Should I file for bankruptcy?
I’m 29, and my debt is under but probably close to 10K, much of it sent to collection. This debt includes student loans, credit cards, and my bank account balance, which was in the negative and sent to collection. I’ve been ignoring the debt for a while because I currently have no money to pay it off with. I used to be a responsible person with stellar credit until personal problems turned my life upside down. I need to recover my credit and my dignity. What should I do? And do those debt consolidation companies truly help?
Posted August 23rd, 2010 in Bankruptcy Q And A. Tagged: bank account balance, credit cards, debt consolidation companies, dignity, money, personal problems, responsible person, student loans.
I, too am in a similar situation, except I’m in more debt and little older. Instead of bankruptcy, I consolidated my school loans and also applied for financial hardship or income sensitive…whichever one is used for those not making much $$ and i contacted a credit consolidation company. The consolidation company will take over all of your outstanding bills and those in collection aside from things like car and house and school loand payments.
My hospital, credit, and other similar bills are lumped into a once a month payment under $500 and will pay everything off in 4 or less years…no penalties for paying off sooner.
I think going this route will show that you are taking responsibilty for whatever fianancial problems you may have and should hopefully get back to having good credit. Also, for my credit card, the consolidation company is communicating with the companies for me and will do what they can to have interest rates reduced as well as late payment fees and etc….
feel free to contact me in regards to all this if you like….
August 23rd, 2010 at 9:26 amI would consult a debt counsellor. After all they are the experts. Remember when you file for bankrupcty your credit rating is in the tank for 7 years. You won’t be able to get a loan, mortagage or even another creidt card (even if you get back on your feet).
August 23rd, 2010 at 9:26 amHey, don’t stop now!!!
Just keep adding to those charges babe…..
Your on a roll!!
And as far as your credit is concerned, you can just forget that!! You’ll never recover from your mess anyway..
Enjoy!!
August 23rd, 2010 at 9:26 amConsolidation baby!!!! If you really feel there is no other alternative you can file bankruptcy and have to wait 7-10 years to get the same treatment as everyone else in the financial world.
August 23rd, 2010 at 9:26 amYou should be able reorganize your debt and pay it off in a couple of years, 10k isn’t worth taking out bankruptcy in my opinion. There are free credit counseling services in most cities, please talk to them before you make your decision. You might have to get a second job for awhile. It’s not the end of the world.
August 23rd, 2010 at 9:26 amA bankruptcy stays on your credit report for 7-10 years.
August 23rd, 2010 at 9:26 amYour debt is around $10,000.00, that’s not unmanageable.
Before you go all the way with the bankruptcy, try calling your creditors and let them know the situation. Set up a payment that works for you, if its even $25.00 a month to start. Most creditors will work with you but they want to know you will pay back your debt, so if you make the a repayment schedule stick to it.
If your debt has gone to collections call them, but don’t be intimidated by them, stand your ground, they will try to bully you into paying more than you are able too.
This is a legal question for a qualified attorney.
August 23rd, 2010 at 9:26 amhttp://andycaine.approval4u.hop.clickbank.net
August 23rd, 2010 at 9:26 ammight be helpful
WHIT THE NEW BANKO LAWS IN PLACE IT MAY BE HARD FOR YOU TO FILE. ALSO KEEP IN MIND THAT STUDENT LOAN ARE A NON-DISCHARGEABLE DEBT IN ANY TYPE OF BANKO.
I WOULD CONTACT A DEBT CON. CO. AND SEE IF THEY CAN HELP YOU. I AM NOT A BIG FAN OF THESE BECAUSE THEY HAVE SUCH A LOW SUCCESS RATE. MOST OF THEM CHARGE AN ARM AND A LEG. FIND ONE THAT IS NON PROFIT. STAY AWAY FROM THESE BIG ONES THAT ADVERTISE ON TV, THEY ARE TROUBLE.
GOOD LUCK!
August 23rd, 2010 at 9:26 am