i am thinking about filing bankruptcy? how does it work?

Question

i am thinking about filing bankruptcy in the near future. My question is if i do decide to file how long does it stay on my credit and do i file all my bills includingin every credit card even the one that i have current?

Answer 1

It will stay on your credit report for 10 years (unless you are able to get it removed.) I've gotten mine removed from 2 of the 3 credit bureaus and I just filed 2 years ago.

That does NOT mean that you will never be able to get credit again. It simply means you will have to start from scratch and work hard to rebuild and repair it!

If you are filing Chapter 7 (which is the best because it gives you a clean start and you don't have to pay anything back), then you don't have to include the current account.

At least I didn't, check with a bankruptcy attorney to make sure.

Answer 2

There are two kinds of bankruptcy: Chapter 13 where your creditors agree to reduce some of the debt you owe and the court sets up a 5-year or so payment schedule that allows you to pay off your debts and still keep enough money to live on. The other is chapter 7 where all your unsecured debt (credit card debt) is forgiven and you start over.

THE LAW CHANGE that happened a couple of years ago now makes it so that an attorney must first TRY to get a chapter 13 bankruptcy. If they can't work a deal with your creditors that will allow you pay off the debts in 5 years and still have enough to live on, then the court will allow you to file chapter 7.

So there's no need to go to a consolidation agency really, because thee bankruptcy court will decide which course of action you will be allowed to follow.

Before the law change, you could file Chapter 7 even if you were able to pay back some of your debt. Now the court system decides.

Either way, you start with a free consultation with a bankruptcy attorney. Check the yellow pages. Collect all your bills and see th attorney; he'll tell you what your options are and let you decide if you want to file or not.

Answer 3

All the credit cards yes, Child support and school loan no. It will stay in your file for up to 7-10 years but you can build your credit within two to three years after you file that.

But you rather try to talk to your Leander and see what are your options and if you can walk out something. Filing the bankrupt should be the last option and if the amount is less than $20, 000 it doesn't worth. The credit company all know that the situation happens and they are ready to listen but if you just want to avoid your debt for no reason it is most like after you start to use credit cards again you will not be able to pay back....

Answer 4

I am going to tell you like this, If you cannot afford to pay your debts, and have to rob Peter to pay Paul, file for bankruuptcy. Because it mean that you are already over your head. What people don't seem to realize is that, it is always easy to say " consolidate your bills". They don't know your financial situation, how do they know that you have to money to pay even those consolidated bills? Don't ever let anyone tell you that filing bankruptcy is going to destroy you for the rest of your life....NOT TRUE!!!! Bankruptcy does stay on your credit report for 7 to 10 years, but you also would have a clean slate to be able to restart, and rebuild your credit. They say "bankruptcy is a bad mark on your credit report". It is no worse than you having a whole bunch of negative credit marks on your report, that has not been paid in years, and even those negative marks stays on your report for 7 years. So you do the math. I filed bankruptcy 7 months ago, and I would tell you, it is such a relief. Creditors do look at that when you apply for credit, but you have creditors that is willing to restart you fresh. I am rebuilding my credit now,and I already have 5 different credit cards. Discovercard was even willing to work with me. So, if you really can't afford to pay off your debts, file for bankruptcy. It is a law that was passed for people that are in financial hardship like us, and if you have the opportunity, take advantage. I did, cause after I did that, I was able to get things taken off my credit report, my score went up, and now I have something possitive on my credit report. Do yo thang

Answer 5

All the credit cards yes, Child support and school loan no. It will stay in your file for up to 7-10 years but you can build your credit within two to three years after you file that. I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogspot.com/2007/08/personal-bankruptcy.html Good luck!

Answer 6

before you file for bankruptcy please try a credit counsing agency they will get you lower interest rates or sometimes no interest on your current debt you make one consoldated payment to them and they disperse the funds for you so you arent late on your bills also they keep your credit in good standing as you are paying off the amount you owe , make sure you find a good company that does not charge you. good luck

Answer 7

Bankruptcy laws were changed in the last few years and now require counseling and fewer discharges are allowed .

Google Bankruptcy Laws and check out NoLo

http://www.nolo.com/article.cfm/ObjectID/B0B66870-4C52-4303-919B10B9611D3EF9

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Answer 8

Try visit "http://www.debtsawareness.com" . It's a portal to understand about debts, loans and bankruptcy. It may helps. Cheers!!!!

Answer 9

CONSOLIDATE!!! you will pay half or less and not trash your credit. then keep your cards locked up in your filing cabinet and learn to manage your debit account.