How much debt should you have to consider bankruptcy?

we are considering it i have credit card debt of 1,000 and my hubby has old medical debt.
is it worth it?

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Anonymous

Asked by Anonymous at 5:53 PM on Feb. 3, 2009 in Money & Work

This question is closed and filed in the CafeMom Encyclopedia.
Answers (11)
  • Not for 1,000. How much is the medical debt?
    Anonymous

    Answer by Anonymous at 5:58 PM on Feb. 3, 2009

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  • over 10,000
    Anonymous

    Answer by Anonymous at 6:11 PM on Feb. 3, 2009

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  • $11,000 is not worth going through a bankruptcy for. We are currently paying down $26,000 of debt and there are people in our "group" who are paying way way more than we are. Look up Dave Ramsey, he has written a couple of incredibly useful books, the most important to your situation being, The Total Money Makeover. He has a website, a show on Fox Business and a radio show. Also there is a group on here called Dave Ramsey Fans. Look into it and give it a try.
    slw123

    Answer by slw123 at 6:20 PM on Feb. 3, 2009

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  • I agree. I don't think 11,000 is worth bankruptcy. Make a payment plan. It will be on your record for 7 years and it's hard to get credit going again
    Anonymous

    Answer by Anonymous at 6:22 PM on Feb. 3, 2009

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  • You should really check out Dave Ramsey! He has a radio show and he has many books. He does seminars on Financial Peace and Total Money Makeover! l would recommend these before you even consider bankruptcy. My husband and I are going through a bankruptcy now, and I wish we had been smarter earlier! These are great tools, and can help you find a way to make it without having to file! And it will also help with future money decisions. Bankruptcy will stay on your credit for 7 years, and makes getting credit a pain, and even a house or car. Bankruptcy is not a decision to be made lightly!
    Anonymous

    Answer by Anonymous at 6:23 PM on Feb. 3, 2009

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  • Dave Ramsey!
    momofsaee

    Answer by momofsaee at 6:58 PM on Feb. 3, 2009

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  • 11,000 really isnt enugh to file, in a most states you have to go to credit counseling, and they wont let you file if your assets are worth more than your debt. we are in the prosess of filling we have 30 somthing thousand in debt. and I am a sahm, for the main reason that it would cost us more money for me to work than I would be able to make- we have 3 kids and 1 car. and hubby only makes from 20k-25k per year, he is in construction so it varies from year to year. Bankruptcy was our ONLY option besides living on the street.
    sarahdicksonjr

    Answer by sarahdicksonjr at 7:50 PM on Feb. 3, 2009

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  • you might be able to file a chapter 7 which will discharge the debt after your case is closed but your credit will be messed up for 7-10 years. Plus, you will end up paying the lawyer almost what you owe anyway so I would avoid it and look to other options.
    heatherann0221

    Answer by heatherann0221 at 7:58 PM on Feb. 3, 2009

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  • Not for only 11K. You only have $1000 in credit cards? Thats nothing. And it sounds like the medical debts are old so you don't have monthly payments on that anyway. Pay off the credit card first then work on the medical debts smallest to largest. If they are old they will most likely settle them for a lesser amount.
    And I also advise to check out Dave Ramsey. When I started listening to him we had over 35K in debt. Credit cards, medical bills and car payments. We only made like 30K that first year. So imagine your debt being larger than your annual income. 1K in credit cards sounds like nothing compared to that! We are now debt free except for my car which will be paid in 12 months (3 years early)
    Anonymous

    Answer by Anonymous at 8:15 PM on Feb. 3, 2009

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  • 11k may seem like an impossible number, but it's really not in the long run.. make a plan, pay it off.. dont file
    customcat2000

    Answer by customcat2000 at 8:51 PM on Feb. 3, 2009

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