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Has anyone had to file bankruptcy? If yes, was it really bad?

My husband and I have over $100,000 in credit card debt. We are able to pay morgage, car payments and other important bills. I think were going to have to file chapter 7 bankruptcy. I feel really bad, but I don't know what our other choices are. I am so stressed out about this and worry about how I'm going to pay for my childrens college.

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Anonymous

Asked by Anonymous at 4:18 PM on Mar. 11, 2011 in Money & Work

Answers (10)
  • We are going too also, i want to watch this too.
    jenn4443

    Answer by jenn4443 at 4:21 PM on Mar. 11, 2011

  • We filed about 10 years ago, it was very easy and we could put the attorneys fees right in there. Of course we did a chapter 13 and paid our bills by doing a reconstruction. I think its pretty bad that you are allowed to rack up 100K in debt and not hafta pay it back. Advice would be never own a credit card again since you can't be responsible with them. Do you at least have something to show for the 100K or was it on entertainment and eating out?
    Anonymous

    Answer by Anonymous at 4:25 PM on Mar. 11, 2011

  • We filed and it wasn't as bad as I thought it was going to be. We bought a car a couple of years later at a high interest rate. We paid it on time and continued to pay the bills that we kept on time. Within five years we were able to buy another house with an interest rate of 5.6%.
    Anonymous

    Answer by Anonymous at 4:25 PM on Mar. 11, 2011

  • I filed a Chapter 7 in 2005. It was not the end of the world for me. It was something that was needed to be done at the time. A few months later, I was able to get two small credit cards from Orchard Bank and a Capital One a year or so later. I worked hard to build my credit back up and in January of this year I was able to get a loan for a brand new vehicle at 4.9% APR.

    The best advice I can give you if you or anyone else goes through it is to consider it a reset button and learn from it. You do have a lot of debt and you will never get out of it if you don't do something drastic.
    Izsarejman

    Answer by Izsarejman at 4:26 PM on Mar. 11, 2011

  • We have and no it wasn't that bad. It's been about 6 years since we filed and in that time we have been able to buy 4 cars (bought the 1st one 6 months after the bankruptcy) and completely pay off 3, we've bought a house, and we have credit cards which we are careful with and pay off. Interest rates are higher at first, but in time they start to go down.
    Anonymous

    Answer by Anonymous at 4:28 PM on Mar. 11, 2011

  • we just filed and not so bad. We still have our house, cars, but no more credit card payments which saves money. YOu have to take a class but can do right over the computer about budgets. If can do not hard but be sure you can survive without using a credit card since have to rebuild your credit back up. Mainly just a fresh start to start over again and learn from money mistakes.
    momindiana

    Answer by momindiana at 4:37 PM on Mar. 11, 2011

  • We did a chapter 13 about a year ago now- we have to make payments every month for 5 yrs BUT we got to let our house go and keep our cars that way.
    charlotsomtimes

    Answer by charlotsomtimes at 4:57 PM on Mar. 11, 2011

  • we did and it was heavenly. It actually made me more patriotic, truly grateful for the gift. We had no credit card debt, just a balance of like $900 on our 1 credit card. We tried to "save it" but the lawyer said it wouldn't work. It was all medical and lots of of. Kidney specialists, dialysis care, home nursing, and so on. I forget the grand total but well over $500,000. From the time I was well/medically stable and the bills were to be done to the time we filed and was discharged was so short..... maybe 7 mos total. No mess, no drama, no regrets. We had no choice. We had totally standard medical insurance 80/20 and we paid our 20% co-pays up til the very end. But when you're in a a $2500 a night observation "suite" at a hospital those things aren't covered. We didn't have a choice, was our only option.
    hibbingmom

    Answer by hibbingmom at 5:13 PM on Mar. 11, 2011

  • PS $100,000 is solely credit card? A chapter 7 wont fly..... at least I'd be SHOCKED if it did. U likely will be on a repayment plan. Since the rules/regulations changed the judges are pretty aggressive about those things.
    hibbingmom

    Answer by hibbingmom at 5:14 PM on Mar. 11, 2011

  • We tried to file twice; both times we were told that we did not make enough money. Yes, you are reading that right: we did not make enough money to file for bankruptcy.
    Anonymous

    Answer by Anonymous at 7:33 AM on Mar. 12, 2011

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