Credit cards and Bankruptcy

[DavidTCaldwell]

Good Afternoon;

I am looking for suggestions and advice about filing for bankruptcy. I am in over my head with credit card debt and I dont think I can turn things around anymore. There is so much info out there I am not sure what is what so any suggestions, personal experiences etc that anyone could share with me would be great to hear.

Thanks very much;
David

[disneysteve]

Welcome. I'd say the first thing to do is give us the details on your situation. I've found that many people who are considering bankruptcy aren't really anywhere near needing to file. They just need to clean up their finances, learn to budget their income and control their spending and focus on repaying debt.

So list your income, your expenses and each of your debts with balance, minimum payment and interest rate and let folks pick through it with you.

[JoshuaHeckathorn]

Think of BK as a last resort, not an easy fix. And I agree with DS- give us some more detailed information and we'll be able to help. I have a feeling you're probably still in a position to get your personal finances back on track, pay off your debt, and then stay out of debt for good.

[SarahJ]

Yes, I agree.. Definately weigh all your options before filing Bankruptcy. If you really don't see any other way out then maybe you should look into filing. Bankruptcy is not as bad as it seems. I filed 2 years ago and now after rebuilding I have a credit score of 720. I get all kinds of offers from lenders but I won't go there again. Saving for what you what is definately the way to go. No more stressful Debt.

[photo]

Originally Posted by SarahJ

Bankruptcy is not as bad as it seems. I filed 2 years ago and now after rebuilding I have a credit score of 720.

It almost sounds like bankruptcy allows you to erase your debt and then start again as if it never happened. Surely it can't be that easy?

[SarahJ]

Yes it is that easy, but with the new bankruptcy laws, made to protect the creditors a little better, there are some restrictions. You have to financially qualify for a chapter 7 which will eliminate all debt vs. a chapter 13 which is a repayment plan of your debt determined by what ever you can afford. It will negatively effect your credit at first but you can rebuild over time, about 2 years.. I am proof that it can be done, just be smarter after your financial fresh start .

[wolfy]

Without knowing your budget and bills I can offer a few words of wisdom. Have you tried to call your credit cards and tell them you are having trouble? Sometimes they will work with you. What I found is my credit cards wouldn't work with me until I was 30-60 days late. Could you go get a second job to help pay off your debt?


My wife and I are currently in the process of filing bankruptcy. I agree it should be your absolutely last resort. One thing to remember is it is not cheap. We had to pay $1299 for our attorney and the filing fee. We also had to pay for the credit counseling classes as well as the pre-discharge classes. Probably $30 bucks total. I would strongly recommend you use an attorney. A lot of them will give you a consultation for free. You could try there.

[Eric80]

I know David Coldwell is asking for advice but it could be deemed as a bit intrusive to ask for his financial history. Maybe consult a specialist because it may not be as bad then once thought. Filing for bankruptcy is definitely in my opinion a last resort as even though in the future you can rebuild a credit scoring it will affect you in the short term, with renting, leasing and some job ask if you have declared yourself bankrupt in the last x amount of years.

[naomibatac]

Personally, I haven't done filing for bankruptcy, but I a friend of mine did. The went bankrupt because of big client that was not able to pay them. They got a lawyer, which is very expensive and was able to collect little by little. It took them more than 5 years before they were able to collect the entire amount. However, most of the money went to IRS, attorney's fees, and other incidental expenses. The only consolation is that, they were able to pay IRS and they are able to start all over again. The point is, you have to evaluate your situation. We don't know much about the details. You said you have heard a lot of possible solutions; check them out and consult with a debt repair counselor to help you evaluate your best option. Hope I was able to help even a little.

[HousingCounselor]

SarahJ not so fast. You have a score of 720 because they are comparing you to others who have filed bankruptcy NOT to people who haven't otherwise your credit would suck until the bankruptcy fell off.

DS is right. Perspective is everything and most people feel they are in worse shape than they really are. I would also look into debt repayment companies before doing a bankruptcy.

Be prepared to explain why you filed for bankruptcy however, lenders tend to care more about what happens AFTER you've filed bankruptcy. Your record will have to be absolutely flawless.

[artwest]

I agree with disneysteve.

In order for us to give any decent advice, we need more details please.

[Eric80]

whatever you do, Do not declare yourself bankrupt! this will go against you for the rest of your life and credit rating will be non-existent!
Maybe you should go and speak to a debt advisor and maybe consolidate your debt or maybe get an IVA debt management plan, i think this is definitely a better option then declaring yourself bankrupt!

[JoshuaHeckathorn]

Originally Posted by Eric80

whatever you do, Do not declare yourself bankrupt! this will go against you for the rest of your life and credit rating will be non-existent!

A BK won't follow you around for the "rest" of your life, and it certainly won't give you a "non-existent" credit rating. While BK should be treated as a last-resort option, there are many people that choose to file BK and eventually make full financial recoveries.

[Eric80]

im a firm believer that filing for bankruptcy should be your last option as it affects your credit rating and your future. If possible seek out all your options such as speaking to a debt advisor who may be able to give you an alternative such as consolidating your debt or IVA? worth a look.

[maat55]

Originally Posted by Eric80

I know David Coldwell is asking for advice but it could be deemed as a bit intrusive to ask for his financial history. Maybe consult a specialist because it may not be as bad then once thought. Filing for bankruptcy is definitely in my opinion a last resort as even though in the future you can rebuild a credit scoring it will affect you in the short term, with renting, leasing and some job ask if you have declared yourself bankrupt in the last x amount of years.

Not his history, we want his current income, assets and expenses. This gives us numbers to work with and the ability to give more specific instruction. Remember, we do not know who you are, this is an anonymous forum.

[Eric80]

I think that bankruptcy should be your last option as it is very hard to get of and will affect you on the future. Have you may be considered going to a debt advisor? They offer really good advice and they know what there talking about - there not a salesman