Should I file for Bankruptcy?

Discussion in 'Credit Talk' started by molly, Feb 16, 2001.

  1. molly

    molly Well-Known Member

    I have a problem and maybe you can offer some suggestions. I have a monthly income of $600 and a total debt of $30,000. I have been using my credit cards to pay my bills and it has caught up with me. It has been suggested to me that I file for bankruptcy but I'm unsure if this is the best route for me. I was wondering if there is anyone on this board that has been through a similar situation and can offer any suggestions.

    Thanks for any help you can give.

    Molly
     
  2. sam

    sam Well-Known Member

    RE: Should I file for Bankrupt

    You need to get a full time job or something, an adjust your living status so you can survive off your salary, by itself, first..

    bankruptcy will not help you there.
     
  3. Chet

    Chet Well-Known Member

    RE: Should I file for Bankrupt

    Bankrupcty should only be a last resort if you absolutey cannot find any other way out of your financial crisis.

    I filed Chapter 7 in 1992, and if I had it all over to do again, I would have done everything possible to have paid my bills and avoided the BK.

    On top of destroying your credit for 10 years, filing Bankruptcy causes a lot of mental anguish. It has been 9 years since mine, and I have managed to "somewhat" rebuild my credit since then, but I still feel the anguish everytime I go to apply for credit.

    will they approve or deny me because of the BK still on my credit reports? Most prime credit will deny because of the BK!

    I would investigate all other avenues before taking this "life changing" plunge into filing Bankruptcy.

    Just my personal thoughts :)

    chet
     
  4. on the go

    on the go Well-Known Member

    RE: Should I file for Bankrupt

    There are a bunch of pros and cons, but what you need to remember is that bad debts will stay for 7 yrs, after last payment or date of deliquency so as long as you are still paying you have 7 yrs. from then. Have you tried negotiations? I did ch.7 it was best for me and I am glad I did(it doese stay for 10 yrs. ) I had 2 kids one was a newborn at the time and I had been a stay at home mom when hubby took off he took all the money and left me with no resources and 20,000. debt. I was fine doing ch. 7 it got creditors off my back I was able to get a good job and start a new life it has taken 6yrs just to get back to the point where I have been interested in credit. So I have a few years left that the ch.7 will follow me around but all the old bad stuff is gone but the ch.7. I have just bought my first home by myself and I have a car loan and a few credit cards not bad and Im happy so there is life after bankruptcy. Good luck keep us posted.
     
  5. molly

    molly Well-Known Member

    RE: Should I file for Bankrupt

    If a full time job was an option for me, I would have done that a while ago. But it isn't and I was just trying to get a little advice. I'm 71 and I have very limited income.

    Molly
     
  6. molly

    molly Well-Known Member

    RE: Should I file for Bankrupt

    On the Go,

    Thank you for your response. This is helping to make things a bit more clear for me.

    Molly
     
  7. sam

    sam Well-Known Member

    RE: more details?

    Are you on social security? They can't garnish that..
     
  8. molly

    molly Well-Known Member

    RE: Should I file for Bankrupt

    Chet,

    Thanks for your response. I really appreciate your input.

    Molly
     
  9. Larry

    Larry Guest

    RE: Should I file for Bankrupt

    Molly,
    Could you be more explicit? what are your cards? what are the balances on each? are you behind in payments? have you seen your credit reports? Is the debt yours?

    I see Sam beat me to it.
     
  10. Chet

    Chet Well-Known Member

    RE: Should I file for Bankrupt

    Molly,

    I wasn't aware of your age and situation. BK may be a option for you then if you need the money to survive.

    I was 28 when I filed, so you can understand why my outlook was a bit different :)

    chet
     
  11. molly

    molly Well-Known Member

    RE: Should I file for Bankrupt

    First, thanks for the responses.

    I have five credit cards:
    Sears, Sam's Club, Citibank, Discover and First USA (AARP).
    The balances are roughly 2000, 900, 9000, 9000, 13000 respectively.

    Currently I have been able to maintain the minimum payments but recently this has been getting difficult to do and I'm afraid that soon I won't be able to maintain that.

    I haven't seen my credit reports in about two years but all of the debt is mine.

    I am 1 1/2 years away from receiving social security.

    Thanks again,

    Molly
     
  12. Erik

    Erik Well-Known Member

    RE: Should I file for Bankrupt

    I don't know very much about bankruptcy but I know many people recommend it for serious financial problems (and yours seems that way to me). Also some people are recommending that if you are considering chapter 7 bankruptcy that you make up your mind quickly because bankruptcy law may get reformed soon:
    "Senate Majority Leader Trent Lott, R-Miss., told an audience that in addition to tackling items on Bush's agenda, he hopes to send the president an overhaul of federal bankruptcy law that former President Clinton vetoed in the waning days of the last congressional session. But first, he said, he hopes to strip off provisions that Republicans agreed to in an unsuccessful attempt to win Clinton's signature. (emphasis added)"

    http://www.bayhouse.com/discus/messages/195/1209.html?982213780
     
  13. Darrell

    Darrell Guest

    RE: Should I file for Bankrupt

    Molly:

    Please don't try to handle this matter yourself. You'd benefit greatly from a consult with a lawyer who specializes in bankruptcy.

    A BK lawyer can answer your specific questions and provide the guidance you need. He or she will need you to tell them the unvarnished truth about your financial situation. Are you a homeowner? Are your debts secured or unsecured? Is your financial position likely to change? Do you have a car? Is your monthly income derived from Social Security or other government benefits?

    Please don't spend your golden years tied in knots over financial matters. Making an appointment with an attorney is your first step toward recovery.

    Don't let concerns over the ability to pay for a lawyer keep you from making an appointment. You need competent advice to deal with this problem.

    I wish you all the luck in the world. Hold your head high. God bless you.
     
  14. mother2

    mother2 Well-Known Member

    Wow, great success story. I s

    back in 1996. At least I would have been stress free for a couple of years. :eek:)
     
  15. Dani

    Dani Well-Known Member

    RE: Should I file for Bankrupt

    Molly,

    Do you own a home? If so, a reverse mortgage may work to pay down that credit card debt and give you extra income to live on. I would speak with a trusted lender or financial planner before doing this though. I wish you the best.

    Dani
     
  16. joe

    joe Well-Known Member

    RE: Should I file for Bankrupt

    Molly,

    PLEASE do not mortgage your home to pay these Credit Card debts. Bankruptcy was designed to help people in a sitution like you have. See an lawyer. Get the ball rolling. Let these debts get discharged and you will have a huge weight off of your shoulders. You DO NOT need this stress. These creditors gave you credit lines WAY IN EXCESS of your ability to repay. They MUST take some responsibility.

    Please remember, it will work out!

    Joe
     
  17. Dani

    Dani Well-Known Member

    RE: Should I file for Bankrupt

    Joe:

    We don't know how long Molly has had these accounts. They could be excess of 20+ years as far as we know. She is still making the minimum payments, but needs a way to consolidate. Even if she claims bankruptcy she still only brings in $600 a month. And her credit is ruined. I don't work for a banker and do not claim to know everything, but I was just giving some ideas on how Molly could possibly lower her debt and bring in additional income until she receives her social security benefits. Unfortunately, this country does not do enough in making retirement easier for its citizens.

    Dani
     
  18. joe

    joe Well-Known Member

    RE: Should I file for Bankrupt

    I hope you didn't take my advice as a "slam" against you, but my opinion stands. They are taking advantage and Molly should not use her equity (if any) to pay these down. Then, she really has "nothing" left...... Just my opinion ;)
     
  19. tango

    tango Guest

    RE: Should I file for Bankrupt

    But, Joe...how are they taking advantage of her? She claims the debt.

    Also, a reverse mortgage would mean that she only has "nothing left" for any heirs. This a really great option for seniors who are house rich but cash poor - but she should make sure she's working with Fannie Mae/Freddie Mac lender to avoid the sharks.

    Also, I'm surprised nobody has referred her to a nonprofit Consumer Credit Counseling service...
     
  20. joe

    joe Well-Known Member

    RE: Should I file for Bankrupt

    True. But I HATE TO SEE SOMEONE OF HER AGE PUT THRU THE "MILL." CCCS is a choice. Yes, she claims the debt, BUT the CC companies have a responsibility to give credit in a reasonable way. Her income does not justify those limits. So, I cannot "blame" her. She, like millions, used what was given her. Why couldn't they assign limits in relation to not just her history but her income?
     

Share This Page