i recently have been thinking for filing for bk but not really sure on it. how do i go about it. i mean what is the process for filing? i am in 15 thousand dollars in debt or more. i only have one good line of credit left and all my other credit cards are charged off and also have some sign loans from small finance companies. what should i do? thank you
ONLY $15,000, I WOULDN'T. GET A SECOND JOB, THIRD JOB, SELL "STUFF", DUMP CABLE, BORROW MONEY FROM RELATIVES, EAT ONCE A DAY...WHAT EVER YOU CAN DO.
if not bk then what? me and my husband are working and we have 4 kids. some one awhile back suggested not paying nothing at all and within some years it has to be gone from your credit report is that true?
Have you checked with any of the credit counseling agencies (there are some bad ones out there, so look carefully into this)? You need to consider all options first. If BK looks like your only or best choice, I'd suggest you consult a local BK attorney. 1st consult is usually free. BK varies by state as to what and how much you can lose or keep. My own experience proved that BK was the only option (over $100K in CCs alone)! But getting credit since then has been difficult at best. Be certain you won't lose more than you'll gain before you take that route.
You are both working correct?? Can you atleast make the min payments and if so, if you have any extra then pay a little more on the higest one and then pay the min on the rest and when that one is paid off then start with another card. If you can afford to make the payments then you may want to consider filing for BK. But just letting them go and waiting for them to fall off, I don't think this is the right thing to do, but if you did this, these accounts will haunt you much longer than any BK. Also depending on what state you live and how much you owe them they could garish your wages.
For some it is the only option! My DH and I had to do it this past October! Our credit was horrible! We had accounts that we had not been able to pay on in years and creidtors calling and knocking on our doors everyday! I was put out of work and had medical bills from my health and the three kids being preemies stacked to the ceiling! We could not even afford the minium payments and still feed our children and keep our house too! We went to a lawyer and he told us we would not hurt our credit anymore than it already was hurt, so we did it!! It was the only way in our situation! I still feel guilty for having to go that route, but the stress of dealing with all the creditors on a daily basis is gone and there is a little breathing room now! We will not be able to get credit for awhile and we can deal with that...anything beats the hell we were living on before! Good luck with what you decide! It is not the end of the world if you do, life goes on!
15K and you both work? Somebody needs to get a 2nd job and your family needs to start living below your means. On 15K, the minimum payments ought to under $400/month {figuring on 2 1/2% of the principle per month}. It sounds like you 2 are doing a poor job of budgeting. As George sugested, get rid of cable, stuff on the phones, get a 2nd job and live like hermits and eat genric mac % cheese until you get this straightened out. You need to draw up a budget and stick to the budget. Your first order of business is get those loans current. Once you do that, pay minimums until you have an emergency fund established with 3 months living expenses. Then, attack the debt aggressively. Don't misunderstand me. My attitude towards bk is very liberal. I quit easy! But, it ought to over a multiple of 15K. Save it for when you may really need it. Good luck!
What state do you live in and check to see if wage garnishment is permitted. For instance, in Texas wage garnishment is not permitted and for 15K I would NEVER think of filing BK.
I'd be careful about filing a BK. While I was able to get a decent home loan (after 3 years) and a decent car loan after 5 years. I am not able to get any kind of unsecured credit card (other than the one issued by my credit union.) Plus I read on some site (it was a debt consolidation site - so maybe I should take this with a grain of salt) that bankruptcy stays on your court records for TWENTY years. If anyone has knowledge about the court records thing, I would be grateful. Also, don't go the debt consolidation company route. I have a friend who did that and his balances did not drop even after a year. His credit got trashed, too. Maybe you don't care about your credit, but it does count. Anyway, my two cents (or three or four).....
I agree that 15K is way to little to do a bankruptcy over. You may want to work two jobs, or sell an additional car, or do a reputable version of CCCS. Sell you home and buy a cheaper one. Use the equity to pay on the bills. Get rid of cable (engage the family in book reading), internet service (use the service at a library and register for a yahoo or hotmail account), cell phone service (you can still call 911), long distance (use e-mail at the library, write letters, or budget ahead for prepay cards). I also understand that if there is no other recourse, then BK is a legitimate, moral, and legal option. I'd just hate to see you wish you had done things differently after the fact, because $15,000 is really not a lot of money to pay back for 2 incomes. I wish you and your family the best,
