Bankruptcy or not?

Question

Due to some major past credit issues, and collections, I have recently thought about a Chapter 7 BK. I have gotten my equifax score up by getting negetive items removed, but I still owe them,. And on my TU and EX credit reports, they all still show and my scores are horrible. I have about 10 grand in total debt to file on. Should I just bite the bullet and do a BK?

Answer 1

Before you file for bankruptcy you should really consult a not for profit credit counseling service (like consumer credit counseling service - they are listed in the phone book or on the web: http://www.cccs.org/). They may be able to assist you in structure a get well plan for your finances.

Bankruptcy is nothing you want to rush into as it will follow you for quite sometime - get a professional's opinion 1st.

Answer 2

At this site you can find solutions from different companies: QUOTESDEAL.NET-

RE Bankruptcy or not?

Due to some major past credit issues, and collections, I have recently thought about a Chapter 7 BK. I have gotten my equifax score up by getting negetive items removed, but I still owe them,. And on my TU and EX credit reports, they all still show and my scores are horrible. I have about 10 grand in total debt to file on. Should I just bite the bullet and do a BK?

Answer 3

I also was about 10K in debt, and then after an internet scam, I was soon 20K in debt. My credit score before all of this was 759. After a year of not being able to pay my credit card bills and just being plain miserable because I never had enough money to do things with my kids, I decided to file Chapter 7. Immediately before I filed, my credit score was 480. After my Chapter 7 was finalized two months later, my score went up to 653. I just recently applied for and was granted a credit card with a $300 balance, so this will help me to re-establish my credit. Filing for Chapter 7 really isn't a bad thing like many people think. Anyway, what I would do since you really DON"T have alot of debt (compared to most), some credit card companies will work with you if you talk to them. They want their money and may be willing to either waive late fees or lower your monthly payment. I also tried "Moneymanagement.com", which is a credit counseling firm and will be able to reduce the interest on your credit credit card and will help you figure out a plan to pay off your debt in 60 months. If all else fails, then I would go ahead and file Chapter 7 if you are really having a hard time making ends meet. It was the best thing that I ever did.

Answer 4

Well, I wouldn't...because that will last for a LONG time, 7 years. Think about that very carefully because in 7 years are you going to want to buy a house, a car or get a loan anywhere?

I recommend calling your creditors and trying to work out a repayment. Most creditors would rather get paid than not. So take your 10 grand and divide that by 7 = that rounds up to about $1430.00 a year to repay. Then divide that by 12 = that is only $120.00 month!

I know that didn't include interest but there are companies out there that work with your creditors to try to lower your interest rates.

I wouldn't even look at bankruptcy right now. You have a lot more options.

Answer 5

You want to file bk on 10k? Why? Because your credit scores are low? Do you know what your scores will look like after bk?
Debt isn't the problem, it's the symptom of a problem. Do you know where your money is going each month. Do you not make enough to cover your basic expenses, or do you simply spend more than you make.
Unless you figure out what your problem is, bk won't fix anything in the long run.

Answer 6

No. If you have any ability to pay these debts you won't be granted a Chapter 7 anyway. If you're concerned about credit scores (and your question indicates that you are) then a BK is the worst thing to can do.

Negotiate with your creditors to make payments and get your debt paid down. That's the best route.

Answer 7

If you were able to get negative items removed how old are the debts? Bad credit stays on your report for 7-10 years depending on the debt. If the debt is this old I don't think your creditors can collect on them. I would check the statute of limitations on this. Are your creditors trying to collect? The other contributor is correct, if you have the means to pay your bills you will not be granted a bankruptcy especially with the new laws.

Answer 8

Well...if it were a few years ago, when bankruptcy used to be real...I'd say it might be worth thinking about...but now that the Congress and Shrub handed the banking/credit industry a complete overhaul of the system (paid for by HUGE campaign donations to both party's (to anyone outside of congress...this would be known as BRIBERY...but to congress...this is a lobbyist's freedom of speech...hmmm ok) Filling now...will not do much more than ruin your credit all-together. See bankruptcy used to wipe your debt away...it no longer does that...all it does (in theory) is work out a PAYMENT plan with the creditors...so in a nutshell...you STILL owe the money...but it may prevent some collection calls, but that's about it...(I think they write down fees and penalty's possibly...)

So...no you probably shouldn't file....

Answer 9

10 grand isn't that much to be filing on. This is something that will haunt you for 7 to 10 years. It will be difficult to get any kind of credit after a BK. Have you tried a debt relief company yet? They talk to your creditors and get them to lower your interest rates and payment amounts to something more affordable. You can get debt free in a lot less time than you think, and not destroy your credit in the process. There are several reputable companies out there who can help. It's better to find a way to pay your bills than to file on only 10 grand.

Answer 10

You really should explore all the alternatives to filing bankruptcy. Bankruptcy is not the answer when you only owe 10 thousand and, believe me, it will create more problems than it solves. Check out this website which has some good suggestions for dealing with debt. I hope this helps. Good luck!