Should I file Bankruptcy?
Here’s my problem… I am 22 years old, and I went to college for 2 years. during that time I racked up some pretty large bills that I couldn’t handle. I have about 7500 dollars charged off and in collections from credit cards. 2200 of that I have a judgment against me for and they said that they could garnish my wages soon if I don’t pay it off. I had a repossession 14 months ago and owe Wells Fargo ,000 to pay it off. Last but not least, I subleased an apartment to a stranger 2 years ago and I moved out of town. Now I have found out that that person stopped paying the rent and that because I subleased the apartment I am responsible for the rent that was not paid which come out to about 00. So, all together I owe about ,000. I have called all of the creditors and asked what it would take to settle. After calculating that all up it comes out to about ,000. The only thing I have paid perfect is 2 student loans and that’s it. I have no car and I cant get a car loan. I have been rejected for an apartment because of the judgment on the sublease issue. Basically, I am better off dead but I cant bring myself to do that. So I have to decide what to do….Is bankruptcy the way to go?
It depends….$19K is a fair amount of debt if your income is low.
Sometimes Chapter 7 bankruptcy is the only solution to overwhelming debt. Don’t let anyone smear or guilt-trip you for making this decision if you have to…especially all the people who like to quote Dave Ramsey who think that BK should always be avoided….this is ridiculous advise that only benefits credit card companies…Of course BK should be avoided if at all possible…but sometimes it is needed. Do what’s best for you and your family. Corporate America uses BK all the time and no one slams them.
Just remember that you can only file for Chapter 7 once every eight years….so if you file, you won’t be able to discharge your debts again for eight years, even if you find yourself in a worse financial situation..
July 16th, 2010 at 9:27 pmlucky your young…..get a job,pay off what you can
July 16th, 2010 at 9:27 pm$19000 is not much so don’t file for a bankruptcy. It’s not worth it and it will haunt you for years (7 I think it is). You can do this, you just need to be disciplined with your expenses. Have a monthly budget and STICK to it. Figure out your NEEDS, and get rid of your WANTS. Maybe schedule a time with a Financial Coordinator who can show you how to set up a budget. Cut all your credit cards…I have never seen the point of spending money you don’t have.
Once again, don’t file for bankruptcy since who knows. You might be on your feet in 3-5 years, and then you might want to start a family and buy a house.
July 16th, 2010 at 9:27 pmI abhor bankruptcy but unless you are able to earn a good salary, you may want to consider it. Your credit is already so damaged that it won’t make as much difference as if you were just a little slow.
Keep paying your student loans since they (if federally insured) won’t be discharged in BK.
Find a good BK attorney and talk with him/her.
If you are making a good salary, try to find a non-profit credit counseling service that may be able to negotiate with your creditors.
One way or the other, you need to get this tiger off your back.
July 16th, 2010 at 9:27 pm