Is Bankruptcy right for me?
admin | Oct 10, 2010 | Comments 10
I despise the thought of filing bankruptcy. I know it can really screw up your life. Not only your credit, but your future chances of getting a home or a vehicle. I’m only 22, married, with 3 kids. My husband and I got in WAY over our heads with credit cards, personal loans, etc, when we initially got married. Now that we have 3 children, money is beyond tight. We can’t afford everything, and our priority is obviously our children, food, a vehicle, and a roof over our heads. Unfortunately we can’t just ignore everything else. Creditors call us 100 times a day. We can’t make payments anymore and we’re starting to make threats. We know it’s only a matter of time before these people initiation taking things that we used as collateral, or taking us to court. We’ve considered using CCS, but we’ve heard some terrible tales about them. Not to mention, they don’t even pay everything that we have anyway. Nearly everyone around us has told us to just file bankruptcy. Maybe this is our only option…
but at the moment we’re renting a home from my mother-in-law, and I’m frightened we’ll need to buy a home soon. How long would a bankruptcy prevent us from doing so? Also, my husband has bunged making payments on his truck (that he bought in Dec. 2006). We know that it will be repo’d soon. If we were to file bankruptcy within the next few months, would the repo hurt him more on top of the b.k. or would it just go along with it?
Thankfulness…
Also, our debts only add up to about $8500, but there’s just no way we can come up with that much money. I’m currently a stay-at-home mother, and my husband only makes $35,000 a year.
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well i did it when i was 20 i was married and had kids as well i am now 23 and yes it is still on my credit but my credit score has went from rock bottom to about 547 now its not fantastic but it better than it was. it also depends on how you file mine took care of everything but school loans if ur hubby’s truck gets reposed you will still have to pay the difference we let out car go back we still owed 14,000 and they sold it for like 5000 and in turn we still owed the difference so it really depends on how you feel about it if you really reckon you will not be able to make ur head above water you should do it while ur young and then you wont be 40 and still struggling so excellent luck!
Be very careful with CCS. I worked in a call center for one of these credit counseling services. Let me caution you they are not all on the up and up. People would call saying that their creditors still call and they got no reduction to their interest tariff. Just check up on the company you might go with. As far as the bankruptcy, my wife is going through it aptly now. If you already have a household and cars and everything you need to have for the next few years, you should certainly consider it. As long as you are not looking for any new buys in the near future you should be fine. Just realize that once you go through bankruptcy you will have to pay for everything you need in cash. If you can do that then I would say go for it.
Excellent luck.
Talk to a bankruptcy counsellor . We recover after about a year. The peace of mind is fantastic. now getting letters from credit card companies but not biting .We now question do we need it or want it? Have you told your creditors about bankruptcy they may bend a small.
Bankruptcy is a last resort, when there is no light at the end of the tunnel, and you can never make out of debt.
Avoid the consolidation companies, most are rip-offs.
Document every call from creditors, date, time, what who (person and company) called and what they said. Write them all down, keep a log. They can call to try to collect but may not harass you. Have everyone in your family tree do follow through on this.
You should consult with a professional bankruptcy attorney on this. They usually have a emancipated initial consultation. They can usually aid with debt negotiations even if you do not file for bankruptcy. Bankruptcy rules can vary by state and locally, so the preeminent advice is from an attorney in your area.
Only use a credit counciling service that is approved by the Bankruptcy court in your region/state.
You need to STOP making decisions that are destroying your skill to win financially!
If you cannot pay cash for a touch – don’t buy it!!! Purchasing a truck when you are behind on everything else is not financially savvy – it is a go made out of anxiety.
You say you only owe $8,500. Is that aptly?? I can caution you this, if I woke up tomorrow and I was in your shoes, I would go make at smallest amount three jobs by tomorrow morning and pay this stupid, paltry debt off in three or four months and place a STOP to this madness!
I would also change my spending behavior that got me into the mess. I started winning financially when I started spending ALL of my money ON PAPER, BEFORE I received the paycheck. You can make FREE budget forms at http://www.josephsangl.com/?page_id=151 Go pull one up and spend all of your May pay ON PAPER BEFORE you hear the money! Make George Washington, Andrew Jackson, and Ben Frankling go where you want them to go.
Preeminent of luck!
You dont need to file bankruptcy. Go make a section time job or have your husband deliver pizzas at night for a small while. Sit down with him and initiation a Budget. See what you can cut and find some money. You can make it.
Sell the truck like, yesterday. you’ll make more out of it if you sell it. If they repo it they’ll sell it for way less and they’ll come after you for the difference between what they make and what you owe.
Go do daveramsey.com and listen to his radio show or find a radio rank near you to listen to. He has lots of excellent advice on money and debt.
Initially of all, your husband needs to just turn in the truck and not wait for a repo. It’s not too late for him to call and try to straighten the payments out. If you have a repo on your record, it’s hard to make another vehicle loan again, maybe even worse than bankruptcy. I declared bankruptcy a few years ago due to about $125,000 in medical bills (no credit cards) and 25% of my pay was being garnished. I made the choice because I knew that it would restore my credit quicker than paying on it for 10-12 years. I’m trying to rebuild my credit now, and it sucks. My one saving grace when I went to buy a car was that I never had a car repossessed.
For $8500 I would advise you not to declare bankruptcy until you check into loan consolidation with a reputable company. If you have one payment each month things don’t tend to fall thru the cracks. And you should do this soon before garnishments roll in and then you really make bogged down. Make rid of credit cards and don’t have any more kids until you make out of the hole financially. I know that sounds like an intrusive thing to say but babies are expensive and it’ll keep you out of the job market longer and really you need to work. Families really can’t survive with one income these days.
Honestly, he doesn’t make enough money for you to be a housewife. That’s the bottom line here. You need to take a job while he’s not working, so that way you don’t have to pay for babysitting. (Or both work at the same time if your mother-in-law or someone else will babysit cheap.) Maybe you need to live in a small apartment rather than a household, or go in with your parents or his.
Have you made a budget? Do you know where your money goes?
As a bankruptcy attorney, my initially take is that your $8500 in debt doesn’t sound so terrible. But you soon will have a lofty deficiency aver against you as a upshot of the truck repossession.
The boards 7 might be a excellent option.
It doesn’t seem like you would be forced into a the boards 13 from what you say.
Bankruptcy is not the end of the world and your situation will improve if you do file.
You should make into a budget and a cash basis spending plot after you file if you choose to do so.
See resources at my website:
http://www.bankruptcy.lakelaw.com
Look for a board certified attorney at http://www.abcworld.org
satisfactory – you need aid. Your financial situation sounds bleak but $8,500 is not a huge amount of money and there should be a way for you to resolve your finances without filing bankruptcy.
Bankruptcy doesn’t mean that your debt disappears – you’ll still have to pay for your debts and bankruptcy puts a lofty black mark over you for 7 – 10 years, while your children are growing up.
Please consider all other options. There are alternatives and you should make every attempt to find a solution that does not land you in court. There’s a website here with some suggestions and many useful links for doable solutions. I hope this helps.
Excellent luck!