i am currently going thru a divore and i seem to have more money going out than i do coming in.. i even have 2 jobs and i still cant seem to get my head above all of these bills.. so i was thinkin about filing for bankruptcy.. is this a good idea? also no bank/credit union will consolidate my bills for me.. please serious answers only as this i a serious decision for me. Thanks.
2007-07-26 12:47:43 · 6 answers · asked by ar0d77 1 in Business & Finance ➔ Personal Finance
Benefits...unsecured debt that is in your name only name only is eliminated or paid back at an extremely reduced amount
Negative...if the debt is in both you and your ex's name the creditors will leave you alone and go after ex...ex in turn (if he/she can prove the debt was incured by you) can go to a judge and get a judgment for you to pay her each month for the debt she is having to pay for you...bench warrent can be issued if you do not pay (this happened to some friends of mine, she had him arrested last week for non payment)
Benefit...puts a stay of execution for any forclosure or repo that is occuring at the moment
Negative...you must have the loans current on the itmes you may want to keep before the bankruptcy is discharged or it is as if you never filed and they will take the items away (if you don't want to keep the items this is not really a problem, I did not keep my car)
Benefit...Free consultation with lawyer will tell you what chapter you qualify to file and how long to expect the process to take
Negative...Most lawyers require payment up front in full before they will actually file for you (mine cost $1100 which I had to get from my parents)
Negative...Bankruptcy stays on your credit for 10 years from the filing date. This makes it incredibly difficult to get credit for the first few years and interest rates are very high until it falls off.
I think bankruptcy saved my family, but I am not divorced and we both filed. Being divorced changes things quite a bit, you will want to go to your lawyer and find out what they will and won't come after your ex for. You need to determine if it is worth it to trash your credit if her name is on everything and you will have to pay any way.
To your lawyers meeting bring the most recent bills you have for everything and bring a copy of your credit reports(https://www.annualcreditreport.com); also bring a copy of your divorce decree so your lawyer will have all the facts before he/she advises you.
2007-07-26 13:03:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
For a very similar situation a found a great solution at: CREDIT-SOLUTIONS.INFO-
RE What are some of the benefits/rammifications of filing bankruptcy?
i am currently going thru a divore and i seem to have more money going out than i do coming in.. i even have 2 jobs and i still cant seem to get my head above all of these bills.. so i was thinkin about filing for bankruptcy.. is this a good idea? also no bank/credit union will consolidate my bills for me.. please serious answers only as this i a serious decision for me. Thanks.
2014-10-03 08:51:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The biggest PROBLEM with bankruptcy is NOT the damage to your credit rating. It is that it only deals with the symptom (debt) not the problem (outgo exceeding income). If I paid off all your debts today, you would still have more going out than you have coming in. That is the issue you must address. It MAY require an extra job.
2007-07-26 20:00:40 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
Bankruptcy ... uggghh. That's rough!
Benefits - Debt is cleared up ... EXCEPT for Student Loans and Taxes
Ramifications - You have not changed the behavior that got you into debt, credit is trashed, embarrassing to go through!
Have you pulled up all of the debt you owe and calculated your Debt Freedom Date? I have a free Excel spreadsheet on my blog at http://www.josephsangl.com/?page_id=151 called "Debt Freedom Date Calculator" You can see how long it will be until you are debt-free!
You can find out how much you owe by pulling your FREE annual credit report at http://www.annualcreditreport.com
2007-07-26 19:58:38 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Good answers above, but also keep this in mind...
Even though it will eventually fall off of your credit report, a lot of job applications, loan applications, etc. now ask the question "Have you EVER filed bankruptcy".
2007-07-26 20:32:50 · answer #5 · answered by mister_galager 5 · 0⤊ 0⤋
I don't know a whole lot about this but my parents filed bankruptcy. They had a lot of stuff repossessed and it affected their credit for about 7 years. (Made my getting college loans tough too) The debt, however, was mostly gone. I would speak with your bank to get a better idea how it would affect you financially.
Good Luck
2007-07-26 19:56:53 · answer #6 · answered by Nicky 2 · 0⤊ 1⤋