Debt Consolodation or Bankrupcy

[Anonymous]

Last year I purchased a home and maxed out on my credit cards totaling 25k. Having a touch time meeting all payments on time. Not sure what to do at this point. Cannot get any new credit at this point. Any advice on how I can resolve this situation? Thank you.

[MyLoFICO]

I am in a similar boat. We need more info to make a recommendation though. Income, each card listed with its balance, limit, and APR. If you have been maintaining for a year with no lates then you probably just need to organaize them to maximize the effects of your payments. 

[Aduke1122]

If you could list your cards and balances with CL and Aprs that would help a lot for us to see where you need the most help at .

[RobertEG]

Have you looked into the distinction between filing a Chpt 7 vs a Chpt 13 bankruptcy?

You dont have to necessarily stiff the entire debt.....

The ultimate decision as to whether to file for BK, and if so under what provision, requries a detailed analysis of your overall finances and assets.

I would advise an initial consultation with a BK attorney.......

[wa3more]

Like the others said, we need more information, details on debt and income level would help.

I'm not a fan of debt consolidation. People can't borrow their way out of debt and only make the problem worse.

[RobertEG]

Do you currently have a home with equity upon which you can obtain a HELOC?

A problem with obtaining any loan to pay other debt is the temptation, when the loan is received, to use a portion for purposes other than paying existing debt.

Thus, you dig a deeper debt hole.

If your consolidation loan provides for payment directly to an existing creditor(s), it will not increase your total debt, and might help in the approval process........

[wa3more]

HELOC as a last resort. Be careful going down this path.

[Anonymous]

I don't know where you live, but in Wisconsin we have something called Chapter 128 debt consolidation.  It allows you to choose what debts that you want to include (credit cards, payday loans, medical debts, reposessions, title loans, private student loans, etc) and you pay it back over the course of 3 years interest free.  It is filed with the court system, so your creditors must accept it, but it does not show up on your credit report like a bankruptcy does.  I know it is definitely not a very common thing, but it may be worth checking to see if your state has something similar.  I got in over my head (I could still make my payments, but it was ridiculous) and put about $9,000 worth of debt into it and am now paying $268 a month.  Much more manageable!  Your creditors may close your accounts and consider them to be chargeoffs, but they are not allowed to contact you anymore.  (sigh of relief)  I am so happy that someone mentioned it to me and am currently in the process of getting my credit mortgage-worthy!

[morgacj2004]

Although I don't know your info such as income other assets etc I would strongly urge u to consider options other than BK. Debt consolidation would be an option. Possibly taking out a personal loan if u can get a decent APR is another option. Refi if u have equity?  All are better than BK