions

All the best

Jere

Answer 8

No,

Bankruptcy is the last resort when you are reeling under financial problems. But many people use this method very early, without taking into account other alternatives. If you have a huge debt but do not want to file bankruptcy, go for other alternatives. The most popular choice is going for a debt-consolidation loan and destroying all the methods of credit.

Borrowing the debt consolidation will stop multiple monthly payments immediately. Significantly, it will not damage your credit rating but can enhance it. It reduces monthly payments and can stop high interest and fees. Once your dues are cleared, your financial situation will get a new lease of life. This will save your money and you can then use it to plan your expenses to prevent recurrence of debt in your life.

Answer 9

I am a bankruptcy lawyer with over 34 years of experience.
It is almost always a bad idea to file a bankruptcy to discharge $4000 in debt. Save some money or get another job and get this debt paid off. Over a short time, your credit will improve. Bankruptcy is not the answer for the resolution of a $4000 debt.

Bankruptcy is the "elephant gun" of debtors' remedies. You want to save it not just for a rainy day, but for a typhoon, if you get the distinction.

Look at resources at my website:

http://www.bankruptcy.lakelaw.com

or see Judge Clark's video at:

http://wwwabcworld.org (check consumer links).

Answer 10

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!