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2 Bumps

Bankruptcy

Hey guys, I feel so aweful asking this question since i am only 23 years old, but I have 15000$ in credit debit, and my soon to be husband is in collections for 2 items. We are struggling everyday and my income is not enough to pay my debts, I have been considering Bankruptcy but I fear that we will lose our cars, and I will totally destroy my credit, and we wont ever be able to buy a home. I have a consult with a lawyer but i was hoping for some advice from you guys out there... HELP PLEASE!

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kduffy

Asked by kduffy at 7:11 AM on Apr. 11, 2011 in Money & Work

Level 8 (235 Credits)
Answers (11)
  • Bankruptcy is a huge step. Your credit will be in bad shape for at least 7 years. The only places you'll get credit are from those that will seriously fleece you. Have you tried credit counselling? I would absolutely go there before stepping right into bankruptcy.
    Nonoluna

    Answer by Nonoluna at 7:14 AM on Apr. 11, 2011

  • In my experience, you can contact your credit card companies and ask them if they will work with you because you are considering bankruptcy, some of them will be more than happy to work with you. Bankruptcy at least in Ohio, will let you reconfirm your debt on anything you want to keep. In most states you can buy a house 2-3 years after your Bankruptcy is closed....you can try debt counseling for some it works for the majority it doesn't, and it still kills your credit and you may still find yourself in debt up to your nose. Don't be surprised if the credit card apps start rolling in if you file...they usually want an annual fee or have a really high interest rate...it's the cost of bankruptcy, you can rebuild your credit pretty rapidly if you file though...take the lesser of two evils, and really listen to what the attorney suggests for you. Good Luck hun.
    kitchenwitch78

    Answer by kitchenwitch78 at 7:20 AM on Apr. 11, 2011

  • We filed Chapter 7 last year. In Chapter 7, you can choose which assets to keep (ie, your car), and which ones to drop (ie, the credit card debt). The only problem is that you have to have a certain amount of debt to qualify. After your case is discharged or whatever the correct term is, you'll have the mark on your credit for 5 or 10 years (I'm thinking 10). We haven't tried to use our credit for much of anything, so I don't know how it affects you when you try to purchase something.
    makelineerror

    Answer by makelineerror at 9:01 AM on Apr. 11, 2011

  • "In my experience, you can contact your credit card companies and ask them if they will work with you because you are considering bankruptcy, some of them will be more than happy to work with you."

    If you use Citibank, don't bother with this, because they won't.
    makelineerror

    Answer by makelineerror at 9:01 AM on Apr. 11, 2011

  • Oh girl $15000 and 2 item in collection???? CALM DOWN, that is nothing, you'll be just fine! Just make some sort of payment and you'll make it. It takes 1 second to ruin credit, but years to fix it. I've never filed bankrupt, but I completely screwed my credit up at 18 and now at 28 its just now looking decent! Those creditors who demand payment in full or some crazy amount, I just said screw you and sent them $25/month and told them send it back if it wasn't acceptable. Guess what? they never sent it back, and always mailed me a receipt. While this may not be good advice, its what I did. They continued to tell me they will further collection, I just told them that's fine it's already on my credit, nothing else they can do. Of course that is depending on what kind of debt it is, credit card debt there is nothing else they can do. You'll be fine..
    yesmaam

    Answer by yesmaam at 10:00 AM on Apr. 11, 2011

  • i feel like I am drowning, and my monthly debt payment is greater than my income
    kduffy

    Comment by kduffy (original poster) at 10:04 AM on Apr. 11, 2011

  • Please don't file bankruptcy unless there is no other option..as long as you can pay something you have options.

    When people file bankruptcy it doesn't just hurt them, it hurts others. The companies will get their money from somewhere...and they should...you did after all get $15,000 worth of goods/services. It ends up costing everyone more because this kind of thing drives up the costs of goods/services.

    Look at it this way...would you steal $15,000? If the answer is no, then bankruptcy isn't for you...the honorable thing..paying your debts is.

    I am a business owner and I do have some customers in who are in a bind. I choose to work with them because I honestly would rather have the money. Good luck to you dear.
    yourspecialkid

    Answer by yourspecialkid at 10:30 AM on Apr. 11, 2011

  • thank you. I never looked at it that way.
    kduffy

    Comment by kduffy (original poster) at 10:32 AM on Apr. 11, 2011

  • can you do consolidation first? I would definatly try that over bankruptcy
    chica679

    Answer by chica679 at 10:37 AM on Apr. 11, 2011

  • consolidation paymets are High arent they? I tried talking to banks to get a large loan so I could put everything in one payment but noone will give me one
    kduffy

    Comment by kduffy (original poster) at 10:47 AM on Apr. 11, 2011

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