Considering filing bankruptcy, pros & cons?

Question

i am considering filing a personal bk. (dont know if it would be a 7 or 13), ive racked up about 120k in credit card debt & am considering just filing bk. can anyone tell me the pros & cons here & if you did it & thought it to be worth it?

Answer 1

$120,000? Wow. I don't know what your income is, but that seems insurmountable. I do recommend filing for bankruptcy. It will ease your sanity and keep collectors off your back. Your credit will be messed up for 7 years, but I still says it's worth it. Just stay disciplined from that point forward. But also, it's not like you won't be able to get ANY credit for 7 years. Your credit score will gradually move up as time passes, so your situation will improve as time passes. You'll have to pay higher interest rates or put down deposits on some stuff, but you will be able to get some credit.

Answer 2

You can check out this website and get a little more info for what is involved in filing bankruptcy.....www.bcsalliance.com  Great site for credit, debt and bk information!! Best advice for you..contact a qualified bk attorney in your area, most will see you on a free first consultation or free first hour. They will want to look at your paystubs for the last 6 months, a list of your debts, assets, last 4 years of taxes, and from that info will be able to tell what you qualify for. Chapter 7 now requires a credit counseling course, 1/2 before the 341 Creditors Meeting, and the last 1/2 after you go to court. These are mandatory per the new bk laws, and they are nothing to worry about, actually very easy to take. Once you find out what you qualify for, if chapter 7, you take the cr counseling course, got to court, take the last half of counseling, then in roughly 90 days the case is discharged. and that's it.  The chapter 13, the new laws now require you to pass a means test, which basically is qualifying the amount of income you make per your state and seeing if you do qualify based on that. The ch 13 requires a payment plan which is set up thru the courts paid to a US Bankruptcy Court Trustee, who is with you the time of your required plan, usually runs about 5 years. The plan payments pay back the secured debts first...home loans, vehicle loans, and pays the unsecured credit cards last. The good thing about BK, it wipes out your debts in a Chapter 7...the 13, takes longer to do, and are allowed to keep homes, cars, thru both. The Bankruptcy, either one will stay on your credit report 10 years, the debts on  your credit report for 7....If you qualify for a chapter 7, you can re-build your credit sooner than a 13, you will probably have more credit card offers before it's even discharged. The 13, slowly re-builds while paying into the plan. I'm not a fan of the chapter 13, but, it does help keep homes and cars, and it's there if you don't qualify for a chapter 7....I just don't like it cuz it's paid out of your wages by how you get paid, weekly, bi-weekly, and sent directly to the courts, if you needed to finance something in the next 5 years, you need the courts approval first. I filed a chapter 7 last year, have a brand new harley joint with the hubby and was offered a good credit limit with a credit card company so I'm re-establishing my credit now. I pay everything on time and try to pay more each month. It's not easy or fun to file and it should be your last resort. But, with the debts that you have, I would consult an attorney and see what they say. If you have any questions, you can email me....Good Luck!

Answer 3

Advantages:

* If successful you'll wipe a huge amount of debt off yourself.

Disadvantages:

* You may not be as successful as you hope.

* Your creditors may get to take away some of your assets.

* You will be unable to get any decent credit for 7-10 years.

Answer 4

I was close to a family that did it.. figure $1500 to the lawyer up front, gather up all your bills, it will take a few months for the filing and court date.  You have to take a class online and then take a class after your court time.. then you have to wait it out at least 6 months paying the court before they even agree to it but at least you get the phone calls to stop.  You dont' own any credit cards for about 6 years. But she said their credit score is higher than it was 2 years ago when they did this because they don't owe anyone anymore.  So in 4 years they will be able to get credit again and it didn't effect them owning their home because they did the Chapter 13 not the Chapter 7.  Its very stressful for her and the husband they got 2 little boys but its done now.. and she is feeling better but everything is bought in cash.

Answer 5

$120,000 on credit cards?  Good lord, I hope it was on hookers and coke.

Answer 6

120,000 dollars good lord what are u people doing!

Answer 7

COWARD...  You enjoyed using the credit now find a way to pay it off so others don't have to pay for your mistakes.

Do debt consolidation and have some values and pride and respect!    I don't understand people who buy and buy and buy and spend and spend and spend and then try to get out of it.  

You should be ashamed of yourself!