What would be the difference between filing bankruptcy and not doing anything at all?
I mean your credit will be horrible either way and it will stay on there 7-10 years. But the difference I can see is you don’t have to say you filed bankruptcy and you don’t have to pay a lawyer. And quite honestly if you are going bankrupt, how the hell are you going to pay for a lawyer anyways?! Well I don’t even know, so please give me your feedback…THANX!
well let me clarify the situation…it is a business that will be going bankrupt not me personally. and In Texas they CANNOT mess with your homestead or cars..so I know I don’t have to worry about that…
Posted July 23rd, 2010 in Bankruptcy Q and A. Tagged: 10 years, bankruptcy, cars, hell, homestead, lawyer.
you can loose any tangible property you have.creditor can garnish your wages.if you don’t file
July 23rd, 2010 at 10:43 amBankruptcy gives you a clean slate as far as your prior obligations. While it does create a blemish on your credit profile, at least you can start earning a living and saving without fear that every dollar you make is going straight to your creditors. The key question is whether you are committed to change your borrowing behavior post-bankruptcy – if you are going to continue to let your debts mount, you are correct, you probably shouldn’t bother declaring bankruptcy. However, if you are committed to managing your finances appropriately in the future, banktruptcy is a fresh start.
Keep in mind that in many jurisdictions your creditors may be able to force you into bankruptcy, so carrying on forever without filing bankruptcy or paying your debts may not be an option.
July 23rd, 2010 at 10:43 amThere are a ton of consolidators out there. Get a low interest rate, protection and the loan that goes with it. Shop around first.
July 23rd, 2010 at 10:43 amIf you do nothing the people you owe money to can go after you in court. The judge will award them a judgement against you which goes on your credit report. This looks really bad, especially if you have multiples. Also, you keep accruing interest and penalties and they just stay on your credit for the rest of your life. I know it’s supposed to go away after a certain period of time, but what actually happens is the creditors keep selling your debt to other companies so that you always owe the money, you just owe it to someone else. If you file bancruptcy it goes away in 7 – 10 years. I’m not saying bancruptcy is a great option, you should try to consolidate your debt and pay it off; but doing nothing is certainly not the answer. At least bancruptcy will allow the people you owe money to to get on with their lives and stop wasting their time trying to collect from you, and you will stop receving harrasing phone calls. As for the attorney’s fees, they are usually pretty reasonable and considerably cheaper than the cost of paying off all of that debt.
Having good credit, even if it’s a long process to obtain, is definitely worth it in the long run. You will be able to qualify for lower interest rates and end up saving yourself money.
July 23rd, 2010 at 10:43 amIf you file bankruptcy, that will show on your credit report for up to ten (10) years. But be careful; filing does not always let you off the hook. You need to consult someone to help and make sure you protect your house and any assets before you file.
July 23rd, 2010 at 10:43 amThe cost of filing is minimal compared to what you could lose if creditors keep after you and take away a car or even your house if you can’t pay a mortgage!
Another way to deal with bankruptcy is file a Chapter 13 bankruptcy. Its a milder version of bankruptcy. You still have to pay the creditors, but it is done through a third party. It allows you to pay off your debts in about 3-5 years and keep your house, etc.