Should I file for Bankruptcy?
Ok, here is my situation.
When I was 19, I was stupid enough to let my family get a house under my name under one of those "liar loans" (the ones where they falsify tax returns to make it seem like you earn more than you actually do. The house was under two loans, I lost the house to a foreclosure. I had a car that I was not able to keep making payments on, it was repossessed. I also had a credit card that I was not able to pay back. It was also closed. (I actually had two, but I was able to pay one off)
I currently have only a pickup truck to my name.
What do you guys think I should do? Should I file for Bankruptcy? What about the foreclosures and repos? How long do they stay on my credit? And the credit card….I can probably pay that one off. (it’s in collections)
I honestly have no idea what to do. I also have a student loan i’m having trouble repaying, but I already know those are exempt from bankruptcies.
I need help…bad. Guys any advice you can give would be greatly appreciated. I realize I was living beyond my means and ultimately this is MY fault. But I want to make things right again. Thank you for your time, I know this was a very wordy question.
It’s impossible to tell without knowing specifics of your debt level..
Most people file BK before events like repo’s and foreclosures happen….not after…that’s the whole point of filing for BK. Student loans cannot be discharged through a Chapter 7….but they can be included as part of a Chapter 13 BK filing….this is the type of BK where you pay back most of your loans under a court-supervised repayment plan.
Do whatever you need to do to survive…If it’s an absolute emergency and you need to file for Chapter 7, then do it..If it’s not an emergency, then try to avoid it….If you add a Chapter 7 to your recent history of a repo and a foreclosure, your credit will sink to rock bottom levels….like the 325-350 level.
October 16th, 2009 at 12:03 pmslimick is right but your credit is already trashed so I would say yes so you can get on with your life as you have no place to go but up. Oh btw laon officers could state your income if your credit was good enough several years back but they should not change your tax returns to reflect higher earnings
October 16th, 2009 at 12:03 pmLook! The most important thing is to not blame yourself for your current situation. You are not the only one going through this. You should be proud of yourself for taking responsibility. It is obvious from your question that you care about your future and as long as you implement the lessons learned from this, there is only success waiting for you in the future.
This said, your foreclosure is the worst financial event affecting your credit, and that will be staying with you for 7 years. I recommend that IF YOU CAN, don’t file for bankruptcy for the two following reasons:
1. Bankruptcy will stay on your credit for 10 years and it will absolutely kill any activity demanding a credit status. That includes obtaining jobs, which is a critical matter in the status quo.
2. Foreclosures are expected in the current crisis. MANY people beside you have gone through the same process. Therefore a foreclosure is going to be a less of an outstanding item, however, a bankruptcy shows a lack of discipline beyond what the current economy is imposing on the public.
As far as what else you can do to start developing your credit, try to open secured credit cards with banks you already have accounts with. Make sure you make all your payments on time. Also track your spending patterns and get rid of items you don’t necessarily need, and you will be back on your feet before you know it
October 16th, 2009 at 12:03 pmYou only want to do a BK if you can wipe out all your debts. Setting up a re-payment plan in BK doesn’t help you at all. You don’t seem like a natural choice for BK: you already lost the house (not yours but in your name) and the car. There is nothing left to "save"..
October 16th, 2009 at 12:03 pm