Is it a good idea to file for bankruptcy?

Question

I have close to $30000 in debt. I owe so much due to a car accident judgement for about 20k. As a result, my license has been suspended since i couldnot afford to make the payment. i have a job that pays 30k, and spend close to 4000/year in school tuition. I would have to pay $300/month for the next 10years to get out of debt, which is completely impossible cuz i can't even save 100/month. My credit score is so bad.. that it will increase by 75 points if i decide to file for bakruptcy. What should i do?... I know the bankruptcy will look bad on my record for 10 years. but at least i will be debt free and who knows, i might be able to get my license back, get a better job, and rebuild my credit.. within the next 3 years..

What do you think???

Answer 1

Filing bankruptcy is a very personal financial decision, and only you and people close to you can contribute to it.  But in general, if you can do anything not to file it, it's well worth it.  Bankruptcy usually takes you from  one bad situation to a worse one.  It should literally be teh very last resort./

Answer 2

Your judgement will not go away by filing bankruptcy.  So the 20K will still have to be paid.  You should start making an effort to make at least minimal payments on all of your debts and eventually you'll have them paid off and your credit will be improved by making payments.

So you've got to pay $10.00 per day to get out of debt, that's better than filing bankruptcy.

Good Luck!  I've been there.

Answer 3

i think you are beat up and bruised and you want to give up... you got yourself into this mess, you should be able to get yourself out of it. You need to get a second or third job to make that extra money to get current. you will not be debt free.. Student loans can not be cleared by bankruptcy... depending on the state you are in,,, you can not be cleared of court ordered settlements by filing bankruptcy.. you might add lawyer fees on top of the debt. DONT DO IT...

Bankruptcy will hurt your chance of getting a job at all as some employers check that and see you as a liability... you need to get more  money and start paying off the debt so you can get your license back... if you are at school then get your but back in the dorms to save money or live with your parents again... live with some friends to reduce your rent.. sell your car that you arent driving... buy a bike at the nearest yard sale and get yourself another job... deliver sandwiches for jimmy johns or chinese food.. anything to get money..  

Answer 4

Your are correct about the bankruptcy being on your credit report for 10 years, it will take a good few years to re-establish your credit and get back in good standing. You mentioned school tuition, if you have any student loans, those are not dischargeable in a bankruptcy filing. Never heard of a credit score increasing with filing a bk, but...it will wipe the slate clean. The only way to tell what you qualify for is to find a bankruptcy attorney in your area and they will need to look at your last 6 months of pay stubs, assets, list of all your debts (everything with the new laws has to be included), and the last 4 years of your taxes. Most will see you on a free consultation and once they review all of your information they will be able to tell you what you qualify for. We can't tell you what to do, but a good attorney will be able to advise you on what you can and can't do with your debts. You can review this website, it has great information on debts, credit and bankruptcy information and all the chapters of filing..........Good Luck!

I'm sorry..I forgot to include the website in my original post...it's......    www.bcsalliance.com....it's a great site for debts, credit and bankruptcy information.