would anyone recommend filing bankrupcy as an option out of debt?

Answer 1

No, only as a last resort, once you file bankruptcy it follows you around for a very long time hard to get rid of, some creditors are willing to work with you as far as paying back a debit sometimes even taking a lesser amount, also there are companies out there to help you out with your creditors beware of the fly by night ones, get a good reputable one......good luck!!!!!

Answer 2

It really depends on your situation. The type of debt, the amount of your debt, etc. If you afford to make your payments now, you're better off paying down your debt as soon as possible than filing bankruptcy--if they don't dismiss your bankruptcy case, you'll be set-up on a payment plan (which you could have already done yourself and not have the major black mark on your credit). If you're struggling you might want to look into Consumer Credit Counseling. Make sure that its a legitimate company (they shouldn't ask for any money upfront) and make sure that they are actually working with your creditors to make the payments on your accounts. When they review your finances you can also discuss with them if they feel bankruptcy would be a good option for you given your debt-load.

In the end, I would advise you do everything possible to avoid filing bankruptcy. It remains on your credit for 10 years (or more depending on how long it takes you to pay off the debt via payments through the trustee) and can make it harder in the future to get a job, loan, etc.

Answer 3

Okay, well bankruptcy should always no matter what be a last option. To find out how much credit counceling payments would be, call them and speak with them. Go through all of the questions and tell them about your debt and they should be able to tell you what a payment should be without you making a commitment. Don't agree to "join" until they tell you what the payment would be. If you're not sure after they do tell you, tell them you will call them back and get a direct phone number back to that person. Don't be afraid to waste their time. It took me about an hour or so to get an actual payment amount from them, then I didn't call them back cause the payment was higher than what they would be with me just going the way I was.

Answer 4

This should be an absolute last result to try. You need to contact the people you owe and ask them if they will accept a certain amount. Let them know you intend on paying your bills but you need them to work with you. Some companies will, some won't. The main thing though is you will have to change how you spend. It's easy to get in debt but hard to get out. It can be done but you have to be diligent and make it a lifetime habit. If not, you will find yourself in the same spot over and over. You have to break the habit and bankruptcy can only be done every so many years. Also, bankruptucy does not clear all your debts. If a company refuses to be added, they have that right and you are still stuck having to pay that one.

Answer 5

It is an option, but one that needs to be carefully considered. There are some negative consequences to bankruptcy such as a) taking a hit on your credit record b) new bankruptcy laws that make it harder to discharge debt - most folks are forced into a repayment plan these days and c) some debts are non-dischargable and d)paying lawyers and going to court.

Things to consider when making your choice:

1) The amount of debt you have.
2) The types of debt you have (secured, unsecured, dischargable)
3) Consequences to your profession/career (i.e. lawyers)
4) Non-bankruptcy options (payment plans / work-outs / credit counseling)

good luck.

Answer 6

I would. A friend of mine is trying to get out of debt by signing up with a debt relief company. Meanwhile, she's charging up her one remaining credit card. In a case like that, bankruptcy would be like rehab. I think the only thing that will stop her from wasting money and running up huge amounts of debt would be if she couldn't get credit anymore.

Answer 7

I did it 8 years ago. It ruined what credit I had that was up to date. It takes 7 years for it to be removed from your credit report. Any loans or credit cards you get will have very high interest rates. Find a good credit counseling agency. Check the Better Business Bureau. They can negotiate for you to lower your bills and still pay them off. Lastly keep your plastic at home.

Answer 8

it depends on what kind of debt.. i did it about 2 years ago, and it was one of the best decisions that ive made.. yes it can take 7-10 years to be cleared, but afterwards, i got a car, in my own name, no co-signer,and i began getting 10 million offers from credit card companies, be careful!!!! alot of theses credit cards are bull, they charg efor everything,,, (annual fee, over the phone fee, online payment fees, monthly maintenance fee).. i must admit that i did get one, just so that i could have something that was current to build my credit up, and eventually i got a card w/out the fees and i pay them responsibly!, just makae sure that once youdo it that u set up a plan so u wont ever hav eto do it again.

Answer 9

You should NEVER do this unless you can't pay and can't see any hope of being able to do so. This will wreck your credit for 7 years and you'll still have to pay at least a portion of what you owe, in all likelihood.

Contact a reputable agency like the Myvesta Foundation (www.myvesta.org) and get them to work out an arrangement for you.

Answer 10

only as an absoulte resort. It is much harder to file BK these days- chances are you will be required by the court to pay at least a portion of your debt. I would try to find another way out, if you can.