Should i file Bankruptcy?

Question

I have about 11,000 in debt old credit cards, small loans things like that. i have been told by a few to file Bankruptcy. (my debt consolidation,parents etc) im 24 years old and i dont think that is a good idea i have a payment plan set up with 4 credit cards thats about 3500 which will take me about a year to pay. Then i will have less then 8,000 i have a 2001 mercury cougar which is paid off but the title is in my dad's name that i wanted to get a loan to pay the rest of the debt. Is that a good plan or should i file?

all the debts are old and charged off so there will be nothing else added to them i have had them since i was about 19

Answer 1

In the year that you are paying off those $3,500 you owe on credit cards, how much will the other $8,000 in debt grow to?

Chances are good that in another year, you'll owe *more* than you owe now.

You should NOT get a loan to pay off your debt; trying to borrow your way to prosperity never works.

Look, in order to file bankruptcy, you have to go for pre-bankruptcy financial counseling. It costs about $50, and there are only certain firms which are allowed to do it. At least one of them, you can pay online and get counseling over the phone. If the counselor says you should file bankruptcy, you should definitely file bankruptcy. If the advice is to avoid bankruptcy, you should struggle through.

Your bankruptcy will be part of your credit history for 10 years to come, but your arrearages stay on your credit history for 7 years. That means your credit history will be screwed up *longer* if you spend 5 years paying off all the debts, than if you simply filed Chapter 7 and got a fresh start.

Now, there's a third possibility that you might want to consider. There are agencies that contact your creditors and work out a deal with them. Typically, they ask the creditors to roll back any late fees and interest on your debt, and accept a percentage of the amount due. This would have to include the 4 credit cards; part of the deal is that no creditor gets treated better than any other creditor. You might end up paying $250 monthly for 2 years to the agency, which is $6,000. They pay off the creditors, and the creditors report to the credit bureau that you don't owe them anything any more.

But if you stumble, you've made all those payments and you *don't* have those debts rolled back. Lots of things can happen. A car wreck. A pregnant girlfriend. Your employer goes out of business and you can't get a new job.

I suggest you file bankruptcy. And once you file bankruptcy, be very careful to be financially responsible.

Answer 2

I would not suggest anyone file bankruptcy. It is the easy way out that the rest of us pay for. It is why interest rates are as high as they are.

I think that bankruptcy is for people who are more in debt than $11,000. I just feel that if you were going to go through bankruptcy and ruin your credit, $11K isnt worth it.

It sounds like you are eager to get out of your financial mess and that you want to get these taken care of. I would suggest that you see if you cant get a debt consolidation loan from your bank and pay all those high interest credit cards off. That way you are only having one payment a month. If you have it, you can always pay more $ a month.

Like everyone is stating, you can repair your credit by paying the bills you have and taking care of the matter. It is a lot harder to do after you file bankruptcy because you may not be able to get a loan for a while or if you do the interest rate will be sky high.

Fess up and take care of it, you borrowed it, now pay it. Good luck!

Answer 3

I wouldn't file Bankruptcy if I were you. It sounds like you have a plan that will work and if you can do this with out filing your credit score will be much better off.

Any way you can get a personal loan (maybe with a co-signer) and get some of that paid off early? That would be the best option. If not just stick to your plan and in a few years you'll be back on your feet credit wise. If you file it'll take 7-10 years before your credit is normal again.

Answer 4

Filing bankrupcy sounds like an "easy way out" to the people who are advising you, but it will really mess up your credit for many years. If you are paying off your debts, then you're way ahead. And of course it's the honest thing to do also.

I don't know that a loan on a 2001 Cougar is likely to pay off the $8000 of your debt - but if you could pay off a loan like that if you got one, you could put that money toward the other debt and get it paid off.

Good luck.

Answer 5

Only if it is the ONLY way out. Yes seek counseling. But FIRST you can figure it out for yourself. Sit down, yes, stop and sit down and write out ALL of your expenses....next, write out all of your income.

Put them side by side and see if there is any money left over to tackle the debt. Can you get a second job, parttime? Can you borrow the money from a friend or family member ($8k)???? Only get a loan if it has a lower interest rate, b/c you may be digging a deeper hole.

$11k may not sound like a lot to some people, but then it may be a lot to you so this is not a one size fits all deal.

IF there is no way you can repay these debts after evaluating all alternatives, then that is what bankruptcy is for.

I was given the website below...good resource.

Answer 6

with that little of credit problems, bankruptcy is your last option. There are many ways to avoid that.
You can get a single loan as you said and have a lower intrest but you have to shut down your cards and cut them up or else you will end up using them and double your debt. If your thinking "Not me, I will be good and not do that", your wrong and it will happen.
With BK you will get rid of everything but it will screw your credit up for a few years. In addition to that as you rebuild your credit, you will pay out the azz for intrest. you will be paying at least 5% more intrest on any loan that you will get.
And as you get older, there are more things that you will need credit for, as in house and cars and family stuff.
I did a BK about your age for about the same amount and I have had to pay out more than that amount in inflated intrest rates since.
You can also call the credit companies and talk to them about a partial payment and end up paying 60% of the total to end your relationship with them (ususaly)
Good luck and look toward the future.

Answer 7

No because it goes on your permanent record.if you can pay off your debts little by little with out having to file I suggest that.Someday you are going to go get a loan for a house and they may turn you down for the loan if you have filed bankruptcy.

Answer 8

nicely, to respond to your preliminary question of whether you're able to report financial disaster or no longer is unquestionably as much as you ultimately. i does no longer advice it if your debt is under 10K as often a consolidation ought to get you out of the hollow on that concern and you're able to rebuild your credit. the subsequent concern because of the fact the regulations have replaced, do you qualify based on the earnings regulations on your enjoyed ones? probability is, it seems you do, yet then i do no longer know what you're making or what share are on your enjoyed ones. Secondly, it relatively is gonna fee you a grip to report now as what was $3 hundred-$500 to do quite a few years in the past will actually fee you $1500 or extra. Plus you will additionally could seek for credit counseling till now you progression forward in the technique. As on your reference touching directly to the 7 yrs., it is not unavoidably automatic as they bypass on the final date of interest on the account. that's how the lenders get you and characteristic the skill to enhance that 7 yrs. to an eternity. Now, you are able to consistently dispute any subjects you have on your credit report, so don't be afraid to achieve this. they ought to deliver you an handle and touch form of the creditor interior of a smart quantity of time or the credit bureau has to get rid of it out of your credit report. a lot of human beings do no longer know this, in spite of the indisputable fact that it relatively is how maximum of persons are waiting to have some issues bumped off, because of the fact they fail to learn the information swiftly. that's solid for you if that's the case or you're able to nicely be caught with some issues on the report. i'm hoping this helped. solid success!