I have a lot of debt is bankruptcy the best bet?

Question

My credit score is so low that I cannot find anyone who will help with getting a refinance on my house to help pay off. I barely break even every month and don't have extra to pay off on my own. Most months I am in the negative not paying one bill that month to pay another and so on. Is bankruptcy the only option? I have $0.00 in credit card so the consolidation people won't help either.

Answer 1

I help people with personal financial counseling, and I rarely EVER recommend bankruptcy because it's one of the most painful things that you can go through. Don't let someone try to convince you that it's simple. What I would do is go and pick up the book "The Total Money Makeover" by Dave Ramsey or check out my website below for a little information on this topic. Thousands of people in similar situations have worked themselves out of debt without bankruptcy and are grateful for it.

All you need is a plan, and "The Total Money Makeover" will give you that.

Hope that helps

http://www.financialgym.org

Also check out
http://www.daveramsey.com

Answer 2

At this site you can find solutions from different companies: SAVE-FINDER.NET-

RE I have a lot of debt is bankruptcy the best bet?

My credit score is so low that I cannot find anyone who will help with getting a refinance on my house to help pay off. I barely break even every month and don't have extra to pay off on my own. Most months I am in the negative not paying one bill that month to pay another and so on. Is bankruptcy the only option? I have $0.00 in credit card so the consolidation people won't help either.

Answer 3

Bankruptcy may be your only option, but the real question you should be asking is how did you get into so much financial trouble? Did you buy a house or enter into a mortgage you could not afford? Refinancing sounds like a real bad idea if you can't control your spending. Your best bet may be to sell the house immediately. Or... better, get a second job to payoff your debts. If you have zero equity, you're going to lose it, regardless of whether you file bankruptcy. Once you do, it will be a long time before you'll qualify for a mortgage again, during which time you can get some counseling on how to manage money.

Answer 4

Be careful with the current bankruptcy laws. They are not made to favor you - they favor the corporations. Having said that, you may not have a choice, though. I'm sure you are aware of the recent drop in house prices, so it may be in your best interest to approach them and see if they are willing to help you work something out in this time of desperation. Most do not want to foreclose on a home that their outstanding loan amount is more than the house is worth - along with the estimated time they would hold it before it sold. Do not bow down to the strong arm tactics of anyone, though. Honestly figure out what you can do for each entity you owe and present it to them. They can only say no. Also, don't refi your home for this.

Answer 5

You have a couple options, including credit counseling, debt settlement, or bankruptcy... assuming you cannot get a debt consolidation loan.

Credit counseling lowers your monthly payment a little and takes about 5 years to pay off.

Debt settlement cuts your debt about in half and takes 2-3 years (but your credit rating could go down)

Bankruptcy depends on chapter 13 vs chapter 7. it could take years and cost alot or take about a year and liquidate your debts. either way, it kills your credit rating and is a public record document that can hound you for your life.

I think this page does pretty good justice to comparing options... but it sounds like debt settlement may be your best bet (check out: www.freedomdebtrelief.com or www.debtok.com or you can get a provider by searching debt settlement)... here's the page i like: http://www.bills.com/blog/debt-relief-options

Answer 6

I would contact your creditors first and explain the situation. If that doesn't help then you need to find out how much filing ch 13 or 7 would cost? I think it is around 1500.00? Maybe a second job for a while until you get back on your feet.
Maybe a second lien on your house? try financial.. they do loan credit loans with a house or a car title.
Best of Luck to you.

Answer 7

Depends on what state you're living in. In Texas, bankruptcy tends to offer more protections than a lot of other states. For example, unsecured creditors cannot EVER garnish your wages.

You should see an attorney in your state to review your options. Bankruptcy stays on your credit for 10 years.

Answer 8

Contact your creditors and tell them you are in a situation where you are considering bankruptcy, ask them if they can adjust your loan terms. Start with the highest interest debt and work your way down.

On your side you need to squeeze every once of fat out of your budget, so that you can get yourself out of this mess. The first step is to keep track of what you spend. Then have someone who you trust and is good with money help you sort out expenses you can reduce/eliminate.

Answer 9

Get a second job, work a little harder and take responsibility for your actions. I am tired of everyone taking the easy way out and making me pay for it.

How did you buy a house with such bad(low) Credit?

Answer 10

Have you tried MyCommunity Mortgage? It is a Govt. program for lower income families. If you need a little help or need some questions answered, write to my email with a return address and I can point you in the right direction.