Bankruptcy is it a good thing or a bad thing??
Help I hear so many diffrent stories and read so many diffrent answers who is right? I do not owe alot of money maybe 15,000 but I am tired of having bad credit! I just want a new start. I know because I have seen it people that file bankruptcy get to start over and enjoy having good credit again I just want mine clean! When I say I have seen it it’s because my god mother went through this and she has more credit cards, a new house better than the one she had before! I am only 25 I will turn 26 this year I only have one child and I want my own house before I am thirty so should I try to file and start with a new slate? Yes I know I owe the debt so before I get insults just give me advise I learned my lesson I want a new start and better life for my son
I am considered a low income, I have help from the state, food stamps and medicade. Will BK affect my son’s medicade? Will the state take it away
I did it and now my credit is just below 700 and I just bought a new car with a 4.9% interest rate!!! I did it when I was 24 because I did not understand how important credit was and I abused it and got into major debt!!! Now I understand and respect credit it was the best decision I ever made, just a warning your first credit card after will have a huge interest rate but if you stay on top of it it will go down!! You also will not get huge amounts of credit I think my highest limit is 600 but it is manageable so I like it!!!
It is a personal decision and the straw that broke the camels back for me was when a creditor told me "how can you expect to be a good mom if you can not pay your bills" the next day I went to a lawyer!!! For me it worked out well but I have kept on top of my credit since then if you will keep on top of it then it kinda is a fresh start!!!
June 19th, 2010 at 9:31 amYou think filling for BK is going to give you GOOD credit? THINK AGAIN! Its alot harder to qualify for BK than it was a few yrs ago. You can’t just file because YOU WANT TO.
June 19th, 2010 at 9:31 amBAD. No one will extend you credit for a piece of bubble gum after bankruptsy.
June 19th, 2010 at 9:31 amFirst…make sure you qualify for Chapter 7….you have to pass a "means" test…which roughly means that your income must be below the average for your state.
If you do file, just remember that you won’t be able to file for Chapter 7 again for eight years….If you do file and two years later you end up in a worse financial predicment….you’ll be in a bad place. Important: If you and/or your dependents do not have health insurance coverage, be careful about filing for Chapter 7…..Uninsured medical emergencies can be financially catastrophic if they happen just after filing for Chapter 7
June 19th, 2010 at 9:31 amLet’s say you are up to your neck in debt. You have creditors calling you at home and at work. You can’t even make your minimum payments on your credit cards, and the only expense you can cut down on now is food. What do you do? Is bankruptcy an option? At first look, it seems quite enticing. Wipe all the debts and start up again fresh. Why not?
When I was little, my father told me that when you go bankrupt they sell everything you own. He told me that they sell your furniture, car, house, clothes, and anything else they can find. Your debts are canceled, but you are penniless and on the street. This isn’t true now, and may never have been. Chapter 7 bankruptcy, which is what most people encounter, allows you to keep your home, car, personal effects, and tools you need to do your job. For example, if you are a plumber, your pipe wrenches, thread cutters, and other tools won’t be seized and sold. All of your debts except taxes, criminal judgments, and certain civil judgments are cancelled.
It sounds too good to be true, and like most things on that line, it is too good to be true. I know that I will get one or two e-mails from people who have gone bankrupt, and they will insist it was no problem. They will tell me about all the credit they have gotten since, and how it didn’t affect their lives one bit. You see with bankruptcy, the less you have (personal effects, decent job, and personal sense of responsibility), the less you have to lose.
June 19th, 2010 at 9:31 am