Hi. I have owed my creditors money for 6 months. I owe about 13000 and my monthly rent is 600. I have a total of 9 creditors. Two of them, CHASE and Bank of America, have offered to forgive about 3000 of the debt. They are willing to do this if I pay them 4000 right now. I dont have that kind of money now. I just recently became employed again. Should I declare bakruptcy or seek a consolidation agency to help me negotiate further. My family says I should declare bankruptcy but my friends say I should seek credit advisors for help. Is there anyone who has ever been bankrupt or in a similar situation.
2007-07-05 12:08:13 · 10 answers · asked by koki c 1 in Business & Finance ➔ Credit
I have been where you are. It shows that you care about your credit and such if you are even asking here. I commend you for that.
No, you should not declare bankruptcy, your credit will be screwed and in case you were not aware, the government recently rewrote the bankruptcy laws so that credit card dept is not affected. The credit card companies can and will still be after you and you will still owe them money.
So that leaves you with consolidating the debt, this is not a bad idea, just look at the different companies and then do a search to find out which may be the best. Check out the Better Business Bureau (sp?) website and search about the company in question. You may want to consider a second part-time job just long enough to get the debt paid off.
Dont declare bankruptcy, stick with it and do all you can to get it paid off as quickly as possible. Keep your chin up about it all and just work at it. It may take a couple of years, but when it is done you will be free from it.
2007-07-05 12:23:38 · answer #1 · answered by Anonymous · 2⤊ 1⤋
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RE I owe about 13000 in credit card debt. I earn about 300 a week and my rent is 600. Should i declare bankruptcy
Hi. I have owed my creditors money for 6 months. I owe about 13000 and my monthly rent is 600. I have a total of 9 creditors. Two of them, CHASE and Bank of America, have offered to forgive about 3000 of the debt. They are willing to do this if I pay them 4000 right now. I dont have that kind of money now. I just recently became employed again. Should I declare bakruptcy or seek a consolidation agency to help me negotiate further. My family says I should declare bankruptcy but my friends say I should seek credit advisors for help. Is there anyone who has ever been bankrupt or in a similar situation.
2014-10-04 04:38:23 · answer #2 · answered by Anonymous · 0⤊ 5⤋
I have direct knowledge of the bankruptcy process and it may be a better idea to file a chapter 13, instead of a chapter 7. You will still be paying your debt back just at very reduced rates. This option will also effect your credit as all types of bankruptcy does, but lenders are quicker to give you another chance later if you dont file for a chapter 7. Also, you could seek out a consumer credit counseling service that will do basically the same thing. Or if you own a home if may be possible to get a debt consolidation that way. good luck:)
2007-07-05 12:19:33 · answer #3 · answered by Etta P 4 · 0⤊ 0⤋
No, you definately shouldn't declare bankruptcy!!!
are you kidding? people who declare bankruptcy typically have 40000-80000$ of unsecured debt, with little prospect of EVER paying it off.
When I once had too much debt, 12 months ago,( more than you I might add), my first step was to consolidate my debts. I thus had only one payment to make and no headache of who do I need to pay tommorow, or next week,ect... Next, cut your spending to bare minimum. be disciplined. Next increase your income. Make a plan, based on pay periods. Figure out how long it would take you in total to pay off everything. STICK TO THE PLAN UNTIL THE END!!!
Once I consolidated, I got a second job, and worked 60hrs or more a week for 11 months. I made some good investments with my little capital which shaved about 2 months off my repayment time. I paid off the last of my debt yesterday actually, and have a cushion in the bank now too. I never considered bankruptcy for myself; it's like saying: "I'm completely irresponsable and incompetent with money, don't give me any or I'll waste it foolishly." Good luck getting a car, a house or opening a business later if you do.
Good luck. I've been there, and I got out by myself. You'll feel good about your accomplishment after you're all paid up, believe me.
2007-07-05 12:28:57 · answer #4 · answered by Carl C 2 · 1⤊ 0⤋
If I understand your question, you are having difficulties making the monthly payments on your credit card debt.
Bankruptcy is not the answer it used to be either. It is now on your record for 10 years an d you may still end up paying off much of your debt.
There are a bunch of scams out there and a lot of people that will try to rip you off under the guise of repairing your credit. Go with a reputable organization that will help you and not rip you off. I have worked with Consumer Credit Counseling Service for a couple years and they have been great. Check them out at: http://www.cccsintl.org/
They can help you work with your creditors to reduce payments and interest and they have educational information to help you to manage credit better.
Good luck!
2007-07-05 12:18:21 · answer #5 · answered by davidmi711 7 · 0⤊ 0⤋
Unfortunately, under the new bankruptcy laws, you may not be able to declare bankruptcy. You can try negotiating with the individual creditors to get their interest rates down, but usually you have better luck with credit counseling. It is very rough to go through, and I'm not sure the effect on your credit rating is any better, but that may be the way you have to go.
Be very careful about who you go to though, as there are a lot of scam credit counseling people out there. Check with your local Better Business Bureau before committing to any of them.
2007-07-05 12:18:21 · answer #6 · answered by mommanuke 7 · 1⤊ 0⤋
Bankruptcy will ruin your financial life for at least 10 years. Earning more is the answer if they will work with you in credit counseling and you can find a job that pays more you can recover from 13K debt.
2007-07-05 12:17:25 · answer #7 · answered by shipwreck 7 · 1⤊ 0⤋
Before you consider bankruptcy, confer with at least two credit counseling groups. Make sure they are non-profit. They will not only consolidate your credit position they will offer other advice designed to help you get out of your jam.
2007-07-05 12:17:09 · answer #8 · answered by John M 3 · 2⤊ 0⤋
If your debt is fairly recent - you will have a tough time getting a bancruptcy approved - and by your statement - it is recent.
I think you need to look at picking up a second job and start paying off your debts
2007-07-05 12:17:54 · answer #9 · answered by Mike Frisbee 6 · 3⤊ 0⤋
No don't do so. Try to repair or fix your credit first. You can get some free help from some websites online on how to repair your credit try to consult with them.
To know more you can visit
http://www.creditcardbiz.blogspot.com
and
http://www.debtconsolidationmanagement.blogspot.com
2007-07-05 12:31:40 · answer #10 · answered by Pamella A 2 · 0⤊ 0⤋