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Filing for Bankruptcy?

I am on the Verge of filing for bankruptcy, but my mentor is against it. My credit is MESSED up! What do I do?

  • I am between filing for a bankruptcy and simply hoping to fix my credit. I have had two judgements against me that I could have contested, but I was out of country then, and have another one coming up (credit card debt). Does it make sense to have to sleep with no peace with all these debts? When a bankruptcy can just clear them away? Since I already have two judgments on my report, what more harm can a bankruptcy add? Its already BAD enough! Please advise? And which of the bankruptcy chapters is better for an individual? Does it also clear Private School Loans? Or even Federal school loans?

  • Answer:

    Hi Diva D,....I'm at work and see that I've just got 1 hr. before this closes and I'm going home, so can't do justice to the answer. As info, I work as a Christian financial counselor with our church (for free) and have diligently researched the new bankruptcy laws. I'd be glad to try and help you as bankruptcy is something that you want to avoid at all costs. Sometimes, your situation is not as bad as you think. If you'd like to discuss your situation with me further, e-mail me at [email protected] I can send you a PowerPoint presentation I made up which gives some of the pros & cons.

Diva D at Yahoo! Answers Visit the source

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Your school loans will remain due until you die. You will be paying those back forever, so it's best to buck up and pay them off ASAP. Bankruptcy laws changed, and it does not "clear them away" anymore. That door closed a few years ago. You are paying than money back at some point. Bankruptcy just protects you from being sued while you pay it back. The best thing to do is get a second job on nights / weekends to increase your income, sell as much stuff as you can (electronics, furniture, etc) to get extra cash to put towards debt, and cut expenses (no more going out, restaurants, cable, etc). Life will suck during this period, but it is only temporary. Get it over with ASAP. Use the site below for tips to rebuild your credit.

Brian H

One school loans remain on there. Second you have judgements they can only stay on there 7 years, bankruptcy for 10. You can still dispute the judgements

Pengy

You can easily find your answer here at http://usalegalcare.com/Bankruptcy.htm Trust me they are good

Nick

I am no expert but I think the laws they passed last year don't just wipe away debt, a larger portion of them have to be paid. I don't think the feds will let you get out of paying them back either, student loans or IRS probs. You should probably get your paperwork together and see a bankruptcy attorney and get some real facts. Hint: Once you get the bad stuff behind you, you can get a secured credit card to help build your credit back.

luckyone_27105

Bankruptcy may makes things easier for a little while, but it will mess up your credit for years to come. While you will be able to get loans, credit cards, etc. it will be very expensive. The better option is to work on your credit. If you need more information go to http://www.too-many-debts.com/ where you can get info on credit conseling and debt consolidation loans.

mikeherman45

Sometimes banlkruptcy is the only answer. There are two types of bankruptcy. Chap 7 and chap 13. The courts hardly allow chap 7 anymore since they changed the laws. Chap 7 will totally wipe out your debt. With chap 13 your debt is reduced, but with the remaining you have to make payments each month till it is paid off. A bankruptcy will stay on your credit for 10 years i believe. Which in turn means in the future you will hardly be able to get a loan, or you will be paying some really high interest rates. Chap 13 is the better of the two for your credit since it shows that you are responsible enough to work off some of the debt.

scott g

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