Is it a good idea to file bankruptcy at the age of 24.?

Question

I have horrible credit from my bad choices when I got "grown" at 18 years of age. If it is a good idea to file, how would I go about filing?

Answer 1

i dont think its a good idea

Answer 2

It's never a good idea to file bankruptcy.

Before the new laws went into effect a lot of people used chapter 7 to simply walk away from their debt. Now it's not near as easy. You may very well end up in chapter 13 paying your debts back anyway and have a BK on your credit that will not go away for 10-years.

If on the other hand it's something that absolutely can not be avoided like medical bills or the lose of a job or spouse, then that's what the bankruptcy laws are there for.

Consult a lawyer that specializes is bankruptcy before you make a decision.

Answer 3

It is NEVER a good idea to file bankruptcy. I would suggest that you use a debt consolidator, your credit score will still take a hit, but it looks better than the bankruptcy. It will take 10 years for that bankruptcy to be removed from your credit report and any one who will give you credit will only give it to you at a very high interest rate. It also lowers your credit score by 200 points.

At 24, now is the time for you to get all 3 of your credit reports and start seeing what it is that you owe. Work with a debt consolidation place like debt relief to negotiate with your creditors a payment plan and also to have the interest that is occurring stopped or a better rate given.

Answer 4

I know what it's like to have a sibling who is an addict and your mother clearly does not have all the information she needs to properly deal with the situation. Addicts are manipulative. They will do anything in their power to get their drugs and they do not care who they hurt in the process. It is a side effect of their addiction and if your mother can't accept that she can't keep supporting him, she might as well just file for bankruptcy now because it's never going to get better. By giving him all this money all she is helping him do is buy drugs, and clearly that is far from the help he needs. What she needs to do is haul his lazy *** home and explain to him that he can reenter rehab, get a real job, and start paying her back, or she will not give him another penny or associate with him. Look up family therapists that specialize in addiction and give them a call. Maybe talking to an expert on the matter will help your mother understand that she is only hurting herself and her son by continuing to bleed herself dry.

Answer 5

You shouldn't file unless you HAVE to. If you have to, it is ok. It does mess up your credit, but if you are responsible and learn from it, you can obtain an excellent credit rating. I filed 8 years ago, because I lost my job. My credit rating is now 740! The only problem I have now, is getting approved for those no interest for xx days/months. I live on cash. I have credit cards, and a new car at the prime rate. I have a mortgage at the prime rate. Its all about being responsible. but don't do it to avoid paying for your mistakes. If you can, pay off your creditors one at a time. They will work with you. Good luck!

Answer 6

I am 25 and am also looking into filing. I have heard that you go speak to a lawyer and they require their fee usually about $1,000.00. You can pay monthly but it has to come directly out of your checking. They don't accept checks. Then immediately after you agree with the lawyer to do this, any collector or anyone that calls you for money you don't have to make any more payments and you just have to tell them that you are filing bankruptcy and give them the case number. If they call you anymore after that, tell your lawyer because it's against the law. After you have finished paying your lawyer fees, there will be a court date you go to and then it's official. Things you are allowed to keep while filing are your car and your house. You will also still be responsible for student loans. I am doing it because, yeah it will take 7 years to come off my credit report, but it will take longer than that for me to pay that stuff off in the first place. So if I were you, I'd do it sooner than later. You should be able to get a high interest credit card one year after filing and be approved for loans after about 5 years. Good luck.

Answer 7

It is NEVER a 'good idea' to file for bankruptcy, since this will remain on your credit report for years and years, and will affect your ability to obtain credit and loans in the future for that period of time.

Bankruptcy should be reserved as a 'no way out' option only.

Answer 8

Bankruptcy won't fix your credit. In fact, if you still think you need credit cards, bankruptcy will just mess your life up.
Do you have a career? Do you own a home? Do you have an investment account? A financial advisor?
Worry about your money, not your credit.

Answer 9

Never a good idea; will totally mess your credit for the next 3-7 years, and under new laws, you may still end up paying for some of the debit you hoped to lose.

That being said, phone book will list a bunch of atty's who specialize in them.

Answer 10

Well you are screwed until your are 31.

So if you had any plans of buying a house, a car, leasing a car, anything like that.. you are in trouble.

Just chip away at your debts. Yuo can still get great loans even if you are in debt. Who knows, you may get a great salary in the next few years and be able to pay off that debt. But if you file you are screwed regardless.

Answer 11

It's generally not.