Should I file for bankruptcy?
I have about ,000 in credit card debt. I don’t have any income or assets of any kind (unless you count clothes–I’m living with my parents and borrow their car if I need to). The credit cards have been slowly going into default ever since I lost my job two years ago and now I haven’t been able to make any kind of payments for about 9mos, so they’ve all gone into collection. I won’t be working again for at least a year or two. I’m sick of all the harassment from the CC companies, and also am concerned about them taking all the money I make when I’m eventually able to return to work.
But I’m concerned because a) I can’t make payments of any kind on a bankruptcy settlement and b) I could only afford maybe a few hundred dollars for lawyer fees and everything.
Should I file for bankruptcy or just ignore the debt? Will they take all the money I make when I’m finally able to return to work if I don’t declare bankruptcy?
Yes, I would; if you can afford it, as most bankruptcy lawyers will charge up to $1,500. It will stay in your credit report for 7 – 10 years but the years go by pretty fast. Please do not sweat it. You won’t be the first or the last person to file for bankruptcy. As it stands now, the only person that can garnish your wages would be the judge; but it cost money to sue and most companies will rather sell it to a third party (collection agency). I speak from personal experience.
April 5th, 2010 at 9:25 pmFILE AWAY
April 5th, 2010 at 9:25 pmcontact your creditors, most will agree to lower monthly payments if your income is bad
April 5th, 2010 at 9:25 pm"I have about $12,000 in credit card debt. I don’t have any income or assets of any kind (unless you count clothes–I’m living with my parents and borrow their car if I need to)." file bankruptcy, you need to be more responsible with your finances,,,,eventually you will NOT live with parents and then what??????
April 5th, 2010 at 9:25 pmgo talk to an attorney, usually you can file for 250.00 in most states, and most attorneys will let you make monthly payments. File now, and get on with you life, now is the best time since you are not working and they can not garnish your wages. good luck
April 5th, 2010 at 9:25 pmsure go bankrupt..yall got nothin to lose anyway.. and you get a chance for a fresh start
April 5th, 2010 at 9:25 pmYou can write them "Cease and Desist" letters to stop the harassment. Know your rights under the Fair Debt Collection Practices Act. Look up sample cease and desist letters online to hep you with your letters.
I would suggest you ignore them until you are able to take care of it. That way you can get it taken care of eventually without bankruptcy on your record and maybe even purchase a home one day. Bankruptcy looks worse than if you wait later to take care of it. And when you do get to it you might be able to bargain with the agencies on the amount!
April 5th, 2010 at 9:25 pmYou are sick of hearing it from the CC co.I’m sure they are tired of trying to get their money — you made the debt why should you just get off scott free?WHY haven’t you worked for over 2 years and still not for another 1 or 2? yes they will attach your wages when you do work and a few dollars to an attorney won’t cut the mustard It is alot more than that to file bankruptcy.It seems like a new game now days make a debt then dump and run, stand up to your responsibilities and take care of your problems it’s part of growing up.
April 5th, 2010 at 9:25 pmI had $24,000 in debt and tired of phone calls asking for money i didnt have. I went to a lawyer for bankruptcy advice, I started the paper work to file for chapter 7, wich means i dont have to pay none of my debts back. I had to pay lawyer $1,200 then he took it to court. They somehow come up with a number for the Trustees fees and they told me it would come out of my tax returns. My return was $3,500 and all i saw of that money was $800, but the phone calls stop and you start the process of rebuilding your credit. AND I’m alot less stressed
April 5th, 2010 at 9:25 pmGiven your situation you should try to settle with your credit card companies, quite often they will settle for pennies on the dollar and set up a payment plan for you… also try to explain your hardships, they may be willing to work with you.
It will take you 7-10 years to repair your credit once you declare bankruptcy… that is 7-10 years of no new cars, no new cell phones, not qualifying for a mortgage or renting an apartment…essentially all the things people want in life.
It also costs money to declare bankruptcy, you will need a lawyer to file properly, the gov’t has also made it extremely difficult to file for bankruptcy in recent years.
While you are out of work will you be receiving any time of income from the state or federal gov’t?
Good Luck
April 5th, 2010 at 9:25 pmMy wife let our credit cards get out of hand by only making minimum payments, and she had of her own that i could not pay. I simply did not pay and it was charged off. The damage was done, talked to a lawyer he said still would be on credit report for seven years. do not file bankruptcy if you do not have a job you do not have money to file , around 1400 dollars to file. Yes that is right.
April 5th, 2010 at 9:25 pmno credit card debt is unsecured they may hound you for awhile write them a letter stating your position and also tell them to stop harassing you and you can get free legal advice on line or talk to a lawyer for a $100 or so and get advice. good luck keep you head high, bad luck happens to us all
I am curious as to why you haven’t been working? Most creditors will work with you if you make the effort. The first thing you need to do is find a job. You cannot pay bills without income. If you are unable to work due to a disability or illness then you could possibly get some help by contacting the Consumer Credit Counseling office near you. They have offices in most cities. They could provide some guidance in the best way to solve your credit problems.
If you are unable to work and have no assets you may be able to get a discharge through a chapter 7 bankruptcy. After you talk to the Consumer Credit people you could check the yellow pages and find a good bankruptcy lawyer. They usually don’t charge for the initial consultation. I would try to work something out with your creditors rather than file bankruptcy. Living with your parents you could pay those debts off in no time. You could likely settle those debts for less than what is owed once you have the money. Unless your creditors have gotten a judgment against you they cannot garnishee your wages or bank accounts.
April 5th, 2010 at 9:25 pmThere are new laws regarding bankruptcy that say you have to pay your debts back AND it can ruin your credit not only for 7 years but now 10! if you ever go to buy a house after filing or try to get ANY credit for that matter most banks will automatically deny you (I work at a bank and see this everyday). I would suggest trying to consolidate your debt so that you pay one low monthly payment.
April 5th, 2010 at 9:25 pm