cancel
Showing results for 
Search instead for 
Did you mean: 

Which route?

Which route?

I have roughly 70k in credit card debt.  I have had it for a couple years now and just started making ground by paying it off as of a few months ago.  I've been researching more on debt and the credit scoring system.  Here is my question. 

 

Paying off my debts and bankruptcy both take about 7 years to clear my record.  If they both take about the same time to clear from my record, why would I not just declare bankruptcy and not have to pay anything back at all? 

 

Paying off my debts will actually probably take longer than declaring bankruptcy to clear my record because I won't be able to pay all my debts off in a short amount of time.  it will have to be a long gradual thing.  

 

Why would one in my situation not declare bankruptcy?

Message 1 of 4
3 REPLIES
Contributor

Re: Which route?

I understand your struggle. I have about $32k in credit debt plus $60k in student loans. And I'm unemployed. Every penny I have goes to paying my bills. I'm drawing unemployment. I hold my breath and juggle frantically each month to keep paying bills. I ask myself, too, does this make sense. Won't I be better off with bankruptucy? It's a major life decision.  It's a publc record and on your credit report for 10 years, not seven. I've read on this board the challenges people face after filing. I wonder if people feel they are better off in bankrutcy or if they have regrets about filing. I think most people file only after struggling to stay afloat and do it because they feel they have no other choice that makes any sense. That's how I feel. I'm still thinking of filing, maybe in February. Because realistically I can see me paying this credit card debt for years, paying tens of thousands more than what I owe in interest.  My student loan won't be discharged, and I know I'll be paying that for years. It's a hard decision. Do people feel BK improved their lives?

Message 2 of 4
Contributor

Re: Which route?

If you are thinking of filing a CH 7 it will take 10 years to drop off. My husband and I just filed in December 2010 and were told it will take 10 years. I believe it is a CH 13 that takes 7 years.

 

Before declaring BK we spent two years trying to pay off debt and contemplating BK but doing nothing about it. In hindsight, I wish we would have found a lawyer right away when we started thinking that BK was the way to go. But we wanted to try and "do the right thing" by paying off as much as we could first. It was an extremely stressful time and is only now starting to get better. So in my situation I wish we would have filed when we first started thinking about it, instead of procrastinating and just trying to pay off the debt that just kept getting bigger and bigger no matter how much we paid.

Message 3 of 4
Highlighted
Contributor

Re: Which route?

I just wanted to say that filing BK definitely improved my life and I just regret that I didn't do it sooner. I day the BK was discharged I felt so happy and optimistic about my future instead of thinking about how it's going to take forever to pay off my debt. Now I can start rebuilding my credit and getting my life back on track, instead on wondering how I'm going to make my next month of cc, loan, and medical bill payments....

Message 4 of 4