bankruptcy

[liveandchi]

I've come to the point where I'm seriously considering bankruptcy as an option to my current situation. What are the negative points that I can expect to occur if I do file for bankruptcy?

[the4parkers]

forget about a loan for quite a while. you still have to pay a lawyer to do it.

[txjman]

Some employers now check your credit. If there is a bankruptcy on there they might consider you a risk as an employee and pass you over.
Check out MSN Money there are several articles on bankruptcy.
Depending on what state you live in you could lose your house, cars or other personal property.
There are a few other things. I think about it at least once a week, but ultimately I think I would be worse off than where I am now. I wouldn't recemmned it to anyone.

[liveandchi]

With $20,000 in credit card payments, I don't know how I can reduce them when I can't even get my monthly budget to balance out. I'm going to give it a few more months to see if I can work something out and maybe find a job. It's so frustrating.

[MrsChambers]

LIVE

I think that I can help perhaps.. if you want.. PM me with the following.

1. copy of your monthly budget including income
2. copy of your credit reports

you don't need to enclude any PERSONAL information.. don't need that!!

also... check out www.creditboards.com
they have a bankuptcy thread, you chould check it out!

peace

[amomof4]

Insurance companies check credit reports too. You can find yourself a high credit risk.

The only reason I filed bankruptcy a long time ago was that I had law suits that I didn't have the money to defend. Otherwise, I would have just let the credit companies take it as a write-off.

However, now that I am a Christian, I look at it differently. Christians are suppose to live at a higher standard. The Bible says that Christians are to pay their bills and owe no man. If you get into financial trouble, it is a sign of coveting. A Christian needs to live within his means. It would not be good for us to proclaim the Word of God on one hand, and be a flake on the other hand.

[terry1156]

liveandchi,

Don't do it! You have come so far since you've been here and setbacks occur to everyone. Look at Tree0164 and her stove top. You aren't so far into debt that you can't work your way out of it. Keep visiting for support and give it a few more months before making a decision.

[lojiboo]

there is always chapter 13--you pay back most of what you owe ovewr a three to five year period--they make your budget balance-- you pay the trustee what's left.

[coolmomyof2]

here's another question......what do you do if you are out of bankruptcy (1 year) and are back in debt!

I can't tell anyone not to go through bankruptcy, I believe every situation is different; everyone handles pressure differently. Just don't make the same mistakes I did and apply for credit too quickly without learning from your prior mistakes. Attorneys generally don't assist you with getting back on track after bankruptcy.

Best wishes

[MrsChambers]

yeah.. if you do file BK you definatly HAVE TO keep on track with your bills... it's hard enough getting back on your feet after.

[csaville]

Definately put it off as long as possible. I've read that people who go through bankruptcy soon rack up debt again and just do it over again and again. Since they never had to go through the pain of paying back their debtors - they didn't learn their lesson. I'm not saying you'd do that, but it is a cycle!

[Armywife]

Speaking from personal experience, bankruptcy is the absolute last option you should consider because of all the long-term effects. I filed chapter 7 a couple years ago and my credit report is soiled with creditors nasty comments which I cannot dispute until the 10 years of "credit report haunting" is up. While I had no choice in my situation, I would not recommend it because credit runs EVERYTHING in this world- employment, real estate etc. There is also a little statistic somewhere about people who go bankrupt fall back into the credit trap- this is extremely true. We are subject to con man credit schemes, astronomical finance charges, and the ever present ANNUAL FEES. Fortunately you have found a good website where money management advice is sound and FREE... where there is a will, there's a way. Don't give up so soon!

I wish you good luck and please post often!

Barb

[Momof3grls]

I would try to do what you can not too file. Try transfering all debts to 0% interest & cut all expenses anywhere & everywhere you can & only buy food for the next year nothing else & do coupons & rebates like crazy. And then find anything you dont need & sale it either on ebay or garage sale. I have been seriously worried about money once & we pulled out of it so I know you can it just takes lots of work & maybe take on some odd jobs too.

I have a friend who has filed 2 times & is right back at it again & it dont look good for her so I dont think bankruptcy is a good answer JMO