Should I file for bankruptcy??

Question

My fiance and I owe about $14,500 in bills. Some is monthly payments, like our 2 cars, some is medical bills, some is just bills we couldn't keep up with. We are 20 and 21 and have a 1 year old with another baby on the way, plus my fiance is getting ready to start school. Due to a previously complicated pregnancy I am advised to not work and my fiance is only working Part time due to begining school. We are looking into bankruptcy because the collection calls and fears of repossession are really starting to get to us. I am not sure if this is the right avenue to take or if there are other options that are better.

Answer 1

you know if you declare bancruptcy i belive they could still repo the car..

Can you sell one of the cars.

then call up the place where you have the medical bills at.

for instance if you owe 6,000 in medical bills, tell them that you are going to declare bancruptcy unless they agree to take an offer for less, tell them you can pay them 2500 and have the bill cancelled.

if you said 30,000 i'd say declare bancruptcy, but it might not be the right way to go.

Answer 2

Unpaid medical bills are usually overlooked when it comes to getting a loan for something. So, if the majority of your debt is medical bills, I wouldn't file bankruptcy. You could always call all of your creditors and try to offer a settlement for the amount owed. If you don't have insurance, most doctors and hospitals have a non-insured patient program where the amount that they charge you is based on your income. Try to keep up with the car payments, because yes, they can repossess them. If you end up with a couple of unpaid medical or credit card bills- that looks better on your credit report than a bankruptcy.

If you can't keep up with the car payments, well you guys are young enough that your credit will be ok when you're 30. Keep in mind though that it's gonna be next to impossible to get a home loan, car loan, or anything else that's big until then. There are dealerships, mortage lenders, and credit card offers that say bankruptcy ok,etc, but you'll get sky high interest rates.

Think long and hard about it because it will affect you for the next 10 years should you decide to file. Good luck!

Answer 3

Talk to your bank or credit union before you file for bankruptcy. Declaring bankruptcy isn't a ticket out of debt. It stays on your records for 5 or 7 years, I forget which. That black mark on your record really lowers your credit score and will hurt you for years to come. Your credit score (which is everything) is hard to bring up. What WILL go up guaranteed is your future interest rate. Banks will see you as high risk and be wary of giving you any credit line, especially with today's economy. You might want to look into debt consolidation, also.

Take a look at your finances; your income, and your spending. Are you spending more than you taken in? How much over are you going? If you add everything up and you come up in the red, STOP. One major flaw about modern society is putting everything on credit. When you do that, you're spending money you don't actually have. What you and your fiance need to do is to learn how to live within your means.

Do you really need two cars? If not, sell one of them. Take a look at your bills, especially the ones you say you couldn't keep up with, and ask yourself why: why do you have those bills in the first place? Why did it get out of hand? Did you even need whatever it is that you put on credit?

And you are barely old enough to drink, yet you have one kid with another on the way? Huge bummer. I mean, kids are cool, but only when you're financially stable. I don't know why people have kids so young. QUIT HAVING KIDS. YOU CAN'T AFFORD THEM. It's said that for each kid, from age 0 to age 18, a middle class family will spend on average $500,000 to $750,000. Double that for two kids.

It might sound harsh, but this is the real world. We aren't here to sugar coat it for you. This is how it is, and you need to take steps in the right direction. That being said, good luck. It is doable.