should I file for bankruptcy

[jtmoy19607]

 

Message Edited by jtmoy19607 on 12-13-2009 10:46 AM

[Anonymous]

NO.

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Basically, is my current credit score worth keeping? Since I can’t get a good mortgage anyways. I know someone at work who makes about $14 an hour and she just qualified for a $120,000 mortgage her only debt history is credit cards as she does not even owen a car.

 

Thanks, BigtimeJ

   

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You certainly are not going to get a "good mortgage" with a worse credit score. Can you explain why you think a $120,000 mortgage is better than the $75,000 mortgage that you think you would qualify for right now? This does not make sense to me when you are only concerned about getting rid of $9509.00 of unsecured credit that you feel you can't pay back and you are not even renting on your own right now.  I seriously do not think you would even qualify for a $75,000 loan right now even if you have good credit. By the time you add taxes, insurance, maintenance and furnishings to the mix you will be giving back the 75K house in a short amount of time.

I would suggest you continue living at home, pay off your debts as quick as you can (GET A SECOND JOB) and then move to a apartment for a year while you get used to paying "real" bills on your own. After you have enough money for a downpayment and are used to paying rent and utilities for a while then think about a house.

The path you are considering is just going to keep you in the "considering bankruptcy or foreclosure" camp.

Bottom line.....if you can't pay $9509.00 then it is highly unlikely you are going to be able to pay back a $75,000 or $120,000 house.

Good luck to you....don't be so worried about what your co-worker is able to do.

[Anonymous]

Why file for bankruptcy? If it is only to wipe out the $9500 debt it is not worth the hassle.  It will cost you legal and court fees of $1000-$2000.   If you don't care about your FICO then just stop paying.  After about 5 months late they will be willing to settle for about 50%,  Save your money for those months and pay the settlement in full.  It will hurt your credit for awhile but not as much as BK.

[IOBA]

In my opinion, do not file for bankruptcy.  

Put all of your extra money into your unsecured loan that you want gone.  Continue paying on time for your car loan.

When the loans come out of deferment, start paying.  Pay all the extra you can on the loan with the smallest balance.  I personally would not consolidate the student loans, but check it out, it maybe a good option for you. 

[QueenBean]

I would also recommend not filing.

BK jacks up your credit for 10 years & should be considered an option of last resort.

[jtmoy19607]

ok, thanks everyone for the advice. anyone have any more advice?

[jtmoy19607]

Can you explain why you think a $120,000 mortgage is better than the $75,000 mortgage that you think you would qualify for right now?

I wouldn't need $120,000. but it sucks that is all I qualify for. Basically the school debt is screwing me and no big plus from it. The 75,000 is with a FHA loan, which I would qualify for anyways after bankruptcy. I know what you mean about taxes, insurance, maintenance, and other things. I did pay real bills, for years I was on my own, well had roommates. But for 6 months I was on my own, I manage well, I don't need tv, and I can drink only water when I go out. it just seems all I have to show for my life....is debt and nothing to show for it! anyways, thanks.

Hi, Justin! In the future, please refrain from posting any personal information in the forums, its for your privacy and protection. Thank you for your understanding!

--fused, myfico moderator

Message Edited by fused on 11-22-2009 03:14 PM

[jtmoy19607]

I know I won't get a mortgage for a few years but my thinking was that I could rebuild my credit while getting rid of student loans. In other words, kill my debt but while I slowly rebuild my credit at the same time. My point about the mortgage is I caN'T get one now even with the good score, so what does it matter and even afterr I kill the loan of 8500 I have to then save for a house too.

[jtmoy19607]

and as far as the second job, impossible no one is hiring and I am overqualified for positions.

[Anonymous]

jtmoy,

No.  You shouldn't file for bk.  You're living at home with no other expenses, if I recall correctly from your other similar post.  Just pay off your student loan.

You say you don't have anything to show for your debt - did you graduate?

Don't worry about being overqualified.  I've been overqualified for my last two jobs; had a friend who was an unemployed airline pilot and delivered pizza (actually for about a year) in between career jobs.