Does bankrupy reall hurt credit when you are so deep you don't have any money to pay for any debt?

Question

Does bankrupy reall hurt credit when you are so deep you don't have any money to pay for any debt?

Answer 1

Not really.  Bankruptcy stays on your credit report for an extra 3 years - 10 rather than 7.  However, it's more difficult to discharge debt these days.  Most bankruptcy lawyers will see you for free for the first appointment.  Go see one and ask a lot of questions about how the new laws work.  Heck, go see a few and compare the answers so you know whether anyone is blowing smoke.

Answer 2

You are screwed.  It will take a decade or more to clear up your credit after you pay all your bills.  If you go BK, forget it.  You are on a cash basis forever.  If anyone tells you different, they are lying to you.  I worked as a skip tracer and credit manager for a major credit company for years and I know how they think.

Answer 3

Consider your situation carefully, the bankruptcy laws have changed and credit card debt is no longer forgiven.  In a nutshell if something catestrophic has happenned in your life, then yes by all means it's worth it.  If it was caused by out of controlled, gotta have it now type spending then you could benefit from credit counseling before you go bankrupt and do it all over again.  Good luck

Answer 4

as stated the laws have changed for Chapter 7, now it more like a chapter 11 or 13 (effective reorganization = u gotta pay still).  look and see how the new laws will affect your particular situation. Discharging debt under 523 is not the norm now

Answer 5

Bankruptcy is really hard. It takes a while to get a clean slate, even though that's what bankruptcy is offering. It's also hard because you usually have to come up with some money up front for the fees associated with filing. If you're considering bankruptcy, you probably don't have $1,000+ to do that with.

The best option for debt trouble is negotiating your debts with your credit companies to keep the payments from swallowing all of your income. Typically, you have to get a counseling agency to call on your behalf. If you try to work with them yourself, many of them will not cooperate with you because you are not enrolled in credit counseling. Try http://www.womenindebt.info. Good luck!

Answer 6

i just click on because i am in the same boat..but i am really thinking of taking on a second job..paying off on of the cc at a time with the extra money..

Answer 7

Yes and no. The best thing for you to do is have a consultation with a trustee. You don't have to sign, you can just talk to them about the pros and cons. They'll try to make it look prettier than it is, but they will educate you better than most people here because the pros and cons of bankruptcy depend on what country you're in. It IS better than consumer credit counseling. With them you just end up paying someone to divide your money among your bills, while ruining your credit more permanently - and you are capable of dividing your money among your bills yourself! Consumer credit counseling would be the worst choice, next to not paying or doing anything at all.

Just make an appointment with a trustee - several even - and educate yourself on your options and the ramifications of your decisions before you do anything.

:)

Answer 8

Yes bankruptcy will hurt your  credit but if your credit rating is already in the tank because you haven't paid bills in months and months it's irrelevant. Bankruptcy will give you a fresh start and even if you have to pay back in a Chapter 13 rather than a straight discharge in a Chapter 7, at least it'll be under the supervision of the Court. AND you can finally start sleeping at night. I never ever had a client who took bankruptcy tell me that they regretted it.  It could save years off your life just by relieving the stress. You CAN rebuild your credit. You might not survive that heart attack from stress.