GARYC24 3 #1 February 24, 2005 Not that I will or would. But thinking about it. Few people told me they would if they were me. If ya was in debt $5000 or more, credit already bad, time to pay it all off at least 3 years. Would you file bankrupt? Any body done this? little background< I already work 2 jobs, getting tired of making minumum payments and that's all I can make at the time, getting older and want out of it! Quote Share this post Link to post Share on other sites
Buried 0 #2 February 24, 2005 Bankrupt for $5k in the hole. Uh NO! 3 yrs aint that bad to pay off monies. I have student loans and I can't file bankruptancy and get out of them Where is my fizzy-lifting drink? Quote Share this post Link to post Share on other sites
mailin 0 #3 February 24, 2005 Ha! $5k is nothing - if you really want to get out from under it give up the things that cost your money. If that includes skydiving then weigh your priorities. I think you'd have a hard time with the new reformed bankruptcy laws and only $5k in debt. JenArianna Frances Quote Share this post Link to post Share on other sites
Travman 6 #4 February 24, 2005 Yeah, bankruptcy isn't as simple as it sounds. It will destroy your financial life. Sure you won't have to pay off debts, but good luck getting a loan for anything else. Quote Share this post Link to post Share on other sites
ladyskydiver 0 #5 February 24, 2005 I wouldn't declare bankruptcy. Maybe look into a consolidation loan - where the requirement is you close all but one of your credit cards for emergency usage only.Life is short! Break the rules! Forgive quickly! Kiss slowly! Love truly, Laugh uncontrollably. And never regret anything that made you smile. Quote Share this post Link to post Share on other sites
GARYC24 3 #6 February 24, 2005 True. However $5k may be like $10k to some people. Should have posted a different amount. My debt isn't that big as others. I need to gather all info and the $ amount exactly, then figure out the time it will take to pay off all of it. Even then, no. I won't file it because it just ain't right. But, like I said..i thought about it. If I was to do anything drastic, it would be to live in my truck again, occassional weekly hotel-truck,etc. But need physical address for most bills, insurance, paychecks, job, etc. PO Box doesn't get it. Anyways, thanks all for response, just a thought. Quote Share this post Link to post Share on other sites
WFFC 1 #7 February 24, 2005 QuoteYeah, bankruptcy isn't as simple as it sounds. It will destroy your financial life. Sure you won't have to pay off debts, but good luck getting a loan for anything else. You'd actually be suprised. Read the 'fair credit reporting act' and use what's in there to your benefit and you'll be off and running in no time. Also - $5k is not 'in debt'. There are a few debts that a bankruptcy will not cover, student loans and Back taxes to name a couple.----- ~~~Michael Quote Share this post Link to post Share on other sites
Conundrum 1 #8 February 24, 2005 5k? I have more than 2 times that amount in debt in school loans alone, and I'd never even consider bankruptcy. Bad idea. Quote Share this post Link to post Share on other sites
WFFC 1 #9 February 24, 2005 QuoteI wouldn't declare bankruptcy. Maybe look into a consolidation loan - where the requirement is you close all but one of your credit cards for emergency usage only. Closing your credit cards is actually detrimental to your credit scores. Don't use them is the best way to do it. When an account is closed, your Fair Isaac score doesn't look at who closed it, just that you had a line of credit and it's now gone.----- ~~~Michael Quote Share this post Link to post Share on other sites
GARYC24 3 #10 February 24, 2005 All my credit cards are closed. I don't have one (that works) Due to past things (my fault) all want theirs now. Making payments to collection agencies all over the place,,50 here, 25 there, 50 here, etc. I think filing bankruptcy would be better than some people, that run from them and NEVER pay it. I think they call P&R write-offs.(p&L?) I got a crazy brother who's been bugging me about doing it, cause he a wife did. Crazy talk.. Thanks again folks for response. Quote Share this post Link to post Share on other sites
jumpchikk 0 #11 February 24, 2005 How much of your debt is secured debt? Meaning do you have a house a car, other things that could be repoed if you didn't pay on them... Have you thought about consolidating your debt? What kind of bankruptcy do you want to file? Consumer bankruptcies are either Chapter 7 (where you can get rid of all debt and reaffirm on loans that are secured) or a Chapter 13, where a Trustee is assigned to pay your debts with the money you make. If you file a Chapter 7 bankruptcy, you cannot file another bankruptcy until 6 years has passed. If you file a Chapter 13 and you complete your plan (70% or more to unsecured creditors) you can file again whenever.... You cannot file against alimony, child support or state and government taxes... I hope this helps... Quote Share this post Link to post Share on other sites
Bouda 0 #12 February 24, 2005 aye bankrupt is a bad term if you owed like a few 100k then yeah but 5 grand you need to get a consolidation laon or something. Look what i made at work today mom!! Put it on the fridge http://www.bouda.moonfruit.com Quote Share this post Link to post Share on other sites
Stacy 0 #13 February 24, 2005 Without going into specifics- I've made a few bad financial choices in my young adult years leading to some debt (I will not specify the amount). I'm working my tail off and repaying it. It's easy to scrape some edges and come up with an extra $50 here and there to put towards repayment, but you really have to have the mindset that you can do it. Moving threw a small wrench into my plan, but in 6 months I've managed to put a dent in it each month. I keep an excel spreadsheet and have goals to reach every XX amount of months. There are tons of free calculators on line that will let you input how much you owe to who and at what percentage rate, then it will formulate the quickest way to pay it off. Most creditors if you call them and explain you are trying to pay it off, they will lower an interest rate for you if they see an earnest change in habit. Unless you deal with Bank One, they are just butt nuggets. Quote Share this post Link to post Share on other sites
kai2k1 0 #14 February 25, 2005 If you're serious about filing, File a chapter 7, and not a Chapter 13. I have been in a 13 for about 2 years and it sucks. I am in the process of filing a chapter 7. 99% of loan officers will tell you to file a 7. I know it sounds weird, but its actually easier to get credit when your chapter 7 is discharged than with a 13. i just found this out after trying to get a new car financed while in the 13. No one will touch you. But if you file a 7 its creditors abound, not necessarily with the interest rate you would want, but things can be refinanced. Also if your in financial trouble and need to work out a budget or start saving, I would suggest the book "The Total Money Makeover" by Dave Ramsey.\ I think everyone could benifit from reading his book. There's no truer sense of flying than sky diving," Scott Cowan Quote Share this post Link to post Share on other sites
jumpchikk 0 #15 February 25, 2005 The reason why companies will finance you after a 7 is because they know you cannot file another bankruptcy for 6 years.... Quote Share this post Link to post Share on other sites
kai2k1 0 #16 February 25, 2005 exactly! Not to mention that after a 7 you are mainly debt free. There's no truer sense of flying than sky diving," Scott Cowan Quote Share this post Link to post Share on other sites
WFFC 1 #17 February 25, 2005 QuoteIf you file a Chapter 7 bankruptcy, you cannot file another bankruptcy until 6 years has passed. Actually 7 years with chapter 7, not sure of all of the logistics behind a 13. It stays on your credit report for 10 years, unless you manage to use the fair credit reporting act in your favor and get it booted off. ----- ~~~Michael Quote Share this post Link to post Share on other sites
WFFC 1 #18 February 25, 2005 Quotei just found this out after trying to get a new car financed while in the 13. No one will touch you. But if you file a 7 its creditors abound, not necessarily with the interest rate you would want, but things can be refinanced. Repeat after me... If you've got bad credit or you're bankrupt, Ford Motor Credit will help you get a vehicle at normal interest rates. If you've got bad credit or you're bankrupt, Ford Motor Credit will help you get a vehicle at normal interest rates. If you've got bad credit or you're bankrupt, Ford Motor Credit will help you get a vehicle at normal interest rates. (note: your score needs to be above 550 though I believe) Also, if you go this route, don't mess up again as then you'll be in the 21%+ club with your vehicle financing. Surviving bankruptcy good read: Credit After Bankruptcy and for doing things to make sure you do the correct things to maintain your credit scores: Do You Make These 38 Mistakes with Your Credit?----- ~~~Michael Quote Share this post Link to post Share on other sites
jumpchikk 0 #19 February 25, 2005 Ummm... if it's 7 years then I told my clients today the wrong info.... Anyway, any credit company will welcome your business after a discharge in a Chapter 7... goodbye old debt... hello high interest rates.... Disclaimer: I am only a legal ass, not an attorney... We handle both creditor and debtor bankruptcy work... Quote Share this post Link to post Share on other sites
WFFC 1 #20 February 25, 2005 QuoteUmmm... if it's 7 years then I told my clients today the wrong info.... WHoops! My bad...you're right...it is 6 years...----- ~~~Michael Quote Share this post Link to post Share on other sites
jumpchikk 0 #21 February 25, 2005 Yeah, no prob... The only reason I know all this stuff is because here lately all I've done is eat, breathe and sleep bankruptcy...lol Also... I meant to add, student loans are also another non dischargeable debt... so if you have em.. you can't file bankruptcy against em.... Quote Share this post Link to post Share on other sites
JoeyRamone 0 #22 February 25, 2005 If you can not pay off 5 grand you have some serious issues. You made the debt pay it off. Quote Share this post Link to post Share on other sites
happythoughts 0 #23 February 25, 2005 QuoteAlso... I meant to add, student loans are also another non dischargeable debt... so if you have em.. you can't file bankruptcy against em.... In Florida, during their final year of law school, lawyers used to do 2 things. Get divorced and file for bankruptcy. It was the definitive plan for a while. Quote Share this post Link to post Share on other sites
skymama 35 #24 February 25, 2005 There are always ways to either cut your expenses or earn more income. Always. It's all about choices. Take care of your responsibilities and don't take the easy way out. You'll be a better man for it in the end.She is Da Man, and you better not mess with Da Man, because she will lay some keepdown on you faster than, well, really fast. ~Billvon Quote Share this post Link to post Share on other sites
champu 1 #25 February 25, 2005 QuoteClosing your credit cards is actually detrimental to your credit scores. Don't use them is the best way to do it. When an account is closed, your Fair Isaac score doesn't look at who closed it, just that you had a line of credit and it's now gone. Punishing someone, even marginally, for closing a credit card account in good standing is lunatic. I've twice discovered credit cards open and activated under my name and ssn that I only found out about because I check my credit report regularly. Thankfully neither had been used. Quote Share this post Link to post Share on other sites
