I'm thinking about filing for bankruptcy because I feel I just can't get out of this hole I'm in. My debts are as listed below: $22k car loan - car has $5k worth of damage from uninsured driver who rear-ended me. $2.5k worth of credit card debt that are deliquent at the moment. and 2 charge offs totalling $2k with 1 $600 phone bill in collection. As you can see I'm totally screwed with no way out of this. Will bankruptcy dissolve all the debt? What about my car loan? What happens to all the debt after bankruptcy? Thanks EQ: 457 TU: ? EX: ?
Bankruptcy is a big step and irreversible. You need to get as much info as possible before making that decision. Your car loan - sure, bankruptcy can wipe it out (chapter 7, if you qualify), but you won't have a car. Car damage - you should be able to get the repairs done and paid for by your own car insurance company, under your uninsured motorists coverage. The rest of your debt doesn't look too overwhelming to me, but it depends on a lot of factors. Are you working? What are monthly expenses in relation to income? Have you called the creditors to ask them to take small payments for a while? Best to talk to them before things get really out of hand. I'd talk to a lawyer - #1 about your accident and getting money for your car repairs, as well as about possibly filing bankruptcy.
