should i file bankruptcy?
I am 23yrs old my debts are from 07 i have a car repossession, 2 credit cards, a loan, a cell phone bill, some medical bills in my credit including a judgment and all that equals out to about 10k in debt. I have dreams of someday owning a house. maybe when I’m 30? but for now i would like to obtain a credit car for everyday expenses. Should i file bankruptcy? I am obviously more conscious about the responsibility and importance of a good credit history that’s why my debts are all from 2007 but idk what steps to take. should i? is it beneficial?
Posted July 29th, 2010 in When To File Bankruptcy. Tagged: car repossession, cell phone bill, credit car, credit cards, credit history, debts, dreams, everyday expenses, idk, judgment, medical bills, should I file bankruptcy.
I had to file for bankruptcy a few months back and it was £100 to file the claim (U.K) You wont be able to get any loans, store cards or anything for ages but if it is the only option, do it. They will check on your bank accounts regularly though. They will look at your income and see if you can pay it back bit by bit. Be warned, they can be ruthless and nosy! if you’ve got a car or anything of value of over £1000, they will take it.
The stress of not paying the money back is a relief though.
July 29th, 2010 at 4:39 pmYou need to do a little more research, first.
At a minimum not everyone is eligible for bankruptcy, filing costs money, and one bankruptcy is not the same as another.
July 29th, 2010 at 4:39 pmCheck the statute of limitations for them to legally collect in your state. If they haven’t sued you yet then this has likely passed and the debts are not collectible. No need to file bankruptcy on these.
Now for the judgment against you… You need to take care of this first. They will be free to garnish wages in most states or freeze checking accounts. Many states also allow interest to build on these. Contact whoever has the judgment and set up payment arrangements. A properly maintained judgment can remain on your report for quite some time.
Most types of bankruptcy will stay on your credit for 10 years(not 7). Even if you are able to get a home loan your interest rate will be high and you will have a harder time. These debts from 2007 (aside from the judgment) will roll off your credit file in the next few years. Take care of the judgment and then apply for a secured credit card. Pay your balance in full each month and your credit should be fine after a year or two.
July 29th, 2010 at 4:39 pmNo, you should not, since you have a lot of future plans that involve credit. Besides that is not the way to show how responsible you are. If you file for bankruptcy you will carry that red mark in your credit report for ten years and creditors will avoid you like "pariah" so to speak. Although there will be some who will be willing to extend credit, they will be the scammers or high-end lenders.
Filing for bankruptcy will not relieve you of your credit obligation, it will only give you breathing space from all creditors knocking at your door and breathing on your neck. In addition there are eligibility requirements before one can file for bankruptcy. Read all that and many more from here:
Consequences for Filing Bankruptcy Creates a Negative Credit Score Impact
Read more: http://www.brighthub.com/money/personal-finance/articles/26062.aspx#ixzz0uX0fjUSm
Your best course of action is to approach your creditors, explain your situation then work out the amount you can afford to pay them. Then cross your fingers that they will accept your proposal because that would be much cheaper than bringing you to court. Good luck!
July 29th, 2010 at 4:39 pmCome up with another solution. Bankruptcy may solve your problem now, however, it causes a lot of drama, headaches and pain in the future.
July 29th, 2010 at 4:39 pm