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what are the downfalls to bankruptcy and will it relieve you of payday loans??

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Asked by Anonymous at 12:25 PM on May. 17, 2010 in Money & Work

Answers (7)
  • Downfalls your credit is shit. Say good bye to a new home or a new car, because its not going to happen!!!!
    Might as well cut up all of your credit cards.
    Im not sure if they relieve you of payday loans are not. Most bank ruptcy lawyers will give you a free consultation. There is different chapters of bankruptcy, so I would talk to the lawyer.

    Answer by Anonymous at 12:30 PM on May. 17, 2010

  • Is it really as bad as people think it is??? or are there some positive effects to doing it?

    Answer by Anonymous at 12:32 PM on May. 17, 2010

  • It depends on what kind of bankruptcy you file, there is one that will release you all you debt (except student loans which can never be discharged) and then there is bankruptcy where they discharge some but not all of your debt. If you're at the place where you need to file bankruptcy say good bye to a new home or car away you can't afford them and your debt to credit ratio would be too high to be approved anywhere anyway. You have to start as if you have no credit again and it will take you about 2 years to get a decent credit score again but it's not the end of the world. I would talk to a professional in your area and see what works best for your situation.

    Answer by mrsjonzy at 12:36 PM on May. 17, 2010

  • It is difficult. But doing bankruptcy was the best thing for us. After declaring bankruptcy we were in a house within three years. :) Our credit slowly improved with determination. I think you can do it yourself though.

    If you do not have quicken GET IT. Set it up and follow the program. It makes bill paying so much easier.

    Answer by Anonymous at 12:36 PM on May. 17, 2010

  • I think there is a way to pick and choose what you bankrupting. For instance, my parents went bankrupt when we were teens (long story). My mom recently explained to me that she didn't put her credit cards as part of the bankruptcy in order to try and maintain some credit. Eventually (5-10 yrs later I believe) she bought a house. She has since purchased two more homes and new cars. Credit recovery can happen. Laws may have changed since then because of all the people going bankrupt now, I would look into payment plans. In the long run it is better for your financial future.

    Answer by tomib at 12:37 PM on May. 17, 2010

  • Normally your credit starts to repair after 2 years if you file bankruptcy. Yes, the bankruptcy can stay on your credit for up to 10 years but having one bankruptcy on your credit is A LOT better than having consistent late payments or missed payments, or debts that are in collection, etc. We have also looked into it.

    Answer by AprilDJC at 2:24 PM on May. 17, 2010

  • Yes it will. Downfall, it stays on your credit report for about ten years. It's not a bad thing to do considering the alternative though. I did it... I have no regrets and will most likely do it again.

    Answer by Anonymous at 6:25 PM on May. 17, 2010

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