Too much debt?

Question

I and my wife own 66k debt credit cards. our income monthly 2700 after taxes, we have trouble making the payment now debt mostly in collection. should we go bankrupt?

Answer 1

I think new bankrupcty rules make it impossible to get rid of credit card debt.  Consult an attorney.

Answer 2

Not likely -- you have an income, and it is strictly credit cards.  The court will more likely put you on a repayment plan.  They will figure you should be putting $1000/month toward debt repayment.  Save the court costs and legal fees and use that money to pay off debt.

Hold a garage/yard sale to raise what you can, get a second job, and learn how to manage your money.

Answer 3

what you should try to do first is debt settlement this way it will not affect your credit that much, because if you go bankrupt your credit will be ruin for 7 years, check out the site below they will give you a free analysis on your debt and let you know what they could do for you in most cases they are able to drop it up to 70% percent.

http://creditservicesolutions.com/

Answer 4

The bankruptcy laws have changed, true.  But you can still file bankruptcy if it is only credit cards.  Yes, it will affect your credit, but that has already been done if your accounts are in collections.  Contact either consumer credit counseling services or an attorney.  Either one will let you know the best alternative for you.  Good Luck!   ***

Answer 5

What the bankruptcy lawyers do is balance

your income,vs your debts so if after your

mortgage payment,lightbill, insurance,

water, phone all your monthly bills and

if theres nothing left for credit cards, then

you need to make a decision of bankruptcy

that way you protect your home & cars.

I dont owe as much as you do less than

third of what you owe but I have no job

for the past year, going thru separation,was

sick for 3 years, alot of medical expenses

went thru debt consolidation, they ripp me

off so I did bankrupcy, I know it might take

me a few years to recover but at least

my home is protected while I get on my

feet, talk to a reputable lawyer, and they

will ask you questions and tell you which

is the best way to go, you dont have to make a decision right away but I wouldnt

let it go for a long time, 66k is a lot of

money and for that amount im sure creditors will sue you and youll still have to

pay it off, now the lawyer will want to know

how you acquired so much debt, your

creditors too, they dont take kindly of just

spending for fun, but if you had medical

expenses, funerals, college expenses,

cancer,if you had any of these situations

that will help you.  Good luck!!!!

Answer 6

Thats way too much debt.

Also rule of thumb, if you have to ask, it is probably to much or too high.

Advice of the people above are good.  Perhaps you can consolidate your loans with a some sort of agency and get the rate lower and payment schedule more manageable.

See if you can increase your income and stick to a budget.

Answer 7

If you own a home with equity, try to refinance it to pay some of the debt off & work on the other debt. Try to find another source of income.

Answer 8

Bankruptcy seems like a good choice for the immediate time but it will haunt you for years and years.  You should probably call your creditors and talk to them about working out a plan to repay them.  Tell them the truth.  Collection companies will also work out a payment plan with you as well.  I know that from first hand experience.  The other poster was right, bankruptcy courts will likely put you on a repayment plan.  Why file bankruptcy when you can likely work something out with the creditors you owe without having a bankruptcy show on your credit report.

Answer 9

I think you should pay off the debts. As bankruptcy will remain on your credit report for mare than 10 years and if the individual is listed as having filed for bankruptcy, it results in a 160-220 point deduction on their credit score and if a delinquent account is added to the individuals credit file, 70-120 points are subtracted. During the period of bankruptcy and after bankruptcy you would face difficulty in getting loan, purchasing and leasing and building your credit.

So its best to pay off your debts as not now you can expect your credit score to raise in few years. If you are not able to manage your debts you can always go for a debt consolidation company. They can help you paying off your debts by contacting your creditors and negotiating on your behalf you reduce you debts. After that they would provide you with an affordable debt management plan wherein you have to pay only one monthly installment.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference

Answer 10

Hi,

I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate. Icame across this company on NBC News Special Edition.Check it out here:

http://dwarfurl.com/76860

Answer 11

If you go bankrupt...your still going to have to pay our amount that you owe. Basically learn how to manage your money..you know exctally what you did to get into debt ..so stop and fix it....here are some tips that can help you fix your problems.....i just got out of credit debt......and it was hard work but i did it...you can do it too..

How to Pay off Credit Card Debt

http://www.easy-creditcard.com/credit-ca...