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Bankruptcy?

I have heard that its better to file bankruptcy then to go to a one big month payment to a collecter. I know some bankruptcuies don't cover student loans and the collectors do.
Which do you think is better?
Little about why I'm asking.
Nothing is in my name, the house is under my S/O's name but honestly I don't know how much longer we'll be together. Yes, the main items in the house are mine and I paid for but I can easily say they are his.
I have all my student loans that need to be paid and credit card debt. I know just about everyone has some debt but it's out of hand. I want better for me and my kids. I want somewhat of a fresh start.

Answer Question
 
Anonymous

Asked by Anonymous at 1:40 PM on Sep. 27, 2010 in Money & Work

Answers (5)
  • You still have to pay your bills when you file for bankruptcy. I would contact a bankruptcy attorney and discuss what option is right for you
    xxlilmomma09

    Answer by xxlilmomma09 at 1:46 PM on Sep. 27, 2010

  • Bankrupcy is not as easy as it used to be. If your debt income ratio is high enough you can qualify for it. Otherwise they'll hook you up with a credit counselor anyways. I think now you have to do a little big of couseling before you can file anyway. Also Student loans are excempt from bankrupcy, and can not be included. Also most of the property you have in your home won't matter unless it was put up as collateral (Sp) for any of your loans. Bankrupcy is not the kiss of death like it used to be but it does stay on your record for 7 to 10 years.
    SarahNKnapp

    Answer by SarahNKnapp at 1:55 PM on Sep. 27, 2010

  • iF YOU HAVE MONEY TO PAY FOR BANKRUPTCY, YOU HAVE MONEY TO START A PAYMENT PLAN.
    IraqiVetWife

    Answer by IraqiVetWife at 3:24 PM on Sep. 27, 2010

  • A chapter 13 will require you to make payments to the court for 5 years and then the rest of the debt will be forgiven. It may allow you to keep assets that you have equity in- like a car or a home- but it some states they wouldn't be allowed to touch things like that anyway.

    A chapter 7 is where they just wipe out all your debt EXCEPT student loans, child support, and back taxes. So your student loans are staying around unless you come disabled or die.

    If none of the debt is in your name than you have nothing to worry about. They can't go after you for someone else's debt. They can put liens on joint assets though. Like if you have a joint checking account with your SO or a savings account, or a car, or a home- those could be at risk if he gets sued.

    Bankruptcy stays on your credit report for 10 years. And most banks and even cell phone companies ask you if you've ever filed for bankruptcy. It's illegal to lie if they ask
    Erica_Smerica

    Answer by Erica_Smerica at 9:09 PM on Sep. 27, 2010

  • To answer your question though, it's better to feed and shelter your family, then pay your bills, than it is to file for bankruptcy.

    I hope things get better for you soon. Good luck :)
    Erica_Smerica

    Answer by Erica_Smerica at 9:10 PM on Sep. 27, 2010

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