Is it worth the 2nd time around?

Question

I've delared bankruptcy before and have just passed the secen year mark. I am drowning in debt due to many many unexpected things over the years and was wondering how bad, I mean really bad, would it effect my credit if I declared again? Should I? It would at least stop the phone calls.

Answer 1

You state that you declared bankruptcy before and just passed the second year mark.  I'm presuming you are referring two years since bankruptcy.

There is a time limit before you can file bankruptcy again, shouldn't be hard to google, or yahoo, but you can't file bankruptcy again two years later, pretty sure it is a higher time line.

The calls?  Easy, just write the creditors and ask them to please contact you by mail only, under the Fair Debt Collection Practices Act they have to stop calling you.  Request that they contact you by mail only.   Also put F.D.C.P.A. in your browser, read it, and familiarize yourself with it.  Anything perceived by the hearer of the call as harassment, is harassment.  This is federal law.  If your state law has stronger laws re debt collection calls then your state laws will take precedent.  Again per your browser state of whatever debt collection laws.

The F.D.C.P.A should be enough , they are pretty strong.

Also start w/the National Foundation for Credit Counseling, most respected cr. counseling firm, funded by both banks, and the U.S. government. http://nfcc.org    Good luck, you are not alone, these are tough times, I've been around a few recessions, and don't remember one this convoluted, many different factors this time around, threatening American way of  life, as we knew it the last fifty years.

Answer 2

You didn't mention what type of BK you declared before and what type you are looking to declare now.   If you had filed a Chapter 7 before and looking to file another Chapter 7 you have to wait 8 years(not 7) from the date the original one was discharged.  So you would not be able to do that now anyways.  However, enough time has passed where you can file for a Chapter 13, or a Chapter 7 IF you had previously done a Chapter 13.

When you do file you will find it is tougher to qualify for a Chapter 7 and you may be forced into a Chapter 13 which is a Repayment plan.  While things happen this second bankruptcy will be looked at with a bit more scrutiny.   Not to say it would not get approved, just that the trustee may have some tougher questions for you.

Not knowing the type of debt you have, The best thing you may want to look at right now is getting into credit counseling.   They can often lower your interest rates and make arrangements to get you back on track for your unsecured debt.  If you do this be sure that they are a member of the National Foundation for Credit Counseling http://www.nfcc.org

Answer 3

This class is very effective in helping you out with debt.  It is not credit councling, or bankruptcy.  This is a way of learnig how to manage your debt and become debt free. http://newfocus.org/

Answer 4

You can't go through life filing bankruptcy every 7 years.  You have to learn how to manage your debt.  The bankruptcy laws have changed and its more difficult to file then it was years ago.  And I think you have to wait 10 years before you can file again but I could be wrong on that one.

Answer 5

It would effect your credit. It will stay on your credit report 7-10 years (depending on what Chapter type you file). You know what else would stop the phone calls? Try debt counseling, it should be able to turn your bills into one payment. I haven't done it personally and have heard mixed reviews, but you should only use bankruptcy as a LAST resort as you will have bad credit for a long time afterward (and either be denied things or have a super-high interest rate on things).

People think they save money w/ bankruptcy, but with the bad credit you'll get, you might owe that much in future sub-prime interest

Answer 6

Well it's not a good solution unless you really owe many thousands of dollars.               If you created a need to do this twice, you really need to look at what's wrong with the way you manage money.      

Perhaps if the situation is that bad; go ahead & do it..........but don't let it happen again.  This is not something you can keep doing several times in your life.             You need to save money, stop living paycheck to paycheck, and stop borrowing money.  Put your money in the bank.....and have the bank pay you interest.............not the other way around.