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Is bankruptcy right for me?

Txtug1977
New Visitor

Is bankruptcy right for me?

Hello all, I’m new to the forums and looking for thoughts and advice.

I am wondering am I at the pint I should consider bankruptcy. I was employed 7 years. Was rebuilding my credit after divorce. Have never filed bankruptcy before. I recently lost my job about 5 months ago. I have now found good employment but have fallen behind on so many payments. 120, 90, 90, 90 etc. about 4 accounts. Ran through savings and am finally getting back to where I can pay my bills again. It’s embarrassing to say the least. I am wondering am I at the point where bankruptcy is a better option or will I ever be able to recover from all the late payments I’ve accrued? Thanks in advance.
Message 1 of 7
6 REPLIES 6
jjb0894
Regular Contributor

Re: Is bankruptcy right for me?

Note: I cannot give you legal advice, so please do not take what I am about to say as such. You should consult an experienced bankruptcy attorney to see if bankruptcy is the right option for you.

How much do you owe?
How much do you make?
What kind of debts are they?
How old are the debts?
How delinquent are you?

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Message 2 of 7
Txtug1977
New Visitor

Re: Is bankruptcy right for me?

So here is the rundown friend.

GMAC collection 11k repossession (co-signed for an ex) 2015
Atv loan 15k 1year 6 months 120 days late. Tried to keep up payments.

Bank one 1500 120 days late

Tots debt overal 43k

I make 52k a year minus child support comes to about 45k a year.

Several credit card debts
2 auto one repo
Oldest debt is 3 or 4 years.

Hope this helps
Message 3 of 7
jjb0894
Regular Contributor

Re: Is bankruptcy right for me?

So $43,000 in debts? Does that include child support?
Child support is non-dischargable.
Not sure what state you’re in but you likely could do a Chapter 7. You MIGHT lose at least one of those cars, but I’d ask an attorney about your exemptions.

I think you could settle those old debts honestly, but I understand that isn’t always a viable option.

If I was in your shoes I would consider settling the debts first and if that’s just not doable then I would look into filing.

You should talk to a BK attorney either way. They don’t charge for a consultation or to give advice. They will be honest with you if they don’t think you need to file or should file.

If nobody is suing you though, you have some time to explore your options, you don’t have to be super quick about it.

Best of luck to you for whatever you decide to do.

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Message 4 of 7
FireMedic1
Super Contributor

Re: Is bankruptcy right for me?

It's not really said around here to say yes you should file for BK. We just take it as its your decision and give the advice on what could or would be best. Like yes all your debts would be DC'ed and you'd be debt free. On the other hand you posted about major lates. BK will delete the debts. But it wont delete the lates. They are there for the full 7yrs and a blow to your score till then. GW letters to a creditor that got burned won't happen. Least I havent seen it on here yet. So on the bright side you'd be debt free. You wont incur any more lates so the old ones will age now. I'll leave it on a high note for you. Good Luck on your decision.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 5 of 7
jjb0894
Regular Contributor

Re: Is bankruptcy right for me?

I would agree with that, I just don’t like personally suggesting it.

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Message 6 of 7
Shooting-For-800
Senior Contributor

Re: Is bankruptcy right for me?

Honestly, you should have filed while you were unemployed.

If you can pay your bills, BK is not an option by definition.

I would just IGNORE all debt until (if) the file a lawsuit.

You can also settle a lot of debt for 20-70% of the balances depending on the lender and the age.

I doubt you can file BK 7 with $52k in income.

At this point, BK does not make a lot of sense to me especially Chapter 13.

 

What is your credit FICO credit score for each CR?

If under 600, I would just give up EVERYTHING that are upside down in.  The ATV, etc.

Obviously you have to have a car.

I would quit paying all credit cards and save some cash for food and emergencies and savings.

Then I would organize all my debt by age.

Anything more than a few years old will be falling off your CR in a few years (7 years I believe.)

The older the debt is and has gone unpaid, the more options you actually have.

DO NOT make partial payments or any payments unless you are going to just pay the whole debt off.

As soon as you send $1, the age of the debt starts over.

Once you are 6 months behind, you will see some serious low ball offers for settlement.

 

NOW....if you own a home that has $100,000 in real equity in it and are in foreclosure...that is a different story.

IF you can somehow qualify, which I doubt, for Ch 7...it is nice to take the hit and start over.

 

Basically, they take your income and subtract your BASIC living expenses (rent, groceries, gas, electric, car, child support, thats about it) and whatever is left can be used to pay your creditors.  So if you have more than $200 or so left each month, then you do NOT qualify for a Chapter 7 since you can pay the creditors $200+ per month for the next 5 years in a Chapter 13 BK.  In addition, any raises or tax refunds or even inheritance you get will also go to your creditors while in Ch 13 plan (sometimes happens sometimes doesnt, but it is the rule.)

 

The advantage of Ch 13 is that it may help someone keep their home and personal belongings.

Chapter 7 is suppose to liquidate ALL items of value except a small amount.  They can even take your car in some cases.

 

Look for a Chapter 7 qualifing form online for your state.  It should have a budget breakdown.

 

GL!

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