Fresh Start

[Anonymous]

Hello myfico community. I've stumbled across this forum through numerous web searches. My situation at the moment needs to be handled finally after years of neglect and denial. I've realized I need to file for bankruptcy. My current debt exceeds 70k. I've burned relationships with credit one, first bank. I have a car that is up for repossession. My current credit score is 500. I do have student loan debt about 7k. Most of my debt is from Sallie Mae from a technical school that folded that reneged on its lifetime guarantee of finding graduate students a job. I've talked to a bankruptcy lawyer that said based on the school folded and not holding its agreement that debt can be removed through bankruptcy. I'm asking the my fico community to offer some pointers and steps I need to follow to get my credit back to life! I've read soulmasters guide to rebuild credit but I first need to take the bankruptcy part.. Any advice and personal experience with these situations is greatly appreciated and will be info put to good use.

Sincerely,
Coldworld

[grassfeeder]

read this 10x over.....

http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

[Shooting-For-800]

If you can qualify for chapter 7, just do it.

You will never get out of debt and your credit is already ruined.

Yes, it sucks.  No, it is not the end of the world.

If you do not have to pay all your debt, perhaps you can afford your car then.

I am not a lawyer, I am not a banker, I have no finance degree.

I have however been through it all. 

I tried for years and years to pay off my debts.  

I spent 25k settling credit cards and ended up BK anyway when I could not pay the rest.

A year later, I feel so much better.  

So much stress off my shoulders.

If you have 70k at even 10% interest it would take you 10 years minimum to pay them off at 1000 per month.

If you qualify for chapter 7 and have no major assets, I would recommend looking into chapter 7 for sure.

Good luck.

BTW - look at my signature.  

I got 6 regular credits cards and 2 store credit cards totaling $15k in limits within 1 year of my BK discharge!

There is life after BK.

[Anonymous]

Thanks shooting for 800.

I don't have any assets at all and more than likely couldn't afford 1000 a month, so chapter 7 is what I am aiming for. It's a relief to see all the stories of people rebuilding their credit after BK. People that I know always have bad things to say about it but I realized they did not have much Information nor did they educate themselves about the process. I'm nervous and excited to make the next step. How much money does it cost to file anyway? I appreciate the time you out in to respond to my situation!

Coldworld

[Shooting-For-800]

Generally, 

Lawyers are $1000-$2000 for simple cases and the filing fees are around $250-$500 to the government.

I filed everything myself, but I am crazy. 99% of normal people need a BK lawyer.

BK is not something to be taken lightly, but it is a law for a reason.  Sometimes, there is no other logical choice.

Google AVVO to find another board (lawyers) and research specific questions.  I asked about 25 myself.

Hang in there!

[Anonymous]

Appreciate that info. Will def do some more research before I go ahead and finally pull the trigger. If I can figure it out on my own I would def file myself