2007-07-18 14:29:57 · 6 answers · asked by rkrieg3 1 in Business & Finance ➔ Personal Finance
Bancruptcy is to be used when "all" else fails only. Like in my situation, I have been laid off from a half a dozen jobs since 2003. Its not do to lavish living or credit cards. I was told by Attorneys and financial councelors that if you file bancruptcy,
yes it affects your credit, however you get a chance to explain to all 3 credit bureaus your situation to adjust the history on file. Not to mention, I know many that have filed and 1 to 3 years later they have purchased a new home or car. It is not as scary as you might think. Talk to an Attorney who specialises in this field.
2007-07-18 15:14:26 · answer #1 · answered by Anthony 2 · 0⤊ 1⤋
yeah, Don't. Do you really have that much outstanding debt that you can't chip away at it and get it cleaned up?
Use Dave Ramsey's plan and start paying off the smallest debt first, while making minimum payments on the rest. When that one is paid, take the money you were putting toward it and start applying that to the second largest debt. By starting smallest dollar value to largest, you will have small victories much more quickly than trying to tackle them all at once.
The biggest key is to cut out all the extras. Get rid of the cable. Get rid of the cell phones. Don't eat out! Eat rice and beans!! No movies, no amusement parks, no vacations, until you get your debt rolling.
The second thing to concentrate on (after cutting expenses) is getting your cash flow up. Work overtime if you can. If not, get a part time second job. Deliver pizzas, throw papers, etc.
Hope that helps. In short, the new bankruptcy laws don't let you just write everything off anymore. And, if you truly owe the debts, it seems like it would be pretty hard to walk away from them and let someone else eat them.
Check out Dave's site. Go to the library and get his book (The Total Money Makeover).
Also, if you own a new car - sell it and buy a good used car!
Have a garage sale, or hit up ebay to make some cash.
http://www.daveramsey.com
In regards to one of the other posts.... If you talk to a bankruptcy attorney, suprise suprise, they will recommend bankruptcy!!!
2007-07-18 14:39:44 · answer #2 · answered by Anonymous · 1⤊ 0⤋
First, look to your health. This stress needs to be addressed, so exercise and/or see a physician. Next, how much debt? If its under $10,000, get a student loan and pay of the debt with a student loan. Take some finance classes. $20k -200k, there may be a car or home involved. Can you make more money? $2,000 more a month can carry a lot of debt. Second job doing something fun? Bar tending? Swing shift at a book store or cinema (free pop corn).
$200k or more - there's a business involved. If its a good business, bring in some OPM (other people's money). If its not a good business, why? Are you doing your job? Calling leads everyday, etc. Consider asking someone to come in and straighten it out, with a objectives-based pay scale.
2007-07-18 14:41:20 · answer #3 · answered by Dan 3 · 1⤊ 0⤋
Do it as a last resort only. It will really slam your credit score badly, and will stay in your file for ten years after discharge of the bankruptcy.
2007-07-18 14:35:45 · answer #4 · answered by acermill 7 · 1⤊ 0⤋
You need to give us the details in order for us to help!
2007-07-18 16:58:33 · answer #5 · answered by ADAM K 2 · 0⤊ 0⤋
I would not do it, there is always a way out if you try
2007-07-18 14:33:15 · answer #6 · answered by Old enough to know 3 · 1⤊ 0⤋